The global steering tie rod market size is expected to reach USD 16,174 million by 2023. Demand is projected to increase at a 5.8% CAGR over the forecast period. The industry value is predicted to surge from USD 17,068.5 million in 2024 to USD 29,939.7 million in 2034.
South Asia and Pacific, East Asia, and Latin America are set to present significant growth opportunities for the market. There is an increasing demand for vehicles in these regions to enable efficient transportation and travel, which is leading to a surging need for steering tie rods.
| Attributes | Description |
|---|---|
| Estimated Global Steering Tie Rod Market Size (2024E) | USD 17,068.5 million |
| Projected Global Steering Tie Rod Market Value (2034F) | USD 29,939.7 million |
| Value-based CAGR (2024 to 2034) | 5.8% |
The worldwide steering tie rod market size is projected to rise by around 1.7X by 2034, with an expected CAGR of 3.2%, higher than the historical period. This can be attributed to advancements in steering systems as well as rising vehicle production and sales to meet the surging demand for transportation.
East Asia is anticipated to dominate the industry during the forecast period due to emerging industrial usage for steering tie rods. The region is set to hold around 37.6% of the share in 2034. East Asia experiences significant urbanization, accompanied by a rise in population density.
As more people shift towards cities, demand for personal transportation increases, pushing the growth of the automotive sector in the region. Urbanization also leads to the rapid expansion of infrastructure and the need for efficient transportation.
Government bodies in East Asia, especially in China, implement supportive policies to stimulate the automotive sector. Tax incentives, subsidies for electric vehicles, and investments in research and development encourage innovation, manufacturing, and expansion in East Asia.
East Asia further serves as a manufacturing hub for automotive giants and suppliers worldwide. The impact of the latest trends on the steering tie rod market in the region is set to remain positive. China and Japan are key countries in terms of export of vehicles and automotive components worldwide.
Rising infrastructure development activities, a skilled labor force, and favorable business policies attract investments from multinational corporations. Expansion of manufacturing facilities enables the efficient production of vehicles and components, including small tie rod ends, to meet the increasing demand both in the regional and international sectors.
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Increasing Research Activities to Enhance Vehicle Safety
Growing investments in research and development to enhance both the structural load-carrying capacity and deformation resistance of steering rods are set to augment demand. Rising investments in research activities by manufacturers represent a strategic response to the demand for improved vehicle safety, durability, and performance.
Manufacturers and suppliers are increasing efforts towards developing new products that endure mechanical stress without deforming even under severe working conditions. This is also a result of the high global demand for truck tie rod ends.
Manufacturers Strive to Develop Lightweight Materials
As per the market dynamics observed in the steering tie rod industry, the automotive industry is undergoing a significant shift towards lightweight as a fundamental strategy to enhance fuel efficiency and vehicle performance. This trend stems from the growing emphasis on environmental sustainability and regulatory requirements aimed at reducing carbon emissions.
There is hence a growing trend towards the use of lightweight materials for manufacturing steering tie rods that would reduce the overall weight of the vehicle. Companies are also striving to come up with new rods to enhance the handling characteristics of vehicles without compromising on the strength and durability of components.
Manufacturers in the tie rod ends mechanical steering industries are now exploring lightweight materials like aluminum alloys, carbon fiber composites, and high-strength steel alloys to meet the requirements of weight reduction and strength.
These materials have very high strength-to-weight ratios. Hence, a lot of weight can be shaved off while providing the necessary strength to handle the rough conditions that are likely to be encountered on the roads.
Manufacturers Target Emerging Economies to Strengthen Position
With the high demand for automobiles in emerging countries, manufacturers are set to engage in strategic partnerships and enhance distribution networks to propel the processes of production and distribution. Low-cost labor and infrastructure in these countries reduce manufacturing costs and improve the supply chain management of firms so that they can effectively compete.
Investments in local manufacturing facilities not only contribute to the economic development of emerging countries but also help to avoid risks associated with disruptions in international trade. With the consequent growth in vehicle sales, emerging countries present a growing demand for steering tie rods.
