Automotive ElectroHydraulic System Market

Automotive Electro-Hydraulic System Market Size

The global automotive electro-hydraulic system market size 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 market is being propelled by the escalating integration of self-driving and semi-self-driving cars. These systems provide speed and accuracy crucial to more complex driver-assistance features like automatic emergency brakes or using advanced lane-keeping assists. With the expansion of autonomy levels, the importance of real-time suitable electronically controlled hydraulic systems is becoming more dire.

For instance, in August 2024, an autonomous vehicle app creator, along with Beep Inc., pursued a California region, marking its third commercial deal in the US. Oxa Driver software will be integrated into Beep’s autonomous shuttles, which will be pilot tested under the management of the Contra Costa Transportation Authority.

The focus of this project is on shared mobility with the aim of augmenting available public transport in the region through new autonomous driving technologies. This is true for geographies where testing and deployment of autonomous vehicles is shifting into high gear, generating a need for robust systems that accurately modulate driving conditions with precision.

As a result of electro-hydraulic systems being utilized more and more in automobiles, the Automotive Electro-Hydraulic System Market is expanding. The worldwide safety regulations which are set in place as well as the efficacy of both the galvanic-type hydraulic systems and the mechanical one’s aid to drive the market forward. Adopting advanced safety mechanisms calls for the employment of technology which is beneficial for steering and braking.

Additionally, the demand for these systems is growing in electric and hybrid cars because old-fashioned hydraulic systems are not very effective. The needs for maintaining fuel efficiency alongside an increase in a vehicle's safety and stability are pushing the vehicle control under various driving conditions to grow the adoption of electro-hydraulic systems and so contribute to market expansion.

Automotive Electro-Hydraulic System Market Trends

The rising electrification of heavy-duty vehicles including trucks and buses is driving the growth of the market. The IEA reported that the sales of electric trucks in 2023 increased by 35% compared to 2022, showing strong market demand and adoption in the use of electric-powered commercial vehicles.

To aid in combating carbon emissions, manufacturers are currently working on replacing standard hydraulic systems with electro-hydraulic systems. Such energy-efficient systems are much more practical for electric-powered vehicles. Precisely controlled heavy loads using electric motors yield good efficiency, so it is suitable for electric-powered heavy-duty vehicles. This change is also caused by the government setting regulations for low-carbon transport in North America and Europe where there are more stringent emissions regulations.

A notable limitation of the automotive electro-hydraulic system market is the initial investment and ongoing maintenance expense. Compared to conventional hydraulic or mechanical systems, these systems are quite resource-intensive in terms of initial setup and service expenses.

This cost problem is particularly difficult for manufacturers focusing on mid-range and economy vehicles which usually aim for the most cost-effective methods. Moreover, these systems are complicated to implement due to the need for greater skill and equipment, which increases the operational cost even further. As a result, this might slow down the entire market growth as most small and medium-sized manufacturers tend to avoid investing in this advanced technology.

Automotive Electro-Hydraulic System Market Analysis

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Based on sales channel, the market is segmented into OEMs and aftermarket. In 2023, the OEM segment accounted for over USD 6.7 billion and is expected to grow significantly over the forecast time frame.

• The OEM segment is one of the major players in the automotive electro-hydraulic system market due to the increasing use of new models of vehicles on the market that are equipped with these systems.
  
• Recent trends show great importance given to vehicle performance and safety, which has resulted in automakers offering electro-hydraulic systems as standard equipment in most, if not all, electric and hybrid vehicles.
  
• Due to stringent emissions regulations, there is a paradigm shift as everyone is now trying to engineer cars that are more fuel efficient and eco-friendly. There are initiatives in R&D by OEMs for improved dependability and lower cost of electro-hydraulic systems which should enhance their acceptance and market share for the OEM segment.
  

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Based on the vehicle, the automotive electro-hydraulic system market is divided into passenger cars and commercial vehicles. The passenger cars held 62% of the market share in 2023. 

• The passenger car segment is the largest in the market for automotive electro-hydraulic systems because there is an increasing number of people that require advanced driving technologies for safety and comfort.
  
• With urbanization and more automobiles on the road, manufacturers of cars are incorporating electro-hydraulic control systems for improved vehicle dynamics, mainly in small cars and electric vehicles. These systems are also important to the passengers as they are increasingly seeking vehicles that provide better handling and fuel economy.
  
• In addition, electro-hydraulic systems are important for the development of various driver assistance systems, including automatic braking and steering, which are very popular technologies in most of the cars nowadays.
  

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In 2023, the China automotive electro-hydraulic system market accounted for over 35% revenue share in Asia Pacific.

• China holds the largest market share in the automotive electro-hydraulic system industry due to its leadership in electric vehicle (EV) production and adoption.
  
