Automotive Steering Systems Market

Automotive Steering Systems Market Overview

Global Automotive Steering Systems Market acquired the significant revenue of 28.1 Billion in 2023 and expected to be worth around USD 52.6 Billion by 2033 with the CAGR of 6.3% during the forecast period of 2024 to 2033. Automotive steering systems are essential for the vehicle dynamics and includes several technologies that enable drivers to get increased control and command over vehicles. The market segments are hydraulic, electric, and electro-hydraulic, and electric power steering (EPS) type is taking a more significant share in the market due to low energy consumption, lightweight, and improved fuel efficiency.

Increased purchasing of ADAS and autonomy technologies for motor vehicles is increasing the uptake of integrated steering systems equipped with sensors and software tools. Over the years, emerging market; increasing unit production of vehicles; regulatory emission and fuel efficiency standards; and innovative technology such as steer by wire, which grants design freedom and simplicity due to the downsizing of mechanical linkages, have acted as key driving forces. Since this is a highly competitive market, industry leaders continue to introduce new features that make the vehicles safer, more accurate and comfortable to drive.

Drivers for the Automotive Steering Systems Market

Increasing Demand for Fuel-Efficient Vehicles

The greatest influence that has led to a change of steering from traditional hydraulic to electric power steering (EPS) is the trend towards saving on fuel and reducing overall energy consumption in automobiles. The earlier hydraulic power steering systems are based on a hydro-boost pump that is engine driven and draws power constantly irrespective of the Turning-instruction. This achieves a constant power consumption which in turn causes an increase in fuel efficiency. On the other hand, EPS systems employ an electric motor that functions when there is steering input and this saves a lot of energy. Lack of hydraulic pump and fluid in the EPS system not only enhances the fuel economy but it also reduces the weight of the vehicle thus an added advantage. Also, the flexibility and accuracy of control of EPS systems suit the modern automobile market and facilitate the creation of autonomous and electric cars with built-in driver assistance systems.

Restraints for the Automotive Steering Systems Market

High Cost of Advanced Steering Systems

The integration of advanced technologies such as steer-by-wire systems and sensors significantly enhances the performance, safety, and user experience of modern vehicles. However, this technological advancement comes with a substantial increase in production costs, which can be a barrier to adoption, particularly in price-sensitive markets. Steer-by-wire systems eliminate the mechanical linkage between the steering wheel and the wheels, relying instead on electronic signals to provide steering assistance. While this offers benefits like improved vehicle design flexibility and the potential for enhanced features, the complexity and need for advanced electronics and software development contribute to higher manufacturing expenses.

Opportunity in the Automotive Steering Systems Market

Electric Vehicle (EV) Growth

The rise in electric vehicle (EV) production presents significant opportunities for manufacturers to innovate and develop steering systems specifically designed for the unique requirements of electric drivetrains. Unlike traditional internal combustion engine vehicles, EVs benefit from the absence of a bulky engine and the ability to redistribute weight more efficiently, allowing for lighter vehicle designs. This shift encourages the development of lightweight steering systems, such as electric power steering (EPS) and steer-by-wire technologies, which are inherently more adaptable to the dynamic performance characteristics of EVs.

These advanced steering systems can provide enhanced precision and responsiveness, crucial for optimizing the driving experience in EVs that often feature instantaneous torque delivery and unique handling dynamics. Moreover, integrating steering systems with other electric vehicle technologies, such as regenerative braking and advanced driver-assistance systems (ADAS), allows for a more cohesive vehicle architecture, improving overall performance and safety.

Trends for the Automotive Steering Systems Market

Integration of AI and Sensors

Steering systems are increasingly incorporating AI-driven technologies and sensors, enabling them to make real-time adjustments that enhance vehicle performance and driver safety. This integration allows for the continuous monitoring of road conditions, vehicle dynamics, and driver inputs, facilitating immediate responses to varying environments. For instance, advanced sensors can detect factors such as road surface irregularities, traction loss, or even changes in weather conditions, prompting the steering system to adjust its responsiveness accordingly.

By leveraging artificial intelligence, these systems can analyze vast amounts of data from multiple sources, including vehicle speed, steering angle, and even driver behavior patterns. This capability allows for predictive adjustments, optimizing steering feel and feedback to ensure a safer and more comfortable driving experience. For example, in adverse conditions such as rain or snow, the system can increase sensitivity and responsiveness to help maintain control, while in stable conditions, it can offer a more relaxed steering feel for enhanced comfort.

