Automotive Hydraulics System Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automotive Hydraulics System Market is projected to expand from USD 44.41 Billion in 2025 to USD 61.76 Billion by 2031, reflecting a CAGR of 5.65%. This market involves the engineering and distribution of pressurized fluid components essential for vehicle functions such as braking, steering, suspension, and transmission operations. A primary driver of this growth is the booming logistics industry, which requires robust commercial vehicles dependent on high-power hydraulic applications for safety and load management. This demand is supported by strong manufacturing output; according to the International Organization of Motor Vehicle Manufacturers, global motor vehicle production hit 92.5 million units in 2024, ensuring a consistent need for reliable hydraulic actuation in heavy-duty assemblies.

Despite this established demand, the market faces a significant hurdle due to the rapid electrification of the automotive sector. The shift toward electric vehicles is accelerating the adoption of steer-by-wire and brake-by-wire technologies, which replace traditional hydraulic systems with electromechanical alternatives to lower weight and maintenance requirements. This technological transition threatens long-term market expansion as manufacturers increasingly favor lighter, fluid-free architectures to maximize the range and efficiency of electric powertrains.

Market Drivers

The escalating demand for heavy-duty trucks in the logistics and construction sectors serves as a primary catalyst for the Global Automotive Hydraulics System Market. These vehicles depend heavily on high-pressure hydraulic pumps and cylinders to perform strenuous tasks like lifting and excavating, where electromechanical actuators often lack the required power density. This segment's strength is evident in key markets with intensifying infrastructure and freight needs; for instance, the China Association of Automobile Manufacturers reported a 65.4% year-on-year surge in heavy-duty truck sales in China, reaching 113,000 units in November 2024, highlighting the critical reliance on hydraulic architectures for commercial transport.

Simultaneously, rising global production of passenger and commercial vehicles amplifies the need for hydraulic subsystems in power steering, braking, and transmission control. The expansion of logistics networks has accelerated light commercial vehicle manufacturing, thereby increasing the installation rate of hydraulic technologies; the European Automobile Manufacturers’ Association noted that new EU van registrations rose by 8.3% to 1.59 million units for the full year 2024. This production volume supports a baseline demand for hydraulic solutions, a financial reality underscored by Danfoss, whose Power Solutions segment reported sales of 4.1 billion euros for the 2024 financial year.

Market Challenges

The rapid electrification of the global automotive industry presents a formidable barrier to the growth of the hydraulic systems market. As manufacturers prioritize energy efficiency to extend the range of electric powertrains, traditional hydraulic architectures are increasingly viewed as liabilities due to their substantial weight and continuous power consumption. This shift promotes the adoption of electromechanical alternatives, such as steer-by-wire and brake-by-wire technologies, which eliminate heavy fluids and pumps. Consequently, the addressable market for hydraulic components in the high-volume passenger vehicle segment is shrinking as these dry, on-demand electric systems replace conventional fluid-based actuation.

The magnitude of this displacement is emphasized by the surge in electric vehicle adoption. The International Energy Agency projected that global electric car sales would reach approximately 17 million units in 2024, a volume largely engineered without traditional hydraulic dependencies, representing a significant loss of market share for hydraulic manufacturers. As electric platforms become the standard for new vehicle development, the demand for hydraulic engineering is being steadily confined to heavy-duty commercial applications, effectively capping the broader growth potential of the sector.

Market Trends

The development of Digital Hydraulic Control Systems is transforming the market by converting traditional analog architectures into intelligent, data-driven networks. This trend integrates IoT connectivity and smart sensors directly into hydraulic components, enabling real-time monitoring and predictive maintenance for heavy-duty commercial vehicles. By utilizing digital twins and advanced algorithms, operators can optimize fluid pressure and flow with high precision, thereby reducing energy use and minimizing downtime; Bosch Rexroth exemplifies this shift, having invested 460 million euros in R&D during the 2024 fiscal year to advance AI and digitalization within its hydraulic product portfolio.

Concurrently, the expansion of Active Hydraulic Suspension Applications is gaining momentum as a critical solution for managing the dynamics of modern electric vehicle platforms. To counteract the significant weight of battery packs while ensuring superior ride comfort and handling, OEMs are deploying high-bandwidth active hydraulic systems that adjust damping forces instantaneously. This technology is moving beyond niche luxury segments to broader adoption; BYD, for instance, achieved an annual production of over 4 million vehicles in 2024, a volume that underpins the widespread rollout of its proprietary DiSus intelligent hydraulic body control system across its new energy vehicle lineup.

Key Players Profiled in the Automotive Hydraulics System Market

• Robert Bosch GmbH
• ZF Friedrichshafen AG
• Continental AG
• JTEKT Corporation
• BorgWarner Inc.
• Schaeffler AG
• Aisin Seiki Co., Ltd.
• GKN Automotive Limited
• FTE Automotive GmbH
• Hitachi Automotive Systems, Ltd.

Report Scope

In this report, the Global Automotive Hydraulics System Market has been segmented into the following categories:

Automotive Hydraulics System Market, by Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles and OTR

Automotive Hydraulics System Market, by Component:

• Hydraulic Master Cylinder
• Hydraulic Reservoir and Others

Automotive Hydraulics System Market, by Application:

• Hydraulic Clutch
• Hydraulic Suspension and Others

Automotive Hydraulics System Market, by Demand Category:

• OEM Vs Aftermarket

Automotive Hydraulics System Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Hydraulics System Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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