The hydraulics market and the wider Fluid Power sector reach mid-2026 with a clearer picture. Fluid Power has stopped declining, but hasn't returned to solid growth yet.
đď¸ The Hydraulics Market in Italy, 2025: Where the Recovery Starts
Fluid Power was the only segment to grow in 2025: +2% according to FEDERTEC, against a 1.1% drop in mechanical power transmission. Exports rose 1.6%.
The driver behind the hydraulics market’s growth is industrial hydraulics, which FEDERTEC names as the main factor. It’s a familiar pattern: in 2024 hydraulics had suffered more than pneumatics (revenue -11.9% versus -4.4%, data from OnSite News). Now it’s leading the recovery.
End-use sectors remain the clearest gauge for hydraulics. In the latest breakdown available, agricultural machinery was down 12% and construction equipment 11%. Only packaging machinery grew (+2.5%, data from the 2025 Giornata Economica FEDERTEC).
On exports, the United States remains the top market for Italian Fluid Power, at around 36% of the total. China (27%) and Germany (10%) follow: a concentration that leaves the hydraulics market exposed to trade tensions with Washington â more on that below.
First Half of 2026: The Hydraulics Market Slows Down
Data from Federmacchine for January-June 2026 groups FEDERTEC with four other associations, with no breakdown by technology. Still, the picture is clear: orders down 1.8% year-on-year, domestic market down 9.2%, exports still positive (+1.8%). The decline sharpened in the second quarter: -4% overall, -10.5% in Italy (Innovation Post).
đ The Global Hydraulics Market: Pumps, High Pressure, Precision Agriculture
The global hydraulics market (Hydraulic Equipment) is worth $44.2 billion in 2026 according to Mordor Intelligence, growing to $56.6 billion by 2031 (CAGR 5.05%). It accounts for over 60% of the entire global Fluid Power market.
The main product segments in the hydraulics market:
- pumps: around 28% of sector revenue
- high-pressure systems (above 350 bar): the fastest-growing, at roughly 7.7% a year
- filters and accumulators: growing at roughly 6.4% a year
Among applications, precision agriculture grows faster than any other (5.31% CAGR). The Middle East is the most dynamic region (5.44% CAGR), driven by renewable energy investment. The leading global manufacturers â Parker Hannifin, Bosch Rexroth and Danfoss â hold roughly a quarter of the market between them.
For comparison, the global pneumatics market is worth $37.4 billion in 2026, growing to $52.3 billion by 2031 (6.93% CAGR): faster growth, but from a smaller base. As always, different research firms report different absolute figures depending on methodology â read these as directional trends, not a single definitive number.
âď¸ Electrification and Hybridization: Hydraulics' New Frontier
The most discussed technology trend is the convergence of hydraulics and electronics. Electro-hydraulic actuators (EHAs) pack an electric motor and a pump into one compact unit. Several industry reports list them among the fastest-growing hydraulics segments, with some estimates pointing to double-digit growth through 2030 â though figures vary a lot from source to source, a sign of a still-young market. The logic is simple: hydraulic power plus electric precision, with energy savings that in some industrial press applications exceed 30-40%.
The hydraulic fluid market is growing too: from 1.84 to 2.27 billion litres by 2031 (4.32% CAGR), driven by lower-impact formulations. And predictive maintenance based on IoT sensors keeps spreading â some industry analyses point to unplanned downtime cut by up to 20% in plants that use it.
â ď¸ US Tariffs: A Risk for the Hydraulics Market
Since August 1, 2025, the US has applied a 15% tariff on most European goods, hydraulic components included. For Italian hydraulics, the risk is more concentrated than for other mechanical segments: the US accounts for 36% of exports, the highest share of any market.
The Centro Studi Confindustria estimates the tariff could cost up to âŹ16.5 billion in Italian exports over the medium term. Many hydraulics companies are already diversifying toward the Middle East â where demand is growing faster than anywhere else â as well as Asia and Latin America.
đ Hydraulics Market Outlook: The Second Half of 2026
The second half of 2026 brings two opposing forces. On one side, weak domestic demand and uncertainty over US tariffs. On the other, support from measures like the 2026-2028 hyper-depreciation scheme, and the structural growth of precision agriculture, electro-hydraulics and energy efficiency.
As we noted in our previous updates, the challenge isn’t returning to pre-2024 levels. It’s building a growth model on these technology drivers â ground where hydraulics, more than pneumatics, still has plenty of room to grow.
đ Main Sources
- FEDERTEC â Giornata Economica FEDERTEC 2026 data (26 March 2026); Powertrain, April 2026
- FEDERTEC â Giornata Economica FEDERTEC 2025 data (hydraulics vs. pneumatics, end-use sectors, export destinations); Powertrain, March 2025
- OnSite News â “Meccanica e oleodinamica: una resilienza a vapore lento” (detailed 2024 hydraulics/pneumatics data), October 2025
- Innovation Post â “Beni strumentali, ordini in frenata nel primo semestre del 2026”, July 2026
- Mordor Intelligence â Hydraulic Equipment Market, Pneumatic Equipment Market and Hydraulic Fluid Market: reports, January 2026
- Hydraulic Parts Source, “2025 Hydraulic Market Trends & 2026 Outlook” (summary of Mordor Intelligence and Fortune Business Insights data on pumps, high pressure, electro-hydraulics), December 2025
- Centro Studi Confindustria / Il Sole 24 Ore â Estimates on the impact of US tariffs on Italian exports, October 2025
- SmartFluidPower â “The Fluid Power and Hydraulics Market in 2025” (June 2025) and “Fluid Power and Hydraulics Market – 2026 Challenges” (December 2025)
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