Despite being tempered by the global recession, the world market for hydraulic equipment is expected to gain momentum over the next few years to reach USD38.9 billion by 2015.

Hydraulics is the technology that uses fluid power to generate mechanical power. Hydraulic equipment is used in a wide range of application markets including agriculture, military, construction, industrial machinery, oil and mining and automotives. In automotives, hydraulic systems are used in, among others, forklifts, aircrafts and cranes.

According to a comprehensive global report by Global Industry Analysts Inc, the erosion in market value for global hydraulic equipment for the past two years was caused by the slowdown on the construction and industrial machinery sector, which are among the most prominent end-use markets for hydraulic equipment.

"Sales of earthmoving and mining equipment have especially come under the yoke of the recession, with shortages in finances and budgetary constraints suppressing demand. Additionally, lethargy in construction activity in most parts of the world, particularly the industrialised nations, has tranquilised demand for most construction equipment like forklifts, construction cranes, road rollers and ground machines, all of which use mobile hydraulic components," according to the report.

Demand for hydraulic components used in industrial machinery also declined with industries like textile, paper, beverage and plastics also bearing the brunt of the financial meltdown.

However, easing of lending restrictions and recovery in construction and mining industries in the post-recession period are expected to reinvigorate market demand.

The report points out that other factors expected to drive growth in the hydraulic equipment market include technology innovations and marketing strategies that target newer, emerging product markets. The US continues to remain the largest regional market for hydraulic equipment. The Asia Pacific, excluding Japan, is the fastest-growing regional market, poised to reach USD5.9 billion by 2012 and driven by industrialisation and infrastructure development.

Pumps and motors represent the largest product segment of the hydraulic equipment market, followed by valves. Major players in the hydraulics market include Bosch Rexroth Corp, Dongyang Mechatronics Corp, Eaton Corp, Kayaba Industry Company Ltd, Nabtesco Corp, Sauer-Danfoss Inc, Bailey International Corp, Iskra Avtoelektrika, Moog Inc, Toshiba Machine Co Ltd, Wipro Infrastructure Engineering Ltd, Parker Hannafin Corp, Commercial Hydraulics Inc, Nachi-Fujikoshi Corp and Yuken Kogyo Co Ltd.

The research report titled "Hydraulic Equipment: A Global Strategic Business Report" provides a comprehensive review of trends, issues, product developments, mergers, acquisitions and other strategic industry activities. It also provides market estimates and projections across the product segments including accumulators and filters, cylinders, power packs, pumps and motors, valves and other hydraulic equipment.

Global Industry Analysts Inc, founded in 1987 in California, employs over 800 people worldwide and publishes over 1,200 full-scale research reports each year.