Automotive Hydraulic System Market Size, Share & COVID-19 Impact Analysis, By Component (Brakes, Steering, and Shock Absorbers), By Vehicle Type (PC & LCV, and MDV & HDV), and Regional Forecast, 2023-2030

The global automotive hydraulic system market size was valued at USD 45.93 billion in 2022 and is projected to grow from USD 47.43 billion in 2023 to USD 57.80 billion by 2030, exhibiting a CAGR of 2.9% during the forecast period. Asia–Pacific dominated the automotive hydraulic system market with a share of 55.12% in 2022.

An automotive hydraulic system is a technology that uses fluids to transmit power within a vehicle. Automotive hydraulic system typically involves the use of hydraulic fluid to transfer force and motion, enabling various components to function. Common applications include hydraulic brakes and power steering shock absorbers. In power steering, hydraulic pressure assists in steering control, while hydraulic brakes use fluid pressure to amplify braking force. These systems are crucial for vehicle safety and performance, providing efficient control and responsiveness. Regular maintenance, including checking and changing hydraulic fluids, is important to ensure their proper functioning.

COVID-19 IMPACT

Production Disruptions During COVID-19 Pandemic Hampered Market Growth 

The COVID-19 pandemic significantly impacted the automotive industry, leading to disruptions in production on a global scale. Many automakers had to temporarily shut down production facilities to comply with lockdowns and ensure the safety of workers. Supply chain disruptions and a decrease in demand for vehicles contributed to these shutdowns. The pandemic disrupted the global supply chain, affecting the availability of critical components, such as semiconductors, electronics, and other parts. Shortage of key components led to production delays and, in some cases, reduced output of vehicles, which hampered the demand for automotive hydraulic systems.

Economic uncertainties, job losses, and changes in consumer behavior during the pandemic led to a decline in the demand for new vehicles with consumers prioritizing essential needs over discretionary spending, impacting the auto sales. The production slowdowns and reduced demand placed financial strain on automotive companies. Automakers faced challenges in maintaining liquidity and profitability during this period. Some automakers shifted their production focus to meet the demand for essential vehicles, such as those used in healthcare and logistics, while reducing the output of non-essential models.

Automakers implemented new safety measures in production facilities, such as social distancing protocols and enhanced sanitation, to protect workers and resume operations safely. Overall, the COVID-19 pandemic had a multifaceted impact on automotive production, highlighting the industry’s vulnerability to global disruptions and the need for resilience in supply chain management. This has resulted in the negative impact on the automotive hydraulic system market share during 2020.

Automotive Hydraulic System Market Trends

Technological Progressions Associated with Electro-Hydraulic Power Steering to Drive Market Growth

Electro-Hydraulic Power Steering (EHPS) is a type of power steering system that combines both elements of hydraulic and electric power steering technologies. EHPS systems use an electric motor to drive a hydraulic pump, which then generates hydraulic pressure to assist with steering. This hybrid approach aims to provide the benefits of both hydraulic and electric power steering systems. EHPS systems offer improved energy efficiency compared to traditional hydraulic power steering. The electric motor operates only when assistance is needed, reducing overall power consumption.

The electric motor allows for adaptive power assistance, adjusting the level of steering assistance based on driving conditions, speed, and other factors. This contributes to a more dynamic and responsive steering experience. By incorporating electric assistance and optimizing power usage, EHPS contributes to better fuel efficiency in vehicles. Electro-hydraulic power systems often have a more compact design compared to traditional hydraulic systems, contributing to space savings in the engine compartment. EHPS can be easily integrated with Advanced Driver Assistance Systems (ADAS), providing seamless coordination with features, such as lane-keeping assist and autonomous driving functionalities.

Some EHPS systems generally require less maintenance compared to traditional hydraulic power steering systems, as there are fewer hydraulic components prone to wear. The integration of electric and hydraulic components can enhance the overall reliability and performance of the power steering system. EHPS systems aim to provide a smooth and natural steering feel, combining the benefits of automotive hydraulic systems in terms of feedback with the efficiency of electric systems.

Automotive Hydraulic System Market Growth Factors

Versatile and Unmatched Operational Benefits of Hydraulic Brakes to Augment Market Growth

Hydraulic brakes have been a longstanding and popular choice in the automotive industry for their effectiveness and reliability. Hydraulic brake systems provide efficient and responsive braking performance, allowing for precise control over braking force. The use of hydraulic pressure ensures quick and consistent application of brakes, contributing to enhanced safety. Hydraulic brakes can generate significant braking force, making them suitable for various vehicle sizes and types. This powerful stopping ability is crucial for ensuring safety in emergency braking situations.

