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Automotive Steering System Market

Market Study on Automotive Steering System: PMR Foresees a Host of Opportunities for Industry Participants as Adoption of Steer-by-wire Technology and Demand for Advanced Safety Features Soar High

A Detailed Analysis of the Automotive Steering System Market Based on the Soaring Adoption of ADAS, Integration of Electric Power Steering, and Evolving Autonomous Vehicle Technology

Automotive Steering System Market

The global automotive steering system market is forecast to expand at a CAGR of 4.8% and thereby increase from a value of US$23.4 Bn in 2023, to US$32.5 Bn by the end of 2030.

Attributes

Key Insights

Automotive Steering System Market Size (2023E)

US$23.4 Bn

Projected Market Value (2030F)

US$32.5 Bn

Global Market Growth Rate (CAGR 2023 to 2030)

4.8%

Historical Market Growth Rate (CAGR 2018 to 2022)

4.3%

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Market Introduction and Definition

The market for automotive steering systems comprises the manufacturing, distribution, and development of steering mechanisms utilized in motor vehicles. This critical element plays a pivotal role in regulating the trajectory of an automobile, thereby guaranteeing driver command and road safety. A diverse range of steering systems are available in the market, including electric, hydraulic, and electro-hydraulic power steering.

As contemporary vehicles place an increasing focus on improved safety, comfort, and fuel efficiency, the automotive steering system industry is experiencing technological developments such as steer-by-wire systems and driver assistance system integration. These developments are significantly influencing the trajectory of forthcoming automotive designs.

There are numerous factors that contribute to the expansion of the worldwide automotive steering system market. The market is being propelled forward by the rising demand for electric vehicles (EVs), which frequently feature cutting-edge steering technologies. Furthermore, an increase in global automotive safety regulations is compelling automakers to allocate resources toward the development of sophisticated steering systems that incorporate functionalities such as collision avoidance and lane-keeping assistance.

Additionally, the ongoing development of autonomous driving technology is significantly dependent on advanced steering systems, which contributes to the expansion of the market. Consumer preferences for more responsive and comfortable steering also impact the trajectory of the market, motivating R&D endeavors to enhance the efficiency and dependability of steering solutions.

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Market Growth Drivers

Substantial Increase in EV Sales over the Recent Past

The substantial increase in demand for electric vehicles (EVs) emerges as a notable catalyst propelling the expansion of the worldwide automotive steering system market. In the current paradigm shift towards sustainability within the automotive sector, electric vehicles have emerged as a significant contributor to the reduction of carbon emissions and the advancement of environmental awareness. The current paradigm shift is having a substantial influence on the market dynamics of automotive steering systems.

The increasing prevalence of electric vehicles is exerting a multifaceted impact on the automotive steering system market. Electric vehicles, which are distinguished by their use of electric motors as opposed to conventional internal combustion engines, require sophisticated and effective steering systems to complement their unique powertrain properties.

As an alternative to conventional hydraulic systems, electric power steering (EPS) has gained prominence due to its compatibility with the energy-efficient philosophy of electric vehicles. Expanding pedal placement offers improved manoeuvrability, reduced power consumption, and the potential to interface with advanced driver-assistance systems (ADAS), demonstrating the industry's commitment to all-encompassing technological advancement.

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Market Restraints

Complexities in ADAS Integration Process

One significant factor that restricts the growth of the worldwide automotive steering system industry is the ongoing difficulties that arise during the integration process of advanced driver-assistance systems. Although ADAS technologies can significantly improve vehicle safety and decrease accidents, manufacturers face complex challenges in achieving a seamless integration with steering systems.

The requirement for precise coordination between the steering system and numerous ADAS components, including automated emergency braking and lane-keeping assistance, contributes to the complexity. The simultaneous pursuit of optimal integration, reliability, and safety continues to pose a substantial technical challenge.

Difficulties in calibration and compatibility concerns among various ADAS functionalities and steering mechanisms necessitate thorough engineering and testing, which in turn contribute to escalated development expenses and schedules.

Mounting Demand to Address Concerns Around Environmental Sustainability

An area of difficulty for the worldwide automotive steering system industry is the mounting demand to address issues of environmental sustainability. Regarding environmental impact, the automotive industry, including manufacturers of steering systems, is confronted with stringent regulations and increased consumer expectations.

