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Alternative Motion-Control Technologies Threaten Future of Industrial Hydraulic Equipment Market Warns Frost & Sullivan - Technical improvements sustain current demand for industrial hydraulic equipment, but future is bleak
Alternative Motion-Control Technologies Threaten Future of Industrial Hydraulic Equipment Market Warns Frost & Sullivan

 

NewswireTODAY - /newswire/ - London, United Kingdom, 2011/06/27 - Technical improvements sustain current demand for industrial hydraulic equipment, but future is bleak.

   
 
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The industrial hydraulic equipment market is mature. Alternative electro-mechanical and electro-static solutions, such as electric drives are replacing hydraulics in industrial applications, as they are more efficient, cheaper and available at shorter lead times.

New analysis from Frost & Sullivan (motors.frost.com),"European Hydraulic Equipment Markets for Industrial Applications", finds that the market earned revenues of $1,415.1 million in 2010 and estimates this to reach $2,015.8 million by 2017. The impact of recession was severe on the European hydraulic equipment market for industrial applications with revenues dropping by 31.8 per cent in 2009 to reach $1318.8 million, as a result of low investments in major end-user segments. Despite manufacturers investing heavily in improving the reliability and performance of hydraulic equipment, revenues in this market were mainly due to retrofits rather than new installations in 2010.

"Manufacturers have been integrating electronic controls with hydraulic equipment for increased accuracy and efficiency," remarks Frost & Sullivan Programme Manager Sivakumar Narayanaswamy. "These improvements have played a significant role in sustaining the demand for hydraulic equipment."

To a certain extent, the integration of electronics into hydraulic systems has helped the hydraulic equipment market sustain revenues. However, as rapid technological developments in the various fields of alternative motion control continue, it is widely accepted that many hydraulic equipment applications may be replaced by more effective methods in the future.

Hydraulic equipment has a large installed base, which will have to be replaced or repaired within a specific time frame. The major factor sustaining the replacement market has been leakage related issues caused by ageing and corrosion in hydraulic cylinders and accessories. Even during the economic slowdown, many end users postponed new installations and invested instead in repairs and replacements.

"The use of hydraulic systems in mechanised processes is being threatened by the increased use of electrically-operated drives and motors that offer accurate performance and re-programmable digital control and settings, except in high pressure applications," states Narayanaswamy. "Electrically-operated equipment is able to meet customer demands for greater levels of accuracy and efficiency from automation apparatus."

The market is poised to witness increased consolidation due to pricing pressures and competition from low-cost imports. Small- and medium-sized organisations are unlikely to be able to withstand the competition from low-cost Asian manufacturers and decreased profit margins.

"Large multinationals are continuously looking to expand in terms of products and geographies," concludes Narayanaswamy. "This could compel small- and medium-sized organisations to collaborate or merge with their bigger counterparts."

If you are interested in more information on this study, please send an email with your contact details to Anna Zanchi, Corporate Communications, at anna.zanchi[.]frost.com.

"European Hydraulic Equipment Markets for Industrial Applications" is part of the Mechanical Power Transmission Growth Partnership Service programme, which also includes research in the following markets: European Low Voltage AC IHP Motors Market, European Medium Voltage AC IHP Motors Market, Strategic Analysis of the European Hydraulic Cylinders Market and, Strategic Analysis of the European Fractional Horsepower (FHP) Motors Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

 
 
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Alternative Motion-Control Technologies Threaten Future of Industrial Hydraulic Equipment Market Warns Frost & Sullivan

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