Automotive Steering Systems Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Steering System (Manual, Electrically Powered, Electro-Hydraulic Powered, and Hydraulic Powered), By Component (Hydraulic Pump, Steering Sensor & Column, Electric Motor, and Others), By Sales Channel (OEM and Aftermarket), By Region, Competition, 2019-2029F
Published Date: March - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 24.33 Billion |
| CAGR (2024-2029) | 7.59% |
| Fastest Growing Segment | Hydraulic Powered |
| Largest Market | Asia-Pacific |
| Market Size (2029) | USD 37.68 Billion |
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Market Overview
The size of the Global Automotive Steering Systems Market was USD 24.33 Billion in 2023 and is expected to reach USD 37.68 Billion in 2029, growing at a CAGR of 7.59% over the forecast period 2024-2029.
Government policies and initiatives also influence the global automotive steering systems market. Governments everywhere are enforcing stricter safety and emission standards, which propel the use of sophisticated steering technologies. For example, regulations requiring the deployment of electric power steering systems for enhanced fuel efficiency and lower emissions have shaped the market conditions.
The competitive environment of the global market for automotive steering systems is dominated by large automobile makers, suppliers, and technology firms. They make significant investments in research and development to design cutting-edge steering systems and outpace their competitors. Joint ventures and alliances among automobile makers and steering system suppliers are also prevalent in this market.
In summary, the worldwide automotive steering systems market is a dynamic and changing sector influenced by the development of the automotive industry, technological innovation, government policies, and customer tastes. The market is experiencing a transition towards sophisticated steering technologies, including electric power steering and steer-by-wire systems, to address the needs for safer, more efficient, and autonomous vehicles. As the automotive sector continues to grow and the emphasis on vehicle efficiency and safety continues to rise, the global market for automotive steering systems is likely to grow in the future.
Key Market Drivers
Increasing Vehicle Production
The global automotive steering systems market is driven by the overall growth of the automotive industry. As the demand for vehicles continues to rise worldwide, there is a corresponding increase in the production of vehicles. This, in turn, drives the demand for steering systems, as every vehicle requires a steering system for maneuverability and control.
Technological Advancements
The automotive steering systems market is influenced by continuous technological advancements. Manufacturers are constantly developing innovative steering technologies to enhance vehicle safety, improve fuel efficiency, and provide a better driving experience. Electric power steering (EPS) systems, for example, have gained popularity due to their energy efficiency and improved responsiveness compared to traditional hydraulic power steering systems.
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Government Regulations
Government regulations and initiatives play a significant role in shaping the global automotive steering systems market. Governments around the world are implementing stricter safety and emission standards, which drive the adoption of advanced steering technologies. For instance, regulations mandating the use of electric power steering systems to improve fuel efficiency and reduce emissions have influenced the market dynamics.
Consumer Preferences
Consumer preferences and demands also drive the automotive steering systems market. As consumers become more conscious of safety, comfort, and fuel efficiency, they seek vehicles equipped with advanced steering systems. Features such as responsive steering, easy maneuverability, and advanced driver-assistance systems are increasingly sought after by consumers.
Shift towards Electric Vehicles
The growing popularity of electric vehicles (EVs) is another driver of the automotive steering systems market. EVs typically use electric power steering systems, which are more energy-efficient compared to traditional hydraulic systems. As the demand for EVs continues to rise, the demand for electric power steering systems is also expected to increase.
Autonomous Driving
The development of autonomous driving technology is driving the demand for advanced steering systems. Autonomous vehicles require sophisticated steering systems that can enable precise control and navigation. Steer-by-wire systems, which eliminate the mechanical connection between the steering wheel and the wheels, are being developed to enable advanced driver-assistance systems and autonomous driving capabilities.
