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Recovery in the Global Off-highway Segments and Renewed Growth in the Emerging Asia-Pacific Region to Stabilize Market Growth in the Long Term
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This Frost & Sullivan research service analyzes the global hydraulic hoses and fittings market from 2015 to 2024, with 2018 as the base year. This study examines various applications, both mobile and industrial, in which hydraulic hoses and hydraulic fittings are used. Industrial applications have been broken out as a distinct application, to further highlight the differences between mobile and industrial applications. Regional breakouts are provided for North America, Europe, Asia-Pacific (APAC), and the Rest of the World (ROW). This study examines the key growth drivers, restraints, and end-user applications, and provides forecasts by end-user applications and individual regions. Renewed investments in infrastructure, focus on energy efficiency, and increased penetration of smart solutions are set to drive long-term growth in this market. North America, home to the largest economy in the world, continues its recovery from the oil and gas and mining downturns to post strong growth in 2018. Renewed business optimism and replacement of aging infrastructure are expected to drive short-term growth in the off-highway vehicle sectors. Recovery in the oil and gas industry is also expected to continue, as the rising demand for oil and higher oil prices are expected to increase capital investments in the upstream oil and gas sector (US oil output being set to continue its meteoric rise). Asia-Pacific, home to the two fastest-growing major economies in the world, is another key growth engine for this market, driven by the rising wealth in the region and growth of the manufacturing industry. The Chinese government’s ‘One Belt One Road’ policy is expected to continue to spur investments in infrastructure and logistics, driving growth in the construction and mining and material handling industries.However, commoditization of the product increases price pressure, affecting the profit margins of market participants, especially in the face of increased competition from low-cost manufacturers. Increased focus on energy-efficient products is expected to sustain market growth, especially in developed markets such as North America and Europe. This is also complemented by the increasing penetration of smart solutions across key end-use industries, which is expected to supplement the demand for hydraulic equipment during the forecast period and mitigate the threat posed by competing technologies (e.g., electric equipment). While increased focus on reducing the total cost of ownership and energy consumption is expected to result in the increased substitution of hydraulic equipment with electric systems in some sectors, especially for low-power applications; the high cost of electric equipment, practical limitations in remote environments, and sufficient inertia in traditional industries are expected to slow down this trend.
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