Automotive Steering Systems Market Trend, Share, Growth, Size, Analysis, and Forecast 2032

The global Automotive Steering Systems market size accrued earnings worth approximately USD 28.97 Billion in 2023 and is predicted to gain revenue of about USD 45.57 Billion by 2032, is set to record a CAGR of nearly 5.16% over the period from 2024 to 2032

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Automotive Steering Systems Market Overview

The steering system of a vehicle allows the driver to control the direction of the vehicle through a system of linkages and gears that connects the steering wheel with the front wheels.

Traditional vehicles used manual racks, manual steering linkage system, and manual steering boxes. Moreover, the advancements in the steering system such as hydraulic fluid systems to improve the steering performance, electronically controlled steering systems for greater and smoother performance and maneuverability has increased the demand for the automotive steering system.

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Automotive Steering Systems Market Growth Analysis

The industry's growth is mainly fueled by a surge in demand for automobiles due to the increase in consumer disposable income. The market's rise is attributed to the implementation of power steering systems in vehicles. An increase in automobile production closely correlates with the need for automotive steering systems by original equipment manufacturers, as the steering system is a crucial component of the whole product. The growth of the Automotive Steering System Market is expected to be supported by the rise in vehicle manufacturing in countries like China, Japan, and India.

Automobile manufacturers are getting ready for extended service agreements with OEM players, which are anticipated to greatly enhance the Automotive Steering System Market over the forecast period. Consumer interest in electric vehicles has increased due to ongoing technology advancements and growing awareness of environmental concerns. In addition, several national and local governments are offering incentives for electric vehicles, such as tax credits and subsidies.

Drivers and Restraints

The rising vehicle production, growing demand for easy vehicle maneuverability, and growing economies of developing countries are the key factors contributing towards the growth of the global automotive steering system market over the forecast period. 

Moreover, increasing demand for fuel-efficient vehicles is expected to significantly boost the growth of the automotive steering systems market in the coming years. The electric power steering (EPS) system consumes low fuel as compared to a traditional system or manual steering systems. The continuous increase in the price of fuel at global level increases demand for fuel-efficient vehicles, and this is expected to propel the growth of automotive steering systems market globally. However, high cost for the development of automotive steering systems as it requires high R&D and maintenance cost may restrain the market growth

Automotive Steering Systems Market: Report Scope

Automotive Steering Systems Market Segmentation

Power steering systems are categorised into four main types in the market: electro-hydraulic, electronic, manual, and hydraulic. Due to manufacturers' increased adoption of electric power steering across all vehicle models, the electronic power steering sector is anticipated to hold the majority of the market share. Another factor that is likely to drive this market segment forward is the evolution of electric power steering into steer-by-wire technology.

The market is segmented into four submarkets based on vehicle type: commercial, heavy, light, and passenger. Rising demand and production in emerging economies across Asia and the Pacific point to the Passenger Vehicle category as the clear frontrunner for future rapid expansion. The market for electric power steering systems is anticipated to grow in this sector due to the rising number of vehicles equipped with these systems.

Automotive Steering Systems Market is expected to register the highest CAGR of around 6% over the forecast period. The electro-hydraulic power system combines both electronic power steering system and hydraulic power steering system. The combination of two technologies provides a simple, electric motor that drives with direct concentric coupling an oil-gear pump, and also it is energy efficient. The increasing demand for technological advancements in steering systems is expected to propel the growth of the segment in the forecast period.

The passenger vehicle is expected to register high CAGR of more than 10% from 2024 to 2032 in the global automotive steering systems market by application. The increasing demand for passenger’s vehicle from China, Japan, India, and Brazil owing to increasing purchasing power of consumers and economic growth is expected to propel the growth of passenger’s vehicle segment in the global market over the forecast period.

Automotive Steering Systems Market Regional Analysis

Europe accounted for the highest share in the global automotive steering systems in the year 2023 with the share of more than 40%. Europe is the largest hub for automotive manufacturing activities and hence it accounted for the highest share in the automotive steering system market globally. The Asia Pacific is expected to register a high CAGR of around 5% from 2024 to 2032 in the global automotive steering system market. The growing adoption of technically advanced products, low cost for labor and raw material, increasing disposable income, and urbanization are the major factors contributing towards the high growth of Asia Pacific automotive steering systems market in the coming years.

Automotive Steering Systems Industry Players

The report includes detailed profiles of the prominent market players that are trending in the market. The list of the players that are compiled in the report are

• Bosch Limited
• Nexteer Automotive
• Robert Bosch Automotive Steering GmbH
• SHOWA Corporation
• Sona Koyo Steering Systems Ltd.
• ThyssenKrupp Business Area Components Technology
• China Automotive Systems, Inc.
• Hyundai Mobis
• JTEKT Corporation
• ZF Friedrichshafen AG
• Yubei Steering Systems Co., Ltd.
• Zhejiang Wanda Steering Gear Co., Ltd.
• Mitsubishi Electric Corporation, among others. 

The increasing new product launch, growing strategic geographical expansion such as developing newer manufacturing plants for the development of automotive steering, and increasing partnership among the key players of the automotive steering systems, is significantly contributing towards the growth of the market globally.

Automotive Steering System Market Segments

By Type

• Electro-Hydraulic Power Steering
• Electronic Power Steering
• Hydraulic Power Steering
• Manual Steering

By Vehicle-Type

• Commercial Vehicle
• HCV
• LCV
• Passenger Vehicle
  • Compact
  • Mid-size
  • Premium
  • SUVs

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa