Hydraulic and Pneumatic Equipment and Components Regional Market outlook

  • Europe will continue to dominate the market, in terms of growth prospects in pneumatic equipment consumption until 2020. The Middle East and Africa (MEA) and APAC regions are expected to grow at the fastest CAGR from 2018 to 2022
  • Increasing focus on bringing in more productivity and eliminating hazardous manual tasks are expected to be the major drivers in the coming few yearshydraulic-pneumatic-equipment-components

Hydraulic and Pneumatic Equipment and Components 

  • The pneumatic equipment market was valued at $40.7 billion in 2018 and is expected to grow at a CAGR of 5.43 percent to reach $55.89 billion by 2024
  • North America accounted for 45 percent of the market share in 2017. The pneumatic equipment is fragmented and is competitively catering to a variety of industries with vast end-user segments across industries, such as oil & gas, mining, cement, paper and pulp, etc

Hydraulic and Pneumatic Equipment and Component: Industry Trends 

  • Increasing levels of focus on improving mine safety in developed regions, like North America and Western Europe, signal an increasing buyer maturity and willingness to partner with automation suppliers
  • Global suppliers are entering new geographies in developing regions, such as Chile, Brazil, India, etc., through mergers and acquisitions, thus offering multi-location solutions to global buyers
  • The fragmented pneumatic and lubrication market in APAC and the MEA has provided a great opportunity for global OEMs and service providers to tap into this market 
  • These regions are considered to be developing, in terms of adopting automation to improve on oil exploration, mine safety, offshore mining, etc., instead of adopting conventional mining approach

Hydraulic and Pneumatic Equipment and Components: Overview

  • The pneumatic equipment market was valued at $40.7 billion in 2018 and is expected to grow at a CAGR of 5.43 percent to reach $55.49 billion by 2024 
  • Upcoming brownfield and greenfield projects in the oil & gas and power generation industries are expected to sustain the demand. This growth is also due to technological advancement and miniaturization & automation in equipment design worldwide
  • Oil & gas, mining, and chemicals contributed to almost 50 percent of the market size. The emerging middle classes, generally, are consuming more processed and packaged foods, which is leading to accelerated investment in the food & beverage segment of process equipment

Procurement Strategy: Overview

Sourcing Strategy 

  • Global suppliers are preferred because they can cater to the needs and demands of the global customers 
  • Global vendor not only helps in standardizing the products across the sites but also helps in sped pool consolidation 

Vendor Preference 

  • One to two suppliers are preferred, as they can help in improving the design of the machines 
  • The negotiation power will be less with multiple suppliers

Engagement Model 

  • Large buyers first prepare the list of preferred components suppliers. The list is prepared, based on the performance of equipment's used in previous plants or an expert’s advise. The list is given to the integrators and is advised to use components of selected suppliers only in their equipment 
  • The integrators manage the procurement of these components on behalf of the customer. A repair, replacement or warranty issue is also managed by Integrator. In this way, they act as a single point of contact for the customer for every problem