Automotive Hydraulics System Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 44.41 Billion
CAGR (2026-2031)	5.65%
Fastest Growing Segment	Hydraulic Reservoir
Largest Market	Asia Pacific
Market Size (2031)	USD 61.76 Billion

Market Overview

The Global Automotive Hydraulics System Market will grow from USD 44.41 Billion in 2025 to USD 61.76 Billion by 2031 at a 5.65% CAGR. The Global Automotive Hydraulics System Market encompasses the engineering and distribution of components that utilize pressurized fluid to transmit power for critical vehicle functions such as braking, steering, suspension, and transmission operation. Growth in this sector is primarily propelled by the expanding logistics industry, which necessitates robust commercial vehicles dependent on high-power hydraulic applications for load management and safety compliance. This demand is substantiated by recent manufacturing output; according to the International Organization of Motor Vehicle Manufacturers, in 2024, global motor vehicle production reached 92.5 million units. Consequently, the consistent volume of vehicle assembly, particularly in the heavy-duty segment, underpins the steady requirement for reliable hydraulic actuation and control mechanisms.

Despite this established demand, the market faces a significant impediment arising from the rapid electrification of the automotive industry. The transition toward electric vehicles accelerates the adoption of steer-by-wire and brake-by-wire technologies, which replace traditional hydraulic systems with electromechanical alternatives to reduce weight and maintenance. This technological displacement poses a substantial threat to long-term market expansion as manufacturers increasingly prioritize lighter, fluid-free architectures to optimize electric vehicle range and efficiency.

Key Market Drivers

Increasing demand for heavy-duty trucks in logistics and construction acts as a primary catalyst for the Global Automotive Hydraulics System Market. These vehicles rely heavily on high-pressure hydraulic cylinders and pumps to execute demanding tasks such as lifting, dumping, and excavating, where electromechanical actuators often lack the necessary power density. The robust growth in this segment is evident in key industrial markets where infrastructure projects and freight requirements are intensifying. According to the China Association of Automobile Manufacturers, in December 2024, heavy-duty truck sales in China surged by 65.4% year-on-year to reach 113,000 units for the month of November. This significant uptake underscores the critical reliance on hydraulic architectures for heavy commercial transport and construction applications, driving sustained procurement of actuation components despite broader economic fluctuations.

Concurrently, the rising global production of passenger and commercial vehicles amplifies the need for hydraulic subsystems used in power steering, braking, and transmission control. As logistics networks expand, the manufacturing of light commercial vehicles has accelerated to meet delivery demands, thereby increasing the installation rate of hydraulic-assisted technologies. According to the European Automobile Manufacturers’ Association, in January 2025, new EU van registrations for the full year 2024 rose by 8.3% to reach 1.59 million units. This production volume sustains a baseline demand for hydraulic solutions, even as some segments transition to electric platforms. Highlighting the continued financial scale of this component sector, according to Danfoss, in February 2025, its Power Solutions segment reported sales of 4.1 billion euros for the 2024 financial year.

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Key Market Challenges

The rapid electrification of the global automotive industry stands as a formidable barrier to the expansion of the hydraulic systems market. As vehicle manufacturers prioritize energy efficiency to maximize the range of electric powertrains, traditional hydraulic architectures are increasingly viewed as detrimental due to their weight and continuous power consumption. This shift drives the adoption of electromechanical alternatives, such as steer-by-wire and brake-by-wire technologies, which eliminate heavy pumps, fluids, and hoses. 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 scale of this displacement is highlighted by the surge in electric vehicle adoption. According to the International Energy Agency, in 2024, global electric car sales were projected to reach approximately 17 million units. This substantial volume of vehicles, engineered largely without traditional hydraulic dependencies, represents 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, thereby capping the broader growth potential of the sector.

Key Market Trends

The Development of Digital Hydraulic Control Systems is fundamentally reshaping the market by transitioning traditional analog architectures into intelligent, data-driven networks. This trend involves the integration of smart sensors and IoT connectivity 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 flow and pressure with unprecedented precision, thereby reducing energy consumption and minimizing unplanned downtime in logistics and construction fleets. Manufacturers are aggressively funding this technological shift to maintain competitiveness; according to Bosch Rexroth, April 2025, the company invested 460 million euros in research and development during the 2024 fiscal year, specifically focusing on the advancement of digitalization and AI-powered capabilities within its hydraulic product portfolio.

Simultaneously, 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 increasingly deploying high-bandwidth active hydraulic systems that dynamically adjust damping forces in milliseconds. This technology, once limited to niche luxury segments, is now being scaled for broader adoption to differentiate next-generation electric models. The industrial scale of this integration is evident in the performance of leading manufacturers; according to BYD, January 2025, the company achieved a total annual vehicle production of more than 4 million units in 2024, a volume that underpins the widespread rollout of its proprietary DiSus intelligent hydraulic body control system across its new energy vehicle lineup.