Steering systems, including hydraulic components, frequently necessitate resource-intensive manufacturing processes and utilize materials that contribute to environmental degradation. Achieving sustainability objectives poses a complex and multifaceted dilemma for the market of automotive steering systems.

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Opportunities

Increasing Prevalence of Autonomous and Connected Vehicles

The increasing prevalence of autonomous and connected vehicles offers a substantial opportunity for growth in the worldwide automotive steering system market. With the advancement of the automotive sector toward an era of intelligent transportation, steering systems are positioned to have a significant impact on the future driving experience. By incorporating cutting-edge technologies such as artificial intelligence (AI) and sensor-based systems, novel opportunities arise to guide advancements that address the changing requirements of autonomous and connected vehicles.

Autonomous and connected vehicles are dependent on advanced steering systems that surpass conventional capabilities. The introduction of autonomous driving brings about the implementation of steer-by-wire technology, which substitutes electronic signals for the physical connection between the steering wheel and the wheels. This fundamental change not only improves the accuracy and promptness of steering but also corresponds with the overarching objective of developing automobiles that can execute decisions in real-time.

By integrating sensors, cameras, and AI algorithms into steering systems, vehicles are empowered to navigate intricate environments, adapt to dynamic road conditions, and establish communication with other vehicles. This significantly enhances the overall safety and efficiency of connected and autonomous driving.

Analyst’s Viewpoint

The worldwide market for automotive steering systems is anticipated to experience significant expansion, propelled by a confluence of technological advancements, regulatory changes, and evolving consumer inclinations. The increasing market expansion is largely attributable to the rising demand for electric vehicles.

The automotive sector is currently undergoing a paradigmatic transition towards sustainability, and with the increasing prevalence of EV usage, specialized steering systems are assuming a more critical role. The increasing recognition of EPS can be attributed to its energy-efficient operation and seamless integration with ADAS, which demonstrates the market's agility in response to changing automotive trends.

Furthermore, the incorporation of cutting-edge technologies, specifically those pertaining to interconnected and self-driving automobiles, is crucial for the evolution of steering systems. Steering systems that can facilitate autonomous driving functions, such as those comprised of steer-by-wire technology, are becoming increasingly in demand. With manufacturers endeavoring to synchronize steering systems with the specifications of autonomous vehicles, it is anticipated that this convergence of technologies will stimulate market expansion.

Evolving factors such as consumer awareness and safety regulations are impacting the relationship between manufacturers and consumers. Increased international safety standards are compelling automakers to allocate resources toward the development of sophisticated steering systems that incorporate functionalities like lane-keeping assistance and collision avoidance.

Concurrently, there is an increasing discernment among consumers who prioritize safety, comfort, and responsive steering. This reciprocal association establishes a symbiotic connection in which manufacturers are motivated to develop novel solutions to satisfy consumer demands, thereby nurturing an ongoing progression of steering system technologies.

In essence, the evolving dynamics between manufacturers and consumers, the increasing demand for electric and autonomous vehicles, and technological advancements all contribute to the projected growth of the global automotive steering system market. Amid ongoing concerns regarding sustainability and regulatory adherence, the automotive steering systems industry is anticipated to continue to be influenced by innovative developments.

Supply-side Dynamics

Principal industry participants, including JTEKT Corporation, ZF Friedrichshafen, and Bosch, dominate the competitive landscape of the worldwide automotive steering system market. Industry titans possess considerable sway by capitalizing on their vast R&D capacities and worldwide market penetration. The United States, Germany, and Japan are the leading countries in terms of market utilization. These nations possess firmly established automotive sectors and prioritize technological advancements.

To illustrate, prominent automotive manufacturers such as General Motors, and Ford integrate sophisticated steering technologies into their vehicles with the intention of augmenting both safety and performance. Germany, which is host to esteemed automobile manufacturers such as BMW and Mercedes-Benz, propels market expansion through its obsession with precise engineering in steering systems. Toyota, among others, makes significant contributions to the international market by developing electric power steering innovations that promote sustainable and fuel-efficient driving solutions.

By means of strategic alliances, technological innovations, and an emphasis on sustainability, the incumbents of the automotive steering system market are reshaping the landscape. A case in point is Bosch, which prioritizes the incorporation of artificial intelligence (AI) into its steering systems to improve safety and responsiveness. ZF Friedrichshafen is a leader in the advancement of steer-by-wire technology, which is fundamentally altering the traditional steering paradigm.

