Automotive Hydraulics System Market

Increasing demand for commercial vehicles is driving the market growth

A rise in sales of commercial vehicles drives market CAGR for automotive hydraulics system. Due to the growth of the industrial sector globally and the rising number of construction and e-commerce operations, there was an increase in the need for material transportation, which led to an increase in commercial vehicle sales. The market for vehicle hydraulic systems is likely to be driven by this.

Commercial vehicles are regularly subjected to large loads over vast distances throughout the year. This necessitates that the vehicle be fitted with equipment capable of withstanding huge loads without sacrificing fuel efficiency and production.

Because they contain fewer moving components than electric systems, hydraulic systems are straightforward, secure, and affordable. This gives hydraulic systems a competitive advantage over electric systems, and the electrification of passenger vehicles is anticipated shortly. Commercial vehicles are expected to utilize hydraulic systems, which might allow them to take up a sizable portion of the hydraulic systems industry. Thus, driving the automotive hydraulics system market revenue.

There is growing interest in intelligent hydraulic equipment, and several businesses in the hydraulic ecosystem continue to invest in R&D projects to create more advanced hydraulic equipment and offer consumers better options. As an example, the Z.F. Group introduced integrated brake control (IBC), a non-vacuum, integrated electro-hydraulic brake apply control unit that may take the role of the electronic stability control, vacuum booster, and vacuum pump, as well as any associated cables, sensors, switches, and controllers. It covers fuel-efficient power trains and provides regenerative braking in a single, integrated device without additional vacuum pumps.

One of the key advancements, the development of intelligent hydraulic equipment units, will fuel the market's expansion.

The Global Automotive Hydraulics System Market Industry is poised for substantial growth, with projections indicating a market value of 36.9 USD Billion in 2024 and an anticipated increase to 64.5 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 5.22% from 2025 to 2035. The expansion is driven by various factors, including technological advancements, rising vehicle production, and increasing demand for safety features. As the industry evolves, the integration of innovative hydraulic solutions will likely play a crucial role in meeting the dynamic needs of the automotive sector.

The Global Automotive Hydraulics System Market Industry is closely tied to the rising production and sales of vehicles worldwide. As economies recover and consumer confidence grows, vehicle sales are projected to increase, thereby driving demand for hydraulic systems. The automotive sector's expansion in emerging markets, particularly in Asia-Pacific, contributes significantly to this trend. With the global vehicle production expected to rise, hydraulic systems will play a vital role in ensuring vehicle performance and safety. This growing demand is likely to support the market's valuation, reinforcing the importance of hydraulic systems in modern automotive engineering.

The shift towards electric and hybrid vehicles is significantly influencing the Global Automotive Hydraulics System Market Industry. These vehicles often require sophisticated hydraulic systems for functionalities such as regenerative braking and active suspension. As manufacturers invest in electric vehicle technology, the integration of hydraulic systems becomes crucial for optimizing performance and efficiency. The anticipated growth in this sector is reflected in the projected market value of 64.5 USD Billion by 2035. This transition not only aligns with global sustainability goals but also indicates a potential increase in the complexity and demand for advanced hydraulic systems in future automotive designs.

The Global Automotive Hydraulics System Market Industry is experiencing a surge in demand for advanced safety features in vehicles. As consumers increasingly prioritize safety, manufacturers are integrating hydraulic systems that enhance braking, steering, and suspension functionalities. For instance, the adoption of anti-lock braking systems (ABS) and electronic stability control (ESC) relies heavily on hydraulic components. This trend is expected to contribute to the market's growth, with projections indicating a market value of 36.9 USD Billion in 2024. The emphasis on safety regulations across various regions further propels this demand, suggesting a robust future for hydraulic systems in automotive applications.

Technological advancements are reshaping the Global Automotive Hydraulics System Market Industry, leading to the development of more efficient and reliable hydraulic systems. Innovations such as variable displacement pumps and advanced control systems enhance the performance of hydraulic components, making them more responsive and energy-efficient. These advancements are particularly relevant in the context of increasing fuel efficiency standards and emissions regulations. As a result, manufacturers are likely to invest in upgrading their hydraulic systems to meet these demands, which could drive market growth at a CAGR of 5.22% from 2025 to 2035, reflecting the industry's commitment to innovation and sustainability.

