Hydraulic components industry

The rapid boom in Indian infrastructure industry, along with the more moderate growth of the manufacturing sector, has stabilized the demand for hydraulic components in India. The Government of India’s planned investment of INR 45 trillion in infrastructure in the 12th five year plan (2012-2017) will be a major boost to construction equipment and thereby, hydraulic components.

New analysis on the Indian Hydraulic Components Market, finds that the market was valued above INR 18 billion during 2010 and is likely to grow at a compound annual growth rate of more than 14 percent from 2011-17 to cross INR 50 billion.

Mirroring the twofold increase of sales in the construction equipment market by 2015, the market for hydraulic components in construction and bulk material handling will also double during this period. The increased investments and expansions in core sectors such as infrastructure, steel, cement, mining, as well as oil and gas is driving the market for ancillary products such as hydraulic components.

Emphasis on the Indian power sector is also expected to give a leg up to the hydraulic component market. With rapid capacity additions and expansions, the market is anticipated to grow by more than 15 percent over the next five years.

The trend to source from low-cost countries has gained momentum, and India, with its rich experience in manufacturing, large pool of skilled manpower, and ever increasing domestic volumes, has made the most of this environment to become a manufacturing hub for the global market. This new status will result in many multinationals clamoring to set up manufacturing facilities in India.

The initial challenge of delivery lead times is reducing as global hydraulic component manufacturers are setting up manufacturing or assembling units in India.

References: Business Wire India, Frost & Sullivan