It is in the interest of manufacturers to take advantage of this opportunity through strong presence and operations. Through supply chain management and strategic investments, companies will likely be in a position to meet the growing demands of steering components. At the same time, firms are set to exploit growth opportunities in new and evolving automobile industries.
Rising Vehicle Ownership Globally Propels Demand
As the number of vehicles on the road continues to increase, it has become necessary to have reliable steering components such as tie rods for better operation and safety. Rising vehicle ownership does not just cause an upswing in the initial requirement for steering pitman arms in new vehicles.
It also aids aftermarket sales, which are driven by maintenance and replacement parts required by existing vehicles after a certain period. Furthermore, there is a surging need for steering rods as different types of vehicles require specialized guidance systems that can accommodate individual specifications.
Manufacturers and suppliers operating in the sector are increasing production capacities, streamlining supply chains, and introducing new technologies to efficiently meet rising demand. The market is poised to offer attractive prospects with increasing vehicle ownership as stakeholders seek to meet the dynamic requirements of a growing automotive landscape.
Global sales of steering tie rods grew at a CAGR of 2.6% between 2019 and 2023. Total revenue reached about USD 16,174 million in 2023. In the forecast period, sales are projected to thrive at a CAGR of 5.8%.
The global market experienced moderate growth from 2019 to 2023, attributed to several key factors. Growing emphasis on vehicle safety and regulatory compliance prompted automotive manufacturers to invest in high-quality steering components.
The aftermarket sector also played a pivotal role, providing opportunities for the replacement and upgrade of aluminum tie rods, thereby supporting expansion.
Steering tie rod demand was directly impacted by a drop in vehicle sales and manufacturing volumes brought on by lockdowns, production halts, and low consumer spending.
Delays in the supply chain, such as shortages of components and raw materials, made manufacturers' problems worse. Slowly but steadily, the sector recovered as economies recovered and vehicle manufacturing started in full swing once again.
The projected market size of steering tie rods is estimated to remain considerable. Growth will likely be attributed to the continuous rise in vehicle production, technological advancements to launch unique steering systems, and rising demand for safety features.
High popularity of electric cars, expanding automotive aftermarkets, and booming production across Latin America and Asia Pacific is also expected to drive growth by 2034.
One of the key restraints for growth is that there are no standard specifications across all types of vehicle models. Unlike a few automotive parts, which might have universal designs, steering rods have to accommodate the variety and uniqueness of different vehicles.
Lack of standardization not only complicates the manufacturing process but also demands customized solutions for every vehicle model, increasing complexity and raising the production cost. Around every auto manufacturer has different design needs, mounting configurations, and specifications for these rods, making a one-size-fits-all approach very impractical.
Principal Consultant
As per the steering tie rod market global analysis, Tier 1 suppliers are the giants in the sector, boasting revenues above USD 25 million and commanding a 35% share. These companies are critical players, often involved in direct business relationships with leading automobile manufacturers, supplying essential and complex components that are integral to vehicle performance.
Notable Tier 1 companies include MOOG Inc., TRW Automotive Holdings Corp., ZF Friedrichshafen AG, Federal-Mogul Corporation, Delphi Automotive PLC, Mando Corporation, Nexteer Automotive Group Limited, NSK Ltd., and CTR Corporation.
These firms are renowned for innovation, extensive product lines, and robust manufacturing capabilities, which allow them to meet the high demands and standards set by automobile manufacturers.
Tier 2 suppliers operate with product revenues ranging between USD 5 million and USD 25 million, holding a 40% share. While these might not match the sheer size and scope of Tier 1 suppliers, Tier 2 companies play a key role in the supply chain by providing specialized parts and components.
Companies like MAS Industries, ACDelco, Mevotech LP, Febi Bilstein, Lemforder (ZF Group), Beck/Arnley Worldparts, Inc., Dorman Products, Inc., NTN Corporation, Nippon Reinz Co., Ltd., and Gates Corporation fall into this category.
