Fluid Power Equipment Distributors in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD5516Revenue
$25.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
37,542
Businesses
2,479
Wages
$X.Xbn
Fluid Power Equipment Distributors in the US industry analysis
Fluid power equipment distributors have faced volatile conditions following swings in the economy stemming from the pandemic. Fluid power equipment has a variety of uses, allowing distributors to diversify their client base. This prevents major swings in revenue if a single downstream market is affected. The pandemic hindered the manufacturing and mining sector, generating the bulk of revenue as businesses were forced to operate at limited capacity or shut down temporarily. The residential construction market was a saving grace for distributors, preventing companies from exhibiting a major slump in revenue. As the economy recovered and businesses reopened, the need for equipment rebounded slightly. Overall, revenue is expected to decline at a CAGR of 1.2% over the five years to 2023 reaching $25.1 billion, including a 0.9% slump in 2023 alone. Profit has remained steady despite major hiccups as distributors adjust prices accordingly.While the pandemic had some detrimental effects on distributors, it did help accelerate the implementation of online platforms. A rising fear among companies has been rising external competition from manufacturers that sell directly to clients. An online presence gives distributors easier access to clients, allowing them to search for equipment, pay invoices, track orders and contact customer service on one platform. Many manufacturers lack this ability, making distributors the primary source for downstream markets.Strong manufacturing activity, rising corporate profit and lower interest rates will decrease borrowing costs, allowing downstream markets to invest more in fluid power equipment. Nonetheless, a contraction in mining activity, mainly oil drilling, will constrain growth as oil prices are set to fall from peak highs in the current period. Consolidation activity is also set to continue as more prominent distributors continue to expand their domestic footprints while adding value-added services and new product offerings. Overall, fluid power equipment distribution revenue is expected to climb at a CAGR of 1.5% to $27.1 billion over the five years to 2028.
Trends and Insights
- During the pandemic, sales from major markets fell, but the growth of e-commerce platforms provided a boost to distributors amid increasing competition. Possessing a website enables customers to browse products, make orders, complete payments, and reach out to customer service, all within a unified platform.
- Motors and pumps are essential in converting mechanical energy into fluid energy. The most common types of motors are air motors, which generate high power densities and electric motors, which control speed.
- The Southwestern region of the United States, specifically Texas, serves as a significant energy hub. Fluid power equipment plays a crucial role in performing diverse tasks associated with oil drilling in this area.
- Wholesalers face external competition from direct-to-manufacturer sales. Even so, wholesalers pride themselves on customer service and quick turnaround times to attract clients.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.2 % over the past five years, to reach an estimated $25.1bn in 2023.
Trends and Insights
Volatile conditions shift the need for equipment
- Fluid power equipment is used in various downstream industries, preventing significant swings in revenue if an individual market is declining. Even so, the pandemic caused most markets to slump, significantly hindering sales. Many mining and manufacturing industries closed temporarily or operated at a limited capacity.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Industry machinery continues to be used
- As the economy fully recovers, downstream markets will resume activities at full strength, facilitating renewed spending on industrial investments like fluid power equipment.
Biggest companies in the Fluid Power Equipment Distributors in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
W.W. Grainger, Inc. | 10,753.6 | 1,578.2 | 14.7 | |
Applied Industrial Technologies Inc. | 1,469.4 | 158.5 | 10.8 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Fluid power pumps, motors and parts, Fluid power valves and Fluid power connectors and assemblies. Fluid power pumps, motors and parts is the largest segment of the Fluid Power Equipment Distributors in the US.
Trends and Insights
Fluid power pumps, motors and parts are the primary components
- This segment consists of the main components of fluid power equipment: motors and pumps. Motors are used to power pumps that convert mechanical energy into fluid energy. There are multiple types of motors, including electric and air motors.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Valve Manufacturing in the US
- Pump & Compressor Manufacturing in the US
- Power Tools & Other General Purpose Machinery Manufacturing in the US
- Industrial Machinery & Equipment Wholesaling in the US
International industries
- Mining, Oil & Gas Machinery Wholesaling in Canada
- Mining and Industrial Machinery Wholesaling in Australia
- Industrial and Mining Machinery Wholesaling in New Zealand
- Mining, Construction & Civil Engineering Machinery Wholesaling in the UK
Table of Contents
About this industry
Industry definition
Operators distribute fluid power equipment to manufacturers, mining companies and other users. The distributed equipment can be hydraulic or pneumatic, using liquid or gas to generate power and actuate machines and devices. Operators distribute fluid power pumps and motors, as well as parts and accessories such as valves.
What's included in this industry?
Distributing fluid power pumps and motorsDistributing fluid power parts and accessoriesCompanies
W.W. Grainger, Inc.Applied Industrial Technologies Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
FLUID POWERHYDRAULICPNEUMATICIndustry Code
NAICS 42383 - Fluid Power Equipment Distributors in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
During the pandemic, sales from major markets fell, but the growth of e-commerce platforms provided a boost to distributors amid increasing competition. Possessing a website ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Motors and pumps are essential in converting mechanical energy into fluid energy. The most common types of motors are air motors, which generate high power densities and elec...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southwestern region of the United States, specifically Texas, serves as a significant energy hub. Fluid power equipment plays a crucial role in performing diverse tasks a...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Wholesalers face external competition from direct-to-manufacturer sales. Even so, wholesalers pride themselves on customer service and quick turnaround times to attract clien...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No company holds a market share of more than 5.0%. Fluid power distribution is highly fragmented, with lower barriers of entry.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of W.W. Grainger, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Applied Industrial Technologies Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for W.W. Grainger, Inc., and factors influencing its performance in the industry
- Description and key data for Applied Industrial Technologies Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Licensing requirements vary based on the distributor's target market. Distributors selling exclusively to other businesses only need a wholesaler's license, whereas those eng...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
While profit is lower for wholesalers because of the nature of their operations, it has remained consistent throughout the years. An uptick in commodity prices near the end o...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Fluid Power Equipment Distributors in the US industry in United States in 2024?
The market size of the Fluid Power Equipment Distributors in the US industry in United States is $25.1bn in 2024.
How many businesses are there in the Fluid Power Equipment Distributors in the US industry in 2023?
There are 2,479 businesses in the Fluid Power Equipment Distributors in the US industry in United States, which has declined at a CAGR of 1.3 % between 2018 and 2023.
Has the Fluid Power Equipment Distributors in the US industry in United States grown or declined over the past 5 years?
The market size of the Fluid Power Equipment Distributors in the US industry in United States has been declining at a CAGR of 1.2 % between 2018 and 2023.
What is the forecast growth of the Fluid Power Equipment Distributors in the US industry in United States over the next 5 years?
Over the next five years, the Fluid Power Equipment Distributors in the US industry in United States is expected to grow.
What are the biggest companies in the Fluid Power Equipment Distributors in the US market in United States?
The biggest companies operating in the Fluid Power Equipment Distributors market in United States are W.W. Grainger, Inc. and Applied Industrial Technologies Inc.
What does the Fluid Power Equipment Distributors in the US in United States include?
Distributing fluid power pumps and motors and Distributing fluid power parts and accessories are part of the Fluid Power Equipment Distributors in the US industry.
Which companies have the highest market share in the Fluid Power Equipment Distributors in the US in United States?
The company holding the most market share in United States is W.W. Grainger, Inc..
How competitive is the Fluid Power Equipment Distributors in the US industry in United States?
The level of competition is high and steady in the Fluid Power Equipment Distributors in the US industry in United States.
