Asia Pacific to become largest market for industrial hydraulic components
Changes in the oil market and the European economy, coupled with economic growth, suggest Asia Pacific will be the largest market by 2014, IMS Research said.
The world market for hydraulic components used in industrial applications grew 25% to reach $7.9 billion in 2010 as almost two thirds of revenues lost during the downturn in 2009 were recovered, according to IMS Research. This strong growth carried over into 2011, and the latest indications are that growth of 13% will ensure global revenues reach almost $9 billion by the end of the year representing a return to 2008 levels. However, while overall revenues may have returned to familiar levels, the proportion of the market accounted for by each major region continues to change significantly.
As of 2008, EMEA (Europe, Middle East, Africa) represented over 40% of the industrial market for hydraulic components, and estimated to be $3.6 billion, which was 10% ($895 million) larger than Asia Pacific. However after the 2009 market decline and subsequent recovery in 2010, the sustained momentum of Chinese industry had effectively offset the 40% contractions seen in Japan so that Asia Pacific accounted for almost 35% of global revenues. This represented a market share increase of almost five percent in two years.
Principal Analyst Robert Carter states “In 2010, EMEA was still the largest market for industrial hydraulic components, despite losing over three percent share to Asia since 2008. However, sustained recovery of the European market in 2011, combined with high demand from within Middle Eastern oil, gas and mining sectors after 2012, will add significant growth stimulus to the EMEA market, and slow the rate at which Asia increases global share.”
Carter continues, “But this will only delay the inevitable change in regional market ranking. Current indications are that the market for industrial hydraulic components in Asia is set to exceed that of EMEA in 2014, at which point Asia Pacific will be the largest market exceeding $3.9 billion.”
- Edited by Chris Vavra, Control Engineering, www.controleng.com