The hydraulic reservoir market is projected to witness a compound annual growth rate of 6.05% and reach US$1.663 billion by 2029 from US$1.103 billion in 2022.
Hydraulic reservoirs hold liquid for supply when required in machinery. There are various considerations when designing for hydraulic reservoir sizing. Then comes the style. Most reservoirs may come under one of four design styles: conventional, vertical, overhead, or L-shaped. Many reservoir accessories are necessary for reservoir construction.
The selection of hydraulic reservoirs is based on suitable size, which varies according to the type of application. It should be around the system’s needs. The pressure of the suction head and simplicity in maintenance are to be considered. There are two main configurations: vented systems and pressurized systems. Vented systems rely on atmospheric pressure, while pressurized systems rely on motorized pressure. The reservoir should have the required accessories and supplementary equipment.
The demand is expanding due to large industrial growth worldwide. In 2022, the EU's total value of sold production surged from €5.209 billion in 2021 to €6.179 billion in 2022, representing a substantial increase of 19%. Comprising 17% of the nation's GDP and employing over 27.3 million workers, the manufacturing sector holds considerable importance in the Indian economy. The Indian government aims to increase the economy's manufacturing share to 25% by 2025 through various programs and policies. Due to this, the demand for hydraulic reservoirs will increase as there are multiple applications in industrial growth in many types of equipment and tools.
Hydraulic Reservoir Market Drivers:
Increasing demand for agricultural machinery will lead to the demand for this hydraulic reservoir, as it can be used to store hydraulic fluid in tractors and other agricultural equipment, ensuring efficient operation. During the period from July 2022 to June 2023, shipments of grassland equipment in the European market saw a growth of over 9 percent.
The grassland equipment category includes various products such as mowers, tedders, rakes, and loader wagons. Additionally, national authorities reported that approximately 108,800 tractors were registered across Europe in the first half of 2022. The increasing demand for agriculture machinery will lead to the adoption of hydraulic pumps and motors.
The construction business worldwide has been a major contributor to the world's economy. It also plays a significant role in the U.S. economy, with over 9,19,000 construction establishments recorded in the first quarter of 2023. The industry employs 8.0 million individuals and contributes to the creation of nearly $2.1 trillion worth of structures annually.
Additionally, construction is a major consumer of manufactured goods in the economy, including excavators, bulldozers, cranes, and concrete pumps that heavily rely on hydraulic reservoirs. As construction equipment sales went up, the demand for hydraulic reservoirs increased.
Rising aerospace production is one of the leading drivers of the demand for hydraulic reservoirs. Various developments related to aircraft and airplane development, such as Dynamatic Technologies Limited's new partnership with Deutsche Aircraft. The collaboration is to manufacture the rear fuselage for the 40-seater D328eco regional turboprop aircraft. This partnership signifies a key milestone for the "Make in India" initiative and will leverage the skilled ecosystem in India to drive this project forward.
Further, Airbus and the Chinese aviation industry entered the next phase of their partnership, signing a General Terms Agreement to assign 160 aircraft to Chinese airlines. This includes expanding capacity at the Tianjin A320 Final Assembly Line to support the global production rate of 75 aircraft. Additionally, efforts are underway to increase production and adoption of Sustainable Aviation Fuels. Hydraulic reservoirs play a crucial role in aerospace and defense applications by storing hydraulic fluid and ensuring its availability for various hydraulic systems.
Hydraulic Reservoir Market Restraint:
Regulations related to emissions, waste management, and energy efficiency may require manufacturers to invest in new technologies or modify existing products to comply with stringent standards. These compliance costs can affect market growth. Furthermore, disruptions in the global supply chain, such as natural disasters, trade disputes, or political instability, can impact the availability of raw materials, components, and finished products. These disruptions can lead to delays in manufacturing and increase costs, negatively affecting the hydraulic reservoirs industry’s growth.
Hydraulic Reservoir Market Segment Analysis
Hydraulic reservoir market segmentation by material into aluminum and steel. Aluminum offers significant weight reduction and naturally resists corrosion. Steel is the stronger material, making it suitable for high-pressure applications and harsh environments. It is also a cost-effective option.
The Asia-Pacific region is anticipated to witness steady growth due to rapid urbanization, the booming construction sector in India and China, and growing agricultural activities. In 2023, China's manufacturing industry’s Fixed Asset Investment (FAI), rose by 6.5 percent compared to the previous year, while investment in infrastructure increased by 5.9 percent year-on-year.
Additionally, the Government of India launched the Pradhan Mantri Krishi Sinchai Yojana with an investment of Rs 50,000 crore to develop irrigation sources that help farmers buy new agricultural equipment. These investments and developments lead to the demand for hydraulic reservoirs as their applications in various end-user industries.
Hydraulic Reservoir Market Players and Products:
Market Segmentation: