What is The Development Prospect of the Hydraulic Industry?

Hydraulic pressure is a term used in the mechanical and electromechanical industries. Hydraulic pressure can be transmitted through power transmission, becoming hydraulic transmission. Hydraulic pressure can also be used as a control method, known as hydraulic control.

1)、Organizational part

A complete hydraulic system consists of five parts, namely energy device, actuator, control and adjustment device, auxiliary device, and liquid medium. Hydraulic pressure is widely used in industrial and civil industries due to its characteristics of large power transmission, easy transmission and configuration. The function of the executing components of the hydraulic system (hydraulic cylinder and hydraulic motor) is to convert the pressure energy of the liquid into mechanical energy, thereby obtaining the required linear reciprocating or rotary motion. The function of the energy device (hydraulic pump) in the hydraulic system is to convert the mechanical energy of the prime mover into the pressure energy of the liquid.

Components of hydraulic components

2)、Development history

In the 1950s, China's hydraulic industry entered its initial stage. After the 1960s, the application of hydraulic technology in China gradually extended from machine tools to fields such as agricultural machinery and engineering machinery. Some hydraulic workshops that were originally affiliated with main engine factories were independent and became specialized production factories for hydraulic components. The industry entered a stage of professional production system growth. In the 1980s, under the guidance of the national policy of reform and opening up, the hydraulic industry received guidance and support from the Infrastructure Bureau in planning, investment, technology introduction, and scientific research and development, thus entering a period of rapid development. Since the 21st century, the country has actively introduced policies to promote the development of the industry and increased efforts in technological transformation, leading the industry to enter a mature stage of development.

Schematic diagram of the development process of China's hydraulic industry

2、Policy

With the development of the Chinese hydraulic industry, the Chinese government has successively introduced relevant policies to support the continued good and stable development of the Chinese hydraulic industry. In July 2021, the China Hydraulic and Pneumatic Seal Industry Association issued the "14th Five Year Plan" for the development of the hydraulic and pneumatic seal industry. By the end of the 14th Five Year Plan, more than 80% of high-end hydraulic and pneumatic seal components (devices) and systems will achieve independent protection. The situation of being constrained by people has been significantly alleviated, and the urgently needed hydraulic and pneumatic sealing components (devices) and systems in the equipment industry have been widely promoted and applied.

Policies related to China's hydraulic industry

3、Industry Chain

1)、Industry Chain

The upstream of China's hydraulic industry chain consists of raw materials such as round steel and steel, precision castings and related accessories, while the midstream consists of manufacturing enterprises such as hydraulic components and hydraulic systems. The downstream application fields are relatively broad, including engineering machinery, aerospace, excavators, large bridge construction equipment ships, marine engineering equipment, port machinery metallurgy, wind power machinery, and other fields.

Schematic diagram of the hydraulic industry industry chain

2)、Downstream situation

Hydraulic core components are widely used in various types of host products and technical equipment in various industries, such as agricultural machinery, engineering and construction machinery, plastic machinery, machine tools, automobiles, ships, light textile and pharmaceutical machinery, as well as major technical equipment such as aerospace, weapon equipment, metallurgy and mining, petrochemical, power energy, information electronics, and transportation vehicles. The downstream industries of China's hydraulic parts market are mainly engineering machinery, automobiles, heavyduty machinery, and machine tools. The engineering machinery industry accounts for 40.5% of the application in the hydraulic industry, making it the main application industry for hydraulic products. In the future, as infrastructure investment continues to increase and the prosperity of construction machinery improves, the demand for hydraulic components will further increase.

Statistical chart of the proportion of

downstream application fields in China's hydraulic industry

4、The Development Status of the Global Hydraulic Industry

1)、Market Size

Since the 21st century, the equipment manufacturing industry represented by engineering machinery, metallurgical machinery, mining machinery, agricultural machinery, aerospace, intelligent machine tools, etc. has achieved rapid development, and China's hydraulic industry has entered a mature development stage. Data shows that the market size of China's hydraulic industry has increased from 59.7 billion yuan in 2016 to 82.1 billion yuan in 2020. The market prosperity of the hydraulic industry has rebounded, with a compound annual growth rate of 8.29%. An increase of 9.01% year-on-year in 2020.

