Automotive Electro-Hydraulic System Market - By Vehicle, By Sales Channel, By Application, By Component & Forecast, 2024 - 2032

Automotive Electro-Hydraulic System Market Size

The global automotive electro-hydraulic system market was valued at USD 9.5 billion in 2023 and is projected to grow at a CAGR of 7.9% between 2024 and 2032. The increasing adoption of autonomous and semi-autonomous vehicles is a significant driver for the market. These systems offer the responsiveness and precision necessary for advanced driver assistance systems (ADAS), such as automatic emergency braking and lane-keeping assist. As vehicle autonomy advances, the need for electronically controlled hydraulic systems capable of smooth, real-time adjustments becomes critical.
 

For instance, in August 2024, an autonomous vehicle software provider secured its third U.S. commercial deployment, partnering with Beep Inc. to service a community in California. This collaboration involves the deployment of the Oxa Driver software on Beep’s autonomous shuttles as part of a pilot program organized by the Contra Costa Transportation Authority. The initiative focuses on autonomous shared mobility, with the goal of enhancing public transportation solutions in the area through innovative self-driving technology. This trend is particularly evident in regions where autonomous vehicle testing and deployment are progressing rapidly, creating demand for high-performance systems that provide precise control in dynamic driving environments.
 

The automotive electro-hydraulic system market is experiencing growth due to increasingly stringent vehicle safety regulations worldwide. Governments are enforcing advanced safety standards that necessitate sophisticated braking and steering systems. Electro-hydraulic systems provide the precision and responsiveness required to meet these regulatory demands, particularly in electric and hybrid vehicles where traditional hydraulic systems may be less efficient. The focus on enhancing vehicle safety and stability is prompting automakers to adopt electro-hydraulic systems, which improve vehicle control under various driving conditions, contributing to market expansion.
 

Automotive Electro-Hydraulic System Market Trends

The electrification of heavy-duty vehicles, including trucks and buses is driving the market growth. According to International Energy Agency, electric truck sales experienced a 35% growth in 2023 compared to the previous year, marking a significant increase in demand and adoption across the market.  As efforts to reduce carbon emissions intensify, manufacturers are transitioning from traditional hydraulic systems to electro-hydraulic solutions that are more energy-efficient and suitable for electric powertrains. These systems allow for precise control of heavy loads while maintaining efficiency, making them ideal for electric heavy-duty vehicles. This trend is driven by government regulations and incentives promoting cleaner transportation, particularly in North America and Europe, which are adopting stricter emissions standards.
 

A significant restraint in the automotive electro-hydraulic system market is the high cost of implementation and maintenance. These systems are more expensive than traditional hydraulic or mechanical systems, both in terms of initial installation and ongoing servicing. This cost barrier is particularly challenging for manufacturers targeting mid-range and economy vehicles, where cost-efficiency is a priority. Additionally, the integration of these systems requires specialized skills and components, further increasing operational costs. Consequently, small and medium-sized manufacturers may hesitate to adopt this technology, potentially hindering overall market growth.
 

Automotive Electro-Hydraulic System Market Analysis

Based on sales channel, the market is segmented into OEMs and aftermarket. In 2023, the OEM segment accounted for USD 6.7 billion and is expected to grow significantly over the forecast time frame. The OEM segment holds a significant share in the market due to the increasing integration of these systems into new vehicle models. Automakers are focusing on enhancing vehicle performance and safety by incorporating advanced electro-hydraulic systems as standard in many vehicles, particularly electric and hybrid models. This shift is driven by the growing demand for fuel-efficient, eco-friendly vehicles that comply with stringent emissions regulations. OEMs are also investing in R&D to develop more cost-effective and reliable electro-hydraulic systems, further propelling their adoption and expanding the market share of the OEM segment.
 

Based on the vehicle, the market is divided into passenger cars and commercial vehicles. The passenger cars held 62% of the market share in 2023. The passenger car segment dominates the automotive electro-hydraulic system market, driven by increasing consumer demand for advanced driving technologies that improve safety and comfort. With growing urbanization and more congested roads, car manufacturers are integrating electro-hydraulic systems to enhance vehicle maneuverability, particularly in compact and electric vehicles. These systems contribute to better fuel efficiency and smoother handling, which are highly sought after by consumers. Furthermore, electro-hydraulic systems are essential in supporting the growing trend of driver assistance features, such as automatic braking and steering, making them a key technology in the passenger car segment.
 

