Automotive Steering System Market

Global Automotive Steering System Market Size (2024 to 2029)

The automotive steering system market size is expected to be valued at USD 42.94 billion in 2024 and reach USD 52.8 bn by 2029, growing at a CAGR of 4.22% from 2024 to 2029.

Global Automotive Steering System Market Drivers:

The growth of the global automotive steering system market is majorly driven by the increasing consumer preference for smart driver-aid systems in cars. Moreover, the sale of electric vehicles will grow due to the strict environmental rules and this will raise the demand for these systems. Besides these factors, technological developments, an expanding consumer base for Hybrid and electric cars and the emphasis on comfort, safety, and better fuel consumption are driving the global market growth.

The increased protection and low accident rates are also propelling the automotive steering system market. Hence, consumers are favoring smart driver-aid systems more and more. In addition, the goal of advanced driver assistance systems is to reduce accident incidents and help minimize fatalities and injuries. Furthermore, autonomous emergency braking, adaptive cruise control, light control, and lane assistance are a few functions provided by these systems. These technologies make driving safer and less dangerous for other drivers. The automobile sector is compelled by regulations and environmental concerns to adopt sustainable practices, which influences the demand in the automotive steering system market. Moreover, governments worldwide have been implementing stringent environmental laws to mitigate pollution and encourage sustainability. Failure to comply with these standards may lead to substantial penalties and legal disputes.

Global Automotive Steering System Market Restraints:

Growth in the automobile industry may encounter challenges because of the comparatively high cost of putting power steering technology into practice. Moreover, the emergence of self-driving cars and competitive pricing may impede the automobile industry's wider growth. Additionally, technological changes in the industry, such as the movement to electrification and autonomous cars, can cause obstacles to the expansion of traditional steering systems. Hence, the automobile industry is actively adopting the EPS (Electric Power Steering) systems. This is due to their efficiency and fuel economy benefits in passenger cars.

Global Automotive Steering System Market Opportunities:

The growing number of connected and autonomous vehicles presents significant opportunities for the automotive steering system market. Modern technologies such as artificial intelligence and sensor-based systems are very important for the diving experience in today's time. The use of steer-by-wire technology is essential in fulfilling the requirements of autonomous driving. This is because it improves steering precision and reactivity.  Also, increased awareness about power steering is providing prospects for the automotive steering system market. Moreover, it is expanding due to the rising popularity of autonomous vehicles and the need for power steering systems. It is particularly in trucks and utilities.

Global Automotive Steering System Market Challenges:

Difficulties in the integration of ADAS are decreasing the growth rate of the automotive steering system market. For manufacturers, incorporating advanced driver-assistance systems presents serious problems. So, combining steering systems seamlessly is difficult, especially when collaborating with parts like automatic emergency braking and lane-keeping assistance. Development costs and timelines are further impacted by calibration and compatibility problems. The growing need for environmental sustainability hinders the expansion of the automotive steering system market. The car steering system sector is under pressure to solve sustainability challenges due to environmental concerns. Manufacturing techniques are frequently used in the production of hydraulic steering system components. This increases environmental deterioration.

Impact of COVID-19 on the automotive steering system market:

COVID-19 has significantly affected the sales and output in the automobile sector. Governments implemented lockdowns. This forced firms to temporarily halt operations. Thus, many component makers were in danger of going bankrupt since industrial production is a very capital-intensive industry. As soon as the lockdowns were lifted, limited vehicle manufacture restarted. There was a shortage of vital parts for the automobile sector as a result of the COVID-19 pandemic's impact on global supply chains. Even when all pandemic-related limitations were lifted, it led to extended lead times and decreased production rates. The pandemic won't significantly affect the automotive steering system market in the long run because there is still a high demand for cars across all class groups. In the upcoming years, it will continue to expand considerably.

 REPORT COVERAGE:

This research report on the global automotive steering system market has been segmented and sub-segmented based on component, technology, pinion type, vehicle type, and region.

Global Automotive Steering System Market - By Component: 

• Hydraulic Pump 
• Steering Column
• Steering Wheel Speed Sensor
• Electric Sensor
• Others

The steering wheel speed sensor segment is expected to grow at an elevated CAGR in the future. The speed sensor data is the basis for all modern automotive needs, including reduced fuel efficiency, fewer emissions, comfort, safety, and driving dynamics. Better data accuracy when feeding the ECU is achieved by integrating the torque sensor with the steering angle sensor. Better steering control results from increased data quality. This sensor is mostly used in higher-end premium car categories because of its sophistication.

