The hydraulic power unit market is expected to grow at a CAGR of more than 4% during the forecast period of 20202-2025. Factors, such as increasing construction activities across the globe, and rapid industrialization, demand hydraulic power units are growing in different regions. Growing oil and gas markets in regions like the Middle-East, the United States is likely to increase the demand for hydraulic pumps and compressors. On the other hand, the availability of alternative sources of power transfer using electro-mechanical & electric drives, which are cost-effective and highly efficient in terms of shorter lead time, are some of the major factors hindering the growth of the market.
- Due to ongoing and upcoming projects, the construction sector is expected to dominate the market with the highest growth in the forecast period.
- Instead of using boilers operating on the different types of fuels, the upcoming technology- fuel flexible steam boilers are expected to become the future in the long future, creating opportunities for the market players.
- Asia-Pacific is the fastest-growing region and is expected to dominate the market in the forecast period because of the increasing demand for hydraulic power units in countries like China, India, Japan, Taiwan, and others.
Key Market Trends
Construction Sector to Dominate the Market
- The hydraulic power unit (HPU) is a package consisting of various components such as hydraulic motor & pump, reservoir/accumulators, and other accessories such as filters, valves, tubes, regulators, and instruments used to monitor the performance of a hydraulic system.
- The year 2018 saw a rapid increase in construction growth across the United States and Canada, with the residential sector a key driver of the increasing demand for more housing units and subsequently need for HPU.
- With construction spending of USD 977 billion in the private sector and USD 327 billion in 2019, the United States created significant market demand for hydraulic power units.
- Construction projects in Europe like Crossrail1, Crossrail2, Heathrow airport expansion, Hinkley Point C nuclear plant (the United Kingdom), Fehmarn Fixed Belt link (Denmark) are likely to increase the need of HPU in the forecast period.
- During January 2020, there are nearly 343 pre-construction coal-powered thermal power plants across the world. The pre-construction plants are estimated to have a capacity of around 299 gigawatts, which are anticipated to drive the market of HPU considerably.
Asia-Pacific to Dominate the Market
- Asia-Pacific, with its rapid industrialization and growth in manufacturing and construction market, is expected to dominate the market in the forecast period.
- China is the dominant country to have the highest number of under-construction coal-powered plants. The construction of these plants is estimated to increase the market growth of HPU in the future.
- Additionally, Pulau Muara Besar Refinery & Petrochemical Complex in China is one of the prominent refineries in the region, with 14 million tonnes per annum capacity that is expected to get completed by 2022.
- Lon Son Refinery in Vietnam, Sihanoukville Oil Refinery in Cambodia, Ratnagiri in India are a few other under-construction and planned refineries in the region, which are expected to increase the market growth during the forecast period.
- In the 2018-19 budget, the Indian government increased its expenditure towards infrastructure development by 20.9% from INR 4.9 trillion (USD75.9 billion) in the financial year 2017-2018, to INR 6 trillion (USD89.2 billion). With this demand for HPU is expected to grow significantly.
- With the growing shipping market, oil and gas market, and growing manufacturing plants, the need for HPU in lifting and hoisting is expected to grow considerably in the Asia-Pacific region.
The hydraulic power unit market is fragmented. Some of the major companies include Bosch Rexroth AG, Parker-Hannifin Corporation, Nachi-Fujikoshi Corp, Dana Incorporated, and Hydac International Gmbh.
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