The global automotive steering system market is expected to witness steady growth between 2025 and 2035, driven by rising vehicle production, increasing demand for fuel-efficient steering technologies, and advancements in autonomous and electric vehicle (EV) steering systems. The market is projected to reach USD 25.9 billion in 2025 and expand to USD 37.6 billion by 2035, reflecting a compound annual growth rate (CAGR) of 3.8% during the forecast period.
In view of the fact that the trend of electric cars and the technology of advanced driver assistance systems (ADAS) are becoming more widespread, the steering systems are advancing to give not only greater accuracy but also improved safety and more pleasant driving.
This switch from traditional hydraulic power steering (HPS) to electric power steering (EPS) and steer-by-wire (SBW) technologies is the main factor that turns cars to be more manoeuvrable while saving a lot of energy. These systems are the ones that mainly help in less fuel consumption in the internal combustion engine (ICE) vehicles and also act as a battery extender device in electric vehicles (EVs).
Apart from that, the pressure from global safety directives, the ever-increasing consumer requests for vehicles that handle better, and the boost in vehicle connectivity are the main reasons for the spreading of next-generation steering technologies.
The application of the latest developments in artificial intelligence (AI), machine learning, and sensory steering control systems will be the main driving force behind the market growth, notably in unmanned and partially unmanned vehicle classes.
Owing to constant research and development support, the arrival of metabolic lightweight steering components, and the mounting demand for reliable and adaptive steering systems in modern mobility concepts, the automotive steering system market is set to see remarkable growth in the coming decade.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 25.9 billion |
| Industry Value (2035F) | USD 37.6 billion |
| CAGR (2025 to 2035) | 3.8% |
The key factors leading to market expansion are the growing implementation of electric power steering system, the increasing preference for vehicle electrification, and the innovations in steer-by-wire technology. Plus, the high requirement of lightweight steering parts and the greater inclusion of artificial intelligence (AI) in the steering control systems are presumed to push even more market growth.
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Steering systems in automotive sectors in North America are always on the top list of being driven by the feature of electric vehicle high demand, the tendency of more investments in autonomous driving technologies, as well as rules on-the-road for safety issues. The increasing sales and installations of EPS systems in the United States and Canada are above average with car manufacturers constantly targeting fuel efficiency and lessening emissions during production.
The National Highway Traffic Safety Administration (NHTSA) and various other regulatory organizations have set steering safety and control requirements into effect, thus steering advances have received the green light. At the same time, increased demand for ADAS-equipped cars and continuous strides made in steer-by-wire technology for autonomous vehicles are additional factors contributing to the upward growth of the market.
North America is going to grow its market alongside the investment made by the automakers in intelligent steering systems and their expansion by means of smart steering solutions, research on connected vehicle technologies, and wider use of autonomous mobility.
The European automotive steering system industry is undergoing a growth phase on the back of environmental regulations, security, and the increasing demand for electrification in passenger and commercial vehicles. The leading countries in steering technology innovations particularly in EPS and steer-by-wire are Germany, France, and the UK.
The EU CO₂ emission cut targets and safety requirements for vehicle control systems are attractive to the automakers who need to include advanced steering systems in their cars to work more energy efficient and be more stable.
Also, the lighting and electronical steering solution demand are climbing up the roof as more EVs and HEVs are used in the market. The semi-autonomous driving improvements, the smart vehicle infrastructure development, and the premium vehicle segment growth will all contribute to the European steering system market having a robust expansion.
Asia Pacific is the most rapidly developing region in terms of automotive steering system market, and the main reasons for this are the increasing vehicle production, rise in consumer demand for fuel-efficient vehicles, and the focus on electric mobility. As the four major countries experiencing high demand, China, India, Japan, and South Korea turned to EPS systems regarded as energy-saving vehicles under government initiatives.
As the top automotive manufacturer globally, China not only plays a major role in producing electric vehicles (EVs) but also invests large amounts of money in new-generation automotive technologies and autonomous driving, which in turn lead to higher EPS and steer-by-wire systems deploymen.
The rapid development of the auto industry in India along with the provision of electric and hybrid vehicle maker incentives is an additional driver for the expansion of the market.
Japan and South Korea have developed ultra-high-precision steering systems, ADAS integrated solutions, and AI-based vehicle control systems that are the first-rate ones and, as a result, these products have made an important contribution to the growth of the regional market. The rise of smart transportation along with the creation of connected vehicle ecosystems in the Asia Pacific region is forecast to contribute to the increase of demand for advanced steering systems as well.
