Hydraulics market booms to $77B by 2032 despite agriculture and construction slumps
The global hydraulics market is expanding rapidly, with its value set to rise from $55.99 billion in 2025 to a projected $77.26 billion by 2032. This growth is fuelled by rising demand in agriculture, defence, and electric vehicles. Mobile hydraulics, in particular, held the largest share at 56.4% in 2025, despite challenges in key sectors like tractor sales and construction equipment.
The agriculture sector faced a sharp decline in early 2025, with tractor registrations falling across Europe. Germany saw a 24.2% drop, while Austria experienced an even steeper decline of 30%. Overall, European registrations were down 7.6% compared to 2024. Meanwhile, the construction equipment market showed mixed trends—business climate indices remained positive, but actual machinery demand weakened.
Within this shifting landscape, Kubota outperformed major competitors like John Deere, CNH, and AGCO in 2024. The company's strong performance came as Deere & Company prepared for its Q1 2026 earnings call, scheduled for February 19, 2026, at 10:00 AM EST. Leading the call will be key figures from Deere, including Josh Beal (Director of Investor Relations), Christopher Seibert (Manager of Investor Communications), Joshua Jepsen (Chief Financial Officer), and Ryan Campbell (President of Worldwide Construction, Forestry & Power Systems).
Financial analysts from major institutions will also join the discussion. Participants include Kristen Owen of Oppenheimer & Co. Inc., Angel Castillo Malpica from Morgan Stanley, and Stephen Volkmann of Jefferies LLC, among others.
The hydraulics market continues to grow, driven by new applications and technological advancements. However, sectors like agriculture and construction face uneven demand, reflected in declining tractor sales and mixed equipment trends. Deere & Company's upcoming earnings call will provide further insights into how major manufacturers are navigating these changes.
