Economy

It is essential for hydraulic units applied in different machine-building branches must be adjusted to their requirements and specific character.   

Every company regardless of its size and economic sector needs data on the market, its participants, structure and changes for its efficient activity. This information is often more significant than technical expertise or potential in tough competition. 

So  ÑÅÒÎÐ is a European umbrella organization uniting national associations of machine-building hydraulics and pneumatics    producers, consumers and   sellers that gathers, stores, analyzes and presents to its members    data on the market situation.

ÑÅÒÎÐ annually collects statistics concerning sales of machine-building hydraulics produce in home markets.     These data specify the range of products: types of pumps, valves, etc.  

Information on trends seen in particular countries is given quarterly: sales dynamics, order dynamics in comparable periods (the current year quarter to the previous year quarter). Growth or fall of machine-building hydraulics sales are forecast   in a similar way.

The necessary information is received from ÑÅÒÎÐ members that obtain statistics from    manufacturing companies, distributors and other qualified    organizations. 

The world economy globalization certainly concerns the sector of machine-building hydraulics and pneumatics. Some years ago in accordance with the agreement between ÑÅÒÎÐ, the USA, Japan, China and Taiwan       the Fluid Power Intercontinental Statistics Committee was established. It allows access to all-important market information from virtually all over the world.  

The data collected and in an appropriate way processed   are confidential and other subjects are forbidden unauthorized access.   This information is only directed to the national associations - ÑÅÒÎÐ members and they, in their turn, provide it to their enterprises, organizations and establishments. These data are to be published only in a year in conformity with set rules.

 

 

World output of goods and services in fluid power for    drives amounted to   $34.3 bln (€27.3 bln) in 2006. The output of engineering hydraulics making up $24 bln (71.7%) predominated    over the pneumatic components production which accounted for $9.7 bln. But these figures do not comprise hydraulic and pneumatic units      utilized in aviation, defense technology and automobiles.   These data do not take into account hydraulics production volumes in Russia.  

Confer: according to   World Semiconductor Trade Statistics, sales of fluid power production amount to about 16% of the electronics sector elements. 

Partners from the Fluid Power Intercontinental Statistics Committee presented in Pictures    1 and 2 are the key participants of the engineering hydraulics market. 

 

Picture 1.   The key participants of   engineering hydraulics and pneumatics in 2006, total value € 27.3 bln ($34.3 bln)

Picture 2. The key participants of   engineering hydraulics in 2006, total value € 19.6 bln   ($24.6 bln)

It should be noted that the given data leave out a number of countries with a great economic potential such as India and South America states. The remarkable role of these states in the market of engineering hydraulics goods is evident due to their participation in international exhibitions and other economic activities. 

Picture 3 features the data on sales shares of different fluid power system units.

 

Picture 3. Sales shares of different fluid power system units in 2006, total value €19.6 bln ($24.6 bln)

 

Large international companies in six technically and economically developed countries carry the bulk hydraulics production and sales volume accounting for 89% of this sector. See Table 1 for further information.  

Òàble 1

Major participant countries of the engineering hydraulics market in    2006,    total value € 20.4 bln

Among the most powerful and at the same time affluent six states the first four on the list prevail with confidence: the USA, Germany, Japan and China.   They produce over 70% of the world fluid power. There have been   considerable shifts in the machine-building hydraulics market leaders   over the recent years. China is the main reason for that. This country’s share in the market was   less than 2% in 1999, while in 2006 it reached 8.4%. The sales dynamics accounted for over 15% which was determined by an accelerated economic growth   – great investments of world-known companies in the discussed sector. 

The development of modern hydraulics is closely connected with electronic and information technologies. It requires large-scale financial injections   targeted at research,   advanced technologies,   launching new products and presence I the market.    Hence, we can observe the predominance of some global companies such as   PARKER HANNFIN, BOSCH-REXROTH, SAUER-DANFOSS.

 

ÑÅÒÎÐ (European Oil Hydraulic and Pneumatic Committee) members prevail in the European market of machinery hydraulics and pneumatics.     ÑÅÒÎÐ integrates 17 national associations of producers and distributors of engineering hydraulics and pneumatics from   16 countries: Belgium, Great Britain, Germany,     Spain, Italy, the Netherlands, Norway, Poland, Romania, Slovenia, Turkey, Finland, France, Czechia, Switzerland and Sweden. The Russian Association of Fluid Power Equipment Manufacturers intends entering   CETOP.    

CETOP represents more than 1,000 companies - mainly manufacturers, but also some dealers - with almost 70,000 employees and a market value of €11.6 bln.   At that time it accounted for 42.6% of the world production of goods and services in engineering hydraulics and pneumatics.  ÑÅÒÎÐ countries were dominated by hydraulics goods and services sector with the total value of €8.54 bln (73.4%) in 2006, whereas the pneumatics sector accounted for €3.08 bln.

The range of engineering hydraulics goods in the ÑÅÒÎÐ market is impressive. It allows meeting all requirements of hydraulic equipment producers and customers.

In 2006 the total population of ÑÅÒÎÐ members constituted 505.6 mln people, ànd the gross joint product in current prices equaled $13,925,000,000. It was estimated at $27,547 per capita on average. 

For comparison Table 2 gives ÑÅÒÎÐ members’ shares in the hydraulics market in 2006 with the volume of €8.54 bln, ànd Table 3 reflects selected macroeconomic data on ÑÅÒÎÐ countries in 2006.

Òàáëèöà 2

 ÑÅÒÎÐ countries’ shares in the hydraulics market in 2006 with €8.54 bln volume

 

 

Òàble 3

Selected macroeconomic data of ÑÅÒÎÐ countries in 2006

* Data of 2005 

** Data of 2003 

*** No data.

 

 

Besides the sales dynamics of hydraulics in home markets, information concerning growth rates of hydraulics production in other countries is also of great importance.   Within   the ÑÅÒÎÐ + ISC Area Fluid Power agreement such data are collected quarterly in companies and organizations involved in production, servicing, trade, research and development and training. Then they are processed in home associations and   sent to   ÑÅÒÎÐ.

 Table 4 shows such data for engineering hydraulics products.

Òàble 4

The dynamics of engineering hydraulic products sales and orders     for January – March   2007 in comparison with 2006 in home markets

 

 

Similar statistics is important for every hydraulics manufacturer. It helps estimate the company’s position and the potential of other players in the engineering hydraulics market.