Automotive Steering Systems Market

Changing consumer preferences is driving the market growth

Market CAGR for automotive steering systems is being driven by changing consumer preferences. The adoption of EPS has been fueled by stricter emission regulations worldwide. EPS systems consume less power compared to hydraulic systems, resulting in reduced fuel consumption and lower emissions. Additionally, EPS eliminates the need for hydraulic fluids, reducing maintenance requirements, the potential for leaks and environmental contamination, and the growing demand for advanced driver assistance systems and autonomous driving technologies.

EPS can be integrated with these systems to enable features like lane-keeping assist, park assist, and adaptive cruise control. As autonomous vehicles become more prevalent, EPS will enhance safety and enable precise steering control. Steer-by-wire (SBW) technology represents a significant advancement in automotive steering systems. However, the adoption of SBW technology faces challenges related to safety and reliability.

Ensuring fail-safe mechanisms and redundancy is critical to avoid potential system failures that could compromise driver safety. Manufacturers invest in advanced sensors, redundant control systems, and cyber security measures to address these concerns and build trust in SBW technology. SBW systems offer several advantages, including enhanced maneuverability, increased fuel efficiency, and design flexibility. Integrating advanced sensors and artificial intelligence (AI) technologies is revolutionizing the automotive steering system market. Moreover, integrating AI technologies enables predictive maintenance and condition monitoring of steering systems.

By analyzing sensor data and detecting anomalies, AI algorithms can identify potential failures before they occur, enabling proactive maintenance and reducing downtime.

AI-powered systems can adapt to different driving scenarios, improving comfort, safety, and responsiveness. For instance, the Automotive Steering System market is experiencing significant transformations driven by adopting EPS, steer-by-wire technology, and integrating advanced sensors and AI. These trends are revolutionizing vehicle safety, control, and efficiency while paving the way for the development of autonomous driving technologies and driving the Automotive Steering System Market revenue.

The Global Automotive Steering System Market Industry is significantly influenced by the rising production of vehicles worldwide. In 2024, the market is anticipated to be valued at 18 USD Billion, reflecting the increasing demand for personal and commercial vehicles. Countries such as China and India are leading in vehicle manufacturing, contributing to a robust growth trajectory. This trend is expected to continue, with projections indicating a market value of 29.0 USD Billion by 2035. The expansion of automotive manufacturing facilities globally suggests a sustained demand for steering systems, which are integral to vehicle performance.

The Global Automotive Steering System Market Industry is experiencing a surge in technological advancements, particularly with the integration of electric power steering systems. These systems enhance fuel efficiency and improve vehicle handling, aligning with the growing demand for eco-friendly solutions. As of 2024, the market is projected to reach 18 USD Billion, driven by innovations such as steer-by-wire technology, which offers enhanced precision and responsiveness. The shift towards autonomous vehicles further propels the need for advanced steering systems, indicating a transformative phase for the industry.

The Global Automotive Steering System Market Industry is characterized by various trends and projections that highlight its growth potential. The market is expected to reach 18 USD Billion in 2024, with a compound annual growth rate of 4.45% projected from 2025 to 2035. This growth is driven by factors such as technological advancements, rising vehicle production, and increasing consumer demand for safety features. The anticipated market value of 29.0 USD Billion by 2035 underscores the industry's resilience and adaptability in response to changing consumer preferences and regulatory landscapes.

The Global Automotive Steering System Market Industry is poised for growth due to urbanization and the emergence of new markets. As urban populations expand, the demand for personal and public transportation increases, driving vehicle sales. Emerging economies, particularly in Asia-Pacific and Latin America, are witnessing rapid urbanization, which is likely to contribute to the market's expansion. The projected market value of 29.0 USD Billion by 2035 indicates the potential for growth in these regions, as manufacturers adapt their steering systems to meet the diverse needs of urban consumers.