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Infrastructure Development
Infrastructure development, particularly in emerging markets, is driving the automotive steering systems market. As countries invest in road and transportation infrastructure, the demand for vehicles increases, leading to a higher demand for steering systems. Emerging markets such as China, India, and Brazil are experiencing rapid growth in the automotive sector, contributing to the expansion of the steering systems market.
Vehicle Safety
Vehicle safety is a critical factor driving the automotive steering systems market. Steering systems play a crucial role in ensuring safe and efficient maneuverability of vehicles. Manufacturers are continuously developing advanced steering technologies to enhance vehicle stability, responsiveness, and control, thereby improving overall safety. The demand for steering systems with features such as electronic stability control and advanced driver-assistance systems is increasing as safety becomes a top priority for consumers and regulatory bodies.
Key Market Challenges
Cost Pressure
One of the biggest challenges in the global automotive steering systems market is cost pressure. The manufacturers are challenged to create and manufacture steering systems that are capable of meeting the growing demands for sophisticated features while maintaining the costs at a competitive level. The adoption of new technologies and materials can increase the cost of production, and it becomes difficult for the manufacturers to balance innovation with affordability.
Technological Complexity
The accelerated development of steering system technologies adds complexity in design, development, and production processes. Combining sophisticated features like electric power steering, steer-by-wire systems, and autonomous driving features involves high-end engineering and software knowledge. Handling the complexity of these technologies and making them reliable and compatible with other vehicle systems can pose a real challenge for manufacturers.
Safety and Reliability
Steering systems are essential to the safety and reliability of vehicles. Failure or malfunction of a steering system can lead to serious implications. Producers have the challenge of guaranteeing the reliability and safety of steering systems through rigorous testing, tight quality controls, and minimizing areas of potential weaknesses. Satisfying safety requirements and customers' demands for reliable and tough steering systems is a continuous challenge.
Integration with Advanced Driver-Assistance Systems (ADAS)
The compatibility of steering systems with high-end driver-assistance systems (ADAS) is a challenge for the manufacturers. ADAS technologies like lane-keeping assist and automated parking depend on precise and accurate steering control. Providing seamless integration and compatibility between steering systems and ADAS technologies calls for close interaction between steering system manufacturers and providers of ADAS technologies.
Electric Vehicle Compatibility
With the growing popularity of electric vehicles (EVs), steering system manufacturers are faced with the task of creating systems that are compatible with the specific demands of EVs. Electric power steering (EPS) systems are widely utilized in EVs as they are energy efficient. Despite their energy efficiency, EVs have particular power and torque characteristics that must be taken into account in steering system design to provide maximum performance and responsiveness.
Environmental Regulations
Environmental laws and sustainability objectives pose a challenge to the automotive steering systems market. The manufacturers must evolve steering systems that are environmentally conscious, consume less energy, and emit less. This has to be achieved using less weighty materials, power-saving management systems, and incorporating eco-friendly production processes.
Supply Chain Management
The global automotive steering systems market relies on a complex supply chain involving multiple suppliers and manufacturers. Effectively managing the supply chain, ensuring timely delivery of components, and quality maintenance can be a complex task. A disruption in the supply chain can affect production schedules and cause delays in delivering steering systems to car manufacturers.
Market Competition
The worldwide automotive steering systems market is competitive, with many manufacturers competing for market share. The manufacturers have the challenge of product differentiation and keeping ahead of the competition in terms of technology, quality, and price. Ongoing innovation, research and development, and strategic alliances are necessary to keep a competitive advantage in the market.
Key Market Trends
Electric Power Steering (EPS) Supremacy
Electric power steering (EPS) systems remain the market leaders in the global automotive steering systems market. EPS systems have benefits like enhanced fuel economy, lighter weight, and better response over conventional hydraulic power steering systems. The popularity of EPS stems from growing demands for fuel-efficient cars and the implementation of sophisticated driver-assistance systems (ADAS) based on electric steering control.
