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Various market factors can also impact the automotive steering systems market dynamics. A crucial element is the increasing global automotive sector. With the growth in economy and increase in disposable income, demand for cars also increases which is reflected by subsequent rise of need for steering system. Besides, technological development also plays an important role in this market.
The automotive industry is facing a paradigm shift towards electric and autonomous vehicles that require state-of-the-art steering systems. The transition has been the responsibility of environmental concerns, government regulations and need for better safety functions. The consumer preferences also strongly affect the automotive steering system market. In recent times, consumers are also looking towards fuel-efficient vehicles with better driving experience.
This has led manufacturers to concentrate on the development of steering systems that not only live up these demands but also provide innovative elements such as adaptive and driver assistance system. The market is also affected by international bodies such as governing entities that set standards and regulations with respect to safety. Rigorous safety standards fuel the adoption of cutting-edge technologies for steering that contribute to overall vehicle security.
The competitive landscape drives the development of automotive steering systems market. The availability of many important players is characterized by competition, which promotes persistence in innovation and technical development. Leading firms seek to obtain an advantage over competitors by investing in innovation, new products and entering foreign markets. Besides this aspect, strategic alliances with automotive corporations as well as steering system suppliers help the market increase its growth.
The automotive steering systems market is also affected by parameters such as global economic conditions and geopolitical factors. Automotive sales often decrease due to the consumer spending cutbacks that occur during an economic recession. Geopolitical conflicts and trade wars may impair the supply chain, which can affect components needed for manufacturing steering systems.
Raw material price fluctuations also contribute to changing the market because these prices can shift manufacturing expenses and profitability for steering system vendors. Environmental issues and sustainability dynamics have gained prominence as market forces. Since there is increasing interest to decrease the carbon footprint, automotive companies are facing into lightweight materials and energy-efficient technologies for steering.
For instance, electric power steering systems are becoming more popular as they provide greater energy efficiency and lessen the environmental impact than hydraulic ones. The other major market driver is the aftermarket. Therefore, with aging of vehicles, the demand for steering system replacements and upgrades tends to appear which should have a positive impact on aftermarket demand.
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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