Automotive Hydraulic System Market Size, Share & Trends Analysis Report By Hydraulic System Type (Hydraulic Braking System, Hydraulic Steering System, Hydraulic Suspension System, Hydraulic Powertrain System, Hydraulic Actuators and Pumps), By Application (Steering & Suspension, Braking Systems, Transmission & Powertrain, Safety & Control Systems, Chassis Systems), By Component (Hydraulic Pumps, Hydraulic Actuators, Hydraulic Valves, Hydraulic Cylinders, Hydraulic Fluids), By Sales Channel (OEMs (Original Equipment Manufacturers), Aftermarket) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Automotive Hydraulic System Market Size

The global automotive hydraulic system market size was worth USD 39.2 billion in 2024 and is estimated to reach an expected value of USD 65.67 billion by 2033, growing at a CAGR of 5.9% during the forecast period (2025-2033).

An automotive hydraulic system uses fluid under pressure to generate, control, and transmit power in vehicles. It plays a crucial role in critical functions such as braking, steering, and suspension, where precise control and high force are required. These systems enhance vehicle safety, comfort, and performance by providing reliable power transfer with minimal mechanical effort. These systems are vital in conventional and electric vehicles, adapting to evolving automotive technologies to ensure optimal functionality and improved driving experience.

The global automotive hydraulic system market is experiencing steady growth as manufacturers increasingly focus on optimizing vehicle performance and safety. This shift has been significantly influenced by the push towards electric vehicles (EVs) and autonomous driving technologies, where these systems are critical in steering, braking, and suspension. The trend of stricter regulations around fuel efficiency and emissions in key regions also drives adopting these systems, which can provide more precision and control than traditional mechanical systems.

In Europe, the European Automobile Manufacturers' Association (ACEA) reports that hydraulic systems are becoming more integrated with advanced driver-assistance systems (ADAS), improving vehicle safety and comfort. Similarly, North America's growing demand for electric and hybrid vehicles has created new opportunities for these system manufacturers to innovate. Analysts foresee continued market growth due to rising consumer demand for high-performance vehicles, a growing focus on vehicle automation, and ongoing investments in automotive R&D.

The table below showcases the top countries driving the global automotive hydraulic system market, highlighting key vehicle sales, growth percentages, and leading automotive brands:

Source: F&I Tools USA, Straits Research

Exclusive Market Trends

Increasing integration of hydraulic systems in electric and autonomous vehicles

Hydraulic systems are increasingly becoming integral to electric and autonomous vehicles primarily because they enhance vehicle developments' steering, braking, and suspension. Electrical vehicles (EVs) strictly demand smooth operation with control so they perform safely. Hydraulic technology is appropriate and in full accord with such a need. Autonomous vehicles, too, require high-performance systems to handle vehicle control more accurately, particularly in critical driving situations.

Additionally, with the automotive industry turning towards automation and electric powertrains, these systems have evolved to accommodate these new technologies. Hydraulic actuators and pumps are now utilized in autonomous systems, such as active suspension and steering systems, making them a part of the vehicle design.

• For instance, according to the International Energy Agency (IEA), global electric car stock reached 14 million vehicles in 2023. EVs now account for 14% of all new car sales globally, further boosting the demand for these systems in EVs. As EV adoption grows, so does the integration of these systems to improve vehicle safety, handling, and performance.

Growing adoption of advanced driver-assistance systems (ADAS) with hydraulic components

ADAS are progressively integrated with hydraulic systems in vehicles to enhance safety and efficiency. Hydraulic systems have been utilized in critical ADAS components, including an active suspension system, brake, and steering, which result in real-time vehicle adjustments to improve driving safety and comfort. The increased adoption of the systems can be attributed to technological advancement and strict safety regulations.

Hydraulic systems are essential for providing superior control in these systems, especially in autonomous vehicles, where precision and reliability are of paramount importance. As automobile manufacturers strive to meet regulatory safety standards, they increasingly use this technology to optimize these features.

• For instance, the U.S. Department of Energy (DOE) has announced a $51.7 million investment in transportation innovation projects, including advancements in vehicle-to-everything (V2X) connectivity and cybersecurity in EV charging infrastructure, both of which support the growing integration of autonomous and connected vehicle technologies.

Global Automotive Hydraulic System Market Growth Factors

Rising demand for fuel-efficient and low-emission vehicles

The significant influence of this system in the automotive industry is that the industry has started manufacturing fuel-efficient and low-emission vehicles. Hydraulic systems can improve fuel efficiency and minimize vehicle emissions, mainly in electric or hybrid vehicles. For instance, advanced systems in electric vehicles optimize energy usage in braking and suspension, thus improving energy efficiency. These systems also reduce the overall vehicle's weight, which positively influences fuel consumption. More emphasis globally on greener vehicles, because of the concerns raised over climate, has resulted in stringent emissions requirements and further added impetus for using these systems.

• For instance, Germany became the third country after China and the United States to record half a million new battery electric car registrations in a year, with 18% of car sales being battery electric (and another 6% plug-in hybrid). This surge in electric vehicle adoption highlights the growing demand for fuel-efficient vehicles, which rely on hydraulic systems for enhanced performance and energy efficiency.