Global Automotive Steering System Market – By Technology: 

• Hydraulic Power Steering (HPS)
• Electrically Assisted Hydraulic Power Steering (EHPS)
• Electric Power Steering (EPS)

The electric power steering segment is expected to have a higher position in the automotive steering system market. This growth can be attributed to the rising adoption of electronic steering technology by several automakers. It outperformed the conventional methods in terms of mileage. Given its capacity to efficiently absorb road shocks in commercial vehicles, the hydraulic steering segment is predicted to hold the second position. Because the load-bearing capability of electronic steering technology in these cars is limited, several manufacturers are investing in the development of hydraulic automobile steering wheels.

Global Automotive Steering System Market – By Pinion Type: 

• Single
• Dual

The Dual segment is predicted to have the maximum portion of the automotive steering system market. The dual pinion reduces the possibility of leg injuries in the event of a collision by offering more design options in where to place the motor and controller. It also helps the mechanism when it comes to the driver's side. Furthermore, the dual-pinion category is predicted to rise as a result of the growing penetration of the C and D vehicle segments. The greatest market for dual-pinion steering systems is predicted to be Asia Pacific.

Global Automotive Steering System Market – By Vehicle Type: 

• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles

The passenger vehicles segment is probably going to have the largest portion of the automotive steering system market. Vehicle sales are increasing globally, which is driving up demand for vehicle steering system components. Other factors contributing to this growth include the ease of obtaining financing and credit as well as the rising travel and leisure activities. Another element propelling the market expansion is the high demand for Special Utility Vehicles (SUVs). This is supported by superior maneuverability, stylish designs, and affordable prices. 

Global Automotive Steering System Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

North America is the largest automobile steering system market. The industry is anticipated to increase significantly because of several motivating reasons. The regional growth is because of the wide adoption of electric cars. Also, manufacturing and sales have increased significantly in recent years, and this trend is anticipated to continue. Moreover, the growing importance of vehicle safety is another significant attribute for the market to grow eventually. Companies in the region are investing in sophisticated safety features like advanced driver assistance systems in response to the region's severe safety rules and requirements.

Asia Pacific's automotive steering system market is expected to grow at a faster rate in the forecast period. Asia has lessened its energy use and contributed to the construction of an ecologically friendly and sustainable industrial facility. Asia Pacific's expanding environmental and public health consciousness has raised corporate understanding of their need to reduce the damaging effects of manufacturing operations on the environment. In Asia, international automakers are expanding their market share and fortifying their brands.

The consistently strong growth has improved socioeconomic circumstances, resulting in a growing middle class with greater spending power. It has increased the number of new car purchases, which has increased demand for new cars. China and India are the main markets for automobile steering systems because of their sizable domestic auto manufacturers and growing sales of commercial vehicles.

Europe is projected to witness significant progress in the automotive steering system market value. One of the main factors propelling the automotive steering system market in Europe is the notable growth in demand for electrification across all vehicle types. Major economies, including France, Germany, the United Kingdom, Italy, Russia, and the rest of Europe, make up the European automobile steering system market, and each contributes to the dynamics of the total market.

Latin America had a modest growth in the automotive steering system market. The market is showing signs of recovery, although slowly, following the initial disruptions caused by COVID-19. Additionally, the country's home to businesses like Ferreiros y Vilela SA contributes to the expansion of the vehicle steering system industry. All currently available versions of rack and pinion steering systems are supplied by it, along with custom-made variants for other clients. Its San Isidro facility boasts a sophisticated infrastructure and highly skilled employees in every department.

Middle East and Africa are anticipated to experience an uneven market growth rate. High-end cars with EPS are still in high demand in the Gulf, where they have formed their unique market niche. The region's increasing car production is fueling the market's expansion and increasing demand for automotive steering systems. However, affordability issues prevent widespread usage in the area.

KEY MARKET PLAYERS:

TEKT Corp., Nexteer Automotive, Mando Corp, NSK Ltd, TRW Automotive, ThyssenKrupp Presta AG, ZF Lenksysteme, China Automotive Systems Inc, Robert Bosch Gmbh. Some of the major market players dominate the global automotive steering system market.

RECENT DEVELOPMENTS IN THE MARKET:

• In November 2023, Toyota declared that it would launch steer-by-wire technology in 2024. Toyota bZ4X and Lexus RZ SUVs will be the first to receive the brand's steer-by-wire technology called One Motion Grip.
• In April 2023, Nexteer Automotive introduced its Modular Rack Assist Electric Power Steering (mREPS) system. It has expanded its affordable product range under modular EPS solutions.