The automotive steering system market in the Middle East & Africa (MEA) region is growing with a moderate rate which is mainly driven by the increase in vehicle sales, the demand for commercial and off-road vehicles, and the investments in smart mobility solutions. Countries like Saudi Arabia, UAE, and South Africa are on the rise in vehicle electrification and the request for advanced steering technologies is on the uprise.
The introduction of government initiatives aimed at both vehicle safety and smart city development together with the emergence of connected and autonomous cars is requiring high-performance steering systems. Moreover, the increasing popularity of SUVs and high-end cars in the given region makes a significant contribution to the growth of the market.
High Development Costs for Advanced Steering Technologies
Brought by changes in the industry from traditional hydraulic steering to electric power steering and development of steer-by-wire systems, the integration and development of advanced steering solutions has become one of the most significant hurdles due to the high costs involved in it.
Investment in R&D, precision manufacturing, and electronic control units (ECUs) besides the transition from hydraulic steering to electric power steering and the introduction of the steer-by-wire systems of necessity are all contributing factors to the high costs.
Likewise, small and medium-sized car manufacturers can also face the obstacles in terms of upgrading the current steering technologies to meet the standards and safety regulations of autonomous driving on the grounds of additional costs incurred for the modifications. To handle the challenges posed by this, companies are proving their worth in applying cost-effective production techniques, and scalable steering solutions.
Cybersecurity Risks in Steer-by-Wire and Autonomous Steering Systems
With the arrival of the Internet of Things, the integration of electronic and software-driven steering systems in modern vehicles has risen more than it was ever before. Hacking and malfunctioning, as the steering control units become connected, are the most unwanted cybersecurity problems. As mobility solutions go digital, it is important to maintain steering hardware`s fail-safe operation through redudant or robust cybersecurity solutions.
To solve this issue, manufacturers have started putting more emphasis on the installation of encrypted communication protocols, advanced control redundancy, and AI-driven steering security systems to bolster the functionality of the steering system.
Expansion of Electric and Autonomous Vehicle Steering Systems
Electric and autonomous vehicle now accepted as standard have come with the tremendous potential for steering system producers. The steer-by-wire technology development, the ADAS steering control integrated, and the AI-powered self-driving car navigation creates the required solutions for the production of new generation steering systems.
The automotive industry is steering a course towards simplified constructions of machines, better operation times, and higher accuracy, thus, the steer-by-wire and the AI-assisted steering systems are on their way to becoming mainstream. The firms which would be pumping money into adaptive control algorithms, encased control and sensor-induced steering systems will be the fringe players in this spectral development.
The period between 2020 and 2024 was marked by the automotive steering system market with a stable growth characterized by the increase in vehicle production, innovations in electric power steering (EPS) technology, and the surge in the need for fuel efficiency and vehicle safety.
Traditional hydraulic power steering (HPS) systems were still in the trend of losing their popularity over EPS and steer-by-wire (SbW) systems that add capabilities such as better fuel economy, less maintenance, and more vehicle control.
The promotion of autonomous driving technologies, ADAS (Advanced Driver Assistance Systems), and electrification trends ran parallels and featured the main boost towards steering solutions controlled by Artificial Intelligence (AI). However, the market faced challenges including supply chain disruptions, the semiconductor shortage, and expensive development costs.
Furthermore, from 2025 to 2035, the automotive steering system market is going to witness the breakthrough in the AI-supported adjustable steering, steer-by-wire, and compatibility with fully autonomous vehicles.
The collaboration of the 5G-ready vehicle-to-vehicle (V2V) in real-time comm, AI-laid correction of lane, and the self-learning steering algorithms that are considered new technologies will change the paradigm of steering control. Moreover, weight-saving composite steering elements, AI-assisting torque feedback systems, and block chain technology for parts traceability are the bright side of the development which will benefit driving safety and performance.
