The Hydraulic Cylinders Market Projected to Grow at a CAGR of 5.0% and Generate a Revenue of $16,977.3 Million by 2028 - Research DiveDownload Sample Reports Overview
The global hydraulic cylinders market size is predicted to be valued at $16,977.3 million by 2028, surging from $11,568.7 million in 2020, at a noteworthy CAGR of 5.0%.
Covid-19 Impact on Hydraulic Cylinders Market
The coronavirus outbreak led to drastic changes and severe disruptions for functioning of various business owing to social distancing norms that led to shortage of labors and import-export restrictions that led to a delay in availability of raw materials and revenue losses due to closure of hydraulic cylinder manufacturing units. In addition, decline in demand from end-use industries such as construction sector owing to cancellation or postponements of construction projects has led to drastic decline in demand and sales of hydraulic cylinder market growth. Along with construction, the end-use applications of hydraulic cylinders in material handling, oil & gas, mining, industrial, aerospace, and other sectors also experienced significant decline in the demand. Due to lockdown restrictions, closed borders, and diversion of government & private budgets on healthcare & pharmaceutical sector, there has been a decline in the revenue of hydraulic cylinders during the pandemic.
Various company initiatives to curb the spread of COVID-19 among people working in hydraulic cylinders manufacturing unit is helping people to recover from chaotic situation. For instance, as stated in Business Standard, the popular news platform, on May 28, 2021, Wipro Enterprises, the leading hydraulic cylinder manufacturer had closed their production plant for three days from May 28, 2021 to May 31, 2021 to break the COVID-19 chain and to ensure safety of its stakeholders.
Global Hydraulic Cylinders Market Analysis
Hydraulic cylinders market is gaining huge demand from aerospace, aerial work platforms, oil & gas, energy, and shipbuilding sectors. In addition, hydraulic cylinders find range of applications in our daily lives as well. For instance, the trash collecting truck uses hydraulic technology that is used to compress trash at the back of the vehicle. In recycling units, the hydraulic cylinders are used to squeeze the metals and other substances. This is majorly owing to the ability of hydraulic cylinders to exert tremendous amount of force that allows the machines to perform mammoth tasks with ease. In addition, they can be used to generate enormous power even if they are located far away from the power source. Hydraulic cylinders are equipped with automatic overload protection and speed control which makes them suitable for heavy construction and material handling industries. All these factors are anticipated to propel the hydraulic cylinders fduring the forecast period.
However, hydraulic fluids which is an important part of hydraulic cylinder are prone to leakage which can cause serious health issues and damage nervous & respiratory system. In addition, this hydraulic fluid requires continuous filtration as the contaminants presence in the fluid can affect the system performance and productivity, thereby damaging the entire system.
Various advantages of hydraulic cylinders over pneumatic, mechanical, and electrical systems are estimated to generate huge growth opportunities. For instance, compared to pneumatic, mechanical, and electrical systems, hydraulic cylinders are durable, generate more power, and facilitate efficient performance. Hydraulic systems comprising of hydraulic cylinders facilitate accuracy and ease of control as they are easy to start, slow down, stop, and accelerate with the use of simple push button and levers. The presence of flexible hoses and tubes generates tremendous amount of power. Hydraulic cylinders are safe to use even in chemical plants and mines as they do not cause sparks. Micrometric speed variations are possible due to hydraulic components which also eliminate undesirable noises.
Global Hydraulic Cylinders Market, Segmentation
The global hydraulic cylinders market is segmented based on type, design, application, and region.
The type segment is further classified into double acting and single acting. Among these, the double acting sub-segment is anticipated to have a dominant market share and shall surpass $10,686.7 million by 2028, with an increase from $7,075.3 million in 2020. Double acting cylinders move the load in both the directions which makes them useful for the applications where more than one movement is required. Single acting cylinder has one port and small housing without the presence of spring that can extend and retract. However, in the case of double acting cylinder, the presence of two ports allows air to enter in and out due to which these cylinders can extend and retract without the need of spring. Hence, they facilitate more control over the machine movement since the pressurized air moves in both the directions. More design variations are possible in terms of strokes and bore sizes.
The design segment is further classified into welded, tie-rod, and others. Among these, the welded hydraulic cylinders sub-segment is anticipated to have a dominant market share and shall surpass $8,941.5 million by 2028, with an increase from $5,904.7 million in 2020. The key advantage of welded hydraulic cylinder is extended service life due to which it can efficiently work for long time period. Due to this, they can withstand rigorous work conditions. Welded cylinders also offer aesthetic benefit as they have lower profiles compared to tie rod cylinders which improves the appearance of the equipment. Welded hydraulic cylinder can be custom engineered that makes them suitable for various applications such as construction, manufacturing, material handling, and others.
The application format segment is further classified into mobile and industrial. Among these, the mobile sub-segment is anticipated to have a dominant market share and shall surpass $10,646.1 million by 2028, with an increase from $7,091.2 million in 2020. Hydraulic cylinders are used across various mobile applications such as construction, earth moving equipment, agricultural machines, marine equipment, and others. For instance, they are widely used in elevators, drilling, airplane landing gears, suspension system in cars, log-splitters, gym equipment’, and others. This is because they are efficient transmitter of power which can be used for lifting, pulling, or pushing heavy equipment and objects.
The hydraulic cylinders market for the Asia-Pacific region is projected to witness rapid growth. This region’s market generated a revenue of $4,438.9 million in 2020 and is projected to reach up to $6,842.0 million by 2028. This is majorly owing to rapid ongoing construction activities across developing countries such as China and India. For instance, in 2019, China launched the “New Infrastructure” campaign to revive the economic condition and to boost the sustainable growth post-pandemic. Under this project, the Chinese government is focusing on inculcating various projects such as inter-city rail system, inter-city transportation, new energy vehicle charging stations, and others. Also, China’s urbanization is highest in the world and the architectural design revenue in China in 2018 was $189.3 billion. Such construction activities, development of smart cities, rapid industrialization, and urbanization are estimated to drive the hydraulic cylinders market growth. This is because hydraulic cylinders are used in various construction equipment such as steam rollers, cranes, forklifts, wheel loaders, earth moving equipment, lifts, shovels, and others.
Top 10 Major Key Players in the Global Hydraulic Cylinders Market are -
- Bosch Rexroth AG
- Wipro Infrastructure Engineering
- Parker Hannifin
- Bailey International LLC
- Caterpillar, Inc.
- Aggressive Hydraulics, Inc.
- SMC Corporation
- KYB Americas Corporation
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Hydraulic Cylinders Market:
- Bargaining Power of Suppliers: The hydraulic cylinders are a basic component of hydraulic system which find applications across various industrial, non-industrial, construction, and manufacturing sectors. Hence, suppliers have high bargaining potential in selling hydraulic cylinders to various end-use industries.
Thus, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: In this market, the concentration of buyers is high as well as the concentration of manufacturers is high. The buyers have the option to choose the right product based on pricing.
Thus, buyer’s bargaining power will be moderate.
- Threat of New Entrants: The threat of new entrants is low as the companies entering in this market have to invest huge capital in setting up the manufacturing plant as well as labor cost is involved.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: The presence of alternatives such as pneumatic, electric, mechanical system may affect market growth up to some extent. However, hydraulic cylinders offer much power, and they are highly efficient compared to the alternative systems.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The companies operating in hydraulic cylinders market face high competition due to wide range of applications of hydraulic cylinders across end-use industries. This reduces the profit and product pricing.
Therefore, competitive rivalry in the market is high.