Changes in the Global Hydraulic Industry Market Size from 2016 to 2021

Data source: International Fluid power

Association, China Economic Industry Research Institute

2)、market share

The most heavily segmented region in the global hydraulic industry is China, which accounts for 36.04% of global sales, followed by the United States with 33.62%, Germany with 9.34%, Japan with 6.04%, Italy with 5.1%, and other countries with 9.86%.

Statistical chart of the proportion of

segmented regions in the global hydraulic industry

Data source: International Fluid power

Association, China Economic Industry Research Institute

3)、Technology distribution

At present, the world's largest source of hydraulic technology is China, which accounts for 32% of the total number of hydraulic patent applications worldwide; Secondly, Japan accounts for 16% of the global hydraulic patent applications; The third ranked countries are the United States and Germany, with hydraulic patent applications accounting for 14% of global hydraulic patent applications.

Statistical chart of the distribution of global

hydraulic technology sources and the proportion of countries

5、Analysis of the Development Status of China's Hydraulic Industry

1)、Market Size

2)、Total output value of the enterprise

According to data, the total industrial output value of enterprises above designated size in China's hydraulic industry has shown an increasing trend year by year, from 53.5 billion yuan in 2016 to 76.6 billion yuan in 2021, an increase of 5.8% compared to 2020. With the expansion of China's hydraulic industry market size, the total industrial output value of enterprises will continue to rise in the future.

Total industrial output value of enterprises above designated size in China's hydraulic industry from 2016 to 2021

Data source: China Hydraulic and Pneumatic Seal

Industry Association, organized by Huajing Industrial Research Institute

3)、market share

According to data, the market share of segmented products in China's hydraulic industry is the heaviest, with hydraulic cylinders accounting for 35.6%, followed by hydraulic valves accounting for 15.7%, hydraulic valves accounting for 12.4%, hydraulic system level devices accounting for 11.6%, hydraulic accessories accounting for 11.6%, hydraulic motors accounting for 11.2%, other hydraulic components accounting for 1.7%, and hydraulic tools accounting for 0.2%.

Statistical chart of market share of segmented products in China's hydraulic industry

Data source: China Hydraulic and Pneumatic Seal

4)、imports and exports

Hydraulic components include hydraulic power devices (84122100) with linear action (hydraulic cylinder), hydraulic motors (84122910), other hydraulic power devices (84122990), hydraulic rotary gear pumps (84136022), hydraulic rotary vane pumps (84136032), and hydraulic transmission valves (84812010). Except for hydraulic transmission valves, the import volume of the remaining products is greater than the export volume. According to the data, From January to September 2022, the import volume of hydraulic components in China was 110.1262 million units and sets, while the export volume was 26.079 million units and sets.

Statistical Chart of Import and Export Volume of Hydraulic Components in China from January to September 2022

Data source: China Hydraulic and Pneumatic Seal

6、Global hydraulic industry market competition pattern

1)、Competitive landscape

According to data, the global hydraulic industry market competition is relatively fierce, with the majority of market share being held by foreign companies. Among them, the local Chinese company Hengli Hydraulic holds 2.2% of the global hydraulic market share and is a leading enterprise in the domestic hydraulic industry in China.

The market competition pattern of the global hydraulic industry and the proportion of enterprises

Data source: Compilation of public information

2)、key enterprises

Hengli Hydraulic is a leading enterprise in China's hydraulic industry, occupying a certain market share. According to data, Hengli Hydraulic's revenue continued to rise from 2017 to 2021, reaching 8.617 billion yuan in 2021, an increase of 23.26% compared to 2020. In the future, with the development of China's hydraulic industry, market share will gradually flow to key enterprises, and Hengli Hydraulic's revenue will continue to grow.

Statistical Chart of Hengli Hydraulic Hydraulic Revenue from 2017 to 2021

Data source: Compilation of public information

7、Future Development Trends of China's Hydraulic Industry

As a universal basic component in the manufacturing industry, hydraulic products are widely distributed in downstream industries. With the continuous upgrading of hydraulic component processing technology, their application scope is also expanding. In the future, China's hydraulic industry should move towards industrial upgrading and structural optimization; Product intelligence and greening; In the context of favorable national policies, the development of China's hydraulic industry in the direction of Industry 4.0 and Grain Protection Network+has a broad initial stage.

Schematic diagram of the development

trend of China's hydraulic industry in the future

Data source: Compilation of public information