Global Automotive Steering Market

Global Automotive Steering Market Overview

• The Global Automotive Steering Market is valued at USD 28 billion, based on a five-year analysis of recent industry reports. This growth is primarily driven by the increasing demand for advanced steering technologies, such as electric power steering, which enhances vehicle efficiency, reduces emissions, and improves safety. Additionally, the rising production of electric and autonomous vehicles has further fueled the market, as these vehicles require sophisticated steering systems to meet evolving performance and regulatory standards .
• Key players in this market include countries like Germany, Japan, and the United States, which dominate due to their strong automotive manufacturing sectors and technological advancements. Germany is recognized for its engineering excellence and innovation in automotive technologies, while Japan is a leader in electric vehicle production. The United States benefits from a large consumer base and significant investments in automotive research and development .
• Recent regulatory developments, such as the European Union's mandate for advanced driver-assistance systems (ADAS) in new vehicles, are accelerating the adoption of sophisticated steering systems. These regulations aim to enhance road safety and reduce accidents, thereby increasing demand for steering technologies that integrate with ADAS. Compliance with these standards is expected to drive further innovation and investment in the automotive steering market .

Global Automotive Steering Market Segmentation

By Technology:The technology segment includes various steering systems that cater to different vehicle requirements. The subsegments are Electric Power Steering (EPS), Hydraulic Power Steering (HPS), Electro-Hydraulic Power Steering (EHPS), Steer-by-Wire Systems, and Manual Steering. Electric Power Steering is currently the leading technology due to its efficiency, ability to reduce fuel consumption, and compatibility with electric and autonomous vehicles, making it the preferred choice among manufacturers .

By Vehicle Type:The vehicle type segment encompasses Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), Electric Vehicles (EVs), and Autonomous Vehicles. Passenger Cars dominate this segment due to their high production volume and consumer preference for advanced steering technologies that enhance driving comfort and safety. The adoption of electric and autonomous vehicles is also rising, further diversifying demand for advanced steering systems .

Global Automotive Steering Market Competitive Landscape

The Global Automotive Steering Market is characterized by a dynamic mix of regional and international players. Leading participants such as ZF Friedrichshafen AG, JTEKT Corporation, Nexteer Automotive, Robert Bosch GmbH (Bosch Automotive Steering), thyssenkrupp AG (thyssenkrupp Presta), Mando Corporation, Hyundai Mobis Co., Ltd., Aisin Corporation, DENSO Corporation, NSK Ltd., Showa Corporation, Sona BLW Precision Forgings Ltd., Hitachi Astemo, Ltd., American Axle & Manufacturing Holdings, Inc. (AAM), and Knorr-Bremse AG contribute to innovation, geographic expansion, and service delivery in this space.

Global Automotive Steering Market Industry Analysis

Growth Drivers

• Increasing Vehicle Production:The global vehicle production reached approximately 93.5 million units in the most recent period, with projections indicating a rise to 85 million units in future. This growth is driven by increasing consumer demand, particularly in emerging markets like India and Brazil, where vehicle ownership is expanding rapidly. The automotive sector's recovery post-pandemic is also contributing to this surge, creating a robust demand for steering systems, which are essential components in all vehicles.
• Rising Demand for Advanced Driver Assistance Systems (ADAS):The global ADAS market is projected to grow from $35 billion in the most recent period to $40 billion in future, reflecting a significant increase in consumer interest in safety features. This trend is pushing automotive manufacturers to integrate advanced steering technologies that support ADAS functionalities, such as lane-keeping assistance and adaptive cruise control. Consequently, the demand for sophisticated steering systems is expected to rise, enhancing overall vehicle safety and performance.
• Technological Advancements in Steering Systems:The automotive industry is witnessing rapid technological advancements, particularly in electric power steering (EPS) systems, which are projected to account for over 60% of the steering market in future. Innovations such as steer-by-wire technology are gaining traction, offering improved vehicle control and reduced weight. These advancements not only enhance driving experience but also align with the industry's focus on sustainability and efficiency, driving further growth in the steering market.

Market Challenges

• High Cost of Advanced Steering Technologies:The integration of advanced steering technologies, such as EPS and steer-by-wire systems, often incurs high development and production costs. For instance, the average cost of implementing EPS can exceed $300 per vehicle, which poses a challenge for manufacturers aiming to keep vehicle prices competitive. This financial burden can hinder the adoption of innovative steering solutions, particularly in budget segments of the automotive market.
• Supply Chain Disruptions:The automotive industry continues to face significant supply chain disruptions, exacerbated by geopolitical tensions and the lingering effects of the COVID-19 pandemic. In the most recent period, over 50% of automotive manufacturers reported delays in component deliveries, impacting production schedules. These disruptions can lead to increased costs and reduced availability of steering systems, ultimately affecting the overall market growth and manufacturers' ability to meet consumer demand.

Global Automotive Steering Market Future Outlook

The future of the automotive steering market is poised for significant transformation, driven by the increasing integration of electric and autonomous vehicle technologies. As manufacturers prioritize sustainability, the shift towards electric power steering systems will continue to gain momentum. Additionally, the growing emphasis on safety and connectivity will likely spur innovations in steering systems, enhancing vehicle performance and user experience. This evolving landscape presents a unique opportunity for companies to invest in research and development, ensuring they remain competitive in a rapidly changing market.

Market Opportunities

• Expansion in Emerging Markets:Emerging markets, particularly in Asia-Pacific, are expected to see a surge in vehicle ownership, with an estimated increase of over 10 million vehicles in future. This growth presents a significant opportunity for steering system manufacturers to cater to the rising demand for affordable and efficient steering solutions, capitalizing on the expanding automotive market in these regions.
• Integration of IoT in Steering Systems:The integration of Internet of Things (IoT) technology in steering systems is anticipated to enhance vehicle connectivity and performance. In future, the IoT in automotive applications is projected to reach $50 billion, creating opportunities for steering manufacturers to develop smart systems that provide real-time data and improve user experience, thereby driving market growth.