For this month’s newsletter, we’re focusing on some of the technology trends within the fluid power and broader power transmission sector to showcase how they’re shaping future system designs. Our top story this month examines some of the trends expected to influence future hydraulic fluid designs.

Hydraulic fluid is critical to the operation of hydraulic systems, and thus many of the trends impacting these systems are also impacting the fluids running through them. Efforts to improve the efficiency of hydraulic systems, for instance, are expected to necessitate changes to hydraulic fluids as well. To enable better system efficiency, it will become increasingly important to use hydraulic fluids capable of reducing friction and pressure losses to achieve efficiency gains.

Also featured in this month’s newsletter is a look at the technological and market opportunities electrification is bringing to the industry. Companies like Danfoss Power Solutions and Regal Rexnord have developed new technologies, as well as adapted existing solutions like hydraulics, to meet the needs of the electric vehicle market. This has enabled them to continue serving customer markets they were already in, like construction equipment, as they began to electrify while also opening new segments in which they can provide solutions.

Electrification is just one of many opportunity areas for the fluid power industry. Our 2026 forecast piece points to a number of others such as data centers. Construction of these facilities is on the rise due to increased demand for AI and other data processing applications. Data center cooling systems rely on various hydraulic and pneumatic components; thus, continued buildup of these facilities is expected to benefit the fluid power industry.

While many markets have continued to face challenges this year, as the content in this month’s newsletter points out there continue to be innovations and opportunities in the fluid power industry. But we want to hear from you – how have you seen the fluid power and customer markets perform in 2025? What expectations do you have for 2026? Take our brief survey or email me directly at [email protected] to offer your thoughts.

Sara Jensen, Editor, Power & Motion