By utilizing its knowledge and skills, JTEKT Corporation improves electric power steering solutions in accordance with the increasing need for vehicles that conserve energy. By establishing industry standards, encouraging innovation, and adjusting to the changing preferences of manufacturers and consumers, these participants are exerting an impact on the market.

The ongoing investment in state-of-the-art technologies and the adoption of sustainable practices by industry participants shape the competitive environment of the automotive steering system market, thereby establishing a foundation for forthcoming expansion and paradigm shifts.

Market Segmentation

Which System Type Segment Steers the Market?

"EPS-based Systems Lead in Line with Rising Demand for EVs

It is anticipated that the electronic power steering (EPS) sector will hold the most significant portion of the market for automotive steering systems. The growing prevalence of electric vehicles and the inclination towards energy-efficient steering solutions are factors that contribute to the prevalence of EPS. This technology provides improved accuracy, decreased energy usage, and integration with sophisticated driver-assistance systems.

When considering the sector with the most accelerated growth, it is expected that the electro-hydraulic power steering (EHPS) sector will be the most active. By integrating electronic control with hydraulic power assistance, EHPS provides a harmonious integration of conventional hydraulic systems and contemporary electric substitutes.

EHPS is poised for rapid growth as the automotive industry seeks adaptable solutions that bridge technological advancements and dependability. It will serve a variety of vehicle categories and satisfy evolving consumer demands for steering systems that are both responsive and efficient.

What is the Largest Vehicle Type Category?

Rising Demand for Personal Transportation Systems Secure the Largest Market Share for Passenger Cars

It is anticipated that the passenger car segment will hold the largest market share and exert the most control over the automotive steering system market. As automotive technologies continue to advance and the global demand for personal transportation increases, the passenger car segment continues to be a significant market driver for steering system manufacturers. Passenger vehicle demand for technologically sophisticated and responsive steering solutions significantly contributes to the segment's prominence.

With respect to the fastest-growing sector, it is expected that the light commercial vehicle (LCV) industry will undergo substantial expansion. The growing urbanization and expansion of the e-commerce industry stimulate the demand for manoeuvrable and efficient light commercial vehicles, thereby creating a critical demand for sophisticated steering systems.

With the increasing integration of LCVs into last-mile delivery services and diverse commercial applications, advancements in steering systems that are customized to suit the unique needs of these vehicles are expected to accelerate the growth of the LCV segment significantly.

Top Regional Markets

North America has the Hold on Steering Wheel

With the highest potential market share, the North American region is anticipated to dominate the global automotive steering system market. The prevailing position can be ascribed to the firmly established automotive sector in the area, which is propelled by technological progress, substantial consumer buying power, and a steadfast commitment to vehicle safety.

North America serves as a prominent center for automotive advancements, particularly in the integration of sophisticated steering technologies into vehicles-including those that operate autonomously and electrically. The presence of major automotive manufacturers and rigorous safety regulations further bolsters the considerable market share of automotive steering systems in the region.

Prospects High Across South Asia, and Oceania

In contrast, the automotive steering system market is projected to expand at the quickest rate in the South Asia, and Oceania region. An increase in disposable income, accelerated urbanization, and the development of the middle class all contribute to a surge in automotive demand. A greater awareness of safety features and a trend toward electric vehicles in the region are driving demand for advanced steering systems.

The rapid development and modernization of automotive infrastructure in South Asia, and Oceania is anticipated to generate substantial demand for steering systems. Consequently, this region emerges as a pivotal area for market expansion and innovation.

Competitive Intelligence and Business Strategy

Prominent entities in the worldwide automotive steering system industry, such as JTEKT Corporation, ZF Friedrichshafen, and Bosch, utilize strategic initiatives to maintain and expand their market dominance. These sector frontrunners are perpetually investing in research and development to provide state-of-the-art steering solutions that address the ever-changing requirements of the automotive industry. As a result, they are constantly at the vanguard of innovation.

