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The automotive steering system market is set to reach US$ 25.50 BN by 2032, at a 5.10% CAGR between years 2023-2032. The market is a fast-paced industry that plays an essential role in the overall vehicle function. Dynamics of the market in this industry are due to various factors such as technology innovations, changing needs for consumers, regulations, and worldwide economic status. Innovation and technological advancements in the steering system are a driving force of market dynamics.
With a drive towards better performance, safety, and economy by the automobile manufacturers there is an investment that has been made to research in advanced steering technologies. For example, EPS systems have become popular because they reduce fuel consumption and provide a more responsive automotive system. Developments in the autonomous and electric vehicle industry contribute to this dynamic culture since these inventions require advanced steering mechanisms, which has features such as steer-by-wire technology.
In addition, consumer preferences play an important role in determining how the market of automotive steering systems works. With increasing sophistication and concern for safety among drivers, there has been an increased demand of steering systems which provide better control, accuracy, and comfort. In order to meet these developed consumer expectations, manufacturers are forced to incorporate functions like adaptive steering and advanced driver assistance systems (ADAS).
In addition, the awareness of environment has promoted energy efficient cars as one aspect that drives down interest in novel steering systems. Other factors that influence the market dynamics of automotive steering systems include regulatory requirements. There has been the introduction of rigid safety and emission standards by governments across the world requiring automakers to incorporate advanced steering technologies in their vehicles to meet such standards.
The adoption of electronic stability control (ESC) systems to improve vehicle stability and lessen the probability of accidents speak volumes about how agile automobile industry is when it comes to meeting regulatory changes. The adherence to such standards not only ensures the safety of vehicles but also affects some future market as manufacturers try and even exceed required regulatory benchmarks. The world economic situation also influences the market forces of automotive steering systems.
With the internal and external factors such as economic fluctuations, trade policies, geopolitical events affecting vehicle production and consumption directly impacting demand for steering systems. This is because these external factors need to be taken into consideration, so that market players are able to adjust their strategies making the companies resilient against threats posed by economic uncertainties.
In addition, a growing emphasis on sustainability and the need to protect nature has created more interest in ecological cars that have influenced electric power steering systems use as wells such green technology. The market dynamics of steering systems are also influenced by competitive forces within the automotive sector. OEMs and suppliers are always competing for the market share thus leading to an everlasting fight of innovation costs.
Common methods of globalization include strategic partnerships, mergers and acquisitions meant to enhance a company’s product base and increase market penetration across the world. Pricing strategies, supply chain management, and adaptability to new trends also affect the competitive landscape.
Automotive Steering Systems Market Highlights:
Automotive Steering System Market Overview:
Automotive Steering System market size was valued at USD 17.13 billion in 2023. The Automotive Steering System market industry is projected to grow from USD 18.00 billion in 2024 to USD 25.50 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.44% during the forecast period (2024 - 2032). The development of automotive electric power steering and the rise in car loans due to low-interest rates are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Steering System Market Trends
Changing consumer preferences is driving the market growth
Market CAGR for automotive steering systems is being driven by changing consumer preferences. The adoption of EPS has been fueled by stricter emission regulations worldwide. EPS systems consume less power compared to hydraulic systems, resulting in reduced fuel consumption and lower emissions. Additionally, EPS eliminates the need for hydraulic fluids, reducing maintenance requirements, the potential for leaks and environmental contamination, and the growing demand for advanced driver assistance systems and autonomous driving technologies. EPS can be integrated with these systems to enable features like lane-keeping assist, park assist, and adaptive cruise control. As autonomous vehicles become more prevalent, EPS will enhance safety and enable precise steering control.
Steer-by-wire (SBW) technology represents a significant advancement in automotive steering systems. However, the adoption of SBW technology faces challenges related to safety and reliability. Ensuring fail-safe mechanisms and redundancy is critical to avoid potential system failures that could compromise driver safety. Manufacturers invest in advanced sensors, redundant control systems, and cyber security measures to address these concerns and build trust in SBW technology. SBW systems offer several advantages, including enhanced maneuverability, increased fuel efficiency, and design flexibility.
Integrating advanced sensors and artificial intelligence (AI) technologies is revolutionizing the automotive steering system market. Moreover, integrating AI technologies enables predictive maintenance and condition monitoring of steering systems. By analyzing sensor data and detecting anomalies, AI algorithms can identify potential failures before they occur, enabling proactive maintenance and reducing downtime. AI-powered systems can adapt to different driving scenarios, improving comfort, safety, and responsiveness. For instance, the Automotive Steering System market is experiencing significant transformations driven by adopting EPS, steer-by-wire technology, and integrating advanced sensors and AI. These trends are revolutionizing vehicle safety, control, and efficiency while paving the way for the development of autonomous driving technologies and driving the Automotive Steering System Market revenue.
Automotive Steering System Market Segment Insights:
Automotive Steering System Steering System Insights
The Automotive Steering System Market segmentation, based on steering systems, includes manual, electrically powered, electro-hydraulic powered, and hydraulic powered. The electrically powered segment dominated the market due to its energy efficiency, improved performance, and new technological advancements.
Automotive Steering System Component Insights
The Automotive Steering System Market segmentation, based on components, includes hydraulic pumps, steering sensors & columns, electric motors, and others. The hydraulic pump segment dominated the market. Steering gears, such as rack-and-pinion and recirculating ball type, convert the rotational motion of the steering wheel into linear motion.
