The value of the global automotive steering system market is expected to increase at a CAGR of 5.5% during the forecast period of 2021 to 2031. An automotive steering system is a collection of components that work together to regulate the path that a vehicle is going in while also assisting the driver in manoeuvring the vehicle in the desired manner. The component of the vehicle steering system that is operated manually includes the steering column, the universal joints, the rack and pinion mechanism, and the hand-driven steering wheel. As a result of this improvement, the steering system has been converted from manual steering to a power assist steering system. Because it is essential for maintaining efficient control of the vehicle and because it is not replaceable, the steering system in automobiles is regarded as an essential component. Due to the fact that steering systems are required in all automobiles, there is a significant demand in the market for automotive steering systems. The rising desire for vehicles that are both better for the environment and more comfortable to drive is the primary factor propelling the expansion of this market. The market for vehicle steering systems is expected to cross US $25 billion by the end of 2026. The expansion of the market is being driven by the simplification of automobile steering systems through product redesign. Achieving more efficiency in the use of fuel is another factor that plays a significant part in the growing market for automobile steering systems.
Focus on Technological Innovation to Propel the Market Growth
The constant advancement of the steering system has resulted in significant modifications, such as the transition from a manual steering system to one that uses power assistance for steering. The expansion of the automotive steering system market has been directly propelled forward by the rising demand for vehicles around the world. A number of different manufacturers are hard at work developing cutting-edge solutions for the steering system. The steering system of modern automobiles is undergoing integration of a number of different technologies, including control technology and the Steer by Wire (SbW) system. The technology known as "Steer by Wire" (SbW) offers a number of advantages for the overall performance and safety of the vehicle. Electronics, algorithms, and actuators are used in place of the traditional mechanical steering link between the wheel in the driver's hands and the wheel on the road by means of the SbW technology. In addition to providing a more precise and quicker steering reaction, it also works as a vibration restraint by isolating the driver from the vibrations that are transmitted from the road. In addition to this, it results in a reduction in overall vehicle weight, reduced expenses associated with vehicle maintenance, and facilitates an easier design process for autonomous vehicles. For instance, the Infiniti brand of luxury automobiles, which is a sub-brand of the Nissan carmaker and focuses on high-end automobiles, has used the Steer by Wire (SbW) technology in its Q50 model version.
Demographic Parameters Favouring the Market Growth
The expansion of the industry is primarily driven by an increase in demand for automobiles as a result of an increase in the amount of discretionary income available to customers. In addition, the increasing prevalence of power steering systems in motor vehicles is a driving force behind the expansion of this industry. Increases in the vehicle's overall fuel efficiency can be attributed to the improved performance of the vehicle's steering system. As a result, there has been a surge in demand for steering systems as a direct consequence of the growing market for fuel-efficient vehicles. Additionally, consumers like driving comfort in their automobiles, which includes effortless driving and the vehicle's capacity to be manoeuvred easily. This preference for driving comfort applies to all types of vehicles. Driving comfort can be accomplished through the utilisation of an efficient steering system, which has led to an increase in the demand for steering systems and contributed to the expansion of this market.
Demand For Powered Steering Systems to Increase as A Result of Stringent Regulations.
Several nations' administrations on different continents have brought into effect rigorous emission and fuel economy regulations for automobiles. Fleet-level requirements have been adopted by regulatory authorities such as the National Highway Traffic and Safety Administration (NHTSA) in the United States, the International Council on Clean Transportation (ICCT) in Europe, and other associations. These regulations establish an average emission level that original equipment manufacturers (OEMs) of automobiles are obligated to uphold. Because of these rules, original equipment manufacturers (OEMs) in the car industry have been forced to improve their fuel-efficient steering systems, such as electronic power steering. Traditional hydraulic steering systems are heavier in weight and more complicated in structure, while electrically assisted power steering systems are lighter in weight and less complex in structure. In addition, because they do not require the use of fuel, the upkeep for these vehicles is much simpler for their owners. According to the data provided by the Department of Energy (DOE) in the United States, EPS systems have the potential to improve fuel efficiency by 2% to 4%, cut fuel consumption by up to 6%, and cut CO2 emissions by 8g/km in ideal conditions. Since 1999, it is estimated that EPS systems have contributed to the savings of roughly 3 billion gallons of gasoline (Source: Nexteer Automotive). In contrast to hydraulic systems, which continue to pump fluid even when the engine is shut off, these systems do not consume power unless the wheels are in motion. This directly leads to improved efficiency in terms of fuel use. The market share of electrically assisted power steering is most prevalent in the European region, followed by the North American market, and then the Asia Oceania market in that order.
