Hydraulics is undergoing a revolution
The hydraulics industry is currently undergoing a technological revolution due to greater integration of hydraulic and electronic components in systems. Wider industry trends such as electrification and automation, as well as the need for more efficient and precise systems, are driving this revolution.
One of the most important developments was the rise of electro-hydraulics. As the market evolves, this new generation of components is increasingly being adopted, reflecting a larger trend toward more advanced and integrated solutions.
This shift is also reflected in the growing demand for ‘smart’ electro-hydraulic solutions. The market is moving away from the tendency to define and specify hydraulic and electronic solutions in isolation. Instead, there is a push to integrate these elements into smart systems that offer greater efficiency and functionality.
Another key factor is continued consolidation among manufacturers. Major mergers such as Danfoss, Eaton, Hydraforce and Rexroth have reshaped the landscape. It emphasizes the importance of having a streamlined supply base and in-region manufacturing, assembly and supply capabilities.
The role of system integrators has also become more important than ever. Working with engineering firms to specify and implement products is now a critical part of the process. Additionally, the use of telematics and sensors is becoming increasingly important, adding another layer of complexity and potential to the overall system.
The shift to electro-hydraulics (EH) is driven by major OEMs’ focus on technologies that enable energy savings and economies of scale. These benefits are consistent with the broader industry transition to electric vehicles (EVs). As a result, hydraulic system design is undergoing revolutionary changes to accommodate and optimize the use of EH components. This change spurred innovation to develop more efficient and sustainable hydraulic solutions.
The need for products that could be sourced in regional markets also influenced design considerations. Providing an improved value proposition becomes increasingly important, especially as competitors begin to copy high-performance products such as balancing valves. The design process now needs to consider not only performance but also the ability to manufacture and supply these products locally. This trend results in designs that balance high performance with local usability, adding another layer of complexity to the design process.
Of course, we are witnessing a greater convergence of electronics and hydraulics. A notable example is the electronic/hydraulic control module, which brings many benefits. These include improved integrated solutions, enhanced and streamlined supplier partnerships, and strengthened collaboration between solution creators, device manufacturers and users.
Another example is the integration of controllers and electronic actuators, which significantly increases machine performance and output. As electronics become more common in the industry, we see significant improvements in overall capabilities and accuracy.
The proliferation of electronics in hydraulics over the past two decades has been impressive. It provides an effective solution, especially when the system cannot accommodate complex servos. The combination of electronics and hydraulics allows high levels of performance and precision to be achieved in a more cost-effective manner.
Additionally, while reliance on hydraulics has been steadily reduced over the years, it is important to recognize that this technology will always have a unique role to play, especially when strong force is required. The principles of Pascal's Law that form the basis of hydraulics remain unchanged and continue to be a key aspect of the design. Therefore, even as we adapt to new trends, the fundamental role of hydraulics, especially in high-power applications, will continue to play an important role.
Several economic and market factors are likely to impact the hydraulics industry in the coming year. The economic downturn is worrying. An economic recession can directly impact the hydraulics industry by resulting in reduced demand for products and services. One way to mitigate this problem is through end market diversification.
The ongoing geopolitical environment also poses risks, particularly potential supply chain disruptions. This has been the case during the epidemic and the Russo-Ukrainian war. Now there is another conflict in the Middle East. The hydraulics industry relies on a global network of suppliers and any disruption could impact production and delivery schedules.
Despite these challenges, it is important to note that there are always opportunities for growth by increasing market share. This can be achieved through strategies such as product quality and innovation, becoming a global supplier, selling systems with add-on software, improving customer service and competitive pricing.
A key factor for success in 2024 may be delivery speed and reliability. Amid potential economic uncertainty and supply chain disruptions, companies that can maintain consistent on-time delivery may have an advantage in the market.