Automotive Steering Equipment Market

Automotive Steering Equipment Market Overview

Global Automotive Steering Equipment Market acquired the significant revenue of XX Billion in 2023 and expected to be worth around USD XX Billion by 2033 with the CAGR of XX% during the forecast period of 2024 to 2033. The automotive steering equipment market encompasses a wide range of technologies and systems used to control and direct the movement of vehicles. This market includes traditional mechanical steering systems, hydraulic power steering, and the growing segment of electric power steering (EPS), which has gained significant traction in recent years due to its efficiency and integration with advanced driver assistance systems (ADAS). The increasing demand for fuel-efficient, eco-friendly, and autonomous vehicles has driven the adoption of electric power steering, as it reduces energy consumption compared to hydraulic systems.

Additionally, the rising trend toward advanced technologies, such as autonomous driving and active safety features, is pushing the need for highly precise and responsive steering systems. Factors such as stringent government regulations on vehicle safety and environmental standards are also influencing the market, driving manufacturers to innovate and develop more efficient, lightweight, and reliable steering solutions.

Drivers for the Automotive Steering Equipment Market

Rising Demand for Fuel-Efficient Vehicles

As consumers become more environmentally conscious and demand vehicles with better fuel efficiency, automotive manufacturers are shifting towards advanced technologies that reduce energy consumption. Electric Power Steering (EPS) has emerged as a key solution in meeting this demand. Unlike traditional hydraulic steering systems, which rely on a pump driven by the engine to assist with steering, EPS uses an electric motor to provide steering assistance. This not only reduces the load on the engine, thereby improving overall fuel efficiency, but also contributes to lower vehicle emissions. EPS systems are lighter, more compact, and offer more precise control compared to their hydraulic counterparts, further enhancing the driving experience.

Moreover, EPS is highly adaptable and can easily be integrated with modern technologies, such as driver assistance systems, contributing to both energy savings and improved vehicle performance. The adoption of EPS is becoming a standard in both conventional and electric vehicles, reflecting the automotive industry's shift toward more sustainable and energy-efficient solutions.

Restraints for the Automotive Steering Equipment Market

Integration Challenges with Legacy Systems

Adapting new steering technologies to legacy vehicle platforms presents significant technical challenges, especially for older vehicle models. Traditional steering systems, such as hydraulic power steering (HPS), are deeply integrated into the vehicle's mechanical architecture. Incorporating newer technologies, such as Electric Power Steering (EPS) or more advanced systems like steer-by-wire, requires extensive modifications to the vehicle's design and components. These upgrades may involve changes to the vehicle's electrical systems, steering column, and the integration of new software for better control and safety features. For older models, these retrofits can be complex and costly due to the absence of pre-designed compatibility, often requiring a complete overhaul of the steering mechanism.

Opportunity in the Automotive Steering Equipment Market

Integration with Autonomous Driving Technologies

The integration of steering systems with autonomous driving and driver assistance technologies presents a significant growth opportunity for the automotive steering equipment market. As the automotive industry moves toward increased automation, steering systems are becoming more interconnected with advanced technologies such as lane-keeping assist, automated parking, and adaptive steering. These systems rely on precise and responsive steering control to enhance driver safety and convenience. For instance, lane-keeping assist uses steering adjustments to help keep the vehicle within lane boundaries, while adaptive steering can automatically adjust the steering response based on vehicle speed and road conditions, ensuring optimal handling and comfort. Automated parking, another driver assistance feature, utilizes steering and sensor systems to allow vehicles to park themselves with minimal human intervention.

Trends for the Automotive Steering Equipment Market

Shift Toward Electric Power Steering (EPS)

Electric Power Steering (EPS) is rapidly gaining popularity in the automotive industry due to its numerous advantages, making it a dominant trend in both traditional and electric vehicles. One of the key benefits of EPS is its improved fuel efficiency. Unlike hydraulic power steering systems, which require energy from the engine to power a pump, EPS uses an electric motor to assist with steering. This reduction in engine load translates to better fuel economy and lower emissions, aligning with the growing consumer demand for more sustainable and fuel-efficient vehicles.

EPS is also significantly lighter than hydraulic systems, which is particularly beneficial for improving overall vehicle performance and efficiency. The reduction in weight contributes to better handling, acceleration, and braking performance, while also supporting vehicle designs that prioritize reduced environmental impact.

