Automotive Hydraulic Systems Market Trends, Industry | 2032

Report Description

Automotive Hydraulic Systems Market Outlook 2031

The global automotive hydraulic systems market size was valued at USD 46.35 Billion in 2023 and is likely to reach USD 75.46 Billion by 2032, expanding at a CAGR of 5.9 % during 2024 – 2032. The market growth is attributed to the growing manufacturing of automobiles across the globe.

Increasing production of automobiles is projected to boost the demand for automotive hydraulic systems across the globe. Hydraulic systems are installed in cars for hydraulic braking, as these systems transfer pressure onto a braking pad, which then presses onto the axle and stops the motion of the vehicle. These systems are also used in the power steering of vehicles, as they reduce the effort to steer the front wheels of the vehicle. Therefore, the rising production of motor vehicles is propelling the market. For instance,

• According to the European Automobile Manufacturers Association, 85.4 million motor vehicles were produced across the globe in 2022, which was an increase of 5.7% as compared to 2021.

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The adoption of automotive hydraulic systems is rapidly increasing in passenger and commercial vehicles, as they allow a dynamic adjustment in the height of the vehicles. It reduces fuel consumption and carbon emissions, which enhances its adoption in automobiles. These systems provide greater force than mechanical, electrical, or pneumatic systems and are also capable of moving heavier loads, increasing their demand in commercial vehicles.

The COVID-19 pandemic hampered the demand for automotive hydraulic systems. The disruption in the supply chain across the globe and the limited availability of raw materials and manpower during the pandemic hindered the production of hydraulic systems. Additionally, a drastic decline was registered in the production of new motor vehicles during COVID-19, which impeded the demand for automotive hydraulic systems. For instance,

• According to a report published by the International Organization of Motor Vehicle Manufacturers, a 16% decline was seen in the production of automobiles in 2020.

Impact of Artificial Intelligence (AI) on Automotive Hydraulic Systems

The growing advancements in the automotive sector and the integration of robotics and artificial intelligence in the manufacturing of automobiles and their parts create an immense opportunity in the market. AI in hydraulic systems optimizes performance effectively and predicts maintenance requirements, reducing downtime and maintenance costs. It further improves the efficiency and reliability of hydraulic systems. Engineers of hydraulic systems use AI algorithms for a wide range of applications, such as pressure drops, flow rates, and energy consumption to generate optimal designs that meet specific performance criteria.

Automotive Hydraulic Systems Market Dynamics

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Major Drivers

Increasing demand for commercial vehicles is expected to boost the demand for automotive hydraulic systems during the forecast period. Hydraulic systems are widely placed in commercial vehicles, as they allow the unloading of cargo by lifting the truck bed from the front using hydraulic cylinders. These systems also generate high amounts of power and maneuver heavy loads, which enhances their adoption in commercial vehicles. Therefore, rising production and sales of commercial vehicles are propelling the market. For instance,

• According to a report published 24.1 million commercial vehicles were sold globally in 2022.

Surge in fuel prices globally is projected to drive the market in the coming years. Automobile users are deploying hydraulic systems in their vehicles to reduce fuel consumption and carbon emissions. A hydraulic system is combined with a variable displacement pump that supplies pressure only when required, resulting in less heat and fuel usage.  Thus, increasing fuel prices is boosting the demand for automotive hydraulic systems.

Existing Restraints

High cost associated with hydraulic systems is expected to restrict the market during the forecast period. Automotive hydraulic systems require bulky and large components to create the necessary pressure, which makes them expensive than pneumatic systems. In addition, hydraulic systems are not suitable for long-distance transmission and offer a risk of fluid leakage, which reduces its adoption in automobiles.

Emerging Opportunities

Rising investment in R&D activities by key players in the market to develop and introduce smart hydraulic equipment creates an immense opportunity in the market. This equipment offers regenerative braking in a single and integrated unit without the need for supplement vacuum pumps. For instance,

ZF Friedrichshafen AG, a global technology company that supplies systems for passenger cars, commercial vehicles, and industrial technology, announced the launch of integrated brake control (IBC), which is a non-vacuum and integrated electro-hydraulic brake. It replaces the electronic stability control, vacuum booster, and vacuum pump, as associated cables, sensors, switches, and controllers. It provides regenerative braking in a single and integrated unit without the need for supplement vacuum pumps.

Scope of the Automotive Hydraulic Systems Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Vehicle Type Segment Analysis

Based on vehicle type, the automotive hydraulic systems market is bifurcated into passenger and commercial vehicles. The commercial vehicles segment dominated the market in 2022 and is projected to continue its dominance throughout the forecast period. Commercial vehicles require hydraulic systems to withstand heavy loads, without compromising fuel economy and power output. Moreover, hydraulics systems are installed in commercial vehicles to allow to unloading of cargo by lifting the truck bed from the front using hydraulic cylinders.

