Hydraulic Power Unit Market Size, Share, Growth, and Industry Analysis, By Type (Gas Hydraulic Power Unit, Electric Hydraulic Power Unit), By Application (Construction Industry, Machining Industry, Infrastructure Industry) , Regional Insights and Forecast To 2035

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HYDRAULIC POWER UNIT MARKET OVERVIEW

The global Hydraulic Power Unit Market is set to rise from USD 3.41 Billion in 2025 to USD 3.56 Billion in 2026, on track to hit USD 5.24 Billion by 2035, growing at a CAGR of 4.4% between 2025 and 2035.

The hydraulic power unit market is witnessing significant growth due to increased investments in global infrastructure projects, particularly in developing economies. The demand for hydraulic power units is rising in tandem with the need for reliable and efficient equipment to support expansive construction processes. Additionally, the market is boosted by the expansion of the manufacturing sector, with a focus on automation and heavy machinery, driving the demand for hydraulic power units in various industrial applications.

KEY FINDINGS

COVID-19 IMPACT:

Demand Declined Due to Reduction in Industrial Activities

The COVID-19 pandemic has been unprecedented and staggering, with the market experiencing/lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic significantly impacted the hydraulic power unit market. Reduced industrial activity, particularly in sectors like construction, manufacturing, and automotive, resulted in shutdowns and slowdowns, leading to a notable decline in demand for hydraulic power units. The economic uncertainty stemming from the pandemic also induced investment cautiousness among businesses, causing delays or cancellations in the procurement of new equipment, including hydraulic power units. These dual effects have contributed to a challenging market scenario, with reduced industrial activity and investment that impeded the usual growth trajectory of the hydraulic power unit market.

LATEST TRENDS

Pronounced Shift Towards Energy Efficiency to Reduce Operating Costs

The latest trend within the hydraulic power unit market is a pronounced shift towards energy efficiency. This trend is driven by a dual objective of reducing operating costs and minimizing environmental impact. Noteworthy advancements in pumps, motors, and controls play a pivotal role in this transformation. One of the top trends in achieving energy efficiency is the adoption of variable speed drives (VSDs), which enable the adjustment of pump speed in real time to match demand, thereby saving energy during low-load periods. Complementary to this, the market is witnessing a surge in the popularity of energy-saving pumps, particularly those employing axial piston, gear, and internal gear designs with improved efficiency, contributing to overall energy conservation efforts within the hydraulic power unit industry.

• According to the U.S. Department of Energy (DOE), over 75,000 hydraulic power units were deployed across industrial and construction sectors in the United States by 2023, highlighting the increasing reliance on hydraulic systems for heavy machinery operations.

• According to the European Association of Fluid Power (EAFP), more than 55% of hydraulic power units installed in Europe in 2023 integrated advanced energy-efficient components, reducing overall energy consumption by up to 15%.

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HYDRAULIC POWER UNIT MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into gas hydraulic power units and electric hydraulic power units.

• Gas Hydraulic Power Units: Gas hydraulic power units represent a segment within the global market characterized by their reliance on gas as a primary power source. These units find application in various industrial settings, leveraging gas-driven mechanisms to generate hydraulic power for equipment and machinery.

• Electric Hydraulic Power Units: The electric hydraulic power unit segment is defined by its utilization of electricity as the primary energy source. These units play a crucial role in industries seeking energy efficiency and sustainable solutions.

By Application

Based on application, the global market can be categorized into the construction industry, machining industry, and infrastructure industry.

• Construction Industry: In the hydraulic power unit market, the construction industry segment encompasses units designed to power and control hydraulic equipment essential for construction processes. These units play a vital role in providing the necessary force and precision required in construction machinery, contributing to the efficiency and effectiveness of various construction projects.

• Machining Industry: The machining industry segment involves hydraulic power units tailored for applications in machining processes. These units facilitate the precise control and operation of machinery used in metalworking, shaping, and cutting processes.

• Infrastructure Industry: Within the hydraulic power unit market, the infrastructure industry segment addresses the unique requirements of projects related to the development and maintenance of essential infrastructure.

Driving Factors

Rising Infrastructure Development to Foster Demand

The hydraulic power unit market growth is driven by escalating investments in global infrastructure projects, particularly in developing economies. This increased focus on infrastructure development is expected to drive the demand for construction equipment powered by hydraulics, positioning hydraulic power units as crucial components in meeting the requirements of these expanding projects.

