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.