The passenger vehicles segment is expected to expand at rapid pace during the projected period, due to the rising demand for fuel-efficient vehicles and increasing production & sales of passenger cars in emerging nations. 

• In June 2023, the U.S. Department of Transportation published a report which stated that passenger vehicles made up 92 percent of the registered vehicles, and accounted for 88 percent of the total vehicle miles travelled (VMT) in 2021.

Hydraulic systems are used in passenger cars for hydraulic brakes, as they deliver high braking force, resulting in short stopping distances and improved safety on the road. This encourages the adoption of hydraulic systems in passenger vehicles.

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Application Segment Analysis

In terms of application, the global market is divided into brake, clutch, suspension, and tappet. The brake segment accounted for a major share of the market in 2022, due to the increasing innovation in braking systems. Hydraulic systems in brakes offer enhanced braking power transmission and improved heat dissipation than mechanical brakes at a lower cost that increases its adoption in brakes. Hydraulic brakes are more efficient than the majority of brakes. They stop vehicle motion quickly and safely, as they apply equal hydrostatic pressure to each wheel of the vehicle. This increases the demand for automotive hydraulics systems in brakes.

The tappet segment is anticipated to expand at a significant pace during the projection period, owing to the growing demand for high-speed engine vehicles. Hydraulic tappets are quieter than mechanical tappet lifters, as they limit the gap between the camshaft and the valves. Moreover, hydraulic systems in tappets offer long engine life and eliminate the need for periodic adjustment of valve clearance. This enhances the adoption of automotive hydraulic systems in tappets.

Component Segment Analysis

Based on components, the automotive hydraulic systems market is categorized into the master cylinder, slave cylinder, reservoir, and hose. The slave cylinder registered significant growth in 2022, due to its ability to provide reduced pedal effort and vibrations. Slave cylinders have excellent resistance to outside influences and reduce the risk of corrosion, making them suitable for automotive hydraulic systems. Additionally, slave cylinders are lightweight as well as eliminate the fork and the release bearing in vehicles, increasing their demand in automotive hydraulic systems.

The reservoir segment is projected to expand at a quick pace during the forecast period, owing to the rising production and sale of passenger and commercial vehicles, coupled with strict government regulations regarding vehicle emissions. The main function of a reservoir in the hydraulic system is to hold excess fluid and provide fluid when the hydraulic system is in operation. It also transfers heat from the hydraulic system, which increases its adoption in automotive hydraulic systems.

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Distribution Segment Analysis

In terms of distribution channels, the global market is bifurcated into original equipment manufacturer (OEM) and aftermarket. The original equipment manufacturer (OEM) segment held a large share of the market in 2022, due to the increasing innovation in automotive parts and rising concerns among customers regarding vehicle safety. OEM hydraulic systems tend to be increasingly reliable than aftermarket hydraulics and last for longer, encouraging users to opt for OEM. Additionally, OEM hydraulic systems offer high quality, compatibility, performance, and safety than aftermarket hydraulic systems, which increases the demand for original equipment manufacturers (OEM).

The aftermarket segment is projected to expand at a robust pace in the coming years, owing to the increasing number of third-party suppliers and growing demand for fuel-efficient & environmentally friendly cars. Aftermarket automotive hydraulics are less expensive as compared to OEM hydraulic systems and help consumers save money on repairs. Moreover, aftermarket automotive hydraulic systems are widely available and offer a wide variety of options than OEM, which enhances their demand.

Regional Outlook

Based on region, the automotive hydraulic systems market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a major share of the market in 2022, due to the increasing logistics services, and rising disposable income among people. Moreover, the growing automotive industry in the region is propelling the demand for automotive hydraulic systems, as these systems are installed in automobiles for hydraulic braking and dynamic adjustment in the height of the vehicle. For instance,

• According to a report published by the Ministry of Heavy Industries of India on February 17, 2023, India aims to double its auto industry size to INR 15 lakh crores by 2024.

The market in North America is expected to expand at a high CAGR during the assessment period, owing to the growing advancements in the automotive sector and the presence of established market players such as Warner Electric, WABCO, BorgWarner Inc., and Hydra-Slide. Additionally, the increasing adoption of commercial vehicles in the region is estimated to boost the demand for automotive hydraulic systems, as these systems are widely placed in commercial vehicles to generate high amounts of power and maneuver heavy loads. For instance,

• According to a report, approximately 12 million commercial vehicles were sold in the US in 2021, as compared to 11.47 million in 2020.

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