Automotive Steering System Vehicle Type Insights
The Automotive Steering System Market segmentation, based on vehicle type, includes commercial vehicles, passenger vehicles, and others. The passenger vehicle category generated the most income, owing to the high volume of vehicle production and increasing consumer demand for comfort and safety features.
Automotive Steering System Sales Channel Insights
The Automotive Steering System Market segmentation, based on sales channels, includes OEM, aftermarket. The OEM segment dominated the market. OEMs are the primary sales channel for automotive steering systems, as they are installed in vehicles during manufacturing.
Figure 1: Automotive Steering System Market, by Sales Channel, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Steering System Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Automotive Steering System market area will dominate this market. A strong manufacturing base and technological advancements support the region's well-developed automotive industry. The demand for advanced steering systems, such as electric power steering (EPS) and steer-by-wire systems, is growing in North America due to their enhanced fuel efficiency and improved vehicle handling. Moreover, the increasing focus on autonomous and electric vehicles (EVs) is driving the adoption of advanced steering technologies in this region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Automotive Steering System Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Automotive Steering System Market accounts for the second-largest market share due to the strong presence of luxury and high-performance vehicle segments. The demand for EPS systems is on the rise in Europe due to their lightweight design, improved fuel efficiency, and reduced emissions. Further, the German Automotive Steering System Market had the fastest-growing market share, and the UK Automotive Steering System Market was the fastest-growing market in the European region.
The Asia-Pacific Automotive Steering System Market is expected to grow at a rapid CAGR from 2023 to 2032. The rising disposable income, urbanization, and increasing vehicle ownership in these countries drive automobile demand, thereby boosting the automotive steering system market. Moreover, China’s Automotive Steering System Market held the largest market share, and the Indian Automotive Steering System Market was the fastest-growing market in the Asia-Pacific region.
For instance, the Automotive Steering System market exhibits regional variations in market size, growth potential, and technological advancements. A comprehensive understanding of the regional dynamics helps market players and stakeholders to make informed decisions and capitalize on the opportunities presented by each region.
Automotive Steering System Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Automotive Steering System Market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automotive Steering System industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Automotive Steering System industry to benefit clients and increase the market sector. In recent years, the Automotive Steering System industry has offered some of the most significant medical advantages. Major players in the Automotive Steering System Market, including TRW Automotive Holdings (US), Mitsubishi Electric Corporation (Japan), Sona Koyo Steering System Ltd (India), JTEKT Corporation (Japan), Nexteer Automotive (US), Thyssenkrupp Presta (US), Robert Bosch Automotive Steering Gmbh (Germany), China Automotive System Inc. (China), and others, are attempting to increase market demand by investing in research and development operations.
Nexteer Automotive, founded in 2009, located in Auburn Hills, Michigan, United States, is a motion control technology company. It is an automotive supplier delivering electric and hydraulic power steering systems, steer-by-wire systems, steering columns driveline systems, and OEMs. In October 2020, Nexteer announced High-Output Electric Power Steering (EPS). It delivers advanced safety and comfort features and incorporates fuel efficiency for heavy-duty trucks and light commercial vehicles.
Hyundai Mobis, founded in 1977 in Seoul, South Korea, is a South Korean car parts public company. It forms the parts and services arm of the South Korean automakers. It offers a chassis, cockpit, anti-lock brake system, steering parts, electronic stability control products, carriers, and bumpers. In September 2022, Hyundai Mobis announced the Dual Actuator Rear Wheel Steering System, which can reduce the turning radius by up to 25% and improve stability and comfort when the vehicle turns at high speed. It is expected to be useful, particularly on narrow roads and without parking spaces. Furthermore, the demand for rear-wheel steering systems is increasing in electric vehicles with an enlarged wheelbase.
Key Companies in the Automotive Steering System Market include
- TRW Automotive Holdings(US)
- Mitsubishi Electric Corporation (Japan)
- Sona Koyo Steering System Ltd (India)
- JTEKT Corporation (Japan)
- Nexteer Automotive(US)
- Thyssenkrupp Presta (US)
- Robert Bosch Automotive Steering Gmbh (Germany)
- China Automotive System Inc. (China)
Automotive Steering System Industry Developments
January 2022: IMUZAK, a leading developer of molding technology-based products headquartered in Japan, unveiled a 3D floating display for automated vehicles at CES 2022. It can project visual driver notifications from behind the steering wheel. The novel technology utilizes a proprietary microlens system to produce free-standing notifications that notify drivers of highway features, key distances, and oncoming challenges.
December 2022: Melexis introduced the new MLX90376, an absolute magnetic position sensor IC capable of handling 360° rotary automotive applications while exhibiting high stray field immunity. The device provides advanced sensing for steering and valve applications and supports system integration up to ASIL D-level functional safety.
Automotive Steering System Market Segmentation:
Automotive Steering System Steering System Outlook
- Manual
- Electrically Powered
- Electro-Hydraulic Powered
- Hydraulic Powered
Automotive Steering System Component Outlook
- Hydraulic Pump
- Steering Sensor & Column
- Electric Motor
- Others
Automotive Steering System Sales Channel Outlook
- OEM
- Aftermarket
Automotive Steering System Vehicle Type Outlook
- Commercial Vehicle
- Passenger Vehicle
- Others
Automotive Steering System Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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