Market Shifts: A Comparative Analysis (2020 to 2024 vs. 2025 to 2035)
| Market Shift | 2020 to 2024 |
|---|---|
| Transition from Hydraulic to Electric Steering | Decline in hydraulic power steering (HPS) systems in favor of electric power steering (EPS) for fuel efficiency and precision. |
| Integration of ADAS & Autonomous Driving Technologies | Growth in ADAS-equipped steering systems with lane-keeping assist and adaptive torque control. |
| Lightweight & High-Performance Materials | Increased use of aluminum and high-strength alloys in steering racks and columns. |
| Smart Steering & AI-Powered Controls | Introduction of AI-assisted steering correction for driver safety. |
| Vehicle Electrification & EV Steering Optimization | Expansion of EPS for electric and hybrid vehicles to improve efficiency. |
| Advanced HMI (Human-Machine Interface) Steering Innovations | Some adoption of gesture-based and haptic feedback steering wheels. |
| Market Growth Drivers | Growth fueled by rising ADAS adoption, vehicle electrification, and increased safety regulations. |
| Market Shift | 2025 to 2035 |
|---|---|
| Transition from Hydraulic to Electric Steering | Steer-by-wire (SbW) becomes mainstream, enabling AI-driven lane correction, autonomous steering, and customizable steering feedback. |
| Integration of ADAS & Autonomous Driving Technologies | Fully autonomous, AI-driven steering systems with real-time road adaptation, self-learning algorithms, and fail-safe redundancy. |
| Lightweight & High-Performance Materials | Graphene-reinforced, 3D-printed composite steering components for ultra-lightweight, high-durability applications. |
| Smart Steering & AI-Powered Controls | AI-driven torque feedback, predictive steering control based on real-time road conditions, and smart customization for individual drivers. |
| Vehicle Electrification & EV Steering Optimization | Next-gen steer-by-wire systems optimized for EVs, hydrogen-powered vehicles, and autonomous mobility platforms. |
| Advanced HMI (Human-Machine Interface) Steering Innovations | Voice-command-enabled, AR-enhanced steering interfaces with biometric driver recognition. |
| Market Growth Drivers | Market expansion driven by steer-by-wire advancements, AI-integrated smart steering, and autonomous vehicle steering innovations. |
The automotive steering system sector of the United States is witnessing a stable increase, which is mainly a result of the factors such as electric power steering (EPS) adoption, development in the autonomous driving industry, and vehicle safety regulations. In line with that, the trend of lightweight and fuel-efficient materials also brings about the switch of automakers from standard hydraulic power steering (HPS) to EPS and steer-by-wire (SbW) systems.
Moreover, the flourish of advanced driver-assist systems (ADAS) and autonomous vehicle (AV) manufacturing is giving rise to the necessity of steering systems that come equipped with sensors, actuators, and AI-based control mechanisms. The progress in electric vehicle (EV) production is additionally a factor in the growth, since EPS and steer-by-wire systems make it possible for the energy savings in battery-driven cars.
| Country | CAGR (2025 to 2035) |
|---|---|
| United States | 3.9% |
The UK automotive steering system market is growing at a moderate rate because of various factors like increasing electric vehicle (EV) adoption, heavy investments in autonomous driving technologies, and more stringent emission regulations. The pledge of the UK to ban the sale of internal combustion engine (ICE) vehicles by 2035 is hence boosting the growth of steer-by-wire and EPS systems in the newer model EVs.
Spread of connected and smart mobility solutions is the base driving factor for the adoption of AI-based steering assistance features. Besides, the growth of luxury and high-performance vehicles also plays a crucial role in the demand for precision-engineered, electronically controlled steering systems.
| Country | CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 3.6% |
The increase in the European Union automotive steering system market is caused by the strict emission rules, more advanced steering technology being adopted, and the higher number of electric vehicles being manufactured. The Euro 7 emission standard is a factor that drives OEMs to use lighter and more efficient electric steering systems which will go to lower fuel consumption and CO₂ emissions.
Moreover, the growth of European autonomous and semi-autonomous vehicle division wants steering systems with AI-based lane-keeping and auto-driving functions. The construction of the high-end auto industry in Germany, France, and Italy is also a reason for the increase of investments in accurate steering technology.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union | 3.8% |
Japan automotive steering system market is on the moderate growth which is affirmed by the progress in automated driving technology, electric vehicle production and the necessity of precision steering control.
Japan which is leading in hybrid and electric vehicle technology is making more and more demands for energy-efficient and lightweight EPS systems where the leading automotive manufacturers like Toyota, Honda, and Nissan play a vital role.
The Japanese preference to promote both safety on public roads and autonomous driving is evolving the electronic systems market with steering assist systems integrated with LKA and ACC. The high-performance car market is also a major support to the demand for E-PS (electronically controlled power steering) systems.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 3.5% |
The automotive steering system industry in South Korea is growing at a fast rate owing to rapid developments in vehicle electrification, increasing need for AI driving assistance technologies, and the good performance of automotive manufacturing.
