Hydraulic Oil Coolers Market

Hydraulic Oil Coolers Market Outlook (2022-2032)

The global hydraulic oil coolers market has reached a valuation of US$ 1.5 billion in 2022 and is expected to progress at a healthy CAGR of 5.9% to reach US$ 2.7 billion by the end of 2032.

Sales of hydraulic oil coolers accounted for nearly 5% share of the global coolers market at the end of 2021.

Report Attributes	Details
Hydraulic Oil Cooler Market Size (2021A)	US$ 1.4 Billion
Estimated Market Value (2022E)	US$ 1.5 Billion
Forecasted Market Value (2032F)	US$ 2.7 Billion
Global Market Growth Rate (2022-2032)	5.9% CAGR
East Asia Market Share (2021)	~30.7%
North America Market Growth Rate (2022-2032)	~5% CAGR
China Market Growth Rate (2022-2032)	~7.2% CAGR
Market Share of Top 5 Companies	~17.7%
Key Companies Profiled	Alfa Laval Apollo Group Baffles Cooling Systems Bowman Australia Christy Engineering Solutions EJ Bowman FLOWTEX ENGINEERS Fluid Dynamics Pty Ltd HAUGG Group. HYDAC Hydraulic & Pneumatic Products

Sales Analysis of Hydraulic Oil Coolers (2017-2021) Vs. Market Outlook (2022-2032)

Hydraulic systems across industries require adequate cooling systems for optimal operational performance. The integration of hydraulic oil coolers is vital to maintaining system balance. Using coolers not only aids in recovering the energy loss from external sources but also restrains any adverse environmental impact.

Hydraulic oil coolers find wide application across agriculture, automotive, chemical & petrochemical, construction & mining, energy & power, food & beverage, marine, oil & gas, and other sectors.

The heat load or cooling capacity of the cooler is directly proportional to the size of the cooler. However, defining process parameters such as required flow rate, oil temperature threshold, viscosity of oil, and others to achieve higher efficiency has been the complex element witnessed by leading manufacturers.

Widely installed types of hydraulic oil coolers are air-cooled oil coolers and water-cooled oil coolers. Streaming air through air-cooled oil coolers lowers the heat of fluid with electric or hydraulic ventilators. However, water coolers are the most efficient type available in compact sizes with a low noise factor, and are highly preferred by end-use sectors.

Owing to large-scale adoption across prominent end-use industries, demand for hydraulic oil coolers is expected to witness a steady increase over the coming years.

• Short Term (2022 Q2 to 2025): Growing construction, automobile, and agriculture sectors to positively impact hydraulic oil coolers market growth.
• Medium Term (2025-2028): U.S. and China to witness comparatively high demand for hydraulic oil coolers due to increased projects in construction and agriculture.
• Long Term (2028-2032): Using advanced technologies such as using electric fans or placing fans in the return line of the hydraulic systems, besides customizing hydraulic oil coolers, will aid market expansion.

From 2017 to 2021, the global market for hydraulic oil coolers registered a CAGR of 1.6%. Fact.MR, a market research and competitive intelligence provider, reveals that hydraulic oil cooler sales are expected to increase rapidly at 5.9% CAGR between 2022 and 2032.

Market share analysis of hydraulic oil coolers based on end-use vertical and region. Under the end-use vertical segment, the construction & mining sector dominates with 18.5% market share in 2022.

What’s Driving High Demand for Hydraulic Oil Coolers across Regions?

“Hydraulic Oil Coolers - Effective Cooling Devices for Hydraulic Systems”

Generally, in a hydraulic system, there are high chances of the overheating of oil. This overheating of oil occurs due to the flow of fluid through various components of the system.

Coolers are employed in this situation to allow the heat created to release its thermal energy into another medium. Air or water often serves as this supplementary medium, which is integrated into the hydraulic system. Heat from the oil is absorbed by the secondary medium, which then transports it outside the cooler and releases it into the atmosphere.