In 2023, the China accounted for a market share of over 35% in Asia Pacific. China holds the largest market share in the automotive electro-hydraulic system market due to its leadership in electric vehicle (EV) production and adoption. The Chinese government's aggressive policies to reduce emissions and promote electric mobility have created significant demand for advanced vehicle technologies, including electro-hydraulic systems. These systems are critical for improving the performance and efficiency of electric and hybrid vehicles. Additionally, local automotive manufacturers are investing heavily in R&D to develop cutting-edge electro-hydraulic solutions, making China a key growth hub for this technology. The strong government support and thriving EV market are driving the adoption of electro-hydraulic systems.
 

In North America, the automotive electro-hydraulic system industry is growing rapidly due to the region's focus on vehicle safety and the adoption of advanced driver assistance systems (ADAS). U.S. automakers are increasingly integrating electro-hydraulic systems to meet stringent federal safety regulations and improve vehicle control. The rising popularity of electric and autonomous vehicles also fuels demand for these systems, which are essential for precise steering, braking, and power management in modern vehicles. Additionally, strong R&D investments by North American automakers in innovative technologies are further propelling the market growth of electro-hydraulic systems in this region.
 

Europe is a leading region in the automotive electro-hydraulic system market due to its stringent emission regulations and strong automotive sector. The European Union's push for greener and more fuel-efficient vehicles has led to increased demand for advanced systems like electro-hydraulics that optimize vehicle performance and reduce fuel consumption. Automakers in Europe are also at the forefront of electric vehicle production, where electro-hydraulic systems are critical for efficient power management and vehicle control. With robust R&D capabilities and a focus on sustainability, Europe remains a key market for the adoption of electro-hydraulic technologies.
 

Automotive Electro-Hydraulic System Market Share

Bosch, ZF, Continental, JTEKT, Schaeffler, Brembo, and Denso collectively held a significant market share of 64% in the market in 2023. Bosch maintains its competitive edge in the automotive electro-hydraulic system industry by continuously innovating electro-hydraulic power steering and braking systems. In June 2023, Bosch partnered with Arnold NextG to scale the production of steer-by-wire systems. This partnership reinforces Bosch's commitment to delivering advanced steering and braking technologies, positioning the company as a leader in precision control systems for electric and autonomous vehicles. Additionally, Bosch invests heavily in R&D to enhance system performance and maintain its market leadership.
 

Continental strengthens its position in the automotive electro-hydraulic system market by offering cutting-edge braking and steering solutions for electric and autonomous vehicles. The company emphasizes the development of highly efficient electro-hydraulic systems designed to meet stringent safety and performance standards. Continental's strength lies in its broad portfolio of electronic control units (ECUs) and integration of electro-hydraulics with Advanced Driver Assistance Systems (ADAS), positioning the company as a key supplier for automakers seeking innovative vehicle control systems for next-generation vehicles.
 

Automotive Electro-Hydraulic System Market Companies

Major players operating in the automotive electro-hydraulic system industry are:

• Bosch
• Continental
• Denso
• FTE Automotive
• JTEKT
• Nexteer Automotive
• NSK
• Schaeffler
• WABCO
• ZF
   

Automotive Electro-Hydraulic System Industry News

• In June 2023, Robert Bosch announced a partnership with Arnold NextG aimed at scaling the production of steer-by-wire steering systems for the automotive market. This collaboration underscores Bosch’s commitment to delivering advanced steering technologies, including electro-hydraulic power steering systems, to meet the evolving needs of its customers. Through this partnership, Bosch is positioned to offer innovative and efficient steering solutions, enhancing both vehicle safety and performance in modern automotive applications.
   
• In January 2023, DAF Trucks introduced an Electric Hydraulic Steering (EHS) system for its 6x2 tractor and rigid vehicles equipped with a steered pusher axle. This system enhances fuel efficiency and allows for higher payloads. The combination of precise manoeuvrability and increased payload capacity makes the steered pusher axle particularly beneficial for applications such as waste collection and bulk transport operations, offering an optimal solution for these demanding sectors.
   

The automotive electro-hydraulic system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

• Passenger cars
• Commercial vehicle

Market, By Sales Channel

• OEM
• Aftermarket

Market, By Component

• Actuators
• Hydraulic pumps
• Valves
• Others

Market, By Application

• Braking systems
• Steering systems
• Suspension systems

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa