Automotive Collapsible Steering Column Market Analysis

Automotive Collapsible Steering Column Market (Global, 2023)

Introduction

The collapsible steering-column market is a key segment of the overall automobile industry. It reflects the latest developments in safety and design engineering. As vehicles are constantly being improved to meet the requirements of increasingly stringent regulations and consumers’ demands for greater safety, collapsible steering columns have become an indispensable safety feature. This market is characterized by a wide range of vehicle types, including passenger cars, commercial vehicles, and electric vehicles, each of which requires a solution tailored to its unique performance and safety needs. These requirements are being met by the integration of new materials and processes, such as light composites and advanced manufacturing techniques. Furthermore, the growing focus on automation and digitalization is shaping the direction of design trends and prompting manufacturers to explore new functions that support future mobility trends. As the automobile industry undergoes profound change, it is critical for companies to understand the complex interplay of regulatory frameworks, consumer preferences, and technological developments.

PESTLE Analysis

Political

In 2023, the car industry is under the heavy influence of government regulations designed to improve the safety of vehicles. In particular, the National Highway Traffic Safety Administration (NHTSA) has required that all new cars meet a set of crash standards. This has led to the installation of collapsible steering columns in all new models. Approximately 17 million new cars are sold in the United States every year. These regulations have forced manufacturers to make heavy investments in safety to meet the standards.

Economic

In the automobile industry there are fluctuations in the prices of raw materials which have a direct influence on the production of collapsible steering-columns. Steel rose to $800 a ton in 2023, a rise of 15 per cent over the previous year, due to disruptions in supply and an increase in demand. This rise in the price of raw materials forces manufacturers to examine their production methods and to think of how they can keep their costs down and still meet the requirements of consumers for a safe vehicle.

Social

The car buyers of 2023 are looking for a car that is both safe and comfortable. The purchase of a car with advanced safety features is the first priority of the car buyer. This is especially true of the younger generation of consumers aged 18 to 34, who are more likely to choose cars equipped with collapsible steering columns as part of their safety features. This has led to the integration of these features into the new models of the manufacturers in order to attract this group of consumers.

Technological

In the automobile market, the development of technology is pushing the market for collapsible steering columns. By 2023, the use of smart materials and sensors in the steering column is becoming increasingly common, and an estimated 30% of new vehicles will have this technology. These improvements not only increase safety by improving the ability of the column to collapse in a collision, but also reduce the weight of the car, which is important for fuel economy and performance.

Legal

The legal framework for motor safety is becoming increasingly strict. In 2023 a new law requires all manufacturers to conduct crash tests on collapsible steering columns. The law stipulates that at least 95% of new models must be tested and approved before they can be sold, which increases the costs of compliance for manufacturers. Estimates of the average cost per model are around $500,000. This can have a significant effect on the overall cost of a new car.

Environmental

The manufacturing process for automobiles is being subjected to increased scrutiny, and regulations are being introduced to limit the amount of CO2 released into the atmosphere. In 2023 the European Union will have set a target of reducing CO2 emissions by 55% in the year 2030. These regulations are already influencing the choice of materials used in the manufacture of collapsible steering columns. It is estimated that by 2023 a quarter of manufacturers will be using recycled materials in their components, in order to meet these new requirements.

Porter's Five Forces

Threat of New Entrants

The market for collapsible steering columns has moderate barriers to entry because of the significant capital required for the development of the technology and for the establishment of the manufacturing capacity. The incumbents are able to benefit from economies of scale and brand loyalty, which can be a barrier to new entrants. However, technological progress and the increasing demand for safety in vehicles may encourage new companies to enter the market.

Bargaining Power of Suppliers

The relative bargaining power of the suppliers in the market for collapsible steering columns is low. There are numerous suppliers of the required materials and components, which makes for a competitive market. Moreover, the long-term relationships that many automobile manufacturers have with their suppliers reduce the suppliers’ bargaining power even further.

Bargaining Power of Buyers

The purchasers of the motor industry, particularly the large motor manufacturers, have considerable bargaining power. Because there are so many suppliers, they can negotiate on price and insist on high quality. Also, the increasing safety regulations mean that they can demand ever more advanced designs and technology.

Threat of Substitutes

The threat of substitutes in the collapsible steering column market is moderate. There are other steering devices, but collapsible steering columns have a specific functionality and safety features that make them the preferred choice for modern cars. However, technological advances may result in the development of new alternatives that could be a threat in the future.

Competitive Rivalry

Competition is high in the collapsible steering column market, with several established players vying for market share. Competition is intense as companies strive to improve safety and reduce costs. Competition is also heightened by the presence of several large, global players and by the need to meet stringent safety standards.

SWOT Analysis

Strengths

• Enhanced safety features reducing injury risk during collisions.
• Growing demand for advanced driver-assistance systems (ADAS) integrating collapsible columns.
• Lightweight materials improving fuel efficiency and vehicle performance.

Weaknesses

• High manufacturing costs impacting overall vehicle pricing.
• Limited awareness among consumers regarding the benefits of collapsible steering columns.
• Potential reliability concerns affecting long-term performance.

Opportunities

• Increasing regulations mandating safety features in vehicles.
• Expansion of electric and autonomous vehicles creating new market segments.
• Technological advancements enabling smarter and more efficient designs.

Threats

• Intense competition from alternative safety technologies.
• Economic downturns affecting automotive sales and investments.
• Supply chain disruptions impacting material availability and production timelines.

Summary

The market for collapsible steering columns in the automobile by 2023 is characterized by considerable strengths such as enhanced safety features and the rising demand for advanced technology. However, the market is also characterized by challenges such as high production costs and low consumer awareness. Opportunities are created by changes in the regulatory environment and the rise of electric vehicles, while competition and economic fluctuations can impact market growth. Strategic focus on innovation and customer education will be important to seize opportunities and reduce risks.