Automotive Hydraulics System Market Report 2025

This Automotive Hydraulics System market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The automotive hydraulics system market size has grown strongly in recent years. It will grow from $43.39 billion in 2024 to $46.72 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to power steering adoption, heavy commercial vehicles demand, safety regulations, construction and mining equipment, material handling equipment.

The automotive hydraulics system market size is expected to see strong growth in the next few years. It will grow to $64.73 billion in 2029 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to electrification and hybridization, lightweight materials, advanced driver assistance systems (ADAS), construction industry growth, precision agriculture, condition monitoring and predictive maintenance. Major trends in the forecast period include electro-hydraulic systems, energy-efficient hydraulic systems, intelligent hydraulic control, hydraulic hybrid vehicles, modular and scalable designs, eco-friendly hydraulic fluids.

The trajectory of the automotive hydraulics system market is anticipated to soar, propelled by the escalating production of vehicles worldwide. Vehicles, serving as transportation mediums for both people and goods, rely on hydraulic systems capable of efficiently storing and discharging energy - a more effective mechanism than electric batteries. These systems notably aid drivers by alleviating steering effort in vehicles. A testament to this growth is reflected in data provided by the India Brand Equity Foundation (IBEF), projecting a production of 22. 93 million vehicles in India for the year 2022, thereby substantiating the driving force of increased vehicle production behind the automotive hydraulics system market's expansion.

The rising concerns about road traffic and vehicle safety will drive growth in the automotive hydraulic system market. There has been a heightened focus on road infrastructure and passenger safety due to the increase in road accidents worldwide. Automotive hydraulic systems are crucial for enhancing braking performance, stability control, and overall safety features in vehicles, thus propelling the market's expansion. For example, in April 2024, the National Highway Traffic Safety Administration, a U.S. government agency, reported that distracted driving led to 3,308 fatalities and approximately 289,310 injuries in the U.S. in 2022. Additionally, 621 vulnerable road users, including pedestrians and cyclists, were killed in accidents involving distracted drivers. The growing concerns regarding vehicle safety will increase demand for the automotive hydraulic system market.

Product innovations are key trends gaining traction in the automotive hydraulics system market. Major companies in this sector are concentrating on developing new product innovations to drive market growth. For example, in October 2023, Danfoss, a manufacturing company based in Denmark, launched the Winner Hydraulic Hoses. The Winner series offers a comprehensive range of solutions designed to meet standard performance requirements at a competitive price. Backed by a fully engineered system of qualified fittings, assembly machines, and exceptional value-added services, the Winner series ensures reliable, leak-free performance, reduced maintenance requirements, and lower overall ownership costs. With consistent design and build quality, it complies with both EN and SAE industry specifications, providing complete system-engineered solutions.

Product innovations are key trends gaining traction in the automotive hydraulics system market. Major companies in this sector are concentrating on developing new product innovations to drive market growth. For example, in October 2023, Danfoss, a manufacturing company based in Denmark, launched the Winner Hydraulic Hoses. The Winner series offers a comprehensive range of solutions designed to meet standard performance requirements at a competitive price. Backed by a fully engineered system of qualified fittings, assembly machines, and exceptional value-added services, the Winner series ensures reliable, leak-free performance, reduced maintenance requirements, and lower overall ownership costs. With consistent design and build quality, it complies with both EN and SAE industry specifications, providing complete system-engineered solutions.

In a strategic move dated February 2023, Bosch Rexroth AG, a prominent Germany-based engineering firm, executed the acquisition of HydraForce, marking a significant development within the industry. This undisclosed acquisition by Bosch Rexroth is projected to fortify the company's presence in North America while extending its global distribution network, thereby offering customers an extensive array of compact hydraulic solutions. HydraForce, renowned as a US-based designer and manufacturer specializing in motion control systems encompassing hydraulic cartridge valves, complements Bosch Rexroth's strategic goals by enhancing its market position and diversifying its hydraulic solutions portfolio on a worldwide scale.

Major companies operating in the automotive hydraulics system market include JTEKT Corporation, ZF Friedrichshafen AG, Toyota Motor Corporation, Aisin Corporation, Schaeffler Technologies AG & Co. KG, BorgWarner Inc., Robert Bosch GmbH, GKN Ltd., Fte Automotive GmbH, Continental Hydraulics Inc., Warner Electric LLC, Altra Industrial Motion Corp., Dantal Hydraulics Pvt. Ltd., RR Parkon LLC, Brakes India Limited, Bosch Rexroth Corporation, Eaton Corporation, Parker Hannifin Corporation, KYB Corporation, WABCO Holdings Inc., Hawe Hydraulik SE, Linde Hydraulics GmbH & Co. KG, Voith Group, Danfoss Power Solutions AS, Marzocchi Pumps USA, Sun Hydraulics LLC, Bucher Hydraulics GmbH, Oilgear Company, Duplomatic Oleodinamica S. p. A., HydraForce Inc.

Automotive hydraulic systems are power transmission systems that facilitate the transmission of energy or signals through the static or dynamic forces of liquids. This technology is regarded as more precise compared to traditional mechanical drive systems, as mechanical systems may experience efficiency losses over time due to friction. Hydraulic systems utilize fluids to transfer energy between two points, leveraging pressure differences for efficient energy storage and release, surpassing the efficiency of batteries.

Key components in automotive hydraulic systems include the master cylinder, slave cylinder, reservoir, and hoses. These systems find application in various vehicle types, including passenger cars, light commercial vehicles, and heavy commercial vehicles. In passenger cars, automotive hydraulic systems are employed for dynamic height adjustments. Notably, hydraulic braking systems are a prevalent application in passenger cars, utilizing brake fluid to apply pressure to braking pads, which in turn press against the axel to prevent vehicle movement. Automotive hydraulic systems are versatile, serving purposes in brakes, clutches, suspension, and tappets. The primary end users of these systems are original equipment manufacturers (OEMs) and the aftermarket.

The automotive hydraulics system market research report is one of a series of new reports that provides automotive hydraulics system market statistics, including automotive hydraulics system industry global market size, regional shares, competitors with an automotive hydraulics system market share, detailed automotive hydraulics system market segments, market trends and opportunities, and any further data you may need to thrive in the automotive hydraulics system industry. This automotive hydraulics system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the automotive hydraulics system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive hydraulics system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the automotive hydraulics system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, 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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