Government regulations regarding vehicle safety and emissions are shaping the Global Automotive Steering System Market Industry. Stricter safety standards necessitate the adoption of advanced steering technologies that comply with regulatory requirements. As a result, manufacturers are compelled to innovate and enhance their steering systems to meet these standards. The anticipated growth of the market to 29.0 USD Billion by 2035 reflects the industry's response to regulatory pressures, as companies invest in research and development to create compliant and efficient steering solutions that align with global safety and environmental standards.

Consumer preferences are shifting towards enhanced safety features in vehicles, which is a key driver for the Global Automotive Steering System Market Industry. Advanced steering systems, such as those equipped with lane-keeping assist and adaptive cruise control, are becoming increasingly popular. This trend is likely to boost market growth, as manufacturers prioritize safety in their designs. The projected compound annual growth rate of 4.45% from 2025 to 2035 underscores the importance of integrating safety technologies into steering systems, thereby enhancing overall vehicle safety and performance.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Automotive Steering System market area will dominate this market. A strong manufacturing base and technological advancements support the region's well-developed automotive industry. The demand for advanced steering systems, such as electric power steering (EPS) and steer-by-wire systems, is growing in North America due to their enhanced fuel efficiency and improved vehicle handling.

Moreover, the increasing focus on autonomous and electric vehicles (EVs) is driving the adoption of advanced steering technologies in this region. Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Steering System Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Automotive Steering System Market accounts for the second-largest market share due to the strong presence of luxury and high-performance vehicle segments. The demand for EPS systems is on the rise in Europe due to their lightweight design, improved fuel efficiency, and reduced emissions. Further, the German Automotive Steering System Market had the fastest-growing market share, and the UK Automotive Steering System Market was the fastest-growing market in the European region. The Asia-Pacific Automotive Steering System Market is expected to grow at a rapid CAGR from 2024 to 2032.

The rising disposable income, urbanization, and increasing vehicle ownership in these countries drive automobile demand, thereby boosting the automotive steering system market. Moreover, China’s Automotive Steering System Market held the largest market share, and the Indian Automotive Steering System Market was the fastest-growing market in the Asia-Pacific region. For instance, the Automotive Steering System market exhibits regional variations in market size, growth potential, and technological advancements. A comprehensive understanding of the regional dynamics helps market players and stakeholders to make informed decisions and capitalize on the opportunities presented by each region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Automotive Steering System Market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automotive Steering System industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Automotive Steering System industry to benefit clients and increase the market sector.

In recent years, the Automotive Steering System industry has offered some of the most significant medical advantages. Major players in the Automotive Steering System Market, including TRW Automotive Holdings (US), Mitsubishi Electric Corporation (Japan), Sona Koyo Steering System Ltd (India), JTEKT Corporation (Japan), Nexteer Automotive (US), Thyssenkrupp Presta (US), Robert Bosch Automotive Steering Gmbh (Germany), China Automotive System Inc. (China), and others, are attempting to increase market demand by investing in research and development operations. Nexteer Automotive, founded in 2009, located in Auburn Hills, Michigan, United States, is a motion control technology company.

It is an automotive supplier delivering electric and hydraulic power steering systems, steer-by-wire systems, steering columns driveline systems, and OEMs.

In October 2020, Nexteer announced High-Output Electric Power Steering (EPS). It delivers advanced safety and comfort features and incorporates fuel efficiency for heavy-duty trucks and light commercial vehicles. Hyundai Mobis, founded in 1977 in Seoul, South Korea, is a South Korean car parts public company. It forms the parts and services arm of the South Korean automakers. It offers a chassis, cockpit, anti-lock brake system, steering parts, electronic stability control products, carriers, and bumpers.

In September 2022, Hyundai Mobis announced the Dual Actuator Rear Wheel Steering System, which can reduce the turning radius by up to 25% and improve stability and comfort when the vehicle turns at high speed. It is expected to be useful, particularly on narrow roads and without parking spaces. Furthermore, the demand for rear-wheel steering systems is increasing in electric vehicles with an enlarged wheelbase.