Hydraulic equipment refers to machinery and systems that utilize the power of pressurized fluids, typically oil or hydraulic fluid, to generate mechanical force and control various operations. It involves the use of pumps, motors, valves, cylinders, and other components to transmit and control power through the hydraulic system.
This type of equipment finds application in a wide range of industries and sectors. It provides the advantage of high power density, efficient energy transmission, and precise control, making it suitable for heavy-duty applications. Hydraulic systems are commonly used in construction machinery, agricultural equipment, manufacturing processes, automotive systems, and aerospace applications, among others.
In terms of type, the market is divided into mobile hydraulics and industrial hydraulics. Mobile hydraulics encompass hydraulic equipment used in mobile applications such as construction equipment, agricultural machinery, material handling equipment, and transportation vehicles. These hydraulic systems provide power and control, enabling efficient and reliable operation in various mobile applications.
Key Drivers of the Indian Hydraulic Equipment Market
Infrastructure Development
India's ongoing infrastructure development initiatives, such as smart cities, highways, railways, and ports, create a significant demand for hydraulic equipment. Construction machinery, including excavators, cranes, and loaders, rely heavily on hydraulic systems for their power and control, driving the market's growth.
The government is also increasing investments and funding strategies to increase the infrastructure development. For instance, according to India Brand Equity Foundation, projects totaling INR 108 trillion ($1.3 trillion) under the National Infrastructure Pipeline (NIP) are currently under various stages of completion. Additionally, National Investment and Infrastructure Fund (NIIF) is established in November 2022 as a cooperative investment platform between the Government of India, foreign investors, multilateral development banks (MDB), and domestic financial institutions to facilitate investments across a variety of sectors in India through an India Japan Fund.
Agriculture and Farm Mechanization
The agricultural sector in India is witnessing increased mechanization to improve productivity and efficiency. Hydraulic equipment plays a vital role in agricultural machinery, enabling tasks such as lifting heavy loads, operating implements, and controlling steering systems. For instance, according to the Indian Council of Agricultural Research's (ICAR) assessment of farm mechanization levels for main cereals, pulses, oil-seeds, millets, and cash crops, major crops' seedbed preparation operations are highly automated (more than 70%).
Moreover, with the government's focus on agricultural development and farm mechanization, the demand for hydraulic equipment is expected to rise. For instance, a Centrally Sponsored Scheme called "Sub-Mission on Agricultural Mechanization" (SMAM) is being carried out through the State Governments w.e.f. 2014–15 to promote agricultural mechanization throughout the nation. According to the types of farmers, financial aid is offered under this program for the purchase of agricultural equipment at a rate ranging from 40% to 50% of the machine's cost.
Energy and Power Generation
The energy and power generation sector in India presents opportunities for hydraulic equipment. Hydraulic systems are used in hydropower plants, wind turbines, and other renewable energy installations. Additionally, hydraulic equipment is utilized in thermal power plants, oil and gas exploration, and offshore platforms. The growth of the renewable energy sector and ongoing power infrastructure projects contribute to the demand for hydraulic equipment. For instance, according to the Institute for Energy Economics and Financial Analysis, as part of its energy revolution, India has been one of the world leaders in embracing renewable energy. By August 2022, installed renewable energy capacity—including huge hydro—had increased from a few megawatts (MW) in 2010. This growth shows that in the coming years, India will increase its renewable energy capacity, resulting in a high demand for hydraulic equipment.
Expansions and Innovations by Major Market Players
The Indian hydraulic equipment market has significant contributors such as Danfoss A/S, Linde Hydraulics GmbH & Co. KG, Bosch Rexroth AG, Daikin Industries, Ltd., and Kawasaki Heavy Industries, Ltd., among others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In September 2022, Leading producer of concreting and construction equipment, Schwing Stetter India, introduced the XCMG hydraulic excavator and wheel loader. To ensure that the devices met the standards set by the market for smart products, they underwent a number of lengthy testing. The new line includes XE215i-K LC - 25T hydraulic excavator and the XE140i-K HD - 14T hydraulic excavator.
• In January 2022, Tata Hitachi, a leading construction equipment manufacturer, introduced the EX70 prime series hydraulic excavators, which cater to the comprehensive needs of customers in the 7-tonne excavator segment. With a focus on performance, dependability, comfort, safety, connectivity, and versatility, this new range sets new benchmarks in these areas. Powered by a next-generation engine and equipped with advanced technologies, the excavator offers high torque, fuel efficiency, and productivity. It also features Hitachi's intelligent hydraulic system, customizable attachments, and smoother operating levers, ensuring superior performance and operator comfort.