Increasing Focus on Automobiles Production Among Developing Countries to Propel Market
The expansion of the automotive steering system market is anticipated to be driven by factors such as the increased manufacturing of automobiles in emerging nations such as China and India throughout the course of the forecast period. It is probable that the abundant availability of raw materials, as well as labour at lower costs in emerging countries, will assist in driving the rise of the production rate of vehicle manufacturers, which, in turn, would simultaneously enhance the demand for the steering systems. A rise in the average disposable income of people in emerging nations like India and China should lead to an increase in the number of people purchasing automobiles in such countries. This should, in turn, lead to an expansion of the market for automotive steering systems. As a result, it is anticipated that the global market for automotive steering systems will see a growth rate that is on the rise over the period covered by the forecast.
In some nations in the Asia Pacific, the production of electric cars and the introduction of these vehicles to the market are relatively recent. For instance, both domestic and foreign companies are mulling over the possibility of establishing electric vehicle production facilities. In addition, APAC is the home to major centres of automobile manufacturing, such as China and Japan. In addition, the expansion of the market can be attributed to factors such as a sizable population, an increase in income per person, and improvements in the general quality of living. Consumers in the Asia Pacific region have shown a preference for automobiles that combine low fuel consumption with high levels of comfort. It is anticipated that the installation of electric power steering (EPS) will accelerate the installation of hydraulic power steering, particularly in the passenger car market. As a consequence of this, the market for vehicle steering systems is expanding at a healthy rate.
Demand for Fuel-Efficient Vehicles to Drive Market Growth
Over the course of the forthcoming time period, the expansion of the market is anticipated to be driven by the rising demand for automobiles that consume less gasoline and feature efficient steering systems. One of the most important trends in the automotive steering system market is the increasing number of stringent recommendations issued by government bodies regarding the fuel efficiency of automobiles. The rising need for a driving experience that is unruffled and exceptionally comfortable is projected to catapult the growth of the automotive steering system market. In addition to this, the growing demand for high-tech automotive steering systems in developing nations like India and China is also fuelling the growth of the market over the forecast period. This demand is expected to be a major factor in the expansion of the market.
Increasing Number of Automobiles Using Electro-Hydraulic Power Steering Systems
The electro-hydraulic power steering is becoming increasingly popular in the automotive steering system market as a result of the advantages that it converges, which are those of hydraulic power and electronic power. Electronic power steering systems are advantageous in both their fuel economy and their usability. Electronic power steering is standard equipment in modern automobiles, including both passenger cars and city cars. An electric motor serves as the driving force behind this system. This motor is separate from the primary engine and works only when it is required to do so. Hydraulic power steering systems have the simplest and least complicated design of all the different types of steering systems. By supplying hydraulic assistance to the steering mechanism, the steering system lends a helping hand to the driver, making it easier for them to manoeuvre the vehicle. Therefore, drivers only need to provide a moderate amount of effort to the steering wheel, as the hydraulic system will handle the remainder of the work. The vast amount of cash that is necessary for research and development of the steering system is the primary issue that the industry is concerned about. This causes the price of the automotive steering system to climb significantly.
