The automotive steering system market is anticipated to expand its boundaries at a CAGR of 4.6% during the forecast period. The market holds a share of USD 24.1 billion in 2023, while it is expected to cross a value of USD 38.0 billion by 2033.
The automotive steering system market outlook states that the higher sales of passenger vehicles, along with enhanced steering systems, are fueling the demand for automotive steering systems. The changing dynamics of the automobile industry, with electric vehicles expanding their space along with the advent of autonomous driving controls and advanced braking systems, fuels the market growth.
Furthermore, stringent norms around fuel efficiency and pollution control have pushed manufacturers to adopt electrically assisted steering systems. The opportunities for the market involve average emissions. New product developments and expansions, along with investments, offered new lucrative opportunities for the automotive steering system market.
The research report on the automotive steering system market explains that hydraulic power steering (HPS), electric power hydraulic steering (EPHS), and fully electric power steering (EPS) integrated with the rack and pinion steering system are creating new steering solutions for specific.
The systems use power along with the turned wheels, expanding engine performance. These elements fuel the assistance it provides to the engine and fuel efficiency. Furthermore, the advent of power steering enables autonomous control over vehicles.
The expanding research and development programs provide a smooth automatic steering system along with fuel efficiency. It further provides passenger comfort and enhanced transmission. The basic vehicles with power-assisted steering help the power and torque delivery and provide an improved response to the driver. This fuels the demand for automotive steering systems.
| Attributes | Details |
|---|---|
| Automotive Steering System Market CAGR (2023 to 2033) | 4.8% |
| Automotive Steering System Market Size (2023) | USD 24.1 billion |
| Automotive Steering System Market Size (2033) | USD 38.0 billion |
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Short-term Growth: Though the COVID-19 pandemic has affected the market negatively to a certain extent, the sales of automobiles are gradually surging as the situation is becoming normal. In September 2020, Schaeffler announced its partnership with Robert Bosch Automotive Steering GmbH to broaden its intelligent Rear Wheel Steering (iRWS) portfolio. This partnership would allow the former to deliver mechatronic iRWS systems, whereas the latter will provide software and electronics in terms of steering control units.
Mid-term Growth: Automotive steering system has historically been produced in considerable quantities in Brazil, Mexico, and Denmark. Another important nation for citrus fruit cultivation in Argentina. However, due to poor weather patterns and a decline in the demand for lime juice, the country does not have a significant production capacity.
Long-term Growth: The automotive steering system market is expected to register a 4.6% CAGR between 2022 and 2030, up from the 2.3% CAGR recorded from 2015 to 2021, as per Future Market Insights (FMI).
Ongoing development in the automotive industry is enabling manufacturers to engage in partnerships, and new product launches to cater to the ever-increasing demand for innovative automobile power steering systems. Such developments are expected to create a conducive environment for the growth of the market over the forecast period. However, the restored and improved automotive steering system market is expected to thrive at a CAGR of 4.6% between 2023 and 2033.
Production and launches of electric cars are fairly new in certain countries in the Asia Pacific region. For instance, local and international players are planning to launch manufacturing units of electric vehicles. In addition, the region is home to leading vehicle production hubs such as China and Japan. Furthermore, the growth of the market can be credited to a sizable population, an increase in per capita income, and improving living standards.
Fuel-efficient vehicles and comfort features have become a favorite for consumers in the Asia Pacific region. The installation of electric power steering (EPS) is expected to accelerate over hydraulic power steering, especially in the passenger car segment. This, in turn, is favoring the growth of the automotive steering systems market. Thus, the East Asia automotive steering system market accounted for about 42.3% of the total market share in 2022.
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Governments of various countries are conducting awareness programs to educate the masses about environmental safety. This is further leading to a rapid shift of customers towards Electric Vehicles (EVs).
The ongoing technological innovations in the field of EVs are compelling local and national governments to offer incentives, subsidies, and tax credits to customers. As per the International Energy Agency (IEA), in 2010, only 17,000 EVs were on the roads globally.
But that number surged to 7.2 million in 2019. This showcases that the sales of EVs are projected to rise during the evaluation period, thereby boosting the demand for car steering system parts.
