Global Fluid Power Report and Forecast
Includes a global macro summary, by-country customer market forecast & analysis, as well as by-country fluid power industry forecasts. Countries covered in the report: US, Canada, Mexico, Brazil Poland, Netherlands, Italy, Germany, France, Belgium, UK, Russia, Taiwan, South Korea, Japan, Indonesia, India, China, Australia, UAE, and South Africa.
Oxford Economics released the following summary of updates with the latest forecast release:
- Despite global GDP growth ending 2025 on a soft note, we do not expect this weakness to persist. Indeed, we believe that the sluggishness will prove to be temporary, as the drag from weaker domestic demand growth in some major economies and the US government shutdown fades. Hence, we expect momentum to recover as 2026 progresses and forecast that aggregate GDP for the countries in this report will average 2.7% for the year.
- Our 2026 annual aggregate industrial production growth forecast for the countries in this report is 3.1%, down from 3.3% in 2025. However, growth will remain uneven across regions and sectors. In 2025, tariff uncertainty was partly cushioned by front‑loading and implementation lags; as these effects fade, industry enters 2026 with softer momentum.
- Optimism for the US and China does not extend to most other advanced economies. US tariffs are likely to prolong the soft patch in imports, muting spillovers from domestic strength, while China’s export dominance is eroding competitors’ performance weighing on industrial output.
Sector Trends to watch for in the United States:
- Conditions in the agricultural machinery sector have improved following recently announced tariff reductions and farm bailout measures. As a result, agricultural machinery output is expected to grow 3.3% in 2026, supporting a 1.9% increase in hydraulic demand.
- Ongoing strength in electronic components and board demand continues to drive pneumatic demand growth into 2026. Electronic components and boards are forecast to expand 12.3%, while pneumatic end-use sector demand is projected to grow 3.1% in 2026.
Global Fluid Power Report and Forecast can be accessed at this link: https://www.nfpa.com/global-forecast-oxford-economics
The snapshot below from the NFPA Stats Dashboard provides a quick look at Oxford’s Fluid Power growth forecast for the United States and a few other countries.
Please contact Cecilia Bart at cbart@nfpa.com with any questions.