Cost Issues to Constraint the Market Expansion
It is projected that the high cost associated with power steering systems will act as a barrier to the expansion of the market for steering systems. It is anticipated that technologies such as drive-by-wire will be adopted in forthcoming automobiles; this will contribute to the expansion of the market in the not-too-distant future.
The EPS systems only have a limited capacity to bear loads
EPS systems are seeing increased use in the passenger automobile market as a result of the benefits they provide, which include an improvement in the vehicle's fuel efficiency and ease of manoeuvrability. However, because of their low load-bearing capability, their demand in the commercial vehicle category is extremely limited, and they are gradually being replaced by HPS systems. Different types of conventional electric steering systems, such as pinion assist electric power steering (P-EPS), have the ability to assist 10 kN (kilo-Newtons) of steering rack force on average. However, heavy commercial vehicles require steering systems that can assist 15 kN or more of steering rack force. Numerous businesses are putting research and development efforts into the creation of electric power steering systems that are capable of withstanding strong steering rack forces. For instance, in order to serve the market for heavy commercial vehicles, Nexteer Automotive designed a dual-pinion electric pinion system that is capable of managing 12.5 kN of steering rack force and a 12-Volt rack assist electric power steering system. Both of these systems are powered by 12 volts.
Innovation and Increasing Demand in Automotive Industry to Open Significant Opportunities
The rising demand for automotive steering systems can be directly attributed to the rising popularity of passenger automobiles and light commercial vehicles. New possibilities for incorporating the internet of things into vehicle steering systems are becoming available as a result of advances in technology. In addition, there is the possibility that electric power systems may be able to achieve a higher load-bearing capacity and become integrated into commercial vehicles. Additionally, the ease of gaining access to credit together with the requirement for safety, particularly during the period of the epidemic, all contributed to an increase in sales of vehicle steering systems. The increased manoeuvrability of Special-Purpose-Utility-Vehicles (SUVs), in conjunction with their more aesthetically pleasing designs, is a major factor in the proliferation of automobile steering systems. It is projected that rising demand for cars that use less fuel and an urgent need for vehicles that provide a more comfortable driving experience would push sales in the industry. Another aspect that is expected to boost the demand for car steering system parts in the years to come is the rising sales and production of both passenger cars and commercial vehicles. This will be a driver for the demand in the coming years. Car manufacturers are being forced to invest large sums of money in the integration of safety and electrical systems in response to the growing trend of integrating electronics in autos. It is anticipated that a significant number of automobile manufacturers will invest in technological advancements related to the design of steering wheels for automobiles.
Increasing Use of Sensors to Widen Market Potential During Forecast Period
The sensor that is situated in the steering column is responsible for measuring two key driver inputs, namely torque (also known as steering effort) and the speed and position of the steering wheel. As a result, there are three varieties of sensors that are utilised in such systems. These sensors are referred to as the torque sensor, the steering wheel speed sensor, and the position sensor. These steering system sensors send the signals to an ECU in the form of inputs, and the ECU then sends the appropriate output to the steering system so that an action can be taken. In most cases, torque sensors are contactless sensing devices. The sensor keeps track of the amount of force that is being given to the steering wheel by the driver, which allows for more nuanced management of the electric steering assistance. It functions using a magnetic measurement principle that does not require physical contact. It contains a magnet unit, a flux-tube unit, and a sensor unit. The torque sensor itself consists of two separate wire coils wound together. If the turn is to the right, the direction of the turn is determined by one of the coils, and if the turn is to the left, the direction of the turn is determined by the other coil. After that, the signal is transmitted from the electric power steering (EPS) module to the relevant coil, which subsequently provides assistance to the driver in steering the car. The automobile industry is continuously investing in research and development to create more advanced and reliable sensor devices in response to the rapid pace of technological improvement. During the forecast period, it is anticipated that automakers will continue to embrace more advanced sensor products for the EPS system. This is likely to continue due to the fact that such goods have seen rising adoption.