These suppliers often focus on producing specific types of components or systems, and these may supply parts to both Tier 1 companies and original equipment manufacturers (OEMs).
Tier 3 suppliers encompass those companies with product revenues up to USD 5 million, accounting for 25% of the share. This tier includes a vast number of small suppliers who typically provide niche, specialized parts and services. While these might not have enough steering tie rod market opportunities, Tier 3 suppliers are important for the diversity and flexibility they bring to the automotive supply chain.
The table below shows the estimated growth rates of the leading countries. ASEAN, India, and Japan are set to record high CAGRs of 8%, 7.6%, and 7.3%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| ASEAN | 8% |
| India | 7.6% |
| Japan | 7.3% |
| China | 7.2% |
| Kingdom of Saudi Arabia | 6.7% |
With China being the prominent producer and exporter of automobile products globally, the country’s dominance is unparalleled. Increasing support from the government in the form of favorable policies is one key driving factor.
China is also one of the most attractive destinations for the automotive industry due to proactive policies that have been put in place to support production. These policies not only encourage domestic consumption but also promote foreign investments.
One of the other growth factors influencing the steering tie rod market in China is the availability of low-cost raw materials and an abundant supply of affordable labor. Auto manufacturers have a competitive advantage in terms of costs and flexibility due to an integrated supply chain and optimized manufacturing processes.
China's automotive landscape is at the center of a huge network of over 400 automakers, each contributing to the country's formidable production capacity. It is remarkable that around 30 to 35% of the global production of automobiles comes from this country.
China’s automotive steering tie rod market size is projected to soar at a CAGR of around 7.2% during the assessment period. The total value is anticipated to reach USD 8,831 million by 2034.
The United States is projected to reach USD 3,696.8 million by 2034. Over the assessment period, demand is set to rise at 3.9% CAGR.
The resurgence of the sector after the pandemic-related disruptions is anticipated to push demand in the United States. Around 15.4 million units of light vehicles were sold in the country in the first quarter of 2024.
This represented a 2.7% increase compared to the previous year. Labor costs in the automotive industry have been on the rise, specifically after the recent United Automobile Workers (UAW) collective agreement.
India is poised to exhibit a CAGR of 7.6% during the assessment period. The country is expected to attain a value of USD 1,892.2 million by 2034.
The automotive sector in India has been witnessing growth in vehicle production and sales. This indicates a broadening market for automotive parts, including steering tie rods.
India's strategic initiatives to boost domestic manufacturing and enhance infrastructure further fuel demand. The "Make in India" initiative of the Government of India, along with the incentives given to EV manufacturing, has attracted investments and created a supportive environment for auto component manufacturers.
As a global manufacturing hub for automobiles, India also shows steady growth. With a large population of skilled workers, cost-effective manufacturing capability, and enhanced logistical infrastructure, India will likely be a critical exporter of automotive components like tie rods.
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The section below shows the outer tie rod segment dominating based on position. The segment is forecast to thrive at 5.8% CAGR between 2023 and 2034. Based on sales channels, the OEM segment is anticipated to hold a dominant share through 2034. The segment is set to exhibit a CAGR of 5.8% during the forecast period.
| Segment | Outer Tie Rods (Position) |
|---|---|
| Value CAGR (2024 to 2034) | 5.8% |
High susceptibility to wear and tear because of exposure to varied stressors such as road conditions and vehicle movement is set to boost demand for outer tie rods. During steering maneuvers, the outer rod undergoes heavy forces, thereby making it a part that can hardly survive long without weakening.
Exposure to elements like water, dirt, and debris hastens wear. Outer rods are expected to be replaced more often than inner tie rods. These rods have shorter lifecycles than inner rods. This creates a steady need for replacement parts, thereby bolstering demand worldwide.