Bosch, a market leader, employs a comprehensive strategy to attain the greatest possible market share. The organization implements Artificial Intelligence (AI) strategically into its steering systems with the aim of improving accuracy, promptness, and security. Bosch's market dominance is a result of its dedication to ADAS development, which is in line with the industry's trend toward safer and more automated driving encounters. Moreover, Bosch leverages its collaborative partnerships with major manufacturers and its global presence to ensure that its steering technologies are widely adopted.

In brief, the market leaders in automotive steering systems strive to achieve the greatest possible market share by employing a strategy that combines technological advancements, international cooperation, and a dedication to environmental responsibility. By remaining at the vanguard of developments in artificial intelligence, steer-by-wire technology, and energy-efficient solutions, these participants establish themselves as frontrunners in the industry, exerting a significant impact on the market's course and molding the future of automotive steering systems.

Key Company Developments

New Product Launch

ZF showcased its most recent steering systems during Work Truck Week (WTW) in March 2022. ZF's second-generation Active Kinematics Control (AKC) incorporates steer-by-wire technology, the rear steering system now available on electric vehicles, pickup trucks, and heavy-duty vehicles, with a North American market focus.

Market Impact: Work Truck Week in March 2022 witnessed the debut of ZF's second-generation Active Kinematics Control (AKC) featuring steer-by-wire technology. This development signifies a substantial progression in the worldwide automotive steering system industry. The strategic integration of AKC into the rear steering systems of heavy-duty vehicles, pickup trucks, and electric vehicles, concentrating on the North American market, signifies a significant transition towards more sophisticated and versatile steering solutions. This innovation is positioned to have a significant impact on the industry by establishing fresh benchmarks for accuracy, adaptability, and regulation in steering systems in response to the changing requirements of contemporary vehicle designs and driving encounters.

(Source: ZF Press)

New Facility Opened

To facilitate the development of its software-centric products, Robert Bosch Engineering and Business Solutions (RBEI) inaugurated a new smart campus in HITEC City, Hyderabad, in December 2022. As a Technology and Innovation R&D facility, the Centre of Excellence specializes in the domain of Automotive Engineering, with a particular emphasis on components such as the Classical Powertrain and Automotive Steering.

Market Impact: The December 2022 opening of the smart campus in HITEC City, Hyderabad, by Robert Bosch Engineering and Business Solutions (RBEI), is anticipated to impact the worldwide automotive steering system market significantly. A strategic shift towards software-centric products is indicated by the establishment of a Technology and Innovation R&D facility that specializes in Automotive Engineering, particularly with regards to components such as Classical Powertrain and Automotive Steering. This progression signifies an increasing focus on technological advancements within the automotive industry, specifically in steering systems. Such efforts can impact the worldwide market by encouraging innovation, research, and development in intelligent and interconnected automotive solutions.

(Source: Bosch)

Automotive Steering System Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Type
  • Vehicle Type
  • Region

Key Companies Profiled

  • T Robert Bosch GmbH
  • JTEKT Corporation
  • ZF Friedrichshafen AG
  • Nexteer Automotive
  • NSK Ltd.
  • Thyssenkrupp AG
  • Mando Corporation
  • Showa Corporation
  • Hyundai Mobis Co., Ltd.
  • Hitachi Automotive Systems, Ltd.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Automotive Steering System Market Research Segmentation

By Type:

  • Electric Power Steering (EPS)
  • Hydraulic Power Steering (HPS)
  • Electro-Hydraulic Power Steering (EHPS)
  • Manual Steering
  • Misc

By Vehicle Type:

  • Passenger Car
  • LCV
  • HCV

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • T Robert Bosch GmbH
  • JTEKT Corporation
  • ZF Friedrichshafen AG
  • Nexteer Automotive
  • NSK Ltd.
  • Thyssenkrupp AG
  • Mando Corporation
  • Showa Corporation
  • Hyundai Mobis Co., Ltd.
  • Hitachi Automotive Systems, Ltd.

- Frequently Asked Questions -

The value CAGR forecast for the automotive steering system market is approximately 4.8% during the projected period.

The automotive steering system market size is currently around US$23.4 Bn.

The US presently holds the largest revenue share of the market.

Some of the most prominent players in the market include Robert Bosch GmbH, JTEKT Corporation, ZF Friedrichshafen AG, Nexteer Automotive, NSK Ltd., and ThyssenKrupp AG.

The LCV segment is expected to remain the most lucrative one, exhibiting the fastest CAGR through 2030.

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