Technological advancements in hydraulic systems enhance vehicle performance

Improving vehicle performance, safety, and comfort through technological advancement in these systems propels the market forward. Electromechanical, hydraulic actuators and systems capable of withstanding higher pressures have enabled more responsive and efficient control in vehicles. Such developments have allowed for precise control over suspension systems, steering, and braking, and thus, these systems form an integral part of modern automotive designs, especially in high-performance and luxury vehicles. Manufacturers use several high-tech systems to offer better ride quality, safety, and handling.

• For instance, the U.S. Department of Energy highlights that advancements in hydraulic suspension systems have led to a 15% improvement in vehicle stability and handling.

Market Restraint

High cost of advanced hydraulic systems in automotive applications

One of the key challenges restraining the growth of the global automotive hydraulic system market is the high cost associated with advanced hydraulic components. These systems, particularly in electric and autonomous vehicles, require sophisticated materials, precision engineering, and complex manufacturing processes, all contributing to significantly higher production costs than conventional mechanical systems. Integrating high-performance braking, steering, and suspension solutions often involves advanced technologies like electronic control units (ECUs) and high-strength lightweight materials, further driving up expenses.

• For instance, brake-by-wire systems—an advanced hydraulic technology in high-end electric vehicles—offer enhanced response times and improved braking efficiency. However, these systems are considerably more expensive than traditional brakes due to their reliance on electronic sensors, actuators, and redundant safety systems.

Market Opportunity

Expansion of hydraulic systems in emerging electric vehicle markets

Emerging electric vehicle markets are a massive opportunity for the market. With the widespread adoption of electric vehicles in markets such as China, India, and Brazil, the demand for advanced systems is expected to increase. For instance, a significant increase is seen in domestic electric vehicle production in countries such as these due to government incentives for investments in green technology and growing customer awareness of environment-friendly electric vehicles. Through its contribution to improved vehicle performance and safety, these systems will be part of the developing products of such vehicles, particularly in the emerging mid-range and budget EV segments.

• For instance, in Europe, new electric car registrations reached nearly 3.2 million in 2023, increasing by almost 20% relative to 2022. In the European Union, sales amounted to 2.4 million, significantly boosting the demand for advanced hydraulic systems in electric vehicles.

Regional Insights

Asia-Pacific: Dominant market share

The Asia-Pacific region dominates the global automotive hydraulic system market, driven by the rapid expansion of its automotive industry. Countries like China, Japan, and India are significant contributors, with high annual vehicle production and sales. China is the largest automotive market globally, with a strong focus on electric vehicle (EV) adoption and advanced automotive technologies, further boosting the demand for hydraulic systems in braking and suspension applications. Domestic brands and international manufacturers, including Volkswagen and Toyota, invest heavily in China’s automotive sector, further enhancing market growth.

Additionally, the region is supported by the demand for fuel-efficient and technologically advanced vehicles, driving the adoption of sophisticated systems. Asia-Pacific's car producers and distributors provide a competitive environment that enhances its leading position.

Europe: Growth driven by regulatory requirements and technological advancements

Europe is a key region in the global automotive hydraulic system market, driven by strict vehicle safety regulations and the increasing focus on sustainability. European Union regulations have enforced stringent safety and vehicular emissions regulations, stimulating demand for more advanced systems, particularly in braking and steering applications.

Germany, France, and Italy are the most prominent countries in Europe that dominate the automotive industry, demanding more efficient and eco-friendly technologies, especially with the rise of electric vehicles. The shift towards sustainability and adoption of electric vehicles further accelerates the need for advanced automotive systems, which makes Europe a major player in the global market.

Countries Insights

• China: As the world’s largest automotive market with over 30 million vehicles sold annually, China experiences a growing demand for advanced systems, driven by a strong focus on electric vehicles and consumer interest in high-performance automotive solutions. Leading manufacturers like Volkswagen and Toyota rely on these braking, steering, and suspension systems in their expanding electric and hybrid vehicle portfolios.
• United States: With over 15.6 million vehicles sold, innovations heavily influence the U.S. automotive market in electric and autonomous vehicles. High-performance systems are increasingly in demand for braking and steering applications, with major automakers like Ford and Toyota driving this growth. Government incentives for EV adoption further accelerate the integration of these systems into new vehicle designs.
• Japan: Selling nearly 4.8 million vehicles annually, Japan is a global hub for automotive innovation, particularly in electric and hybrid vehicle technology. Hydraulic systems are essential for safety features and powertrain applications. Industry leaders such as Toyota and Suzuki are pivotal in promoting advanced solutions to meet stringent safety and performance standards.
• India: India’s automotive market, with over 4.1 million cars sold, is rapidly expanding, fueled by the growing production of electric and hybrid vehicles. Top brands like Maruti, Suzuki, and Hyundai are increasingly adopting these systems for braking and steering to meet rising consumer demand for safer and more reliable vehicles. The government's push for electrification further supports market growth.
• Germany: Known for its leadership in automotive innovation, Germany sold approximately 2.9 million vehicles. Hydraulic systems are in high demand for electric and connected vehicle technologies, particularly braking and suspension systems. Renowned brands such as Volkswagen, Mercedes-Benz, and Audi integrate these systems into their cutting-edge vehicle designs, focusing on safety and performance enhancements.
• Brazil: Brazil’s automotive market recorded over 2.3 million vehicle sales, with Fiat and Volkswagen dominating. The growing adoption of electric vehicles in the region drives increased demand for braking, steering, and suspension hydraulic systems. This shift is supported by government policies promoting greener transportation solutions.
• United Kingdom: With 1.9 million vehicles sold, the UK’s automotive market is transitioning toward electric vehicles, boosting demand for advanced systems in braking and steering. Leading brands like Volkswagen, Ford, and Audi are at the forefront of this change, ensuring that hydraulic technologies remain integral to next-generation vehicles.
• France: France saw 1.8 million car sales, led by domestic brands such as Renault, Peugeot, and Citroën. The country’s strong push for automotive electrification and sustainability is driving demand for these systems in electric and hybrid vehicles, with a focus on improving vehicle efficiency and safety in line with evolving environmental regulations.