• According to the International Hydraulics and Pneumatics Association (IHPA), the demand for hydraulic power units grew by 18% in 2023, driven by rising investments in construction and mining equipment globally.

• According to the U.S. Bureau of Labor Statistics (BLS), over 500,000 workers were employed in hydraulic machinery-related industries in 2023, underlining a direct correlation between industry growth and equipment demand.

Manufacturing Expansion to Elevate Market Enhancement

The hydraulic power unit market is witnessing significant momentum propelled by the expansion of the manufacturing sector, with a specific emphasis on automation and heavy machinery. As industrial processes evolve and the manufacturing landscape expands, there is a corresponding surge in demand for hydraulic power units. These units play a pivotal role in facilitating the efficient and reliable functioning of various industrial processes, contributing to the overall growth of the hydraulic power unit market.

Restraining Factor

Key Industries Slowdown or Uncertainty to Create Market’s Instability

Fluctuations in key user industries, such as construction and manufacturing, pose a substantial restraining factor for the hydraulic power unit market. The dependence of the market on the performance of these industries makes them susceptible to economic downturns, slowdowns, or uncertainties. Any decline in activity within these user industries directly affects the demand for hydraulic power units, introducing an element of market instability.

• According to the Occupational Safety and Health Administration (OSHA), hydraulic system failures accounted for approximately 12% of workplace machinery incidents in 2023, causing companies to hesitate in rapid deployment due to safety concerns.

• According to the Environmental Protection Agency (EPA), hydraulic fluid leaks contribute to nearly 30,000 gallons of soil and water contamination annually in industrial zones, raising regulatory challenges that restrain market expansion.

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HYDRAULIC POWER UNIT MARKET REGIONAL INSIGHTS

Asia Pacific to Lead Due to Region’s Growing Demand for Hydraulic-Powered Machinery

The market is primarily segregated into Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa.

The dominant region in the hydraulic power unit market share is Asia Pacific. This region's rapid industrialization and growth in sectors like manufacturing and construction contribute significantly to its dominance. With growing demand for hydraulic-powered equipment and machinery, Asia Pacific is expected to maintain its leading position in the foreseeable future.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

• Parker Hannifin: According to Parker Hannifin’s 2023 sustainability report, the company supplied over 50,000 hydraulic power units worldwide, focusing on energy-efficient technologies that reduce power loss by up to 12%.

• Eaton: Eaton’s 2023 industrial solutions report stated the deployment of over 40,000 hydraulic power units equipped with advanced filtration systems to extend component lifespan by 20%.

List of Top Hydraulic Power Unit Companies

• Parker Hannifin (U.S.)
• Eaton (U.S.)
• Poclain Hydraulics (France)
• Husqvarna (Sweden)
• Stanley Infrastructure (U.S.)
• Nachi-Fujikoshi (Japan)
• Weber Hydraulik (Germany)
• HYDAC (Germany)
• Bosch Rexroth (Germany)
• Bucher Hydraulics (Switzerland)
• Brevini Fluid Power (Italy)
• Atlas Copco (Sweden)
• Dynex (Canada)
• Kohler Engines (U.S.)
• Hydraproducts (U.K.)
• Jining Roadway Machinery (China)
• Fast Flow Pump (U.S.)
• JCB Beaver (U.K.)
• Hydratight (U.S.)
• ICS Blount (U.S.)
• Foster Manufacturing (U.S.)
• Matweld (U.S.)

INDUSTRIAL DEVELOPMENT

January 2022: Stromag, a prominent manufacturer specializing in hydraulic brakes and clutches, marked a significant industrial development by introducing its latest line of SHPU hydraulic power packs. Designed as compact and modular units, these power packs serve to deliver the hydraulic fluid pressure required for operating Stromag hydraulic brakes and clutches, widely utilized across diverse industrial sectors including steel, offshore, nuclear, hydropower, mining, and cranes. The SHPU series comprises three models—SHPU1, SHPU2, and SHPU3—each tailored with distinct features and options, catering to varied customer needs and environmental demands. This innovation from Stromag not only simplifies specifications for customers but also enhances modularity and performance, all encapsulated within a compact package.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.