Hydraulic valves play an important role in regulating the flow of hydraulic fluid in various mobile and industrial applications. As the hydraulic systems of which they are a part will remain critical to the operation of machines and vehicles for years to come, demand for hydraulic valves is projected to be positive over the next decade.
Research firm Fact.MR is forecasting the global hydraulic valve market will reach a value of $5.89 billion in 2024 and achieve a compound annual growth rate (CAGR) of 3.8%, eventually reaching a value of $8.56 billion by the end of 2034.
Per Fact.MR’s market study, demand for improved safety and efficiency is leading to increased use of hydraulic valves because of their ability to maintain and adjust the flow of hydraulic fluid which directly correlates to these performance capabilities.
Greater incorporation of electronics into valves and other hydraulic components is further enabling these and other performance features, including the ability to create more automated systems which is becoming an increasingly important aspect in many industries to help overcome labor shortages and enhance ease of use.
Key findings from Fact.MR’s research study on the global hydraulic valve market include:
- North America is projected to account for 38.3% of the global market
- East Asia will account for 27.9% of the global market
- demand for valves with flow rates from 50-200 lpm will increase 4% and
- automated hydraulic valves will account for 68.1% of the global market.
Construction and Other End-Use Industries to Drive Demand for Hydraulic Valves
A range of industries utilize hydraulic valves, and anticipated growth in many of them is expected to benefit the hydraulic valve sector as well.
The construction equipment industry, which is one of the biggest customer markets for hydraulics, is forecast to grow over the coming years due in part to the many infrastructure projects taking place around the world. In the U.S., funding from the Bipartisan Infrastructure Deal will benefit demand for construction equipment as excavators, dozers and other machines will be required for the building and repair of roads, bridges and other infrastructure.
With the demand for equipment will also come the need for hydraulic valves and other components key to the functionality of these machines.
Fact.MR is projecting growth in the agricultural equipment and automobile markets to also drive demand in the hydraulic valve industry.
Although these and other markets – including the hydraulics industry as a whole – are in a down cycle, many are projecting a return to growth in 2025 and beyond. The lowering of interest rates will be a key impetus for this; U.S. Federal Reserve Chair Jerome Powell announced on August 23 it was time to begin lowering interest rates with the first cuts anticipated in September.
During the National Fluid Power Association’s (NFPA) Industry & Economic Outlook Conference (IEOC) which took place August 13-14, Interact Analysis’ Blake Griffin said tractor sales are expected to exit the bottom of their cycle in 2025 as economic conditions improve for farmers, aided by the lowering of interest rates. He and his colleagues at Interact Analysis are expecting the hydraulics sector to return to an upcycle as interest rates are lowered as well.
Alan Beaulieu of ITR Economics, who also presented during the IEOC, agreed there will be a return to growth for the hydraulics industry in 2025. He said late 2024 will be the low point for the fluid power sector before returning to growth for the remainder of the decade which will benefit the hydraulic valve market.
The mining industry is another one Fact.MR points to in its study that will help drive growth for the hydraulic valve market. According to the firm, demand for high-quality hydraulic valves is on the rise for both surface and underground mining applications.
In addition to their use in mining machinery, the valves are also used in fire protection systems and thus play a key role in ensuring the safety of those working on mine sites. Use of high-quality valves provides better assurance they will work as desired and include features to enhance both performance and safety.
Oil & Gas to Increase Use of Multiple Hydraulic Valve Types
The oil & gas industry is another strong user of hydraulic valves, particularly flow control valves according to Fact.MR. It notes they play an important role in piping systems for this industry as well as regulation and control of liquid or gas flow. Hydraulic flow control valves are also used to isolate and protect equipment and control the refining procedures of crude oil.
As such, continually high demand for products from the oil & gas industry will lead to growth for flow control and other hydraulic valve technologies.
Valves with flow rates ranging from 50-200 lpm will also benefit from the strong global oil & gas industry. Projected to grow 4% through 2034 and account for 32.4% of the market, Fact.MR says there is increasing demand for hydraulic valves in this range because they meet the performance needs of the oil & gas market as well as industrial infrastructure, water treatment and other energy sectors. Expected strong performance in these markets in the coming years will therefore aid growth for the hydraulic valve sector.
These and other harsh environment applications such as petrochemicals will benefit the aftermarket segment of the hydraulic valve industry as well. Because the valves are often used to regulate the flow of gaseous materials and move various types of fluids over long distances, deterioration and wear are common.
Therefore, replacement of hydraulic valves used in these applications is often more frequent to mitigate unplanned downtime or more critical issues. Fact.MR anticipates demand for replacement valves used in oil & gas and other harsh applications to be a strong contributor to the future growth of the hydraulic valve market.
READ MORE: A Guide to Flow Control Valve Types and Use Cases
Hydraulic Valve Market will be Strongest in North America and China
North America will be one of the largest global markets for hydraulic valves according to Fact.MR’s market study. The research firm is projecting it will account for 38.3% of the total market’s revenue by 2034.
It cites increased use for these components in power transmission applications as a driver for strong hydraulic valve demand in the region. Construction, agriculture and mining are all strong industries in North America as well, which will aid sales for hydraulic valves as these segments see improved conditions in the coming years.
Within the North American market Fact.MR is forecasting the United States to grow 4.1% over the next decade and account for the largest share at 76.3% by the end of 2034. Here again construction, agriculture, mining and other industries will help drive the market. It notes these industries are continually expanding in the U.S., and as they are among the top users of hydraulic systems, the hydraulic valve market will benefit.
China will hold a large share of the global hydraulic valve market as well. Fact.MR is forecasting it to achieve a 3.9% CAGR through 2034 and account for 53.2% of the East Asian market by the end of the decade.
The country’s well-established automotive market will play a key role in growth for hydraulic valves in the region. As Fact.MR explained in its study, hydraulics play an important part in the functionality of shock absorbers, drive systems, brakes and power steering utilized in passenger and commercial vehicles. Continued strength of the automotive industry in China will thus contribute to growth for the hydraulic valve market.
Construction is also a strong industry in China. Like many other countries around the world, China is investing heavily in its infrastructure and other construction projects leading to increased demand for construction equipment and the hydraulic components and systems which aid their functionality.
As these and other global markets continue to utilize hydraulic systems in a range of applications, the future looks bright for the hydraulic valves sector.
READ MORE: Expanded Hydraulic Valve Portfolio Brings New Market Opportunities