Over the forecast period, demand for outer tie rods is forecast to rise at a CAGR of 5.8% CAGR. By 2034, the target segment is estimated to reach USD 15,380.7 million.
| Segment | OEM (Sales Channel) |
|---|---|
| Value CAGR (2024 to 2034) | 5.8% |
The low replacement rate of steering tie rods significantly drives demand in the OEM segment. These components are engineered for durability and longevity, resulting in infrequent replacements by vehicle owners. Consequently, OEMs enjoy a consistent demand for tie rods as automakers continue to integrate these into new vehicle assemblies.
Advancements in materials like high-strength alloys and composite materials enhance the strength, efficiency, and lifespan of steering parts. This is in line with the rising demand for quality and reliable components across OEMs.
Ongoing expansion and improvement of road infrastructure, coupled with the need for well-maintained roads, play a pivotal role in pushing demand for steering rods. As road conditions improve, the wear and tear on vehicle components, including steering systems, are minimized. This is further leading to reduced replacement needs, thereby bolstering sales across OEMs.
The OEM segment is projected to thrive at 5.8% CAGR during the forecast period. The segment is set to attain a value of USD 25,886.4 million by 2034.
The worldwide future of the steering tie rod market is fragmented among leading manufacturers. Key players in the steering tie rod industry account for more than 18% to 24.5% of the share. ZF Friedrichshafen AG, Tenneco, NSK Ltd, Mando Corporation, Dana Inc, Nexteer Automotive Group Limited, THK, Febi Bilstein, and Dorman Products, Inc are a few leading players.
The competitive landscape of the steering tie rod industry shows that prominent companies hold significant value share due to strong product offerings, distribution networks, and brand reputation. The sector is competitive, with a focus on innovation and customer service to maintain leadership.
Industry Updates
The three leading types include passenger cars, light commercial vehicles, and heavy commercial vehicles. Passenger cars are segregated into compact, mid-size, luxury, and SUVs.
Inner and outer tie rods are the two types of positions.
A couple of key materials include carbon steel and stainless steel.
OEM and aftermarket are the prominent sales channels. The aftermarket segment is categorized into OEM service centers and independent service centers.
Information about several regions like North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, and the Middle East and Africa.
The sector is valued at USD 17,068.5 million in 2024.
Demand is anticipated to rise at 5.8% CAGR.
The sector is set to reach USD 29,939.7 million by 2034.
OEM sales channel is expected to lead through 2034.
ZF Friedrichshafen AG, Tenneco, and NSK Ltd.
Around USD 100 to USD 400.
Aluminum and cast iron.
Between USD 81 and USD 463.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Vehicle Type
6.2. Position
6.3. Material
6.4. Sales Channel
7. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vehicle Type
7.1. Passenger Car
7.1.1. Compact
7.1.2. Mid-size
7.1.3. Luxury
7.1.4. SUV
7.2. LCV
7.3. HCV
8. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Position
8.1. Inner Tie Rod
8.2. Outer Tie Rod
9. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material
9.1. Carbon Steel
9.2. Stainless Steel
9.3. Others
10. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel
10.1. OEM
10.2. Aftermarket
10.2.1. OEM Service Centers
10.2.2. Independent Service Centers
11. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
11.1. North America
11.2. Latin America
11.3. Western Europe
11.4. South Asia
11.5. East Asia
11.6. Eastern Europe
11.7. Middle East & Africa
12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
19. Sales Forecast 2024 to 2034 by Product Type, Gas Type, Connectivity, and End Use for 30 Countries
20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
21. Company Profile
21.1. Tenneco
21.2. ZF Friedrichshafen AG
21.3. Delphi Automotive PLC
21.4. Mando Corporation
21.5. Nexteer Automotive Group Limited
21.6. NSK Ltd
21.7. CTR Corporation
21.8. Sankei Industry Co., Ltd.
21.9. ACDelco
21.10. Mevotech LP
21.11. Febi Bilstein
21.12. Dorman Products, Inc.
21.13. Dana Inc.
21.14. Motorcraft
21.15. HARDRACE
21.16. MEYLE AG
21.17. THK
21.18. Rane Group
21.19. Skyjacker
21.20. Whiteline Performance
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Steering Tie Rod Market
