Hydraulics Competitor Landscape: Danfoss Hydraulic Customers

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Hydraulics Competitor Landscape: Danfoss Hydraulic Customers

In looking for key customers of hydraulic equipment from Danfoss, your research team was able to find some companies of interest by finding OEMs with Danfoss hydraulic parts. However, we were unable to prove without a doubt that these companies are key customers of hydraulic equipment from Danfoss. Hence, we decided against placing them into the spreadsheet. We discuss the reasons why below.

INTERESTING FINDINGS

  • JCB and John Deere are some of the largest OEMs in the world that utilize and build equipment using Danfoss hydraulic products.
  • Many of these companies have parts made by Sauer-Danfoss. Sauer-Danfoss became Danfoss Power Solutions in 2013. They are the subsidiary of Danfoss Group that makes hydraulic equipment.
  • Danfoss recently released an electrohydraulic actuator that forms the basis of the first intelligent steering sub-system.
  • Danfoss manufacturers a variety of hydraulic products such as DES-SASE breathers, hydraulic pumps, hydraulic motors, hydraulic valves, hydraulic filtration, hydraulic cylinders, and hydraulic accessories.
  • Danfoss has sales partners such as Bibus Hydraulic Group that manages the purchasing, shipping, and installing of Danfoss' hydraulic products. Bibus was instrumental in installing a hydraulic system for the customer, Rowa, and their six self-propelled trains.

RESEARCH STRATEGY

Our first strategy was to do a straightforward search of Danfoss' customers on their website. We found a section dedicated to OEMs that work with Danfoss, but upon closer inspection, these OEMs were for Danfoss' compressor systems. We then tried to find OEMs for Danfoss' hydraulic products on their website, but we did not find anything there. We broadened our search to the broader internet, but we were unsuccessful in this effort and didn't find anything of note. Hence, we changed strategy.

Our next strategy was to look for news and reports of deals and partnerships for Danfoss and its subsidiary, Danfoss Power Systems. In our research, we found that this is the subsidiary that makes hydraulic systems, and its previous name was Sauer-Danfoss. In our research, we found many reports that spoke of the hydraulics market, but all these reports only mentioned Danfoss in passing. None of these reports were free to read, and the previews offered nothing that we could use. We then thought of searching for reports and news of deals and partnerships made by Danfoss with other OEMs. We used the news portal on the Danfoss Power Systems website, but we only found mentions of new products which offered nothing that we could really use. Hence, we changed strategy.

In this strategy, we decided that it would be helpful to find the largest hydraulic equipment OEMs in the world. By doing this, we were then hoping to cross-reference any name we found with reports of partnerships or products with Danfoss. We were successful in finding a report about the hydraulics market which listed notable OEMs in the hydraulics vertical. When we searched for any mentions of a partnership or products made by each of these companies with Danfoss, we were only able to find mentions of hydraulic parts for John Deere and JCB products. However, we realized that the products had the name Sauer-Danfoss, which is an older name for Danfoss Power Systems. This showed that they may once have been customers of Danfoss, but we couldn't prove that they still were. We tried to find newer products but weren't successful in this endeavor. Hence, we changed strategy again.

Our final strategy was to look for case studies, hoping to find any mention of companies using Danfoss hydraulic systems. We found case studies that mentioned some buyers like Dieci, Rowa, and Normag. Sadly, we could not prove that any of them were key customers or customers that would buy enough hydraulic products to be on the same level as John Deere or JBL. We tried to prove this by looking at their revenue, but we found that the revenues were either significantly smaller than companies like John Deere. Even though there is a possibility that a good portion of their revenue could be spent on Danfoss supplies, a large revenue could somewhat show that they are large customers.

We ended our search when we found that it wasn't feasible to go through each customer for any hints into whether they could be a large customer or not. It was also not feasible to search by product name, because we discovered that Danfoss' hydraulics offerings are vast. Even if the companies we found were key customers of Danfoss, there was no way that we could prove that they were key customers for the hydraulics division. This is why we decided against placing John Deere and JCB in the spreadsheet. Even though we showed that they are huge OEMs in the hydraulics vertical and that they use Danfoss hydraulics products, there was no way we could prove that they are key customers or even current customers. One of the premium reports on the hydraulics market could shed some light into this.
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