Demand for Hydraulic Valves Increases w/ Implementation of Electronics

    SAN JOSE, Calif.--March 20, 2001--New technological innovations in hydraulic systems have led to a renewed demand for these products, as end users look to upgrade their older, less-sophisticated hydraulics.
    Frost & Sullivan (http://frost2001.frost) reveals that the North American Hydraulic Valves Market generated revenues of $1.7 billion in 2000. Frost & Sullivan projects that number to reach near $2.1 billion by 2007.
    The implementation of electronics in hydraulic components is one of the biggest factors influencing renewed demand. Adding electronics improves the hydraulic productivity and efficiency, prompting many end users to upgrade or replace their current systems.
    "The demand to replace less efficient hydraulic valves with more advanced valves has increased due to the incorporation of advanced electronic controls in hydraulic systems," says Frost & Sullivan analyst. "One benefit of electronics is it automates the self-diagnostics of operations and reduces the effect of human error."
    Hydraulic valve manufacturers will have to work to take advantage of this demand. These companies will need to invest in research and development to guarantee their valves incorporate the necessary electronic components, and are compatible with other components in a complete hydraulic system. Decreasing production and part costs should encourage manufacturers to take advantage of this market.
    "The integration of electronic controls in hydraulic equipment, such as valves, is expected to be a challenge for most manufacturers," says Frost & Sullivan analyst. "These products are becoming less expensive to produce, and are in higher demand from Original Equipment Manufacturers (OEMs). Less expensive electronics in the market are making the production of these hydraulic valves more affordable in today's market."
    Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the North American hydraulic valves industry. Rexroth is the Customer Service Leadership award recipient. Parker Hannifin is presented with the Merger & Acquisition Strategy Award. Parker Hannifin also receives the Internet E-Commerce Innovation Award. The Market Engineering Leadership Award goes to Eaton-Vickers.