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The requirement for automotive steering wheels by Original Equipment Manufacturers (OEMs) is directly proportional to the increasing production of automobiles. Many prominent automotive manufacturers are expected to sign long-term contracts with OEMs in the forthcoming years.
Some of the manufacturers are anticipated to participate in acquisitions and joint ventures with OEMs to produce superior-quality products for automobiles. In August 2019, for instance, Nexteer Automotive teamed up with Dongfeng Motor Parts and Components Group Co., Ltd. to develop a joint venture called Dongfeng Nexteer Steering Systems (Wuhan) Co., Ltd.
This new firm will help the former to increase its manufacturing footprint to 28 locations across the globe. The development of similar other joint venture companies is set to accelerate the growth in the market.
| Regions | Absolute Market Growth |
|---|---|
| USA | USD 992.1 million |
| UK | USD 238.6 million |
| China | USD 5.3 billion |
| Japan | USD 1.4 billion |
| India | USD 637.1 million |
Multinational Companies propel Regional Growth while Local Companies Struggle to Survive.
| Region | Attributes |
|---|---|
| Chinese Market CAGR (2023 to 2033) | 6.0% |
| Chinese Market Value | USD 12 billion |
China is the biggest and fastest-growing automotive steering system market, with the best regional CAGR of 6.0% between 2023 and 2033. The market is set to cross a value of USD 12 billion by 2033.
Rapid production of passenger cars and commercial vehicles in China is anticipated to drive the market over the assessment period. The East Asia automotive steering system market accounts for about 42.3% of the total market share in 2022, finds FMI.
According to the International Trade Administration, by 2025, the domestic production of vehicles is likely to reach 35 million. In 2020, more than 25 million vehicles were sold in the country, and out of these, 19.99 million units were passenger vehicles. This trend is set to continue over the forecast period, thereby driving the sales of automobile power steering systems in China.
Prominent Manufacturers are Preferring Automotive Electric Power Steering Systems.
| Region | Attributes |
|---|---|
| The UK Market CAGR (2023 to 2033) | 4.9% |
| The UK Market Absolute Doller Growth (USD million/billion) | USD 238.6 million |
The presence of numerous luxury automotive manufacturers, such as Aston Martin, Rolls-Royce, Land Rover, Bentley, McLaren, and Jaguar, in the UK is set to drive the market over the assessment period. As per FMI, the Europe automotive steering system market accounted for around 23.4% of the total market share in 2022. However, the market is anticipated to thrive at a CAGR of 4.9% between 2023 and 2033. It is expected to cross a value of USD 624.1 million by 2033.
The Society of Motor Manufacturers and Traders declared that in 2019, more than 2.5 million engines, 78,270 commercial vehicles, and 1.3 million cars were developed in the UK, and 8 out of 10 cars manufactured in this country are exported to 160 different markets across the globe. Owing to the aforementioned factors, the demand for automotive electric power steering systems is expected to surge in the UK
Manufacturers are Introducing Novel Automotive Electric Power Steering Systems.
| Region | Attributes |
|---|---|
| USA Market CAGR (2023 to 2033) | 2.9% |
| USA Market Absolute Doller Growth (USD million/billion) | USD 992.1 million |
The USA automotive steering system market is set to thrive slowly at a CAGR of 2.9% during the forecast period. The market is likely to reach a value of USD 4.0 billion by 2033.
The ongoing development of many novel software solutions for usage in automobiles is likely to fuel growth in the USA market. As per FMI, the North American automotive steering system market held approximately 14.8% of the total market share in 2022.
In October 2020, Nexteer Automotive introduced High-Output Electric Power Steering (EPS) for Light Commercial Vehicles (LCVs) and Heavy-Duty (HD) trucks. It would provide enhanced fuel efficiency, as well as innovative safety and comfort features.
Drivers will also get access to novel features, such as trailer assist, crosswind compensation, and lane keep assist. The launch of similar other state-of-the-art automotive electric power steering systems will help in bolstering the market in the USA
| Region | Attributes |
|---|---|
| Indian Market CAGR (2023 to 2033) | 6.2% |
| Indian Market Absolute Doller Growth (USD million/billion) | USD 30.4 million |
The factors such as rising population and middle-class income are the reason the Automotive steering system market in India is predicted to expand. Recent supply chain and urbanization developments have also had a significant impact on the market.
