Overview – Hydraulic Accumulators
Our client is a nearly a century-old privately held business based in Belgium. The client’s product portfolio includes around four kinds of hydraulic accumulators critical to managing pressure oscillations in hydraulic systems. Accumulators also help tame shocks and vibrations that such systems are prone to. These also serve as energy recovery and storage devices. Accumulators find application in transmission and suspension systems of passenger cars, trucks, agricultural equipment, drilling rigs, wind turbines, and solar panel movement systems. By the end of 2021, the company employed around 10,000 employees and had a presence in more than 40 countries. The business generated more than $5 billion in global sales, including from the Brazilian market.
Client’s business situation in hydraulic accumulators industry
The client entered the Brazilian market five years ago. The market remains very attractive for the hydraulic accumulators business, but the client felt there is much more untapped potential. Before doubling down on its marketing efforts in Brazil, the company looked to gain more insights into its target markets and the competitive landscape. Besides, the business wanted to critically assess the forces that could impact prices and the supply chain in the focus market. The idea was to ensure that every dollar the company spent met predetermined marketing goals.
After a comprehensive appraisal of our skills and expertise, the client decided to engage us to undertake a broad-ranging study of the following aspects of the target market, covering the years 2022 to 2026.
- Estimation of the market size for hydraulic accumulators and potential customers
- An assessment of the hydraulic accumulators industry as well as the supply chain from raw material to end user
- Evaluation of key competitors with a focus on their products, services, and market strategies
Our market intelligence solution
The research comprised three distinct modules. Our data collection methods included semi-structured primary and secondary research; the final outputs were in PowerPoint and Excel. Our market intelligence specialists segmented the buyers based on accumulator type and end-use industries for this hydraulic system component. Three widely deployed accumulators and five major end-use industry segments were considered for this purpose.
Overall, hydraulic accumulators were well-placed to take advantage of favorable conditions to grow at a CAGR of 4-5% in the target market from 2016 to 2019. Different product types were set to grow by 3-5% during the focus period. The focus country’s livestock and crop output are receiving renewed attention, and hydraulic equipment is expected to play a decisive role in growing these sectors. A rise in excavating, landfilling, and other construction activities are also driving the purchase of hydraulic systems. The country in focus is increasingly warming up to foreign direct investment (FDI) in four key sectors, which will likely boost the sales of hydraulic system components, including accumulators.
For years, hydraulic accumulators have helped hydraulic systems store energy and save on running costs. As the government in the focus country has committed itself to reducing CO2 emissions soon, there is demand for more energy-saving accumulators with low or no carbon emissions. This, in turn, means that accumulator manufacturers must focus on product innovation to perk up existing offerings and create new ones.
Our team examined several key factors tied to the hydraulic accumulators supply chain in the market during the focus period. Accumulator manufacturers bank on supply chain partners to ensure product quality, on-time delivery, cost savings, and customer satisfaction. Besides, supply chain stakeholders must meet ever-evolving regulatory mandates. With this in mind, we looked at 4-5 raw material suppliers and component producers, each in the market, to help bolster the supply network for as many as five end-use segments.
Our team researched up to six major competitors (four from Europe, and two from East Asia) in the target market across critical parameters. These included production facility expansions, key product features, distribution channels (e.g., local, direct, and indirect), end-use markets, and geographical coverage of the target market. Accumulator manufacturers were forging strategic tie-ups with competitors to increase the percentage of sales while improving the distribution network. Quite an interesting development! Businesses were also resorting to inorganic growth in the target market by acquiring successful niche players in the accumulator landscape. At least three competitors have taken this acquisition route to gain market growth. Moreover, accumulator makers seem determined to soon tap into the growing market for energy-efficient (“green”) accumulators. One competitor claims to have started offering a clutch of such accumulator solutions.
The client is working on the market insights gleaned from our study to accelerate growth and increase market share in the focus country.
Positioned at the forefront of market intelligence, Infiniti Research has carved out a niche for itself as the premier provider of market intelligence solutions for leading players across 50+ industries.