Market Trends of Automotive Hydraulic Systems Industry
Commercial Vehicle will be the Fastest Growing Segment in the Market
The commercial vehicle market has expanded globally, driven by economic growth, urbanization, and increased transportation needs. As the demand for commercial vehicles rises, the demand for advanced and efficient hydraulic systems also increases.
The increasing number of construction and e-commerce activities due to the expansion of the industrial sector across the world has resulted in increased demand for material transportation, which, in turn, has led to a significant increase in the sales of commercial vehicles. This growth is expected to drive the automotive hydraulic systems market, as they are used at large in these vehicles.
In 2022, around 23.74 million units of commercial vehicles were produced worldwide, whereas worldwide sales stood at 24.1 million units. The United States was the largest market for commercial vehicles, with a total sales of over 11.3 million units.
Commercial vehicles, especially heavy-duty trucks and buses, often require robust and powerful hydraulic systems to handle heavy loads, provide reliable braking systems, and ensure efficient power steering. Hydraulic systems are suitable for these heavy-duty applications, making them integral components in the commercial vehicle segment.
Commercial vehicles often have diverse applications, ranging from delivery trucks to construction vehicles. Hydraulic systems offer a high degree of customization and versatility, allowing manufacturers to tailor solutions to meet specific requirements across different commercial vehicle segments. The players operating in the market are also increasingly integrating advanced technologies for improved performance and efficiency. Intelligent hydraulic systems, incorporating sensors and smart components, align well with the technological advancements sought by commercial vehicle manufacturers.
Thus, owing to their increasing demand in transportation, as well as other industrial usage, the commercial vehicle segment is anticipated to continue to grow significantly during the forecast period, giving rise to increased demand for hydraulic systems in these vehicles.
Asia-Pacific is Expected to Witness Highest Growth Rate
Asia-Pacific is expected to be the region with the highest growth in the automotive hydraulic system market during the forecast period. The region consists of countries like China and India, which are rapidly emerging as automotive hubs. China is the biggest automotive market in the world. The growing Chinese economy and the growing disposable incomes of people in the country have increased the demand for vehicles in the country.
The low production costs in China have also favored the growth of vehicle manufacturing, ultimately fueling the demand for hydraulic systems. In 2022, China accounted for 23,836 thousand units of passenger car sales and over 3,300,000 units of commercial vehicle sales.
Furthermore, electrification in the Asia-Pacific region has also witnessed a high penetration rate due to the presence of China and Japan, as China is the leading market for electric vehicles, and most of the automakers advancing in electric vehicle technology are from Japan. Sales of electric vehicles in China have seen huge growth as compared to other countries in Asia-Pacific. In 2022, China had over 6 million unit sales of electric vehicles (EVs), with BEVs totaling 4.59 million units.
Thus, with the rapid growth of the automobile sector in the Asia-Pacific region, the demand for hydraulic systems is also expected to witness positive growth in the coming years.