Regulatory compliance and environmental standards are pivotal drivers of the Global Automotive Hydraulics System Market Industry. Governments worldwide are implementing stringent regulations aimed at reducing emissions and enhancing vehicle safety. These regulations necessitate the incorporation of advanced hydraulic systems that comply with safety and environmental standards. Manufacturers are compelled to innovate and adapt their hydraulic technologies to meet these requirements, which could lead to increased investments in research and development. As the automotive industry navigates these regulatory landscapes, the demand for compliant hydraulic systems is expected to rise, further solidifying the market's growth trajectory.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Up until 2032, Asia Pacific is expected to maintain its market dominance. The region's rising population and urbanization are the main factors driving the automotive hydraulics system market expansion there. The demand for passenger cars has surged due to China's emergence as a major global manufacturing center. The accessibility of raw materials and cheap labor boosts the production of automotive hydraulics systems in the region.

Further, the major countries studied in the market report are The US, Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Hydraulics System Market Share By Region 2024 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's hydraulics system market accounts for the second-largest market share as many automotive OEMs in the region are focused on development of advanced hydraulic system for passenger vehicles. Further, the German automotive hydraulics system market held the largest market share, and the U.K. automotive hydraulics system market was the fastest-growing market in the European region.

From 2024 to 2032, North America's Automotive Hydraulics System Market is anticipated to have the quickest growth. Additionally, Canada's North American automobile hydraulics system market was expanding at the fastest rate, while the U.S. hydraulics system market had the biggest market share. The United States has one of the largest vehicle markets in the world. For the fourth year, light vehicle sales in the United States reached 17 million units. The United States is the second-largest market for automotive sales and production worldwide. U.S. affiliates of vehicle companies with a predominately foreign ownership base hold more than 400,000 American jobs.

Additionally, many automakers have facilities in the country for engine and gearbox design, R&D, testing, and manufacturing.

Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive hydraulics system market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive hydraulics system industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Automotive Hydraulics System industry to benefit clients and increase the market sector. The automotive hydraulics system industry has offered some of the most significant advantages in recent years. Major players in the automotive hydraulics system market, including JTEKT Corporation (Japan), GKN plc (U.K.), Z.F. Friedrichshafen AG (Germany), Aisin Seiki Co., Ltd. (Japan), Schaeffler Technologies AG & Co.

K.G. (Germany), WABCO Holdings, Inc. (U.S.), BorgWarner Inc. (U.S.), FTE Automotive Group (Germany), Robert Bosch GmbH (Germany), and Continental AG (Germany) are attempting to increase market demand by investing in research and development operations.

With its headquarters in Friedrichshafen, in the south-western German state of Baden-Württemberg, Z.F. Friedrichshafen AG, better known as Z.F. Group and formerly Zahnradfabrik Friedrichshafen, is a global technology firm that provides systems for passenger automobiles, commercial vehicles, and industrial technologies. It has a focus on engineering and is largely recognized for its design, R&D, and production work in the automotive sector. It is a major chassis and driveline technology supplier for cars and trucks, as well as specialized plant machinery like construction equipment.

In addition to normal industrial applications, it is also involved in the rail, maritime, defense, and aviation industries. Z.F. employs over 165,000 people across 168 production sites in 32 nations. WABCO was acquired by Z.F. in 2020 and will become a part of Z.F. as its Commercial Vehicle Control Systems Division.

Bosch, often known as Robert Bosch GmbH, is a global German engineering and technology firm headquartered in Gerlingen, Germany. Robert Bosch established the business in Stuttgart in 1886. The philanthropic organization Robert Bosch Stiftung owns 94% of Bosch. The charity has no voting rights, is involved in health and social issues unrelated to Bosch's business, and is funded by holding most of the company's shares. The four business segments of mobility (hardware and software), consumer products (including home appliances and power tools), industrial technology (including drive and control), and energy and building technology make up Bosch's key operational areas.

Bosch acquired Seeo, Inc., a startup focused on solid-state lithium-ion batteries, in 2015.