The global sales of hydraulic gear pumps are estimated to be worth USD 2 billion in 2024 and are anticipated to reach a value of USD 2.9 billion by 2034. Sales are projected to rise at a CAGR of 3.7% over the forecast period between 2024 and 2034. The revenue generated by hydraulic gear pumps in 2023 was USD 1.9 billion. The industry is anticipated to exhibit a Y-o-Y growth of 3.9% in 2024.
Hydraulic gear pumps are the most common type of hydraulic system for transferring fluid, mainly divided into two external gear type and internal gear type. External gear runs on two gears and each gear rotates in opposite directions and is suitable for low and medium pressure.
Internal gear pumps have a single big gear with one or more smaller outer gear, which provide more efficiency under high pressure. These pumps are handled easily and can therefore be used in various sectors.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2024 | USD 2,031.1 million |
| Projected Size, 2034 | USD 2,932.5 million |
| Value-based CAGR (2024 to 2034) | 3.7% |
The hydraulic gear pumps industry is set to experience upward growth during the forecast period. It is projected to create an incremental opportunity of USD 901.5 million and is predicted to rise 1.4 times the current market value through 2034.
The market is experiencing growth due to an increase in demand from the construction, agriculture, and material handling industries, which rely on hydraulic systems for efficient operation. The rise in infrastructure development and mechanized farming practices is driving the need for high-performance hydraulic pumps.
Hydraulic gear pumps operating between 150-250 bar are in high demand due to their compatibility for medium to high-pressure applications common in the chemicals, petrochemicals, and oil & gas refining industries. These industries require dependable systems that can deliver fluid transfer even where the conditions are harsh, and this range of pressure provides the most appropriate combination of power and efficiency.
With the global chemicals market projected to grow at a 4-5% CAGR and increasing refinery capacities, demand for hydraulic gear pumps in this pressure range will witness rapid growth as industrial activities depend on the pumps for effective processing and transmission of power.
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global hydraulic gear pump market. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year.
The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December. In the first half (H1) of the semi-annual from 2023 to 2033, the business is predicted to surge at a CAGR of 2.8%, followed by a slightly higher growth rate of 4.4% in the second half (H2).
| Particular | Value CAGR |
|---|---|
| H1 2023 | 2.8% (2023 to 2033) |
| H2 2023 | 4.4% (2023 to 2033) |
| H1 2024 | 3.3% (2024 to 2034) |
| H2 2024 | 4.1% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 3.3% in the first half and remain relatively moderate at 4.1% in the second half. In the first half (H1) the market witnessed a decrease of 50 BPS while in the second half (H2), the market witnessed an increase of 30 BPS.
Right fitment applicability of hydraulic gear pumps in various end-use industries to propel market growth
Hydraulic gear pumps have long been used in various industrial end applications. It continues to be popular among end-users due to its simple design, flexibility, ease of use, and versatility. These characteristics make hydraulic gear pumps suitable for chemicals as well as other industrial processes. Moreover, the price range of hydraulic gear pumps is quite reasonable compared to other replacement pumps.
With increasing needs for industrial equipment used in a huge number of industries across the globe, demand for hydraulic gear pumps is expected to increase in the production process of such industrial equipment over some time. The increasing demand for easy-to-use pump solutions with appropriate equipment is expected to boost hydraulic systems. Gear pump demand throughout the forecast period.
The threat of substitutes to hamper market growth shortly
In recent years, factory automation has been crucial to manufacturing, offering development in the industrial production output. Industry players are utilizing intelligent machines significantly to improve the rate of industrial production, making it more energy and cost-efficient, and at the same time driving sustainability and reducing waste.
To meet the changing requirements of consumers across the globe, end users from various industries are utilizing alternative pump solutions in place of hydraulic gear pumps, owing to their operational inefficiency as compared to other types of advanced pumps.
When it comes to agricultural equipment, end users are utilizing electrically controlled medium-pressure pumps in place of gear pumps. Growing adoption of other alternative pumping solutions, such as piston pumps, is expected to hamper demand for hydraulic gear pumps over the forecast period.
Enter into long-term contracts with market players to gain a competitive advantage.
Demand for hydraulic gear pumps is mostly driven by the momentum of end-use industries. The majority of these end-use industries have a consolidated market structure where limited market players are present in the market.
These players open contracts and agreements to supply desired products per a specific set of requirements. Entering into such types of long-term contracts with these players is expected to help players gain a competitive advantage in such consolidated end-use industries.
Popular trends of industrialization boosting the use of material-handling equipment
Increasing demands from various end users across the globe are giving a boost to manufacturing companies and demands for advanced machinery are expected to grow in the coming years. Moreover, boosting the pace of industrialization in developed as well as developing countries is increasing the demand for technically advanced and efficient equipment used in various industrial processes.
