2025 to See Growth Return For Mobile Hydraulics Market

The global mobile hydraulics market is projected to experience a downturn in 2024, with an anticipated contraction of 6.7%, bringing the market value to approximately $17.5 billion, down from $18.8 billion in 2023. 

This decline is attributed to several factors:

Economic Uncertainty: High borrowing costs and global political instability have dampened market confidence.

Overstocking and Destocking: Supply chain disruptions in 2021 and 2022 led OEMs and distributors to overstock components. The subsequent destocking phase has slowed market activity in 2024.

Sector-Specific Challenges: The construction and agriculture sectors, significant consumers of mobile hydraulics, are underperforming, particularly in the Americas and Europe. In contrast, the Asia-Pacific region shows resilience, driven by robust demand in material handling and mining sectors.

Despite the 2024 downturn, the market is expected to rebound in 2025. Factors contributing to this recovery include anticipated interest rate reductions, which could stimulate machinery demand, and the conclusion of the destocking phase, leading to renewed orders. Additionally, the ongoing electrification of off-highway vehicles presents growth opportunities, as manufacturers aim to meet stricter emission and efficiency standards. 

Blake Griffin, Research Manager at Interact Analysis, notes that the mobile hydraulics market is inherently cyclical, with growth peaks and troughs every 3 to 5 years. He suggests that 2024 represents the trough of the current cycle, with growth anticipated to return in 2025. 

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