Segments Covered in the Report

By Type

o   Steering Shaft

o   Steering Wheel

o   Steering Gear

o   Other Types

By Vehicle Type

o   Passenger Cars

o   Commercial Vehicles

o   Luxury Vehicles

o   Electric Vehicles (EVs)

o   Other Vehicle Types

By Sales Channel

o   Hypermarket

o   Online Channels

o   Supermarket

o   Convenience Stores

o   Other Sales Channels

Segment Analysis

By Type Analysis

On the basis of type, the market is divided into steering shaft, steering wheel, steering gear, and other types. Among these, steering gear segment acquired the significant share in the market owing to its critical role in ensuring efficient and responsive steering performance. Steering gears, which include components such as rack-and-pinion and recirculating ball mechanisms, are central to the operation of both traditional and advanced steering systems, including Electric Power Steering (EPS). These gears convert the rotational movement of the steering wheel into the linear motion required to turn the vehicle's wheels.

The steering gear segment has been particularly dominant as it directly influences vehicle handling, safety, and overall driving experience. As the automotive industry shifts toward more precise, responsive, and energy-efficient steering systems, steering gears have become integral to the development of advanced features like lane-keeping assist, adaptive steering, and autonomous driving technologies.

By Vehicle Type Analysis

On the basis of vehicle type, the market is divided into passenger cars, commercial vehicles, luxury vehicles, electric vehicles (EVS), and other vehicle types. Among these, passenger cars segment held the prominent share of the market due to the large volume of production and high consumer demand for passenger vehicles globally. Passenger cars encompass a wide range of vehicles, including compact cars, sedans, hatchbacks, and SUVs, which make up the majority of vehicles on the road. As the largest segment, passenger cars are at the forefront of the adoption of new steering technologies, such as Electric Power Steering (EPS), which offer improved fuel efficiency, reduced weight, and better integration with advanced safety features.

By Sales Channel Analysis

On the basis of sales channel, the market is divided into OEM and aftermarket. Among these, food industry held the prominent share of the market. The OEM segment benefits from the consistent demand driven by vehicle manufacturers who source steering systems for new vehicle models, including both internal combustion engine vehicles and electric vehicles (EVs). As vehicle production continues to grow globally, especially in emerging markets, the OEM segment maintains its dominant position.

Several factors contribute to the strength of the OEM segment in the market. First, automakers often prioritize using OEM steering systems because they offer reliable quality, compatibility, and performance, ensuring that all components of the vehicle work seamlessly together.

Regional Analysis

North America Dominated the Market with the Highest Revenue Share

North America held the most of the share of 32.7% of the market. The region is home to major automotive manufacturers, including both traditional carmakers like General Motors, Ford, and Chrysler, as well as electric vehicle pioneers like Tesla. These manufacturers have been at the forefront of adopting innovative steering technologies, such as Electric Power Steering (EPS), to meet consumer demands for fuel-efficient, safe, and technologically advanced vehicles.

The region also benefits from the growing integration of autonomous driving and driver assistance technologies, such as lane-keeping assist and adaptive steering, which require precise and efficient steering systems. Additionally, North America has stringent vehicle safety and environmental regulations, driving the adoption of modern steering technologies that align with these standards. The high consumer purchasing power and preference for premium, high-performance, and electric vehicles also contribute to the strong demand for advanced steering systems.

Competitive Analysis

The competitive landscape of the automotive steering equipment market is characterized by the presence of several key players, both global and regional, striving to maintain a competitive edge through innovation, strategic partnerships, and technological advancements. Major companies in the market include industry giants such as JTEKT Corporation, ZF Friedrichshafen AG, Bosch, Delphi Technologies, NSK Ltd., and Mando Corporation, among others. These companies are continuously investing in research and development to enhance the performance, safety, and energy efficiency of their steering systems, with a strong focus on electric power steering (EPS) and steer-by-wire technologies.

Recent Developments

In October 2020, Nexteer introduced its High-Output Electric Power Steering (EPS) system, designed to offer advanced safety and comfort features while also improving fuel efficiency for both heavy-duty trucks and light commercial vehicles.

Key Market Players in the Automotive Steering Equipment Market

o   Robert Bosch GmbH

o   ZF Friedrichshafen AG

o   JTEKT Corporation

o   Thyssenkrupp AG

o   Mando Corporation

o   Nexteer Automotive

o   Schaeffler Group

o   Hitachi Automotive Systems

o   Continental AG

o   Other Key Players