The hydraulics industry is tipped to grow at a CAGR of 12-15 per cent, and in some segments, the figure can be as high as 25 per cent. The market growth will primarily depend upon the performance of mobile hydraulic equipment, comprising mainly of off-highway equipment such as backhoe loaders, excavators, mobile cranes, wheel loaders, forklifts and agricultural equipment, observes Neellohit Banerjee.

 

Hydraulics and pneumatics find numerous industrial applications in machine tools, injection moulders, forklifts, excavators, hauler trucks, etc. One of the most important component in hydraulics is valves, which are used to control the pressure, flow and direction of flow of hydraulic fluids. The Indian valves market is expected to reach $3 billion by 2023, with a Compounded Annual Growth Rate (CAGR) of nine per cent.

 

On the other hand, pneumatics is used where small amount of force is required, and this is done through compressed air. Air compressors, actuators, control valves, fittings, etc., are some of the pneumatics devices that are the most widespread. The global actuators market is projected to grow from $36.63 billion in 2016 to $47.72 billion by 2021, at a CAGR of 5.43 per cent. This will mostly be driven by factors such as rise in demand for advanced automation systems worldwide and investments in technologically-advanced actuators by manufacturers for advanced automation systems.

 

Market watch

 

Overall, the hydraulics industry is tipped to grow at a CAGR of 12-15 per cent, and in some segments, the figure can be as high as 25 per cent. The market growth will primarily depend upon the performance of mobile hydraulic equipment, comprising mainly of off-highway equipment such as backhoe loaders, excavators, mobile cranes, compaction equipment, wheel loaders, forklifts and agricultural equipment.

 

“At present, the hydraulics and pneumatics industry is in a good state. Various initiatives of the government in promoting ‘Make in India’ and focusing on infrastructure growth have been drivers for the industry,” reveals Krishnan V, Head, Commercial, SAI India Limited.

 

The industry has experienced a dip in demand since 2011, but there has been an improvement in the situation since 2015-16 due to strong domestic requirements and the government’s attention to investments in infrastructure projects, thereby leading to higher demand of capital equipment. The demand for hydraulic cylinders is mostly steered by the rising demand for hydraulic cylinder based equipment. Such equipment have utilisation in industries such as manufacturing, construction, mining, agriculture, aerospace, and defence.

 

“The market is growing at a rapid pace. We are observing a growth rate of approximately above 20 per cent in this industry,” informs B Seshnath, CEO and Managing Director, Walvoil Fluid Power India.

 

The actuators market is significantly determined by the elements, for example, growth in the number of aircraft carriers, persistent development in the automotive industry and innovative progressions in actuators is moving the market development. This, coupled with the growing mechanical base in the Asia Pacific region, is highly affecting the development of the market. The actuators market may observe deterrents in development because of the expensive nature of the actuators. However, noise, power consumption and leaks are the main challenges that are faced by the global actuators market.

 

The pneumatics and hydraulics market is on a steady development and activities in the infrastructure sector, farm equipment and industrial equipment can be cited as major reasons. Government focus on farm sector will also catapult demand for tractors and this will have a positive influence on the demand for the hydraulic product on the farm equipment segment. High adoption of material handling equipment offers growth opportunity for the market. At present, industries such as food and beverage, power and energy, retail and oil refineries other than construction and engineering sectors are extensively resorting to material handling equipment such as level luffing cranes, stackers and electronic overhead traveling cranes. This leads to the adoption of material handling equipment and thus helps the growth of the hydraulic cylinders market.

 

Automation

 

Automation requirements of the industry is rapidly growing, and it calls for skilled manpower. More and more mechatronics engineers and technical manpower is required for designs, assembly and maintenance of the automation-based machines. “Skilled manpower has been an area of concern. Automation is helping the industry in increasing the per person productivity,” informs Krishnan V.

 

B Seshnath believes, “While a large number of the manufacturers in the hydraulic and pneumatic products segment being multinational, each of them are trying to expose the local manufacturers for the adoption of their latest technology, making a significant impact.”

 

As the industrial internet of things (IIoT) gains popularity in factories, manufacturers have to think of a way to transform the huge quantity of data from sensors, actuators and connected devices into opportunites that can help production become efficient.

 

Through IIoT technologies, operations can be improved with the help of deploying solutions that can deliver on three key metrics over the course of a product’s lifecycle, viz. overall equipment effectiveness (OEE), energy efficiency and agile manufacturing. A suitable example of OEE is the Festo IoT Gateway, which is a device that acts as a connection between pneumatic components and modules from the field level to the cloud. Its functions are based on collecting information about connected devices via an Ethernet connection and standardised communication protocol. It then sends the information to the cloud via a second Ethernet connection using IoT protocols.

 

Another instance of IIoT-enabled technology is the Festo Motion Terminal VTEM, which disengages pneumatics from mechanical hardware. Through easy-to-use motion apps, control functions are vailable with the help of this decoupling. By just pushing a button, a number of motion tasks can be accomplished using a single valve type.

 

Opportunities and trends

 

The slow growth in industrial demand and dearth of new projects and investments in sectors like steel, power and infrastructure has affected the hydraulics and pneumatics industry. Though there is slow down, the impacts are felt as other segments are performing well. “Specific projects related to steel and power have been delayed. Infrastructure has been growing at a good pace and the effects are yet to be felt on the H&P market,” informs Krishnan V.

 

When asked whether opening up of the rail and defence sectors will offer new business opportunities for the pneumatics and hydraulics industry in India, B Seshanath believes it will. Whereas Krishnan V expresses, “Definitely. The issue is that the projects take time to materialise into revenues. The industry has to be patient and invest its resources. The positive impact will be seen in the years to come.”

 

Mechanisation in the agri, cleaning, waste disposal, defence, rail, etc., automation of industries, upgradation of the technology from the exiting almost basic levels to the next levels, for better productivity and control will provide new opportunities to the industry.

 

“Industry 4.0 is the talk of the town. The industry is looking at ways to implement 4.0 solutions. Use of mechatronics is another trend. The industry is cautious when looking at expansion plans,” reveals KrishnanV.

 

When asked to explain his future plans, he says, “The banking sector has been cautious. The liquidity in the markets will also play an important role for our growth plans. The state of NBFCs and their impact on infrastructure growth is to be seen. A steady GDP growth will ensure a steady growth for our company.”

 

The market is moving towards adoption of electronic and proportional controls in the equipment and machineries being manufactured. “With this they are getting the edge to make in India a reliable product not only for the domestic market, but also grow in the export segment,” informs B Seshnath.

 

 

At present, the hydraulics and pneumatics industry is in a good state. Various initiatives of the government in promoting ‘Make in India’ and focusing on infrastructure growth have been drivers for the industry.

 

Krishnan V, Head, Commercial, SAI India Limited.

 

The market is growing at a rapid pace. We are observing a growth rate of approximately above 20 per cent in this industry.

 

B Seshnath, CEO and Managing Director, Walvoil Fluid Power India.