Segmental Insights

Leading industry analysis identifies the Hydraulic Reservoir segment as the fastest-growing category within the Global Automotive Hydraulics System Market. This rapid expansion is primarily driven by the imperative for vehicle lightweighting, which is compelling OEMs to transition from traditional steel tanks to high-performance thermoplastic reservoirs. This material shift supports compliance with rigorous emission targets, such as Euro 7, while simultaneously extending the range of electric vehicles. Furthermore, the increasing complexity of modern braking and suspension architectures requires advanced reservoirs with integrated filtration and fluid monitoring, significantly boosting their market adoption.

Regional Insights

Asia Pacific maintains a leading position in the global automotive hydraulics system market, driven by high automotive manufacturing output in China, India, and Japan. The region benefits from extensive infrastructure development, which increases the requirement for heavy commercial vehicles and construction machinery that rely on hydraulic components for braking and suspension. Furthermore, evolving safety standards from organizations like the Ministry of Road Transport and Highways in India promote the adoption of reliable hydraulic systems. This combination of industrial expansion and supportive regulatory frameworks ensures the region remains the primary market for these automotive technologies.

Recent Developments

In January 2025, Bosch successfully completed extensive public road testing of its new hydraulic brake-by-wire system, demonstrating the technology's readiness for mass market adoption. The system replaces the mechanical connection between the brake pedal and the braking units with redundant electrical signal lines, while retaining hydraulic actuators for stopping power. A Project Manager at Bosch highlighted that the test vehicle traveled over 2,050 miles through diverse climate zones to the Arctic Circle without issues. This achievement signals a pivotal shift in the Global Automotive Hydraulics System Market, bridging traditional hydraulic braking with future-ready software-defined vehicle architectures.
In December 2024, ZF Friedrichshafen announced the start of serial production for its sMOTION active chassis system, a revolutionary advancement in damping technology. The system, which brings together stability and driving dynamics, adapts damping forces to specific driving situations and can actively lift the vehicle body for optimal road holding using electro-hydraulic actuators. The Head of the Chassis Solutions Division at ZF explained that the fully active system practically eliminates pitching and rolling movements during braking and acceleration. This launch represents a significant breakthrough in the Global Automotive Hydraulics System Market, offering a unique combination of ride comfort and performance.
In April 2024, ClearMotion announced the grand opening of its first production facility in Changshu, China, to manufacture its ClearMotion1 active suspension technology. The new plant began executing a significant production order for an electric vehicle manufacturer, marking a major milestone in commercializing its high-bandwidth electro-hydraulic chassis system. The CEO of ClearMotion noted that the facility would support the company's global expansion and deliver a next-generation in-cabin experience by canceling unwanted motion. This development underscores the growing integration of software-defined hydraulic components in the Global Automotive Hydraulics System Market to enhance passenger comfort.
In January 2024, Tenneco announced that its Monroe Intelligent Suspension CVSA2/Kinetic technology was featured on the newly launched McLaren 750S supercar. This advanced suspension system utilizes a hydraulic roll control mechanism to replace traditional mechanical anti-roll bars, thereby reducing vehicle weight while offering superior ride comfort and handling agility. The Group Vice President and General Manager of Monroe Ride Solutions stated that the technology enables drivers to fully experience the vehicle's dynamic capabilities. This deployment highlights the continued relevance of sophisticated hydraulic interconnections in the Global Automotive Hydraulics System Market, delivering precise control for high-performance applications.

Key Market Players

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.

By Vehicle Type	By Component	By Application	By Demand Category	By Region
Passenger Cars Light Commercial Vehicles Heavy Commercial Vehicles and OTR	Hydraulic Master Cylinder Hydraulic Reservoir and Others	Hydraulic Clutch Hydraulic Suspension and Others	OEM Vs Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Hydraulics System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

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

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

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

Available Customizations:

Global Automotive Hydraulics System Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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

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Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Automotive Hydraulics System Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles and OTR)