The automotive steering system powder market could develop due to an increase in the consumption of functional foods as a result of people's hectic lifestyles. The Indian Automotive steering system market is set to reach a value of USD 67.3 million by 2033.
India does not generate enough Automotive steering systems to meet domestic demand, despite its enormous resources. The automotive steering system is made from industrial waste from the apple and citrus processing industries all over the world. However, India's apple and citrus processing businesses are small.
The automotive steering system's customer base is growing as a result of the huge number of people who have been impacted by the western diet.
| Segment | Top Technology |
|---|---|
| Top Sub-segment | Electronic Steering |
| CAGR (2017 to 2022) | 2.1% |
| CAGR (2023 to 2033) | 4.8% |
| Segment | Top Vehicle Type |
|---|---|
| Top Sub-segment | Passenger Cars |
| CAGR (2017 to 2022) | 2.0% |
| CAGR (2023 to 2033) | 5.1% |
Based on technology, the electronic steering segment is set to account for the dominant share of the global automotive steering system market. Growth is attributable to the increasing adoption of electronic steering technology by several automotive manufacturers as it has an excellent fuel-efficiency quotient, unlike conventional systems. The electronic steering segment is likely to flourish at a CAGR of 4.8% during the forecast period.
The hydraulic steering segment is estimated to remain in the second position owing to its ability to absorb road shocks effectively in commercial vehicles. In these vehicles, electronic steering technology provides a limited load-bearing capacity, and hence, various manufacturers are investing in the development of hydraulic automotive steering wheels.
In terms of vehicle type, the passenger cars segment is likely to command the lion’s share in the global automotive steering system market.
The ease of accessibility of funding and credit, as well as the rising number of tours and leisure activities worldwide, are propelling the sales of passenger cars, thereby bolstering the demand for car steering system parts.
High demand for Special Utility Vehicles (SUVs), backed by their better maneuverability, stylistic design, and low cost, is another factor fueling growth in the segment. The segment is expected to thrive at a CAGR of 5.1% between 2023 and 2033.
Leading companies operating in the global automotive steering system market are launching cutting-edge products to cater to the high demand from customers. Some of the other international companies are aiming to engage in acquisitions of small- and medium-sized regional automobile power steering system manufacturers. With these acquisitions, they are aiming to gain a competitive edge in the market.
Latest Developments
The automotive steering system demand is anticipated to inflate at a 4.6% CAGR from 2023 to 2033.
The automotive steering system market is poised to undergo considerable growth, surging from USD 24.1 billion in 2023 to USD 38.0 billion by 2033.
China showcases substantial demand for automotive steering systems due to its burgeoning automobile industry and expanding consumer base.
Automotive steering system market leaders maintain their edge through continuous innovation, strategic partnerships, and global supply chain optimization.
The automotive steering system market is propelled by rising vehicle production, growing safety concerns, and integration of advanced technologies.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Technology 5.1. Electronic Steering 5.1.1. H-EPS 5.1.2. C-EPS 5.1.3. P-EPS 5.1.4. R-EPS 5.2. Hydraulic Steering 5.3. Manual Steering 5.4. Electro-Hydraulic Steering 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Passenger Cars 6.1.1. Compact 6.1.2. Mid-size 6.1.3. Premium 6.1.4. SUVs 6.2. Light Commercial Vehicles 6.3. Heavy Commercial Vehicles 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. South Asia & Pacific 7.5. East Asia 7.6. Middle East & Africa (MEA) 8. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. South Asia & Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. East Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. JTEKT Corporation 16.2. Nexteer Automotive Group Ltd. 16.3. Showa Corp. 16.4. ThyssenKrupp AG 16.5. Hitachi Automotive System Ltd. 16.6. Robert Bosch GmbH 16.7. NSK Steering System Co. Ltd. 16.8. Mando Corp. 16.9. ZF Friedrichshafen AG 16.10. ATS Automation Tooling System Inc. 16.11. Hyundai Mobis 16.12. Mitsubishi Electric Corporation 17. Assumptions & Acronyms Used 18. Research Methodology
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Automotive Steering System Market
