The automotive steering system market was expected to be valued at USD 41.2 billion in 2023 and is anticipated to reach USD 42.94 billion in 2024 from USD 59.77 billion by 2032, growing at a CAGR of 4.22% from 2024 to 2032.
The growth of the global automotive steering system market is majorly driven by the increasing consumer preference for smart driver-aid systems in cars. Moreover, the sale of electric vehicles will grow due to the strict environmental rules and this will raise the demand for these systems. Besides these factors, technological developments, an expanding consumer base for Hybrid and electric cars and the emphasis on comfort, safety, and better fuel consumption are driving the global market growth.
The increased protection and low accident rates are also propelling the automotive steering system market. Hence, consumers are favoring smart driver-aid systems more and more. In addition, the goal of advanced driver assistance systems is to reduce accident incidents and help minimize fatalities and injuries. Furthermore, autonomous emergency braking, adaptive cruise control, light control, and lane assistance are a few functions provided by these systems. These technologies make driving safer and less dangerous for other drivers. The automobile sector is compelled by regulations and environmental concerns to adopt sustainable practices, which influences the demand in the automotive steering system market. Moreover, governments worldwide have been implementing stringent environmental laws to mitigate pollution and encourage sustainability. Failure to comply with these standards may lead to substantial penalties and legal disputes.
Growth in the automobile industry may encounter challenges because of the comparatively high cost of putting power steering technology into practice. Moreover, the emergence of self-driving cars and competitive pricing may impede the automobile industry's wider growth. Additionally, technological changes in the industry, such as the movement to electrification and autonomous cars, can cause obstacles to the expansion of traditional steering systems. Hence, the automobile industry is actively adopting the EPS (Electric Power Steering) systems. This is due to their efficiency and fuel economy benefits in passenger cars.
The growing number of connected and autonomous vehicles presents significant opportunities for the automotive steering system market. Modern technologies such as artificial intelligence and sensor-based systems are very important for the diving experience in today's time. The use of steer-by-wire technology is essential in fulfilling the requirements of autonomous driving. This is because it improves steering precision and reactivity. Also, increased awareness about power steering is providing prospects for the automotive steering system market. Moreover, it is expanding due to the rising popularity of autonomous vehicles and the need for power steering systems. It is particularly in trucks and utilities.
Difficulties in the integration of ADAS are decreasing the growth rate of the automotive steering system market. For manufacturers, incorporating advanced driver-assistance systems presents serious problems. So, combining steering systems seamlessly is difficult, especially when collaborating with parts like automatic emergency braking and lane-keeping assistance. Development costs and timelines are further impacted by calibration and compatibility problems. The growing need for environmental sustainability hinders the expansion of the automotive steering system market. The car steering system sector is under pressure to solve sustainability challenges due to environmental concerns. Manufacturing techniques are frequently used in the production of hydraulic steering system components. This increases environmental deterioration.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
4.8% |
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Segments Covered |
By Component, Technology, Pinion Type, Vehicle Type, and Region. |
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Various Analyses Covered |
Global, Regional, & Country Level Analysis; Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
TEKT Corp., Nexteer Automotive, Mando Corp, NSK Ltd, TRW Automotive, ThyssenKrupp Presta AG, ZF Lenksysteme, China Automotive Systems Inc, Robert Bosch Gmbh |
The steering wheel speed sensor segment is expected to grow at an elevated CAGR in the future. The speed sensor data is the basis for all modern automotive needs, including reduced fuel efficiency, fewer emissions, comfort, safety, and driving dynamics. Better data accuracy when feeding the ECU is achieved by integrating the torque sensor with the steering angle sensor. Better steering control results from increased data quality. This sensor is mostly used in higher-end premium car categories because of its sophistication.
The electric power steering segment is expected to have a higher position in the automotive steering system market. This growth can be attributed to the rising adoption of electronic steering technology by several automakers. It outperformed the conventional methods in terms of mileage. Given its capacity to efficiently absorb road shocks in commercial vehicles, the hydraulic steering segment is predicted to hold the second position. Because the load-bearing capability of electronic steering technology in these cars is limited, several manufacturers are investing in the development of hydraulic automobile steering wheels.
