North American Hydraulic Motors and Hydrostatic Transmissions Markets

Abstract

Expanding Mobile Market Boosts Growth

Mobile applications account for a significant portion of revenues generated in the North American hydraulic motors and hydrostatic transmission market, with certain participants focusing exclusively on this area. Mobile application customers chiefly demand high-quality, reliable, and affordable systems that can be delivered quickly. Hydraulic motor and hydrostatic transmission companies that can effectively meet these needs are set to be successful in building and sustaining customer loyalty, already high in this particular area. Additionally, steady demand in recent years from the earthmoving, construction, aerospace and agricultural machinery industries has helped drive market growth.

This new research from Frost & Sullivan studies the North American hydraulic motors and hydrostatic transmission market. It provides detailed revenue forecasts by product, application, geographic region, and end-user segments. The research also assesses technological developments of competitors as well as the growth potential of specific product types and applications.

Competitive Pricing Sustains Demand, but Competition from Asian Companies Challenges Manufacturers

Increasingly competitive pricing offered by motor and hydrostatic transmission manufacturers is leading users to begin investing in systems with greater confidence than before. Technology developments and keen competition between manufacturers, both domestic and foreign, prevail in the market. Interest in more efficient technologies, such as vane and piston motors, is also rising due to their higher efficiency and competitive prices. Participants in North America are, however, facing a strong challenge in the shape of Asian competitors that are building new manufacturing plants in their countries and producing high-quality products at lower labor costs and under less stringent environmental regulations.

"Manufacturers need to move production to countries where labor and other operating costs are lower. If appropriate training in process quality control were provided to foreign managers, facilities operating in undeveloped countries would be able to produce high-quality, low-cost products. Manufacturing in foreign countries also provides exposure to new markets where industry is growing faster," says the analyst.

High Levels of Technology and Online Marketing and Sales Practices a Must for Success

Superior technology capability determines participants' success in the highly competitive hydraulic motors and hydrostatic transmissions market. Most market leaders specialize in the hydrostatic transmission technology, which has gained significant ground over competing technologies such as pneumatic and electrostatic transmissions due to greater efficiency.

Success also depends on effective utilization of the Internet, which is playing an increasingly important role in facilitating business transactions. The accessibility of this medium enables easy placement of orders and tracking of delivery status, thereby considerably boosting customer confidence in the manufacturer. Small and medium-sized participants need to establish a strong presence on the Internet to gain international recognition and extend market reach. "Hydraulic manufacturers need to develop a market image and establish a unique identification through the Internet, which calls for an overhaul of their existing business practices," says the analyst.