EPS Steering Continue to Dominate the Market
The electric power steering segment dominated the automotive steering system market, in terms of volume and revenue, in 2021. It is likely that the demand for electric power steering systems will increase as a result of the growing consumer trend toward comfort while driving. Electrifying a vehicle lessens its reliance on fuels for auxiliary power, which ultimately results in the vehicle having a higher overall fuel efficiency. This reason is a primary force behind the rise in demand for power-assisted steering systems in passenger cars, particularly electric-assisted power steering systems (EPS). The adoption of EPS is being driven by the need for lighter vehicles and increased energy efficiency in those vehicles. The Electronic Power Steering (EPS) system has fewer components than other systems, which makes its installation in the vehicle system simpler. By the year 2025, it is anticipated that nearly 4% of new car sales and 7% of the global car fleet will be electric vehicles. With the expanding electric vehicle sales, the deployment rate of lightweight steering systems (such as electric power steering (EPS)) is likely to witness a potential demand during the forecast period. Not only does the EPS system cut down on emissions, but it also lessens the risks to the environment because there is no possibility of leaks occurring. The sales of electric power steering systems are being driven in large part by all of these factors. The global market for electric power steering systems will grow at a compound annual growth rate (CAGR) of over 5.7% during the forecast period.
Within the EPS segment, it is anticipated that the R-EPS market would have the greatest CAGR during the forecast period of 2021 to 2031. This is due to the fact that R-EPS is able to steer a diverse range of vehicles, from little cars to large trucks. The shifting preferences of consumers away from passenger cars and toward compact SUVs and higher-end vehicles is another factor that is anticipated to contribute to the expansion of the R-EPS market. R-EPS not only frees up valuable space in engine compartments but also has the ability to be easily integrated into a variety of vehicle platforms. According to Nexteer Automotive Group Limited, a leading manufacturer of steering systems in North America, R-EPS currently holds a market share of more than 90 % in the North American full-size truck industry. High demand for powerful light commercial vehicles in the US is likely to further boost the growth of the R-EPS segment.
In terms of revenue, the segment that dealt with hydraulic power steering also held a significant share of the market in the year 2021. It is anticipated that during the period under consideration, it will develop significantly. Because of its widespread application in commercial vehicles, the market for hydraulic power steering is anticipated to experience a favourable development rate over the period covered by the projection. Due to the low load-bearing capability of commercial vehicles, the electric power steering does not function well in these vehicles. In addition to this, hydraulic power steering has the ability to dampen the impact of road shocks.
Passenger Vehicle to Remain the Revenue and Growth Leader
In 2021, the global market for automotive steering systems was dominated by the passenger vehicle segment. This was determined by the kind of vehicle. It is also anticipated that an increase in the sales of passenger vehicles across the world will propel the market. It is anticipated that an increase in the purchasing power of consumers located all over the world will lead to an increase in the sale of vehicles, which is then anticipated to fuel the growth of the global market for automotive steering systems. During the forecast period of 2021 to 2031, it is anticipated that the passenger car submarket of the automotive steering system market would represent the largest segment by vehicle type. The increasing number of vacations and other types of leisure activities around the world, in addition to the ease with which money and credit can be obtained, are driving up the need for automobile steering system parts, which in turn is driving up the sales of passenger vehicles. A further reason that is fuelling growth in the market is the high demand for Special Utility Vehicles (SUVs), which are supported by their improved manoeuvrability, stylish design, and low cost.
In addition, it is anticipated that the segment of light commercial vehicles will show splendid growth in the market. Vehicles classified as light commercial are the most common users of the hydraulic power steering system. A further factor that is predicted to promote the expansion of this sector of the market is the rising need for logistical operations related to commercial activities. As a result of lower sales and manufacturing in the volume of commercial vehicles in comparison to passenger automobiles, it is anticipated that the heavy commercial vehicle segment would display consistent growth in the market in the near future.