To meet the demand, logistics and supply chains play a vital role across all industries. Material handling equipment is used to deliver and move the goods and materials to attain the right time availability of products. Material handling equipment decreases the risk of downtime of manufacturing equipment.
The need for material handling equipment is expected to spur in the coming years, owing to the growing trend of industrialization. The inevitable use of hydraulic gear pumps in material handling equipment is expected to be one of the primary drivers for the growth of the global hydraulic pumps market over the forecast period.
Principal Consultant
The global hydraulic gear pump industry recorded a CAGR of 2.0% during the historical period between 2019 and 2023. The growth of the hydraulic gear pump industry was positive as it reached a value of USD 1.9 billion in 2023 from USD 1.8 billion in 2019.
Before the COVID-19 pandemic, the hydraulic gear pumps market saw steady growth across industries like oil & gas, automotive, and material handling. The demand was driven by the need for efficient hydraulic systems, particularly in industrial applications, where fluid transfer and pressure management were critical.
The market continued to flourish because of improvements in the degree of automation and uninterrupted production in these sectors which resulted in a steady supply chain and technological growth for the manufacturers.
During the COVID-19 pandemic, lockdowns imposed by governments and supply chains being interrupted brought about major hindrances in the hydraulic gear pump market. Manufacturing plants struggled to maintain operations with social distancing and remote working policies.
This led to a sharp decline in production and sales, particularly in sectors like automotive, which temporarily halted operations. However, the market began to recover post-COVID, driven by the resurgence of demand in material handling, warehousing, and manufacturing sectors. The oil & gas industry, which was also affected, saw a slow but steady rebound as global energy demand started stabilizing.
After COVID-19, the hydraulic gear pumps market bounced back as industries came back on track and supply chains were better. The market regained momentum, particularly in sectors like oil & gas, construction, and manufacturing.
Increased investment in automation and modernization of industrial facilities contributed to the rebound, as demand for hydraulic systems returned to pre-pandemic levels. The processing industry, in particular, became a major growth driver due to increased demand for automated systems in handling and fluid transfer processes.
Tier 1 companies comprise market leaders with a market revenue of above USD 40 million capturing a significant market share of 65% to 75% in the global market. These market leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including recycling, and manufacturing utilizing the latest technology meeting regulatory standards providing the highest quality. Prominent companies within Tier 1 include Eaton Corporation, Parker-Hannifin Corporation, and Bucher Hydraulics GmbH.
Tier 2 companies include mid-size players with revenue of USD 20 to 40 million having a presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge.
These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Viking Pump Inc., Roper Pump Company, Kawasaki Heavy Industries, Ltd, and Concentric AB.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 20 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis for the hydraulic gear pumps market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Western Europe, and others, is provided. The USA is anticipated to remain at the forefront in North America, with a value share of 71.2% through 2034. In East Asia, China is projected to witness a CAGR of 3.4% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 1.8% |
| China | 3.4% |
| Japan | 3.2% |
| ASEAN | 4.1% |
| South Korea | 2.8% |
| Canada | 2.2% |
The ASEAN hydraulic gear pumps market is expected to grow at a CAGR of 4.1% from 2024 to 2034, reaching a valuation of over USD 208.4 million by 2034. This region is the dominating market in South Asia Pacific and it is likely to sustain this trend throughout the forecast period.
Key factors driving the growth hydraulic gear pump market include the expansion of industrial sectors such as construction and agriculture, which rely on hydraulic systems for efficient machinery operations. The increasing requirement for off-road vehicles especially in the ASEAN region to increase the use of hydraulic gear pumps, as hydraulic systems in these machines thoroughly depend on the pump.
According to OICA, global production of vehicles in the year 2019 reached about 91.7 million units, while the estimation so far for the year 2023 indicates that the output has increased to more than 85 million units after an epidemic-related reason.
Due to this mentioned increase in the production of vehicles, and especially in ASEAN where the sales and production of cars are on the rapid rise, the demand for hydraulic gear pumps will increase not only on normal vehicles but also on special purpose vehicles. With the increasing use of power steering, anti-lock brakes, and other hydraulic systems found in cars, the market's growth will also be enhanced.
The North American hydraulic gear pump market, led by the USA, currently holds approximately 21.0% of the global share. The USA market is projected to grow at a modest CAGR of 1.8% throughout the forecast period, reaching an estimated valuation of USD 287.8 million by 2034.
This growth can be attributed to the increasing demand for hydraulic systems in the processing and automotive industries. The demand for such systems is heightening with the expansion of the oil and gas industries owing to the increased application of automation in production and industrial equipment.
In 2019 chemical production sector produced more than 1.2 billion tons of chemicals, and this number grew in 2023 as companies expanded to meet both domestic and international demand.