As such, a hydraulic oil cooler is an important device that needs to be included in a hydraulic system to achieve optimal operational efficiency. An increasing number of hydraulic systems across end-use industries is poised to accelerate the installation of hydraulic oil coolers at 5.9% CAGR over the forecast period

“Robust Solution for Overheating of Hydraulic Systems”

There is the accumulation of thermal energy due to the friction and compression of the oil used in the system. The accumulation of heat, up to a certain value, can be accepted, but beyond that value, the viscosity or thickness of the oil begins to get altered. The oil becomes either thick or thin, which hinders the operation capabilities of the hydraulic system.

The main function of a hydraulic system is to work effectively with a particular oil having a specific viscosity. If the viscosity of the oil lessens, then there can be mechanical damage to the system as the other components do not receive proper lubrication.

As such, there is degradation of the overall efficiency of the hydraulic system. Hence, a cooling component needs to be placed in the line of the system so that it dissipates the heat within the threshold limit. The cooling system maintains the viscosity of the oil, thereby increasing its efficiency, owing to which, the market for hydraulic oil coolers is expected to create an absolute dollar opportunity of US$ 1.3 billion during the assessment period.

“Freedom to Select Size of Device Depending Upon Heat Generation”

The size availability and cooling capacity of hydraulic oil coolers is highly flexible and can be easily tailored as per the end-use industry’s requirement. Depending on the amount of heat generated, the installation and scalability of hydraulic oil varies, which has created dynamic demand in the market.

Manufacturers are channelizing their resources to fabricate and develop coolers that are easily molded to achieve variable process parameters as per the requirement of end users.

Currently, coolers are integrated with software modules to collect operational data points for analysis. One such program is the Parker program. Inputs that the software needs are heat load, type of oil, ambient & inlet temperatures, flow rate, etc.

As customization and technological advancements are pacing up in the hydraulic coolers market, the market is expected to grow 1.8X over the next ten years.

What Challenge Do Hydraulic Oil Cooler Manufacturers Face?

“Complications May Arise in Sizing of Off-axis Coolers”

The position of the cooler is to be chosen wisely under extreme operating conditions. There are two options - either it can be placed off-line or in the return line. The sizing of the cooler can be decided depending on two factors - maximum reservoir temperature or maximum system temperature.

The reservoir temperature is the temperature of the oil while exiting the system, whereas, the temperature of the oil while entering the system is the system temperature.

Due to some complications in positioning the oil that exists the cooler appears to be cold than the desired temperature of the reservoir. This mixing of the locations and sources of oil relative to each other complicates the entire system and may a lead to drop in the sales of hydraulic oil coolers.

Country-wise Insights

Why is the U.S. Hydraulic Oil Coolers Market Expected to Be Lucrative?

Hydraulic oil coolers are prominently used in the fields of construction, mining, agriculture, etc. The U.S. has huge markets for the end-use verticals of hydraulic oil coolers.

In 2021, the construction market in the U.S. was valued at US$ 1.9 trillion. Major construction projects such as the Amazon HQ2 whose budget is estimated to be more than US$ 2.5 billion, the Central Valley project whose budget is currently estimated to be US$ 13.1 billion, etc., are currently in progress in the U.S.

Since hydraulic oil coolers are extensively used in construction, the estimated sales of hydraulic oil coolers in the country are significant.

Agriculture is also very prominent in the U.S., wherein, the U.S. agriculture industry is grossing US$ 157 billion. Major equipment in agriculture such as tractors and farm machinery are installed with hydraulic oil coolers.

Owing to increasing penetration across the construction and agriculture industry, the U.S. hydraulic oil coolers market is expected to reach a valuation of US$ 387.4 million by 2032.

Will Surging Automobile & Construction Sectors in China Drive Hydraulic Oil Cooler Demand?

In China, the automobile industry saw total volume sales of 26.2 million units in 2021. Shock absorbers, brakes, power steering, and drive systems in heavy and commercial vehicles use hydraulic systems. Therefore, penetration across the automotive industry is on the rise, leading to increased unit sales of hydraulic oil coolers.

The construction industry was valued at around US$ 1,049 billion in 2020 in China. Hydraulic machines such as excavators, bulldozers, wheeled tractor scrapers, etc., need to maintain efficiency while performing at optimal process parameters. The use of hydraulic oil coolers in these systems is of high importance and is installed at higher volumes in the country.