Segments Covered in the Report

By Type

o   Electric Power Steering (EPS)

o   Electro-Hydraulic Power Steering (EHPS)

o   Hydraulic Power Steering (HPS)

o   Manual Steering

By Vehicle Type

o   Passenger Cars

o   Heavy Commercial Vehicles

o   Light Commercial Vehicles

Segment Analysis

By Type Analysis

On the basis of type, the market is divided into electric power steering (EPS), electro-hydraulic power steering (EHPS), hydraulic power steering (HPS), and manual steering. Among these, electric power steering (EPS) segment acquired the significant share around 29.7% in the market owing to its numerous advantages over traditional systems.

EPS systems offer enhanced energy efficiency as they draw power only when needed, significantly reducing energy consumption compared to hydraulic power steering (HPS), which constantly uses engine power. This efficiency is particularly beneficial in electric and hybrid vehicles, where minimizing energy consumption is critical for maximizing range. Additionally, EPS systems provide improved vehicle handling and responsiveness, allowing for precise control and customization of steering feel based on driving conditions and preferences.

By Vehicle Type Analysis

On the basis of vehicle type, the market is divided into passenger cars, heavy commercial vehicles, and light commercial vehicles. Among these, passenger cars held the prominent share of the market due to the increasing global demand for personal mobility, coupled with a growing preference for advanced automotive technologies that enhance comfort, safety, and driving experience.

The rising sales of passenger cars, driven by urbanization, rising disposable incomes, and a growing middle class, have significantly contributed to the demand for sophisticated steering systems. Additionally, the shift towards electric power steering (EPS) technology in passenger vehicles offers benefits such as improved fuel efficiency, lower emissions, and enhanced driving dynamics, aligning with consumer preferences for environmentally friendly and performance-oriented vehicles.

Regional Analysis

Asia-Pacific Dominated the Market with the Highest Revenue Share

Asia-Pacific held the most of the share of 34.1% the market. This significant share is largely due to the rapid growth of the automotive industry in key countries such as China, Japan, and India, which are among the world's largest automotive producers and consumers. The region's strong manufacturing base, characterized by the presence of major automotive manufacturers like Toyota, Honda, Hyundai, and Nissan, contributes to its leading position in the market.

Moreover, the increasing urbanization and rising disposable incomes in the Asia-Pacific countries are driving a surge in vehicle ownership, particularly in the passenger car segment. This growing consumer demand encourages automakers to invest in advanced steering technologies, including electric power steering (EPS) and other innovative solutions that enhance vehicle performance and safety.

Competitive Analysis

The competitive analysis of the automotive steering systems market reveals a dynamic landscape characterized by both established industry leaders and innovative newcomers. Major players such as Robert Bosch GmbH, ZF Friedrichshafen AG, JTEKT Corporation, and Mando Corporation dominate the market, leveraging their extensive experience, research and development capabilities, and global manufacturing networks to deliver advanced steering solutions. These companies focus on developing technologies like electric power steering (EPS), steer-by-wire systems, and integration with advanced driver assistance systems (ADAS), positioning themselves to meet the increasing demand for safety, efficiency, and enhanced driving experiences.

Recent Developments

In October 2020, Nexteer has introduced its High-Output Electric Power Steering (EPS) system, which focuses on providing advanced safety and comfort features while also improving fuel efficiency for heavy-duty trucks and light commercial vehicles.

In May 2020, Koyo Canada Inc. (KCI), a subsidiary of JTEKT Corporation, has acquired the assets of a research and development facility in Halifax, Nova Scotia, formerly owned by KSR International Inc., a Canadian company. This acquisition enhances JTEKT's capabilities in developing electronic control units (ECUs) for vehicle steering and driveline products.

Key Market Players in the Automotive Steering Systems Market

o   JTEKT Corporation

o   Showa Corp.

o   Nexteer Automotive Group Ltd.

o   ThyssenKrupp AG

o   Robert Bosch GmbH

o   ATS Automation Tooling System Inc.

o   Hitachi Automotive System Ltd.

o   NSK Steering System Co. Ltd.

o   Hyundai Mobis

o   ZF Friedrichshafen AG

o   Mando Corp.

o   Other Key Players