Steer-by-Wire Systems
Steer-by-wire systems are finding increasing application in the market for automotive steering systems. They dispense with the mechanical linkage between the wheels and the steering wheel, instead relying on electronic controls. Steer-by-wire systems bring with them advantages such as design freedom, lightness, and the possibility of more sophisticated autonomous driving features. As the car market shifts toward autonomous cars, steer-by-wire systems will increasingly be seen playing a central part in allowing more sophisticated driver-assistance functions.
Adoption of Advanced Driver-Assistance Systems (ADAS)
The combination of steering systems with advanced driver-assistance systems (ADAS) is a leading automotive trend. The steering systems are being fitted with lane-keeping assist, adaptive cruise control, and automated parking features. They improve vehicle safety, enhance driver comfort, and lay the ground for autonomous vehicles. The use of steering systems that integrate directly with ADAS will increase with the growth of ADAS uptake.
Evolution of Haptic Feedback Systems
Haptic feedback systems are being designed to make driving more enjoyable and safer. These systems give the driver tactile feedback via the steering wheel, warning them of impending dangers or variations in driving conditions. Haptic feedback can mimic road vibrations, issue warnings for lane drift, or aid in parking maneuvers. The design of haptic feedback systems is intended to enhance driver awareness and minimize the risk of accidents.
Integration of Artificial Intelligence (AI)
Steering systems are being integrated with artificial intelligence (AI) for the purpose of increasing their effectiveness. AI-based algorithms can review numerous data points, including road surfaces, driving behavior, and sensor inputs, to fine-tune steering control and vehicle performance. AI-assisted steering systems can adjust steering in response to different driving environments, learn to favor driver habit, and supply individualized steering assistance.
Emphasis on Lightweight Materials
The focus on lightweighting in the automotive sector is also being applied to steering systems. The industry is investigating the application of light materials like aluminum and composites to make steering components lighter. Lightweight steering systems help to reduce overall vehicle weight, resulting in better fuel economy and improved handling. The use of lightweight materials also supports sustainability objectives and environmental policies.
Development of Energy-Efficient Systems
Energy efficiency is a significant automotive industry trend, and steering systems are no exception. Stepping up efforts are being made to create energy-efficient steering systems with low power consumption and light loading on the electrical system of the vehicle. This is inspired by the rise of electric vehicles (EVs) and the demand to achieve optimum energy consumption to increase the range of driving.
Integration of Sensor Technologies
Sensor technologies are being implemented in steering systems to improve performance and safety. Sensors like torque sensors, position sensors, and angle sensors feed real-time information on steering input, wheel position, and vehicle dynamics. The information is utilized to optimize steering control, enhance stability, and facilitate advanced driver-assistance functions. Sensor technology integration in steering systems helps ensure safer and more efficient vehicle use.
Segmental Insights
By Steering System
Manual steering systems are the conventional and most basic type of steering system. They use mechanical linkage between the steering wheel and the wheels, with the driver being able to control the direction of the vehicle manually. Manual steering systems are normally on older vehicles and lower-end models. Their market share has been on the decrease as more sophisticated steering technologies become more popular.
Electrically Powered Steering (EPS)Electrically powered steering systems, or EPS, have become very popular in the car market. EPS systems utilize an electric motor to aid the driver in steering, which makes it easier to turn the wheels. EPS provides benefits like increased fuel efficiency, lighter weight, and faster responsiveness over conventional hydraulic systems. EPS is widely used across different vehicle segments such as passenger cars, light commercial vehicles, and even heavy vehicles to some extent.
Electro-hydraulic power steering systems represent a blend of electric and hydraulic systems. The system applies an electric motor to power a hydraulic pump, supplying power assistance to the steering system. Electro-hydraulic systems represent a compromise between the energy efficiency of electric systems and the durability of hydraulic systems. They are typically used in larger vehicles like trucks and SUVs, where more steering force is needed.
