I was away from my desk again this week attending the Danfoss Distributor Meeting (DDM) where I had the chance to learn about technology developments and market opportunities of importance to Danfoss Power Solutions.

While focused on the company and its products, the event still helps to provide a snapshot of what is going on in the fluid power industry — from both a technology and market trends standpoint.

A key part of the event, which brings together Danfoss distributors from around the world, is the presentations from company leadership. They help paint a picture of how Danfoss Power Solutions’ various divisions are performing and what future developments, as well as growth opportunities, they see in the years ahead.

Overall, the company appears optimistic about the future and the many opportunities presenting themselves. Those which prevailed throughout the event though included signs of improving market conditions for the hydraulics industry, strong growth within the data center market and continued opportunities in electrification.

The National Fluid Power Association’s (NFPA) shipment data for both June and July 2026 helps demonstrate the improving market conditions Winter noted. Year-over-year data reported for both months showed shipment increases, indicating more stable conditions may be returning for the fluid power industry.  

Winter said the company has been making investments to ensure it is prepared for the upswing that is coming, such as improving its manufacturing footprint and capabilities, as well as regionalizing and localizing its supply chain.

In addition, Danfoss Power Solutions is looking at new opportunity areas, such as growing its business in Brazil and Canada as well as learning how it can better serve customers in security and defense applications, particularly in Europe, the U.S. and Canada.

Defense is seen as an opportunity area for many in the fluid power industry as countries around the world look to upgrade their military fleets. Ongoing geopolitical events are a driving factor for these investments.

Winter concluded his presentation by noting that each of Danfoss Power Solutions’ five product divisions — Controls, Editron, Fluid Conveyance, Hydrostatics and Industrial — see growth opportunities going forward and are working to ensure they are ready to capitalize on them.

Data Centers are a Huge Business Opportunity

Data centers were noted as a key driver for Danfoss Power Solutions’ current and future growth. Winter said the company is already seeing a lot of growth in this market and expects it to continue in the years to come.

Electrification Remains an Important Growth Market

Another high-value opportunity area Fausing noted that the Danfoss organization is continuing to invest in is electrification. Although not growing as fast as some markets, he said it will still be a very important sector over the coming years.

“We see huge growth potential in the next 5 years [for electrification],” said Roy Chen, President of Danfoss Power Solutions’ Editron division.

He said the Editron division has spent the past 2 years developing new products — including electrohydraulic, high and low voltage, and medium power electric motors — and shifting its focus from on-highway to off-highway applications. It is also about to open a distribution and service center in Ames, IA, to help better serve customers in the region.

Chen went on to say that Danfoss Power Solutions’ ability to be a one-stop shop for vehicle controls, hydraulics, electronics and electrification technologies puts it in a unique position to provide customers with the various technologies they need and capitalize on electrification opportunities where appropriate.

To grow the electrification business, he said it was necessary to strengthen focus on applications where electrification makes sense and “where we truly have competitiveness to win.”

Determining whether electrification is a good fit for an application was the topic of one of the technical sessions I attended during DDM, and it was one of the most packed sessions I sat in as well, a sign of the continued interest in electrification development for various mobile equipment applications.

Although electric vehicle development has slowed in many sectors, such as passenger cars, it remains an important development area for off-highway equipment manufacturers, and thus the hydraulics companies serving this important customer market.

Just about every mobile equipment related industry event I’ve been to this year has had several presentations related to the topic, including iVT Expo which just took place in August. The NFPA’s Advanced Hydraulics Conference held during that event featured a number of sessions focused on how hydraulic components and systems are evolving to meet the needs of electrification.

By refocusing the Editron business, Chen said it is already seeing growth from the off-highway sector and expects that to continue in the years ahead.

In general, Danfoss Power Solutions is optimistic about the future. Data centers, electrification and improving market conditions, along with other market opportunities the company sees, are all contributing to growth now and in the future.

Fausing probably summed it up best. “On the one [hand], there’s a lot of volatility, [and] the world is changing at a rapid pace. At the same time, we also have historical opportunities. It is really unique times.”