Hydraulic brake systems generally require less maintenance compared to mechanical brake systems. Regular fluid checks and occasional fluid replacement are key maintenance, contributing to overall reliability. Hydraulic brakes offer a smooth and gradual braking feel, contributing to a comfortable driving experience. The hydraulic fluid transmits force evenly, preventing sudden and jerky stops. Hydraulic brakes are cost-effective to manufacture and maintain. This, in turn, will spur the demand for automotive hydraulic systems during the forecast period.

Rising Demand for Commercial Vehicles to Propel Market Growth

Increasing international trade requires efficient transportation of goods, boosting the demand for commercial vehicles. Trucks play a vital role in transporting goods across borders and supporting global supply chains. Commercial vehicles, such as trucks and vans, are crucial for transporting goods, and their demand often correlates with economic growth. As economies expand, the need for efficient goods transportation increases, driving the growth of the commercial vehicle industry.

The rise of e-commerce has led to a surge in demand for commercial vehicles to support the transportation and delivery of goods. Delivery vans and trucks are essential for the logistics of online retail, contributing significantly to the growth of the commercial vehicle sector. Investments in infrastructure, such as road networks and transportation hubs, create a conducive environment for the growth of commercial vehicle usage. Improved infrastructure facilitates smoother transportation of goods, encouraging businesses to expand their fleets. The trends of urbanization often lead to higher demand for the delivery of goods within cities. Commercial vehicles, especially smaller ones suitable for urban settings, have become essential for last-mile delivery services.

Stringent emission standards and safety regulations can drive the need for newer, more efficient commercial vehicles. This factor encourages fleet owners and businesses to upgrade their vehicles to comply with regulatory environments. Innovations in commercial vehicle technology, such as fuel efficiency improvements, telematics, and autonomous driving features, contribute to the appeal of modernizing fleets. Businesses may invest in new vehicles to benefit from these technological advancements. As older commercial vehicles reach the end of their operational life, there is a natural replacement demand. Fleet owners often upgrade to newer models to benefit from improved efficiency, safety features, and compliance with evolving regulations. These aforementioned hydraulic system market trends will drive the overall demand for automotive hydraulic systems during the forecast period.

RESTRAINING FACTORS

Presence of Alternative Systems May Restrict Market Growth

Various systems, such as steer-by-wire, electro-mechanical braking systems, brake-by-wire systems, and regenerative braking systems, pose challenges in the automotive hydraulic system market growth. Steer-by-wire allows for innovative steering designs, customizable steering feel, and integration with advanced driver assistance systems. Electro-mechanical braking system provides precision control, improved response time, potential for regenerative braking in electric vehicles, and reduced complexity. Brake-by-wire systems offer more precise control, integration with safety systems, and potential for advanced braking systems.

Automotive Hydraulic System Market Segmentation Analysis

By Component Analysis

Shock Absorbers Segment to Grow at Highest CAGR Owing to Rising Awareness toward Vehicle Safety and Stability

Based on component, the market is segmented into brakes, steering, and shock absorbers.

Hydraulic shock absorbers is expected to grow at a highest growth rate during the forecast period. They contribute to better vehicle stability by controlling the movement of the suspension system. This is particularly important for maintaining traction and stability during sudden maneuvers or on uneven surfaces. These shock absorbers provide effective damping, leading to a smoother and more comfortable ride for vehicles and machinery. This enhanced comfort is a significant driver for their adoption.

Hydraulic shock absorbers are known for their robust construction, providing durability and reliability under diverse operating conditions. This durability reduces maintenance costs and contributes to their popularity. These shock absorbers efficiently convert kinetic energy from bumps and vibrations into heat, preventing excessive wear on the vehicle. This energy dissipation capability enhances their performance and longevity. The overall growth in the automotive sector, especially in regions experiencing increased vehicle production, contributes to the demand for hydraulic systems. As awareness grows regarding the impact of suspension systems on overall vehicle performance and safety, there is an increased focus on choosing high-quality shock absorbers, with hydraulics being a preferred technology.

Hydraulic brakes technology is prevalent in cars and trucks. These brakes have quick response times, decreased fade during prolonged use, and the ability to handle loads effectively. Moreover, technological advancements such as anti-lock braking systems (ABS) will contribute to the appeal of hydraulic brakes in modern vehicles.

Superior characteristics of hydraulic steering will drive their adoption in next few years. Hydraulic steering system reduce the effort required to turn the steering wheel thereby reducing fatigue during long drives. These systems provide quick and more responsive handling leading to improved vehicle control and maneuverability. These systems contribute to overall vehicle safety, especially in emergency maneuvers or sudden braking situations.

By Vehicle Type Analysis

Positive Outlook of Population Growth Coupled with Urbanization to Propel Market Growth

Based on vehicle type, the market is segmented into passenger car (PC) & light commercial vehicle (LCV), and medium duty vehicle (MDV) & hevay duty vehiles (HDV).

