Automotive Rack and Pinion Steering System Market Overview:
As per MRFR analysis, the automotive rack and pinion steering system market size was estimated at 15.77 (USD Billion) in 2022. The automotive rack and pinion steering system market is expected to grow from 16.08 (USD Billion) in 2023 to 19.15 (USD Billion) by 2032. The automotive rack and pinion steering system market CAGR (growth rate) is expected to be around 1.96% during the forecast period (2024 - 2032).
Key Automotive Rack and Pinion Steering System Market Trends Highlighted
The automotive rack and pinion steering system market exhibits various key trends driving its growth. Firstly, the rising demand for fuel-efficient vehicles is propelling the adoption of rack and pinion steering systems due to their lightweight and energy-saving properties.
Secondly, advancements in vehicle safety regulations necessitate the use of technologically advanced steering systems, fostering innovation in this market.
Additionally, the increasing adoption of electric power steering (EPS) systems, which offer enhanced fuel efficiency and reduced emissions, is contributing to market growth.
Moreover, the growing trend of autonomous driving requires more precise and responsive steering systems, creating opportunities for the market.
The integration of advanced technologies such as adaptive steering and variable-ratio steering further enhances driver control and safety, driving the demand for rack and pinion steering systems in the automotive industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Rack and Pinion Steering System Market Drivers
Growing Demand for Fuel-Efficient Vehicles
The increasing need for fuel-efficient vehicles is a critical driver of the global automotive rack and pinion steering system market. In the car market today, the general public and the producers are progressively becoming more aware of the ecological impact of their endeavors.
The rack and pinion steering option is notable for being more effective than the equipment and worm steering options. The benefits come in as rack and pinion steering systems use less energy and produce less friction during the driving process.
Increasing Popularity of Electric Vehicles
Another decisive factor that fuels the global automotive rack and pinion steering system market is the continuous growth of electric vehicles. Electric cars need different steering systems than those powered by gasoline because they do not have a direct mechanical connection to the wheels.
The rack and pinion steering systems are more appropriate because they can be rapidly adapted to the specific characteristics of an electric vehicle.
Rising Demand for Safety Features
The rising demand for safety features is also driving the growth of the global automotive rack and pinion steering system market.
Rack and pinion steering systems offer a number of safety benefits over traditional steering systems, including improved responsiveness, stability, and control. This makes them an attractive option for automakers looking to improve the safety of their vehicles.
Automotive Rack and Pinion Steering System Market Segment Insights:
Automotive Rack and Pinion Steering System Market Technology Insights
The technology segment of the global automotive rack and pinion steering system market is split into Hydraulic Systems, Electric Systems, and Electro-Hydraulic Systems. In 2023, Hydraulic Systems accounted for over 60% of the global automotive rack and pinion steering system market revenue.
The leading position of Hydraulic Systems is because they are highly adopted in conventional vehicles, where they are valued for their high power density, high reliability, and cost-effectiveness. However, the market share of Hydraulic Systems is expected to decline in the next several years because of the increasing adoption of electric and electro-hydraulic systems in modern vehicles.
Over the analyzed period, Electric Systems are projected to be the fastest-growing segment of the global automotive rack and pinion steering system market due to the growing demand for more fuel-efficient and ecologically friendly vehicles.
Compared to hydraulic steering systems, electric steering systems consume less energy, require less maintenance, and are more precise. The growth of the Electro-Hydraulic Systems segment is also expected to be strong as there is rising demand for advanced steering systems that would provide the benefits of both hydraulic and electric systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Rack and Pinion Steering System Market Vehicle Type Insights
The global automotive rack and pinion steering system market is divided into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment represents the largest market share, primarily driven by the high volume and adoption of these vehicles.
As per the 2023 metrics, the segment had more than a 60 percent revenue share in the global automotive rack and pinion steering system market. The primary drivers of the passenger car segment include increased need of individual mobility and the preference for compact and fuel-efficient cars.
On the other hand, rapid increase on the demand for the final delivery step and e-commerce in light commercial vehicle segment that includes vans, pickup trucks, and small buses have been experiencing major growth.
In the heavy commercial vehicles segment, freight movements and infrastructure development have been fueling the adoption of trucks, buses, and trailers, which in turn is expected to increase at a steady rate through the forecast period.
