Automotive Hydraulics System Market Report 2026

The automotive hydraulics system market size has grown strongly in recent years. It will grow from $46.13 billion in 2025 to $49.75 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to passenger vehicle production growth, adoption of hydraulic braking systems, reliability of fluid power systems, expansion of commercial vehicles, cost-effective power transmission.

The automotive hydraulics system market size is expected to see strong growth in the next few years. It will grow to $67.64 billion in 2030 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to electrification of vehicles, demand for precision braking, lightweight material adoption, safety regulation enforcement, hydraulic system efficiency improvements. Major trends in the forecast period include integration of advanced brake hydraulics, demand for lightweight hydraulic components, adoption of high-pressure systems, growth of aftermarket replacement, focus on vehicle stability systems.

The increasing vehicle production is expected to propel the growth of the automotive hydraulics system market going forward. A vehicle refers to a mode of transportation used for carrying people and goods. The rise in vehicle production is mainly driven by rapid urbanization, which increases demand for personal and commercial transportation as growing urban populations require efficient mobility solutions. Automotive hydraulics systems support vehicle production by enabling accurate control of machinery and assembly operations, thereby improving manufacturing efficiency, safety, and overall output. For instance, in May 2025, according to the European Automobile Manufacturers’ Association (ACEA), a Belgium-based motor vehicle manufacturers’ association, car production in South America increased by 1.7% in 2024 compared to 2023, largely driven by Brazil, which recorded a 6.3% increase with production reaching approximately 1.9 million vehicles. Additionally, global bus production totaled 362,005 units in the same year, representing a 10.3% rise from 2023. Therefore, increasing vehicle production is driving the growth of the automotive hydraulics system market.

Major companies operating in the automotive hydraulics systems market are focusing on developing innovative products such as high-pressure hydraulic pumps to improve vehicle performance, safety, and fuel efficiency. High-pressure hydraulic pumps are devices that convert mechanical energy into pressurized hydraulic fluid to operate hydraulic systems, allowing precise force and movement control in vehicles and machinery. For instance, in October 2023, Danfoss, a Denmark-based manufacturing company, introduced the Winner hydraulic hoses. The Winner range offers a broad set of solutions designed to meet standard performance requirements at competitive pricing. Supported by an engineered system of certified fittings, assembly equipment, and value-added services, the Winner series delivers reliable, leak-free operation, reduced maintenance requirements, and lower total cost of ownership. With consistent design and build quality, it complies with both EN and SAE industry standards and provides fully system-engineered solutions.

In February 2023, Bosch Rexroth AG, a Germany-based engineering company, acquired HydraForce for an undisclosed amount. This acquisition is intended to strengthen Bosch Rexroth’s presence in North America and expand its global distribution network, enabling the company to offer a broader range of compact hydraulic solutions worldwide. HydraForce is a US-based designer and manufacturer of motion control systems, including hydraulic cartridge valves.

Major companies operating in the automotive hydraulics system market report include JTEKT Corporation, ZF Friedrichshafen AG, Aisin Corporation, Robert Bosch GmbH, FTE Automotive GmbH, Brakes India Limited, KYB Corporation, Eaton Corporation, Parker Hannifin Corporation, Brembo S.p.A., Mando Corporation, Sun Hydraulics LLC, Linde Hydraulics GmbH & Co. KG, Danfoss Power Solutions, Hawe Hydraulik SE, HydraForce Inc., Duplomatic Oleodinamica S.p.A., Marzocchi Pumps USA, Bucher Hydraulics GmbH, Oilgear Company.

Asia-Pacific was the largest region in the automotive hydraulics system market in 2025.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive hydraulics system market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive hydraulics system market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive hydraulic systems market consists of sales of hydraulic pumps, hydraulic motors and cylinders, aviation hydraulic system, open center hydraulic system and closed-loop hydraulic system. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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