The production of electric vehicles (EVs) is mostly done by the Korean automobile manufacturers Hyundai and Kia, which has been made possible by their cutting-edge technology. This has consequently led to the increased demand for EPS and steer-by-wire systems, which are mainly used to increase driving efficiency and decrease battery consumption.
The smart mobility and autonomous vehicle R&D development is in turn playing a vital role in the introduction of steering systems integrated with sensors and predictive control. The massive expansion of the high-end automotive car manufacturing is pushing the mainstream electronically assisted steering solutions for luxury and performance vehicles manufacture.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 3.9% |
The largest share of the automotive steering system segment is occupied by passenger cars, which is mainly caused by the increase in consumer preference for the comfort of the driver, as well as the fuel efficiency and advanced driver assistance systems (ADAS) provided by them.
The trend of car manufacturers going with lightweight and high-performance steering solutions leads to the fact that electronic power steering (EPS) is gradually taking over the place of traditional hydraulic steering systems in modern passenger cars.
In contrast to light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs), the electronic steering technology is the most advantageous for the passenger cars given the improved handling, lower energy consumption, and the added value of the integration with the autonomous driving features.
In addition, the world-driven electrification and intelligent vehicle technological innovation are promoting the introduction of steer-by-wire and AI-additional steering solutions, thereby increasing the market size in the passenger vehicle segment further.
The use of electro-hydraulic steering (EHS) and electronic steering solutions in the transport sector is on the rise and the segment has increased, especially in long-distance vehicles such as trucks, and buses, and even certain types of construction equipment where precise maneuverability is a requirement for fuel efficiency.
Having a hydraulic steering system has been the favorite for most HCV applications for so long, but because of the high cost of fuel and the strict emission standards, it is now the time for fleet owners to accept the challenge of integrating steering systems that are energy-efficient.
HCV steering systems are more durable, load-bearing capacity, and reliable than similar systems in cars and light commercial vehicles (LCVs) under extreme operating conditions. The change from hydraulic to electro-hydraulic steering in electric and hybrid trucks is contributing to steering precision improvement, maintenance cost cut, and vehicle safety enhancement thus being a major factor in shipper's fleet modernizing activities.
The steering technology that is developing the quickest at present is undoubtedly Electronic power steering (EPS). The significant advances in the field of fuel economy, as well as the reduction of maintenance necessities and the ability to work with electric and autonomous vehicles, are the primary factors for that.
Instead of those old hydraulic systems, EPS is driven by electric motors, which explains the beauty of eliminating power steering fluid and hydraulic pumps and, therefore, saving vehicle weight and increasing utility. Electro-mechanical power steering is the only one that improves that aspect far better than hydraulic and electro-hydraulic options which not only decrease the steering effort.
Hydraulic steering is a vital part of the automotive steering system market, mostly in heavy commercial vehicles, off-road equipment, and industrial trucks where steering that is high in torque and solid performance is needed.
The tendency toward electronic and electro-hydraulic steering is evolving, yet hydraulic steering systems are much like the first choice in tasks that are often reaped in agriculture, mining, and military vehicles, and are of utmost importance where durability and mechanical simplicity rule. While electronic steering has many advantages, for hydraulic systems the dominance of power and resistance to severe conditions is what makes them a necessity in heavy-load functions.
The introduction of more energy-efficient hydraulic steering systems with variable assist and lower power consumption that is applicable in specific commercial and industrial vehicles, continue to be introduced by manufacturers who want to overcome the fuel consumption issue and meet the environmental laws.
The global automotive steering system market is maintaining a constant upward trajectory owing to the increasing number of vehicles being produced, the growing requirement of fuel-efficient systems, and the progress made in electric power steering (EPS) technologies. Steering systems are of paramount importance for boosting the safety of the vehicle, maneuverability, and driving convenience.
The market is chiefly influenced by the transition from the conventional hydraulic steering to EPS and steer-by-wire systems. These systems, in turn, incur better energy usage, diminish the production of harmful gases, and significantly enhance vehicle maneuverability.