Currently, the global market is dominated by the PC & LCV sub-segment and expected to remain dominant in the forecast period. As the global population increases, so does the demand for personal transportation. Passenger cars fulfil the need for convenient and independent travel, contributing to their growth. Urbanization trends lead to higher demand for personal mobility within cities. Passenger cars provide a flexible and convenient mode of transportation, especially in areas with well-developed road infrastructure.

As disposable incomes rise, more individuals can afford to purchase and maintain passenger cars. Evolving lifestyles, preferences, and attitudes toward vehicle ownership contribute to the growth of passenger cars. Advances in automotive technology, including safety features, fuel efficiency, connectivity, and entertainment systems, attract consumers to newer models. Government initiatives, such as tax incentives, subsidies and regulations promoting safer and cleaner vehicles, can influence consumer choices and drive the growth of passenger cars.

Various manufacturers are investing heavily in research & development activities to improve the production dynamics associated with passenger cars. These companies are working on vehicle technology as well as manufacturing processes simultaneously. For instance, Toyota is working on giga casting, self-propelling assembly lines, and next-generation production plant design to improve productivity. This, in turn, will help the industry growth.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, Europe, Asia Pacific, and Rest of the World.

The automotive hydraulic system market size in Asia Pacific was USD 25.32 billion in 2022 and is expected to reach USD 32.53 billion by 2030. Many countries in Asia Pacific are experiencing robust economic growth, leading to increased disposable incomes and higher consumer spending. This economic expansion translates into greater demand for automobiles. The expanding middle class in countries, such as China, India, and Southeast Asian nations is driving the demand for passenger vehicles.

Asia Pacific currently dominates the market and it is becoming a hub for innovation in automotive technology. The integration of advanced features and connectivity is driving growth and attracting investments in the sector. Global automotive manufacturers are increasingly establishing partnerships and investing in the region to leverage the growing market. This leads to the development of new manufacturing facilities and the introduction of diverse vehicle models. This, in turn, will spur the automotive hydraulic system industry's growth in future.

In North America, automakers are investing vast amounts of money in electric vehicle and battery manufacturing facilities. These manufacturers are focusing on vertical integration to manage the development and production of electric vehicles and batteries to minimize production bottlenecks, reduce production costs, and enhance supply chain resilience. Such favorable growth conditions for automotive production will drive market growth in future.

European carmakers are pushing towards the adoption of electric vehicles at a rapid pace. Various governments are committing towards full adoption of electric vehicles by 2035. The automakers in Europe are trying to remove obstacles in logistics and supply chains to streamline the production process. Such dedicated efforts will support the market growth in future.

Middle East & Africa are becoming new potential hubs for automotive manufacturing and are expected to propel the market growth. Various automakers are expanding their production capacities to support the industry growth. NWTN, a UAE-based electric vehicle maker, will expand production capacity with the installation of an integrated production line.

List of Key Companies in Automotive Hydraulic System Market

Focus on Product Differentiation & Development will Contribute to Gaining Competitive Advantage

Key players in the automotive hydraulic system market are implementing various strategies, such as new product development, diversification of sales network, and strategic partnerships & collaborations. These strategies will help the major companies operating in the global automotive hydraulic system industry companies to gain a competitive advantage. Moreover, top automotive hydraulic system providers invest heavily in hydraulic system market research & development activities to gain a strong foothold in the market.

LIST OF KEY COMPANIES PROFILED:

• ZF Friedrichshafen AG (Germany)


• FTE Automotive Group (Germany)


• Warner Electric LLC (U.S.)


• Robert Bosch GmbH (Germany)


• JTEKT Corporation (Japan)


• KYB Corporation (Japan)


• Nexteer (U.S.)


• Hitachi Astemo Ltd. (Japan)


• Roberto Nuti SpA (Italy)


• MZW Motor (China)

KEY INDUSTRY DEVELOPMENTS:

• November 2023 – Nexteer Automotive expanded the global footprint by further capitalizing on Asia Pacific growth by increasing manufacturing and testing capacity through a strategic footprint expansion into Changshu within China’s Jiangsu Province nearby the company’s existing facilities in Suzhou.


• September 2023 – KYB Corporation announced to offer a USD 50 Mastercard Gift Card rebate to consumers with the purchase of any 2 KYB struts and 2 KYB strut mounts, 4 KYB shocks, or 2 KYB Strut-Plus or Truck-Plus assemblies. The offer is available to consumers in the USA and Canada.


• March 2023 – FTE Automotive Group entered into a new partnership with E.C.S. and will be able to provide FTE Automotive Group’s products as an official dealer.


• May 2022 – KYB Corporation was named Marketing Excellence Vendor of the Year by the Automotive Parts Services Group for its outstanding marketing efforts.


• September 2019 – JTEKT Corporation signed a partnership with Plug and Play LLC to strengthen relationships with start-ups and to accelerate R&D activities.

REPORT COVERAGE

The automotive hydraulic system market report provides a detailed market analysis. It focuses on key factors such as major companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.

Report Scope & Segmentation