APAC Remains as the Global Leader
APAC is home to some of the world's most important centres for automobile manufacturing, including China, India and Japan. The expansion of the automotive steering systems industry in the region is being propelled by the likes of Hitachi Automotive systems, Hyundai Mobis, and Infineon Technologies in China, JTEKT Corporation and NSK steering systems, and Hitachi Astemo, Bawai Plant, and Bosch Huayu. Both regions have the potential to account for more than a third of the total demand in the world. Over the course of the last decade, the significant increase in the region's population, as well as its per-capita income and living standards, have all contributed to the expansion of the region's automotive industry. It is anticipated that the growing demand for fuel-efficient vehicles and comfort features will accelerate the installation of electric power steering (EPS) over hydraulic power steering, particularly in the passenger car segment. This shift will be driven by the increasing demand for fuel-efficient vehicles and comfort features. The adoption of EPS is being driven further by the reduction in the weight of vehicles as well as the enhancement of their energy efficiency.
North American manufacturers are finding lucrative new growth prospects by focusing on increasing their market share through the formation of partnerships, joint ventures, and mergers and acquisitions. The growing purchasing power and easy access to credit to customers in North America is also fuelling the demand for vehicle steering systems. Furthermore, increasing levels of vehicle manufacturing throughout all of North America's regions are having an impact on the demand for the automotive steering system market. North America is expected to grow at a CAGR of 4% during the forecast period of 2021 to 2031.
During the period covered by this forecast, it is anticipated that Europe will not only display significant growth in the market but will also hold the position of second-largest position in the market. In this part of the world, strict regulations imposed by the government regarding the efficiency of fuel have led to an increase in the number of people purchasing fuel-efficient vehicles that are also outfitted with an efficient steering system. For example, the sales of electric vehicles in Europe increased by 37% in 2018, compared to the sales of electric vehicles in 2017. Additionally, different governments across the world have established various regulations, incentives, and programmes to boost the usage of electric vehicles.
Strategic Collaboration and Geographic Expansion Remain the Key Competitive Factor
The market is fragmented due to the presence of a significant number of market players. Several companies, including Robert Bosch GmbH, ZF Friedrichshafen AG, JTEKT Corporation, Nexteer Automotive Corporation, NSK Ltd, Showa Corporation and Other Notable Players, currently hold the majority of the market share in the automotive steering market. These companies have been expanding their business with new innovative technologies so that they can have a competitive edge. These top-tier companies have a more extensive geographic presence and have been consistently conducting R&D, which has resulted in secure approvals from regulatory bodies. The demand for steering wheels for automobiles among Original Equipment Manufacturers (OEMs) is directly proportional to the rising volume of automobile production. Many prominent automotive manufacturers are expected to sign long-term contracts with OEMs in the forthcoming years. It is anticipated that some of the manufacturers will engage in acquisitions and joint ventures with OEMs in order to produce products for automobiles that are of an exceptional level of quality.
The primary aim of the leading companies currently functioning in the worldwide automotive steering system market is to increase their market share through the formation of new partnerships, joint ventures, as well as mergers and acquisitions. Key players in the automotive steering system are focusing on providing comfort and safety to people. Also, companies are constantly integrating the latest technological advancements that would reduce the chances of vehicle failures. For instance, in July 2021, Hyundai Mobis developed the world’s first brainwaves based on ADAS technology. With the help of this technology, the brainwaves can measure the driving state and notify to avert accidents.
Leading businesses participating in the global automotive steering system market are releasing cutting-edge products to cater to the growing demand from customers. A few of the other multinational corporations have the goal of expanding their business through the acquisition of local vehicle power steering system producers that are either small or medium in size. They want to have a competitive advantage in the market as a result of these acquisitions that they have made. For example, In January 2023, IMUZAK, a major producer of moulding technology-based products located in Japan, introduced a 3D floating display for driverless vehicles at CES 2023. It can project visual driver notifications from behind the steering wheel. The unique technique incorporates a proprietary microlens system for producing free-standing messages that notify drivers of many highway characteristics, important distances, and upcoming problems.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Steering Systems market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