Major players in the market are propelled by developments in ADAS, which are gaining popularity in autonomous steering, and the rising focus on steering components made of lightweight materials. The predominant companies target superior precision steering control, integration of smart sensor technology, and less energy consumption to adhere to car manufacturers' standards and the latest safety regulations.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| JTEKT Corporation | 20-25% |
| Nexteer Automotive Group Ltd. | 15-20% |
| Hitachi Automotive Systems | 10-15% |
| ThyssenKrupp AG | 5-8% |
| Hyundai Mobis | 4-6% |
| NSK Steering System Co., Ltd. | 3-5% |
| Other Companies (combined) | 35-40% |
| Company Name | Key Offerings/Activities |
|---|---|
| JTEKT Corporation | A global leader in electric power steering (EPS) and hydraulic power steering (HPS), offering ADAS-integrated and autonomous-ready steering solutions. |
| Nexteer Automotive Group Ltd. | Develops advanced EPS and steer-by-wire systems, integrating high-precision control and real-time driver assistance technologies. |
| Hitachi Automotive Systems | Specializes in intelligent steering components, ensuring seamless integration with autonomous and semi-autonomous driving platforms. |
| ThyssenKrupp AG | Provides high-performance steering racks and mechanical steering solutions, ensuring durability and high torque control for various vehicle types. |
| Hyundai Mobis | Offers next-generation EPS with smart actuator technology, ensuring enhanced stability and energy efficiency. |
| NSK Steering System Co., Ltd. | Focuses on lightweight and compact EPS solutions, ensuring improved fuel efficiency and precision steering control. |
Key Company Insights
JTEKT Corporation
JTEKT is the world premiere supplier of automobile steering systems, which includes the production of electric power steering (EPS), hydraulic power steering (HPS), and steer-by-wire systems. In addition, the company has a high-response EPS and AI-powered steering tools that ensure better fuel economy, less weight, and better driver assistance capabilities.
JTEKT is venturing into the autonomous driving orbit by developing steering solutions perceivable by operators and through the integration of smart sensors and AI-based control for future cars.
Nexteer Automotive Group Ltd.
Nexteer is the key innovator in EPS and steer-by-wire technology bringing improved precision, decreased mechanical complexity, and increased stability for vehicles.
The company’s Advanced Steering Assist technology and Quiet Steering systems integrate real-time driver assistance, low-friction designs, and automatic lane-centering features. Nexteer is abreast of the latest development in full-wire steering technology, the optimization of steering response in autonomous vehicles, and the better performance of electronic actuators.
Hitachi Automotive Systems
Hitachi is a pro in the field of intelligent steering components so they provide perfect fit with ADAS and autonomous driving technologies. The company's Electric Steering Actuation System and High-Torque EPS are advanced steering technologies that provide optimized maneuverability, enhanced steering response, and better performance in electric and hybrid vehicles. Hitachi is forwarding its development of automated lane-keeping steering solutions which support next-generation smart mobility platforms.
ThyssenKrupp AG
ThyssenKrupp is the makers of steering racks that offer high performance as well as steering solutions that are mechanical and electromechanical. The company offers the optimized steering systems for commercial and heavy-duty vehicles which increase steering force efficiency and load capacity. ThyssenKrupp is investing in lightweight, high-strength materials, resulting in less steering component weight and an improved vehicle.
Hyundai Mobis
Hyundai Mobis is rolling out state-of-the-art equipment for creating next EPS systems with smart actuator technology, leading to enhanced vehicle stability, reduced power consumption, and improved driver feedback.
The company is launching Steer-by-Wire and AI-Assisted Steering technologies that help the car maintain its lane through real-time assistance and adapt torque control. Hyundai Mobis is propelling the integrated mobility forward as steering system& connected vehicles work together harmoniously.
NSK Steering System Co., Ltd.
NSK aims at producing compact and lightweight EPS solutions guaranteeing improved fuel efficiency, noise reduction, and high-precision steering control. The company's Intelligent EPS with Road Surface Feedback improves the steering response and provides better adaptability in different conditions of driving.
NSK is pushing forward the development of AI-based steering optimization technologies that will enable the real-time torque modulation of EVs and hybrid vehicles of the next generation.
The global automotive steering system market is projected to reach USD 25.9 billion by the end of 2025.
The market is anticipated to grow at a CAGR of 3.8% over the forecast period.
By 2035, the automotive steering system market is expected to reach USD 37.6 billion.
The electronic steering segment is expected to dominate due to increasing adoption of electric power steering (EPS) systems, which improve fuel efficiency, enhance vehicle handling, and integrate with advanced driver assistance systems (ADAS).
Key players in the market include JTEKT Corporation, Robert Bosch GmbH, Nexteer Automotive, ZF Friedrichshafen AG, and NSK Ltd.
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Automotive Steering System Market
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