Automotive Rack and Pinion Steering System Market Steering Gear Ratio Insights
The global automotive rack and pinion steering system market is segmented by Steering Gear Ratio into Variable Steering Ratio and Constant Steering Ratio. The Constant Steering Ratio segment accounted for a larger revenue share in 2023.
However, the Variable Steering Ratio segment is expected to grow at a higher CAGR during the forecast period. The growth of the Variable Steering Ratio segment can be attributed to the increasing demand for vehicles with improved handling and stability. Variable Steering Ratio systems offer a more responsive and precise steering feel, which is preferred by many drivers.
Additionally, these systems can be programmed to adjust the steering ratio based on vehicle speed or driving conditions, providing a more customized driving experience.
Overall, the automotive rack and pinion steering system market is expected to grow at a steady pace in the coming years, driven by the increasing demand for vehicles with advanced safety and performance features.
Automotive Rack and Pinion Steering System Market Power Assistance Type Insights
The power assistance type segment plays a crucial role in determining the driving experience, safety, and overall vehicle performance. Among the different types, manual steering offers precise control and direct feedback, making it suitable for performance-oriented vehicles.
However, it requires significant physical effort, especially at low speeds or during parking maneuvers. Power steering, on the other hand, provides assistance through hydraulic or electric systems, reducing the effort required to turn the steering wheel.
Hydraulic power steering utilizes a hydraulic pump to generate pressure, providing smooth and responsive steering.
However, it is relatively complex and requires regular maintenance. Electric power steering (EPS) uses an electric motor to assist the steering, offering improved fuel efficiency and reduced power consumption. It is becoming increasingly popular due to its compact size, lightweight, and precise control.
The global automotive rack and pinion steering system market for power steering (hydraulic) is expected to reach a valuation of 7.24 billion USD by 2024, while the electric power steering segment is projected to grow at a CAGR of 4.5% during the same period, driven by the rising demand for fuel-efficient and environmentally friendly vehicles.
Automotive Rack and Pinion Steering System Market Application Insights
The automotive rack and pinion steering system market is segmented by application into new vehicles and replacement market segments. The new vehicles segment is expected to account for a larger share of the market in 2023, due to the increasing production of new vehicles globally.
The replacement market segment is expected to grow at a faster rate during the forecast period, due to the increasing number of vehicles on the road and the need for regular maintenance and repairs.
The global automotive rack and pinion steering system market revenue for the new vehicles segment is expected to reach USD 10.23 billion by 2024, growing at a CAGR of 2.1%.
The global automotive rack and pinion steering system market revenue for the replacement market segment is expected to reach USD 5.85 billion by 2024, growing at a CAGR of 2.3%.
Automotive Rack and Pinion Steering System Market Regional Insights
The regional segmentation of the global automotive rack and pinion steering system market offers valuable insights into the market's geographic distribution and growth patterns.
North America is expected to remain a significant market, with a revenue projection of USD 6.08 billion by 2024. Europe follows closely with an estimated revenue of USD 5.12 billion in the same year.
The Asia-Pacific (APAC) region is poised for substantial growth, driven by increasing automotive production and rising disposable incomes. APAC is projected to reach a revenue of USD 4.23 billion by 2024.
South America and the Middle East and Africa (MEA) regions are expected to experience steady growth, contributing to the overall market expansion. These regional insights provide valuable guidance for businesses seeking to target specific markets and tailor their strategies accordingly.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Rack and Pinion Steering System Market Key Players and Competitive Insights:
Major players in the automotive rack and pinion steering system market are continuously looking for ways to improve their products and expand their market share. Leading automotive rack and pinion steering system market players are investing in research and development to create innovative new products that meet the needs of their customers.
The automotive rack and pinion steering system market is expected to continue to grow in the coming years as more and more people purchase vehicles with this type of steering system.
The automotive rack and pinion steering system market development is being driven by a number of factors, including rising consumer demand for vehicles with improved handling and performance, increasing government regulations on fuel efficiency and emissions, and technological advancements that have made rack and pinion steering systems more affordable and efficient.
ZF Friedrichshafen AG is a leading supplier of the automotive rack and pinion steering systems market to the automotive industry. The company has a long history of innovation in the development and production of steering systems, and its products are used by a wide range of automakers around the world.
ZF is committed to providing its customers with high-quality, reliable steering systems that are designed to meet the specific needs of their vehicles. The company's steering systems are known for their precision, durability, and efficiency, and they are used in a variety of applications, from passenger cars to commercial vehicles.