5.2.2. By Component (Hydraulic Master Cylinder, Hydraulic Reservoir and Others)

5.2.3. By Application (Hydraulic Clutch, Hydraulic Suspension and Others)

5.2.4. By Demand Category (OEM Vs Aftermarket)

5.2.5. By Region

5.2.6. By Company (2025)

5.3. Market Map

6. North America Automotive Hydraulics System Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Vehicle Type

6.2.2. By Component

6.2.3. By Application

6.2.4. By Demand Category

6.2.5. By Country

6.3. North America: Country Analysis

6.3.1. United States Automotive Hydraulics System Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Vehicle Type

6.3.1.2.2. By Component

6.3.1.2.3. By Application

6.3.1.2.4. By Demand Category

6.3.2. Canada Automotive Hydraulics System Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Vehicle Type

6.3.2.2.2. By Component

6.3.2.2.3. By Application

6.3.2.2.4. By Demand Category

6.3.3. Mexico Automotive Hydraulics System Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Vehicle Type

6.3.3.2.2. By Component

6.3.3.2.3. By Application

6.3.3.2.4. By Demand Category

7. Europe Automotive Hydraulics System Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Vehicle Type

7.2.2. By Component

7.2.3. By Application

7.2.4. By Demand Category

7.2.5. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Automotive Hydraulics System Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Vehicle Type

7.3.1.2.2. By Component

7.3.1.2.3. By Application

7.3.1.2.4. By Demand Category

7.3.2. France Automotive Hydraulics System Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Vehicle Type

7.3.2.2.2. By Component

7.3.2.2.3. By Application

7.3.2.2.4. By Demand Category

7.3.3. United Kingdom Automotive Hydraulics System Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Vehicle Type

7.3.3.2.2. By Component

7.3.3.2.3. By Application

7.3.3.2.4. By Demand Category

7.3.4. Italy Automotive Hydraulics System Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Vehicle Type

7.3.4.2.2. By Component

7.3.4.2.3. By Application

7.3.4.2.4. By Demand Category

7.3.5. Spain Automotive Hydraulics System Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Vehicle Type

7.3.5.2.2. By Component

7.3.5.2.3. By Application

7.3.5.2.4. By Demand Category

8. Asia Pacific Automotive Hydraulics System Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Vehicle Type

8.2.2. By Component

8.2.3. By Application

8.2.4. By Demand Category

8.2.5. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Automotive Hydraulics System Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Vehicle Type

8.3.1.2.2. By Component

8.3.1.2.3. By Application

8.3.1.2.4. By Demand Category

8.3.2. India Automotive Hydraulics System Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Vehicle Type

8.3.2.2.2. By Component

8.3.2.2.3. By Application

8.3.2.2.4. By Demand Category

8.3.3. Japan Automotive Hydraulics System Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Vehicle Type

8.3.3.2.2. By Component

8.3.3.2.3. By Application

8.3.3.2.4. By Demand Category

8.3.4. South Korea Automotive Hydraulics System Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Vehicle Type

8.3.4.2.2. By Component

8.3.4.2.3. By Application

8.3.4.2.4. By Demand Category

8.3.5. Australia Automotive Hydraulics System Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Vehicle Type

8.3.5.2.2. By Component

8.3.5.2.3. By Application

8.3.5.2.4. By Demand Category

9. Middle East & Africa Automotive Hydraulics System Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Vehicle Type

9.2.2. By Component

9.2.3. By Application

9.2.4. By Demand Category

9.2.5. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Automotive Hydraulics System Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Vehicle Type

9.3.1.2.2. By Component

9.3.1.2.3. By Application

9.3.1.2.4. By Demand Category

9.3.2. UAE Automotive Hydraulics System Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Vehicle Type

9.3.2.2.2. By Component

9.3.2.2.3. By Application

9.3.2.2.4. By Demand Category

9.3.3. South Africa Automotive Hydraulics System Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Vehicle Type

9.3.3.2.2. By Component

9.3.3.2.3. By Application

9.3.3.2.4. By Demand Category

10. South America Automotive Hydraulics System Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Vehicle Type

10.2.2. By Component

10.2.3. By Application

10.2.4. By Demand Category

10.2.5. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Automotive Hydraulics System Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Vehicle Type

10.3.1.2.2. By Component

10.3.1.2.3. By Application

10.3.1.2.4. By Demand Category

10.3.2. Colombia Automotive Hydraulics System Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Vehicle Type

10.3.2.2.2. By Component

10.3.2.2.3. By Application

10.3.2.2.4. By Demand Category

10.3.3. Argentina Automotive Hydraulics System Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Vehicle Type

10.3.3.2.2. By Component

10.3.3.2.3. By Application

10.3.3.2.4. By Demand Category

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Automotive Hydraulics System Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Robert Bosch GmbH

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. ZF Friedrichshafen AG

15.3. Continental AG

15.4. JTEKT Corporation

15.5. BorgWarner Inc

15.6. Schaeffler AG

15.7. Aisin Seiki Co., Ltd.

15.8. GKN Automotive Limited

15.9. FTE Automotive GmbH

15.10. Hitachi Automotive Systems, Ltd.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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