Hydraulic power steering systems, or hydraulic power steering (HPS), utilize hydraulic fluid and a hydraulic pump to supply the driver with power assistance in steering. With the fastest growth among the segments, HPS systems have been used extensively in the automotive market for decades. They deliver high power assistance and are characterized by reliability and long life. But hydraulic systems are heavier and less energy efficient than electric systems, and hence their market share has been reducing in recent times.
Market forces for the different steering system segments differ as a function of vehicle type, consumer trends, and technological sophistication. Electric steering systems, most notably EPS, have been witness to remarkable growth with their ability to save fuel, provide superior responsiveness, and integrate with more sophisticated driver assistance systems (ADAS). Increasing focus on electric vehicles (EVs) is also adding steam to the takeoff of EPS systems.
Though there still are manual steering systems on certain vehicles, they are losing share as drivers are looking for increased convenience and newer features. Electro-hydraulic power steering systems remain applied to certain vehicle applications that have more steering forces to provide, e.g., heavy-duty trucks and off-road rigs.
Regional Insights
North America represents an emerging market for automotive steering systems, attributed to the dominance of key automotive manufacturers and advances in technology within the region. The United States, in particular, has a strong automotive industry with high demand for cars. The North American market is dominated by an increasing trend towards electric power steering (EPS) systems based on the demands for fuel efficiency and the implementation of advanced driver-assistance systems (ADAS). Moreover, government policies ensuring vehicle safety and reducing emissions continue to propel the use of sophisticated steering technologies.
Europe is also a developing region in the overall automotive steering systems market. The region boasts a number of prominent automotive producers and is heavily focused on vehicle safety and performance. European nations have strict safety laws in place, which fuel the use of advanced steering systems. The European market is currently experiencing a transition towards electric power steering (EPS) systems, boosted by energy efficiency demands and the incorporation of ADAS. Moreover, the increasing need for electric vehicles (EVs) in Europe is partly responsible for the use of electric steering systems.
Asia Pacific is a leading segment for automotive steering systems due to the rising production and sales of vehicles in China, India, and Japan. The region is now a manufacturing hub for the automotive sector, with investments from international automotive producers. The Asian Pacific market is dominated by a high requirement for affordable steering systems, thus the prevalence of hydraulic power steering (HPS) systems. There is a developing trend, however, toward electric power steering (EPS) systems because of their energy efficiency and suitability for advanced technologies. The expanding usage of electric vehicles (EVs) in markets such as China also fuels demand for electric steering systems
South America is a growing market for automotive steering systems, with nations such as Brazil and Mexico recording high growth in the automobile industry. The Latin American market is fueled by the growth of economies, the construction of infrastructure, and growing purchasing power of consumers. Demand for steering systems in the region depends on vehicle production and sales, with consumers having a tendency for affordable solutions. But rising demand for the use of electric power steering (EPS) is being fueled by the necessity for better fuel efficiency as well as safety.
The Middle East and Africa market share is smaller in the overall automotive steering systems market. The region's market trends are shaped by economic growth, infrastructure development, and government policies. The demand for steering systems is propelled by the manufacture and sale of vehicles in nations such as Saudi Arabia, South Africa, and the United Arab Emirates. The market in the region is experiencing a slow transition towards sophisticated steering technologies, such as electric power steering (EPS), to address the increasing demand for fuel-efficient and safer vehicles.
Recent Development
- In March 2024, ZF Rane Automotive India Pvt Ltd revealed its acquisition of TRW Sun Steering Wheels Pvt Ltd, a manufacturer of steering wheels, for an undisclosed amount. Based in Gurugram, TRW Sun Steering Wheels (TSSW) was established as a joint venture between the Sun Group and ZF Group on a global scale.
Key Market Players
- ZF Friedrichshafen AG
- Mitsubishi Electric Corporation
- HL Mando Corp.
- JTEKT Corporation
- Nexteer Automotive Corporation
- thyssenkrupp AG
- Robert Bosch GmbH
- Hitachi Astemo, Ltd.
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