The automotive hydrostatic fan drive system market size is expected to advance at a CAGR of 5.2% during 2024–2030, to reach USD 577.2 million by 2030. This is ascribed to the rising adoption of off-highway and heavy-duty vehicles, government initiatives to support the automotive industry, and rising demand for agricultural tractors. In addition to this, the rising stringency of emission regulations have accentuated the demand for fuel-efficient engine cooling systems.
Population growth, urbanization, infrastructure development, and industrial expansion are the major factors driving commercial vehicle sales. Particularly, in developing countries, the industrial sector is expanding and adding jobs in the construction, mining, and tourism sectors. Further, there is a high demand for personal vehicles as well as those used for public transportation, as the availability of jobs has increased the number of commuters. Moreover, small, medium, and large commercial trucks are increasingly being needed for logistics and transportation, due to the growth in e-commerce activities. Additionally, new residential developments, smart city programs, and the growing demand for flyovers and bridges contribute to the rise in heavy-duty vehicle demand.
Furthermore, for the execution of large infrastructure projects and construction of commercial spaces, material handling machinery is required. Bulldozers, excavators, loaders, and graders often rely on powerful diesel engines, which generate significant amounts of heat, especially during extended periods of operation. Therefore, hydrostatic fan drive systems are used in these vehicles to control the cooling fan, which is crucial for maintaining an optimal engine temperature.
Thus, the increasing number of construction projects due to the steady economic development and the increasing government support for the real estate sector drives material handling machinery sales. For instance, in Canada in 2021, more than 8.3 million people, or almost one-quarter (23.0%) of the population, were, or had ever been, a landed immigrant or permanent resident in Canada. Such a swift growth in the country’s population has pushed up the construction of residential units, public facilities, and commercial spaces.
Globally, Asia-Pacific holds the largest share in the market in 2023, mainly because OEMs are investing in new technologies to augment the production of vehicles. Further, the increasing level of urbanization and the rising disposable income are likely to drive the growth of the market. Additionally, the government regulations to reduce the emission of harmful gases and the increase in the pace of infrastructure development in developing countries, such as China and India, are contributing to the market revenue increase.
North America is projected to grow at a CAGR of 5.0%, majorly due to the presence of significant market players in the region, such as Parker-Hannifin Corporation and Quality Hydraulics & Pneumatics Inc. Moreover, heavy commercial vehicles hold a significant market share in this region due to their growing production for freight transportation, mining, construction, and other purposes. In 2022, approximately 11 million commercial vehicles were sold in the U.S. Further, the growing stringency of emission norms may increase the demand for hydrostatic fan drive systems.
Moreover, Europe holds a significant market share owing to the presence of numerous automotive companies and a high disposal income. The increasing sale of commercial vehicles also contributes to the expansion of the market. For instance, in 2022, commercial vehicle sales in Italy were 189,059 units.
The most-significant automotive hydrostatic fan drive system market players are Eaton Corporation plc, Parker-Hannifin Corporation, JTEKT Corporation, Danfoss, Bosch Rexroth AG, Axiomatic Technologies Corporation, Bucher Industries AG, and Concentric AB.