ZF is also a leading supplier of steering systems for electric vehicles, and the company is working to develop new technologies that will help to improve the safety, efficiency, and performance of electric vehicles.
Another major player in the automotive rack and pinion steering system market is JTEKT Corporation. The company is a leading supplier of steering systems, driveshafts, and other automotive components to the global automotive industry.
JTEKT's steering systems are known for their high quality and reliability, and they are used by a wide range of automakers around the world. The company is committed to providing its customers with innovative steering systems that meet the specific needs of their vehicles.
JTEKT is also a leading supplier of steering systems for electric vehicles, and the company is working to develop new technologies that will help to improve the safety, efficiency, and performance of electric vehicles.
Key Companies in the automotive rack and pinion steering system market Include:
- WABCO Holdings Inc.
- NSK Ltd.
- Valeo SA
- Continental AG
- ThyssenKrupp AG
- Showa Corporation
- Nexteer Automotive
- Hyundai Mobis
- ZF Friedrichshafen AG
- Mando Corporation
- TRW Automotive Holdings Corp.
- Robert Bosch GmbH
- Cooper Standard Automotive
- JTEKT Corporation
- Magna International Inc.
Automotive Rack and Pinion Steering System Market Developments
The growth of the market is attributed to the increasing demand for vehicles with advanced safety features, the rising popularity of electric vehicles, and the growing adoption of autonomous driving technologies.
Recent news developments and current affairs in the market include the launch of new rack and pinion steering systems by major players such as ZF Friedrichshafen AG, JTEKT Corporation, and Nexteer Automotive.
These new systems offer improved performance, fuel efficiency, and safety features. Additionally, there is a growing trend towards the adoption of electric power steering (EPS) systems, which offer advantages such as reduced weight, improved fuel efficiency, and enhanced steering feel.
Automotive Rack and Pinion Steering System Market Segmentation Insights
Automotive Rack and Pinion Steering System Market Technology Outlook
- Hydraulic Systems
- Electric Systems
- Electro-Hydraulic Systems
Automotive Rack and Pinion Steering System Market Vehicle Type Outlook
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
Automotive Rack and Pinion Steering System Market Steering Gear Ratio Outlook
- Variable Steering Ratio
- Constant Steering Ratio
Automotive Rack and Pinion Steering System Market Power Assistance Type Outlook
- Manual Steering
- Power Steering (Hydraulic)
- Power Steering (Electric)
Automotive Rack and Pinion Steering System Market Application Outlook
- New Vehicles
- Replacement Market
Automotive Rack and Pinion Steering System Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
15.77(USD Billion) |
| Market Size 2023 |
16.08(USD Billion) |
| Market Size 2032 |
19.15(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
1.96% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
WABCO Holdings Inc., NSK Ltd., Valeo SA, Continental AG, ThyssenKrupp AG, Showa Corporation, Nexteer Automotive, Hyundai Mobis, ZF Friedrichshafen AG, Mando Corporation, TRW Automotive Holdings Corp., Robert Bosch GmbH, Cooper Standard Automotive, JTEKT Corporation, Magna International Inc. |
| Segments Covered |
Technology, Vehicle Type, Steering Gear Ratio, Power Assistance Type, Application, Regional |
| Key Market Opportunities |
Growing electric vehicle demand Increasing demand for advanced driver assistance systems Rising disposable income in emerging markets Technological advancements in steering systems Focus on safety and fuel efficiency |
| Key Market Dynamics |
Electric power steering adoption Rising demand for safety features Autonomous driving advancements Increasing popularity of SUVs and crossovers Tier consolidation and supplier diversification |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The market was valued at approximately USD 16.08 billion in 2023.
The market is anticipated to grow at a CAGR of 1.96% over the forecast period from 2024 to 2032.
The market is expected to reach a valuation of approximately USD 19.15 billion by 2032.
The Asia Pacific region is projected to dominate the market during the forecast period.
Rack and pinion steering systems are primarily used in passenger cars, light commercial vehicles, and heavy-duty vehicles.
Major players include ZF Friedrichshafen AG, Nexteer Automotive Group, JTEKT Corporation, Showa Corporation, and Mando Corporation.
Increasing demand for vehicles with enhanced steering performance, safety features, and fuel efficiency is driving market expansion.
Rising raw material costs and technological advancements in alternative steering systems pose challenges to market growth.
The market is segmented by vehicle type, application, and region.
The growing adoption of electric vehicles is expected to create new opportunities for innovative steering solutions.
