According to a report published by Transparency Market Research, (www.transparencymarketresearch.com) the value of the North American hydraulic fluid connectors market is expected to reach $4.74 billion by 2020. Valued at $2.84 billion in 2013, the market is anticipated to expand at a CAGR of 7.6% between 2014 and 2020.
The Transparency Market Research report sited aerospace as the sector leading the charge for this growth but also stated “the growing demand for construction equipment in North America, due to various upcoming projects associated with oil and gas, petroleum and rail-road markets, has been contributing significantly towards the growing demand for hydraulic fluid connectors.”
This is interesting. While the overall growth of the market does seem to be stable, we have not been hearing anything about this level of market strength increase. As far back as 2013 we were hearing talk of construction growth but not without caveats.
David Phillips of the London-based Off-Highway Research consulting firm told us two years ago at the International Economic Outlook Conference that he did expect North American growth but that the construction market’s mobile machinery was uncertain and “very difficult to forecast.”
We’ve also been hearing that agriculture is trending down; the report sees a different trend on the rise. Various factors are sited for what they project to be a 7.9% CAGR over the next 15 years. “With demand rising for commodities such as food and textile due to rising disposable incomes and growing population, agricultural activities have been on the rise in the region. This has boosted the demand for hydraulic fluid connectors in certain agriculture equipment such as tractors combines & harvesters.”
At the recent National Fluid Power Association’s Annual Conference, Jim Meil, Principal, Industry Analyst at ACT Research and a leading economist with a strong understanding of the industry, indicated that while both these markets have happily experienced secular growth in the last two decades, there are some tough adjustments coming in them. That’s not to say the market is down, and Meil did say that while things weren’t great, things are “pretty good.”
To read the full report visit http://goo.gl/VeQASt