This will enable the growth of the Chinese hydraulic oil coolers market in the long run. The Chinese market is expected to create an absolute dollar opportunity of US$ 364 million over the assessment period.

Category-wise Insights

Why are Water-based Hydraulic Oil Coolers Widely Preferred?

According to the Fact.MR study, there is high demand for the water-based hydraulic oil coolers which have captured nearly 62.8% market share in 2021 under product category.

To regulate the temperature and limit the heating, water-cooler systems use cold fluids. These liquids are separated using a barrier to avoid contamination. They are highly efficient and compact with lower noise generation.

Cold fluids are used in water-cooled systems to control temperature. To lessen contamination, a barrier is placed between the liquids. They are small, run considerably more quietly, and don't affect the atmosphere in the area. The temperature outdoors and in the area has little to no effect on how well it can cool.

Air-based hydraulic oil cooler systems make use of a powerful fan to cool the oil, whereas, water-based hydraulic oil coolers have a pipe carrying the cool water and the oil pipes are placed inside it. Water-based hydraulic coolers are seen to be more efficient and their sales are expected to accelerate over the forecast period.

How is the Construction Sector Leading the Sales of Hydraulic Oil Coolers?

The global construction market is estimated to grow by US$ 4.5 trillion and reach US$ 15.2 trillion by end of 2030. Sub-Saharan Africa is predicted to experience the biggest regional construction increase, followed by Asia.

It is anticipated that urbanization would accelerate growth in emerging markets. By 2050, the world's population could increase by 2.5 billion, with around 90% of that increase in the urban regions of Asia and Africa.

There will be lucrative opportunities offered by the construction industry, wherein, the use case of hydraulic systems is on the rise. The installation of cooling systems for these hydraulic equipment has witnessed significant growth. The construction and mining segment is expected to reach US$ 528.9 million by 2032.

Competitive Landscape

Eminent hydraulic oil cooler manufacturers are Ace Automation Engineers, Air Radiators, Alfa Laval, Apollo Group, Baffles Cooling Systems, Bowman Australia, Christy Engineering Solutions, Cross Hydraulics Pty Ltd, EJ Bowman, FLOWTEX ENGINEERS, Fluid Dynamics Pty Ltd, HAUGG Group, HYDAC, Hydraulic & Pneumatic Products, Hyspecs Hydraulics Australia, Industrial Thermal Engineers,OEM Dynamics Pty Ltd, Oil Solutions, PARKER HANNIFIN CORP, REX Heat Exchanger India Pvt. Ltd., TONG LI PRECISION INDUSTRY CO.,LTD, Ukra Coolers, Unitech Heat Exchangers & Fabricators, and Varalka Engineers Private Limited.

Leading market players are constantly channelizing their resources to develop automated and smart hydraulic oil coolers. A clear trend for more efficient hydraulic oil coolers with higher levels of efficiency and ideal thermal stabilization and cooling capacity is being observed. To achieve this, companies are transforming towards developing tailored solutions. They are enabling integrated sales channels to limit the number of stakeholders across the supply chain to generate higher margins.

• On 6th June, HYDAC B.V., a prominent manufacturer of hydraulic components and systems, acquired all the shares of Elma B.V. and Elro Srl. Elma has expertise in control technology and electric drives.

Fact.MR has provided detailed information about the price points of key manufacturers of hydraulic oil coolers positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Hydraulic Oil Cooler Industry Research

• By Product Type :

  • Air-based Hydraulic Oil Coolers
  • Water-based Hydraulic Oil Coolers

• By Cooling Capacity :

  • Less than 50 kW
  • 50-100 kW
  • Above 100 kW

• By Max. Pressure :

  • Less than 2500 psi
  • 2500-4000 psi
  • Above 4000 psi

• By End-use Vertical :

  • Agriculture
  • Automotive
  • Chemicals & Petrochemicals
  • Construction & Mining
  • Energy & Power
  • Food & Beverages
  • Marine
  • Oil & Gas
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia &Oceania
  • Middle East & Africa