The Latin America Hydraulic Pumps Market was valued at USD 402.7 Million in 2019 and is projected to reach USD 450.3 Million by 2027 expanding at a CAGR of 2.1% during the forecast period, 2020-2027. Hydraulic pumps are a source of power for many complex devices. These pumps use hydraulic cylinders or hydraulic motors to move massive volumes of fluids; therefore, they are widely used in several industrial equipment.
The pumps transform mechanical energy of the drive (i.e. torque and speed) into hydrostatic (flow and pressure) energy. Hydraulic machines-fitted with a pump can be used to do various activities, such as raising, lowering, opening, closing, or spinning parts. Hydraulic pumps operate on the concept of displacement, which includes the presence of mechanically enclosed pump chambers.
Every industry aims at achieving high production rate by producing superior quality goods at a lower cost, in less time, and by delivering them to the consumer at the right time. This, in turn, increases the preference of manufacturing industries to hydraulic pumps. Growing importance of positive displacement pumps, particularly rotary pumps, has been a key trend.
Rise in competition between the manufacturing companies in the region to increase their productivity is projected to fuel the demand for hydraulic pumps. End-users are expected to experiment by selecting the optimal pump for challenging tasks. Increase in environmental awareness has propelled the hydraulic pumps market.
The fluid is transferred through these chambers from the inlet (suction port) of the pump to the outlet (pressure port). Sealed chambers ensure that there is no direct connection between the two pump ports. As a result, these pumps are suitable for operating in high pressure device and are ideal for hydraulic systems. Hydraulic pumps are produced according to different functional and hydraulic system specifications, such as operating medium, necessary pressure range, type of drive, and others. Currently, hydraulic pumps are available in a broad variety of design concepts and configurations. As a result, not every pump can completely satisfy all specifications to an optimum level.
Hydraulic Pumps Market Dynamics
The market is driven by factors such as rapid industrialization and urbanization, rising investments in oil & gas and mining industries, stringent energy and environment regulatory policies, and prioritizing energy-efficient products. Conversely, high abnormal noise of the gear pumps and cost of maintenance over the entire lifespan are key restraints of this market. Growing R&D investments and increasing connectivity and convergence are boosting the market.
Growing investments in water and wastewater treatment facilities and increasing construction industry’s growth are boosting the growth of the market. Recent market trends include the use of fire-resistant hydraulic fluids, which is gaining traction in end-use industries and increasing pace of infrastructural improvement in the region.
Hydraulic Pumps Market Segmental Outlook
Based on types, the Latin America hydraulic pump market is segmented into the gear pump, vane pump, piston pump, and screw pump. The gear pump segment accounts for major market share, while the vane pump segment is expected to expand at significant CAGR during the forecast period. The gear pump segment is projected to hold a major share of the market during the forecast period owing to its wide applications in end-use industries.
Increase in use of piston pumps is expected to drive in different industrial applications. The selection of the pumps for various applications is based on crucial factors such as the necessary flow rate, suction and differential pressure, temperature, viscosity, weight, and corrosiveness of the liquid being treated. Furthermore, facility managers often select oversized pumps as a fallback in the misguided assumption that the selected pump can meet potential capacity needs. The additional energy costs involved in constantly running oversized pumps is overlooked while selecting the pumps.
The hydraulic pumps segment account for approximately 27% of the overall use of electricity in the industrial sector, according to the Hydraulic Institute. Conversely, the centrifugal-style pumps remain the most commonly used technology in industrial fluid handling applications. Currently, there is no solution for ‘one pump fits all’. This opens doors for operators to consider the advantages offered by positive displacements (PD) pumps in applications that have historically relied on centrifugal pumps, from a performance and energy-saving perspective.
On the basis of applications, the Latin America hydraulic pumps market is classified as construction & mining, machine tool, oil & gas, agriculture, chemicals & petrochemicals, automotive, and others. The construction & mining segment accounts for a major share of the market and is projected to grow at substantial pace during the forecast period.
The demand for hydraulic pumps is directly influenced the combined growth of end-use industries. A large number of manufacturing companies are being set up and planned expansions are taking place across countries in Latin America during the forecast period. This, in turn, is projected to fuel the demand for hydraulic pumps at a rapid pace. The equipment used in construction, agriculture, and mining are considered under mobile applications where hydraulic pumps are widely used.
The construction & mining segment holds a major share of the market, as gear hydraulic pumps are primarily used in this industry owing to its low cost and effective results. The demand for hydraulic pumps is rising in the agriculture segment due to increasing awareness regarding the benefits offered by hydraulic pump over traditional pumps.
The need for construction and mining equipment in the region is anticipated to be guided by the comprehensive application of construction and mining equipment in operations such as excavation, earth-moving, lifting, and material handling. Manufacturers are increasing their investment in machine tools to boost their production processes and systems in developed and developing countries in the region.
Based on country & sub-region, the Latin America hydraulic pumps market is segmented into Mexico, Guatemala, Nicaragua, El Salvador, Honduras, Panama, Costa Rica, Belize, and Rest of Latin America. Mexico accounts for a leading share of the market in the region. Latin America is divided into three main geographical regions of Central America, South America, and the Caribbean.
The economy of the region is majorly based on the export of products and services. The government of Nicaragua is committed in enhancing the provision of services in the country and offers guidance for public policies on various aspects of the recent the National Human Development Plans, including the one for the period between 2012 and 2016. Foreign investors prefer to invest in the region due to significant growth that countries are developing in various industrial sectors such as renewable energy, technology, infrastructure, tourism, agriculture, manufacturing, and other sectors.
In August 2020, regional inflation increased to 6.2% from 6.1% in July, driven largely by high pricings pressures in Brazil and Mexico. New automation technologies in automotive, construction, and agriculture industries are introduced in Latin America countries due to which adults learn and develop skills. Policy reforms to improve productivity in the service sector, which employs 60% of the workforce, can play an important role in the future. Hence, increasing demand for various industrial equipment increases the demand for the hydraulic pumps during the forecast period.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Latin America Hydraulic Pumps Market
- Historical, Current and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Latin America Hydraulic Pumps Market Performance
- Gear Pump
- Vane Pump
- Piston Pump
- Screw Pump
- Construction & Mining
- Machine tool
- Oil & Gas
- Chemicals & Petrochemicals
- El Salvador
- Costa Rica
- Bosch Rexroth AG
- Continental Hydraulics Inc.
- KSB SE & Co. KGaA
- Northman co.,ltd
- PARKER HANNIFIN CORP
- Ruhrpumpen Group
- Top players in the market include KSB SE & Co. KGaA, Danfoss, Eaton, and Bosch Rexroth AG. These companies are considered as key manufacturers of hydraulic pumps based on their revenue, research development (R&D) activities, product offerings, regional presence, and supply chain management system.
- The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunity for the Hydraulic Pumps Market.
- For instance, in July 2020, KSB SE & Co. KGaA’s parent company, KSB group, divested three of its service companies to the Orano group, as a part of restructuring. By divesting these three companies the KSB group is focusing on expanding of the KSB SupremeServ brand and core activities in the area of services.
- In January 2020, Danfoss entered into an agreement to acquire Eaton's Hydraulics business, this strategy will help Danfoss to strengthen its core businesses and enhance customer value.
- In February 2019, Eaton agreed to acquire Power Distribution, Inc. (PDI), a leading supplier of mission critical power distribution, static switching, and power monitoring equipment and services.
- In March 2020, Bosch Rexroth AG launched piston-gear pump assembly with suction port. The assembly is designed to provide compact, fully engineered tandem pump configuration for mobile machines builders.