The Dual segment is predicted to have the maximum portion of the automotive steering system market. The dual pinion reduces the possibility of leg injuries in the event of a collision by offering more design options in where to place the motor and controller. It also helps the mechanism when it comes to the driver's side. Furthermore, the dual-pinion category is predicted to rise as a result of the growing penetration of the C and D vehicle segments. The greatest market for dual-pinion steering systems is predicted to be Asia Pacific.
The passenger vehicles segment is probably going to have the largest portion of the automotive steering system market. Vehicle sales are increasing globally, which is driving up demand for vehicle steering system components. Other factors contributing to this growth include the ease of obtaining financing and credit as well as the rising travel and leisure activities. Another element propelling the market expansion is the high demand for Special Utility Vehicles (SUVs). This is supported by superior maneuverability, stylish designs, and affordable prices.
North America is the largest automobile steering system market. The industry is anticipated to increase significantly because of several motivating reasons. The regional growth is because of the wide adoption of electric cars. Also, manufacturing and sales have increased significantly in recent years, and this trend is anticipated to continue. Moreover, the growing importance of vehicle safety is another significant attribute for the market to grow eventually. Companies in the region are investing in sophisticated safety features like advanced driver assistance systems in response to the region's severe safety rules and requirements.
Asia Pacific's automotive steering system market is expected to grow at a faster rate in the forecast period. Asia has lessened its energy use and contributed to the construction of an ecologically friendly and sustainable industrial facility. Asia Pacific's expanding environmental and public health consciousness has raised corporate understanding of their need to reduce the damaging effects of manufacturing operations on the environment. In Asia, international automakers are expanding their market share and fortifying their brands.
The consistently strong growth has improved socioeconomic circumstances, resulting in a growing middle class with greater spending power. It has increased the number of new car purchases, which has increased demand for new cars. China and India are the main markets for automobile steering systems because of their sizable domestic auto manufacturers and growing sales of commercial vehicles.
Europe is projected to witness significant progress in the automotive steering system market value. One of the main factors propelling the automotive steering system market in Europe is the notable growth in demand for electrification across all vehicle types. Major economies, including France, Germany, the United Kingdom, Italy, Russia, and the rest of Europe, make up the European automobile steering system market, and each contributes to the dynamics of the total market.
Latin America had a modest growth in the automotive steering system market. The market is showing signs of recovery, although slowly, following the initial disruptions caused by COVID-19. Additionally, the country's home to businesses like Ferreiros y Vilela SA contributes to the expansion of the vehicle steering system industry. All currently available versions of rack and pinion steering systems are supplied by it, along with custom-made variants for other clients. Its San Isidro facility boasts a sophisticated infrastructure and highly skilled employees in every department.
Middle East and Africa are anticipated to experience an uneven market growth rate. High-end cars with EPS are still in high demand in the Gulf, where they have formed their unique market niche. The region's increasing car production is fueling the market's expansion and increasing demand for automotive steering systems. However, affordability issues prevent widespread usage in the area.
TEKT Corp., Nexteer Automotive, Mando Corp, NSK Ltd, TRW Automotive, ThyssenKrupp Presta AG, ZF Lenksysteme, China Automotive Systems Inc, Robert Bosch Gmbh. Some of the major market players dominate the global automotive steering system market.
By Component
By Technology
By Pinion Type
By Vehicle Type
By Region
Frequently Asked Questions
The current market size of the global automotive steering system market is estimated to be USD 139.78 billion in 2024.
Factors such as the increasing demand for vehicles, advancements in steering technology, safety regulations mandating the adoption of electronic stability control (ESC) systems, and the rise of autonomous driving technologies are driving the growth of the automotive steering system market globally.
Regions such as North America, Europe, and Asia-Pacific are leading in the adoption of advanced steering systems, driven by factors like stringent safety regulations, consumer demand for enhanced driving experiences, and the presence of leading automotive manufacturers.
In North America, the automotive steering system market is regulated by safety standards set by organizations such as the National Highway Traffic Safety Administration (NHTSA) and the Society of Automotive Engineers (SAE) to ensure the reliability and performance of steering systems.
In Asia-Pacific, electric power steering (EPS) systems are among the most popular steering systems due to their superior fuel efficiency, smoother operation, and compatibility with hybrid and electric vehicles.
The future prospects for the global automotive steering system market are promising, with continued growth expected as automotive manufacturers invest in research and development to improve steering system performance, safety, and compatibility with autonomous driving technologies.
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