The increase in vehicle production and sales, driven by the recovery in the automotive sector, also plays a crucial role, with vehicle sales rebounding in 2023 after a dip during the pandemic years. This growing demand for hydraulic equipment in various industries is a major factor driving the growth of hydraulic gear pumps in the USA market.
China to maintain a strong position in the hydraulic gear pumps market as the country is expected to account for nearly 39.4% of the East Asia market in 2023. The expansion of the core industrial base of the country including the manufacture of chemicals, petrochemicals, refining oil and gas, and the automotive sector has large extent contributed to this growth.
The number of vehicles produced in China in 2019 was 25.7 million units but for the year 2023 projections are a bit over the same with 26.1 million units due to internal and production-based demand. Similarly, the off-highway excavators market consisting of mini, standard, and large excavators also registered positive growth driven by infrastructure development.
The increasing demand for construction equipment supports hydraulic gear pump sales, along with petrochemical and automotive sector's production and export. These factors contribute to an upward trend in the hydraulic gear pump market across different industries.
The section contains information about the leading segments in the industry. By Type, the external gear pump segment is estimated to grow at a CAGR of 3.8% throughout 2034. Additionally, Processing Industry is projected to expand at 3.0% by 2034.
| Place of Use | External Gear Pump |
|---|---|
| Value Share (2034) | 76.5% |
The external gear pump is projected to grow at a CAGR of 3.8% between 2024 and 2034, reaching over USD 2,245.8 million by the end of the forecast period.
One of the reasons external gear pumps are in higher demand compared to internal gear pumps as in external gear pumps the pressures can be increased and have applications on heavy equipment and vehicles. External gear pumps are commonly used in power steering systems of vehicles as well as hydraulic circuits of vehicles and off-highway equipment.
On the other hand, internal gear pumps though operate rather silently when pumping fluids of low viscosity and tend to be more efficient and have their application in low-powered and compact devices for example lubrication systems in engines.
For a regular construction vehicle such as an excavator, an external gear pump could within the hydraulic system be used for functions like lifting and moving with about 2-3 pumps normally utilized within the hydraulic system of the vehicle.
This contrasts with internal gear pumps, which might be used in auxiliary systems but in fewer numbers. The robustness and higher-pressure handling of external gear pumps explain their dominance in large-scale vehicle applications.
| End Use | Processing Industry |
|---|---|
| Value Share (2034) | 29.4% |
The processing industry segment is expected to generate over USD 836.4 million in revenue by 2034 in the hydraulic gear pumps market, growing at a CAGR of 3.0%. This demand surpasses that of the automotive and off-highway vehicle sectors due to the sheer volume and complexity of hydraulic systems required in processing plants, including chemicals, petrochemicals, and refineries.
While automotive and off-highway vehicles rely on hydraulic gear pumps, their requirements are more specific to certain systems, such as steering and braking, limiting the number of installations.
For instance, in a processing plant, hundreds of hydraulic gear pumps can be centrally organized and deployed on processes such as material handling, fluid transfer, and pressure management, while a typical off high way vehicle would probably require about 2-4 pumps per unit for hydraulics and transmission (for hydraulics, transmission, etc.).
This gross difference in volume is one of the reasons explaining the higher demand in the processing industry as compared to the automotive and off-highway markets. The scale and range of hydraulic needs in processing make it a dominant sector for hydraulic gear pumps.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the market.
The key players in the absorption chiller market are actively enhancing their market presence and competitiveness through different strategies by incorporating advanced technologies like variable-speed compressors, intelligent controls, and integration with renewable energy sources to improve energy efficiency and environmental sustainability.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it more competitive.
Recent Industry Developments in the Hydraulic Gear Pumps Market
In terms of type, the industry is divided into external gear pumps and internal gear pumps.
In terms of operating pressure, the industry is divided into up to 15 bar, 15 - 50 bar, 50 - 150 bar, 150 - 250 bar, 250 - 300 bar and More Than 300 bar.
In terms of Technology, the industry is divided into self-contained, remote condensing, and multiple condensing.
In terms of end use, the industry is segregated into construction equipment, mining equipment, automotive, material handling equipment, off-highway vehicles, processing industry, and industrial machinery and equipment. The processing Industry is further categorized into chemicals, petrochemicals, oil & gas refineries, and others.
Key regions of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and Middle East & Africa have been covered in the report.
The global hydraulic gear pumps industry is projected to witness a CAGR of 3.7% between 2024 and 2034.
The global hydraulic gear pump industry stood at USD 1,958.7 million in 2023.
The global hydraulic gear pumps industry is anticipated to reach USD 2,932.5 million by 2034 end.
ASEAN is set to record the highest CAGR of 4.1% in the assessment period.
The key players operating in the global hydraulic gear pump industry include Eaton Corporation, Parker-Hannifin Corporation, and Bucher Hydraulics GmbH.
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Hydraulic Gear Pumps Market