Segmentation Analysis

By Hydraulic System Type

The hydraulic braking system dominates the market, holding the largest revenue share due to its critical role in vehicle safety and performance. Effective braking is essential for passenger, commercial, and high-performance cars, ensuring control and reliability in diverse driving conditions. The ability of hydraulic braking systems to deliver consistent performance in extreme conditions makes them indispensable. With the rising focus on passenger safety and increasing regulatory standards for braking efficiency, demand for these systems continues to grow across conventional and electric vehicles.

By Application

Braking systems account for the largest market share, driven by the rising demand for more robust braking solutions in all vehicle categories. Braking is a fundamental aspect of vehicle safety, with continuous technological advancements and regulatory pressures pushing the segment’s growth. Hydraulic braking systems are particularly essential in high-performance and heavy-duty vehicles, where superior stopping power is critical. The growing adoption of regenerative braking systems in electric and hybrid vehicles further boosts demand for hydraulic components, as these systems offer enhanced energy recovery and braking efficiency.

By Component

Hydraulic pumps dominate the component segment, holding the largest share due to their vital role in the functioning of hydraulic systems. These pumps are responsible for circulating hydraulic fluid, maintaining pressure, and powering key systems such as braking, steering, and suspension. The entire system would fail to operate without hydraulic pumps, making them indispensable in automotive design. In advanced braking and steering systems, precision and reliability are crucial. Innovations in variable-displacement pumps and lightweight materials have further enhanced the performance of hydraulic pumps, contributing to the growth of this segment.

By Sales Channel

OEMs hold the largest market share, as they are the primary suppliers of automotive hydraulic systems for new vehicles. These systems are designed and integrated during the vehicle’s manufacturing process to ensure reliability, compatibility, and adherence to industry standards. OEMs focus on producing high-quality, durable hydraulic components tailored for specific vehicle models, giving them a competitive advantage over aftermarket suppliers. OEM dominance is further supported by the rise of electric and autonomous vehicles, where hydraulic systems must be carefully engineered for optimal performance in advanced vehicle architectures.

Company Market Share

Key market players are investing in advanced Automotive Hydraulic System technologies and pursuing collaborations, acquisitions, and partnerships to enhance their products and expand their market presence.

JTEKT Corporation: An Emerging Player in the Automotive Hydraulic System Market

JTEKT Corporation strengthens its position in the Automotive Hydraulic System Market with its advanced fuel cell technologies, including high-pressure hydrogen valves and regulators, driving innovation in hydrogen-powered commercial vehicles.

Recent Developments:

• In September 2023, JTEKT developed a third-generation "High-Pressure Hydrogen Valve" and "Regulator" for fuel cell commercial vehicles, enhancing flow rate and reliability to support the expansion of hydrogen-powered commercial vehicles.

Recent Developments

• June 2024- BorgWarner began production of its wet clutch and hydraulic control module for Buick’s GL8 PHEV van, contributing to the efficiency and performance of the 2-speed hybrid transmission in China’s growing new energy vehicle market.
• September 2024- ZF secured a long-term agreement with Ford Trucks to supply electric drives, including the CeTrax 2 dual central electric drive and Electrically Powered Hydraulic Steering Pump (EPHS), bolstering its position as Europe's leader in electric commercial drives.

Analyst Opinion

As per our analyst, the global automotive hydraulic system market is expected to grow significantly with the adoption of advanced hydraulic technologies in both conventional and electric vehicles. JTEKT Corporation and ZF Friedrichshafen AG are at the forefront, making innovations in hydraulic braking, steering, and suspension systems, thus enhancing vehicle safety, performance, and efficiency. New electric powertrains and the emergence of hydrogen-powered automobiles provide good opportunities for manufacturers to develop highly specialized hydraulic solutions for these novel powertrains.

As more commercial vehicle makers shift toward fuel cell technology, the demand for high-pressure hydrogen systems will jump, further energizing market expansion. Yet, the issue remains that companies innovate with costs while retaining reliability and sustainability in their hydraulic parts for stringent compliance under environmental regulations.