• The Chinese government’s emission reduction strategies and ramp-up of policies to promote electric mobility have fueled the demand for advanced vehicle technologies such as the electro-hydraulic system. These systems are vital in enhancing the power and efficiency parameters of electric and hybrid vehicles.
  
• In addition, Chinese automotive manufacturers are increasing their funding on R&D for the next generation of electro-hydraulic products. As a result, China has become an important growth area for this present technology. Strong government policy support and the healthy development of the EV market are actively promoting engineers to embrace the innovation of automotive electro-hydraulic systems.
  
• The automobile electro-hydraulic system market is rapidly advancing in North America owing to the continuous emphasis on vehicle safety arrangements and vehicle ADAS.
  
• Manufacturers of automobiles in the US are now using electro-hydraulic system for better vehicle control under rigid federal safety measures.
  
• The developing technologies in electric and autonomous cars has made the need for the systems glass needed for the functioning of the modern cars steering, braking, and power distribution systems inevitable.
  
• Moreover, enhanced infrastructure investment in R&D by North American automobile manufacturers in new technologies is also accelerating the market growth of electro-hydraulic systems in North America.
  
• Europe enjoys a larger share of the automobile electro-hydraulic system market due to its supremacy in emission policies and a well-established automobile industry. The encouragement from the European Union for the construction of energy-efficient and eco-friendly automobiles using electro-hydraulic mechanisms has led to increased adoption of such systems in vehicles.
  
• Europe remains the leader in the production of electric automobiles, which massively benefits from electro-hydraulic power control and management systems. In addition to that, the strong investment in R&D with a focus on eco-friendliness ensures that Europe continues to be a major market for the new technologies in electro-hydraulic systems.
  

Automotive Electro-Hydraulic System Market Share

Bosch, ZF, Continental, JTEKT, Schaeffler, Brembo, and Denso collectively held a significant market share of 64% in the automotive electro-hydraulic system industry in 2023.

• Bosch sustains a competitive advantage in the market by advancing the technology of electro-hydraulic power steering and braking systems.
  
• In June 2023, Bosch and Arnold NextG teamed up to enhance the volume of production of steer-by-wire systems. Such cooperation also facilitates Bosch's goal zealously pursuing new technologies for steering and braking control, thus helping the company to capture the top position in precision control systems for electric and self-driving vehicles.
  
• Moreover, Bosch’s spending on R&D is enormous, aimed at better performance of the system and to stay on top of the market.
  
• Continental consolidates its market share in the Automotive Electro-Hydraulic System Market by developing modern braking and steering systems for electric and self-driven cars. The firm has focused on the development of extremely reliable electro-hydraulic systems which meet the safety and performance criteria as the vehicle becomes a mainstay in society.
  
• Continental's core competence is his wide range of proprietary electronic control units (ECUs) and the integration of electro-hydraulics with Advanced Driver Assistance Systems (ADAS) which positions the company as an important business partner to automobile makers who are working on new 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
  

The electro-hydraulic system in vehicles market is competitive, where relatively new players would battle along with established automotive players for automotive electro-hydraulic system market shares. Their vast resources allow them to gain an edge over others since it enables them to create comprehensive solutions that improve performance, safety, and vehicle efficiency. Such companies deploy advanced development and research strategies, have global supply chains, and possess cross-industry knowledge to build effective electro-hydraulic systems that modern vehicles require.

In this type of environment, many firms are designing strategies centered around the person using the product to give them a unique selling point. Many firms are trying to change their products to find the highest specific need for the customer, as well as providing many models for deployment like modular components and integrated systems. Advanced customer support services are being put at the forefront with the hope that the user would avail themselves of the training programs for increased utilization of the electro-hydraulic systems. There would be extensive spending on establishing the firms as reliable partners in innovation and technology in the vehicle industry.

Automotive Electro-Hydraulic System Industry News

• In June 2023, Robert Bosch announced a partnership with Arnold NextG aimed at increasing the supply of steer-by-wire steering systems for the automotive industry. This partnership signifies Bosch’s dedication to provide powerful, efficient steering systems including electro-hydraulic power steering systems to his clients. This partnership enables Bosch to introduce modern and effective steering systems that would improve vehicle safety and performance in today’s automotive technology.
  
• In an effort to enhance fuel economy and permit additional load, DAF Trucks has designed an Electric Hydraulic Steering (EHS) System for 6x2 Tractors and Rigid Vehicles with a steered pusher axle in January 2023. The particular feature of the steered pusher axle is that it can be turned easily and allows for a high payload, which gives it great versatility in dealing with waste collection and bulk transportation operations, which are quite difficult to handle.
  

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
  • LCV
  • HCV

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