Create International Product Demand Estimate Projections Using NFPA Resources

As the leading source of fluid power market information in the U.S., NFPA offers a variety of industry analysis and hard data to assist members in planning their next business move by providing them tools to understand trends and anticipate change within the industry and global marketplace. The range of resources available can be extremely helpful to most members, but for some, it can create the daunting task of pulling together graphs, charts, and data to better explain economic conditions, industry activity, and company performance. This series of articles will simplify the process with examples of combining NFPA resources to create more effective analysis.

Creating international product demand estimate projections in a USD (U.S. Dollar) format can be difficult without proper data sources, but luckily NFPA has the data sources needed. This process will require two NFPA data resources to help you complete the task.

• Global Fluid Power Market Reports & Forecasts – Provided to NFPA by Oxford Economics, this quarterly report provides detailed hydraulic and pneumatic industry demand analysis and forecasts by country and region. Demand forecasting helps with future measures of product consumption for a specific industry in each area.
• ISC Annual Consumption Report – Annual hydraulic and pneumatic consumption by country or region with product level detail reported by fluid power associations from around the world as part of the International Statistics Committee (ISC). Sometimes referred to as “Home Sales” and calculated as Production – Exports + Imports, consumption data measures what is consumed in each area, which is an essential part of a proper demand analysis.

Developing product demand estimate projections in a USD format involves at least one year of product-based USD consumption data broken by country/region and industry-based demand projections broken by country/region. Combining the ISC Annual Consumption Report regional product data with corresponding regional projections from the Global Fluid Power Market Reports & Forecasts makes it possible to develop international hydraulic and pneumatic product demand estimate projections in a USD format.

In the example above, we combine the 2018 total hydraulic USD demand (consumption) data for several regions from the ISC Annual Consumption Report with the international hydraulic industry demand projection percentages from the Global Fluid Power Market Reports & Forecasts Report to project future demand estimates of hydraulic products. The “ISC Total Hydraulic Demand” graph combines all five regions to reveal total international hydraulic product demand estimates. These demand estimate projections allow fluid power supply chain partners to properly anticipate future product production needs and determine international sales targets based on future demand estimates. While a decline in 2019 global hydraulic market conditions are certainly visible in the graphs above, 2020 thru 2023 display a future growth trend reaching a total of $37 billion in 2023.

In the next example above, we narrow the focus to total hydraulic valves. Again, combining the 2018 total hydraulic valves USD demand (consumption) data for those same regions with the same international hydraulic industry demand projection percentages to project future demand estimates of hydraulic valves. Future hydraulic valve growth trends nearly reach a total of $7 billion in 2023, representing almost 19% of total hydraulic products.

In this example, we shift gears to total pneumatic demand. We combine the 2018 total pneumatic USD demand (consumption) data from the ISC Annual Consumption Report with the international pneumatic industry demand projection percentages from the Global Fluid Power Market Reports & Forecasts Report to project future demand estimates of pneumatic products. While 2019 global pneumatic market conditions resulted in mixed levels of demand depending on the region of interest, 2020 thru 2023 again display a future growth trend reaching a total of $16 billion in 2023.

In the last example above, we narrow in on total pneumatic valves, combining the 2018 total pneumatic valves USD demand (consumption) data with international pneumatic industry demand projection percentages to project future demand estimates of pneumatic valves. Future pneumatic valve growth trends reach a total of $4.6 billion in 2023, representing almost 29% of total pneumatic products.

As mentioned earlier, demand estimate projections can be extremely valuable in assessing future product production needs and international sales targets, and the ISC Annual Consumption Report has a variety of fluid power product categories to use in this type of analysis. Other major categories available include:

• Total Hydraulic
• Hydraulic Valves
• Hydraulic Pumps
• Hydraulic Actuators
• Hydraulic Filters
• Hydraulic Fluid Conveyance
• Hydraulic Accumulators
• Other Hydraulic Products
• Total Pneumatics
• Pneumatic Valves
• Pneumatic Actuators
• Pneumatic Filters/FRs/FRLs
• Pneumatic Air Conveyance
• Other Pneumatic Products

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Questions and inquiries about NFPA’s Market Information Resources can be directed to Eric Armstrong at earmstrong@nfpa.com or (414) 778-3372.