DUBLIN, Nov. 30, 2023 /PRNewswire/ — The “Global Automotive Steering System Market: Analysis By Technology, By Vehicle Type , By Sales Channel , By Region Size and Trends and Forecast up to 2028” report has been added to ResearchAndMarkets.com’s offering.
One of the key reasons leading to the rising demand for automotive steering system in recent years is the increased focus on safety and precision in vehicle control. The global automotive steering system market in 2022 stood at US$31.38 billion, and is likely to reach US$42.46 billion by 2028.
Government bodies often mandate specific safety standards for automobiles, and steering systems are critical components in ensuring vehicle safety, potentially leading to mandatory upgrades or enhancements in automotive steering system technology. Some other factors driving the rise in automotive steering system demand include the rising disposable income and improved lifestyle which has led to increased sales of automobiles globally.
Additional trends include the electrification of cars, autonomous driving, technological advancements like steer-by-wire technology, new functions, the increased sophistication of products, and integration of ADAS (Advanced Driving System Assistance) and EPS. In the coming years, these improvements or trends are expected to significantly stimulate demand for automotive steering system.
The global automotive steering system market value is projected to grow at a CAGR of 5.27%, during the forecast period of 2023-2028.
Market Segmentation Analysis:
By Technology: The EPS segment acquired majority of share in the market in 2022 and is the fastest growing segment as well, primarily due to its simplicity, ease of maintenance, and ability to accommodate wheel misalignment and driving conditions. It also offers modern driver-assist features like automatic parking and lane-keep assistance. EPS is generally simpler and easier to maintain than hydraulic counterpart. The preference for EPS is driven by lightweight vehicle designs and a shift towards more efficient, connected, and safer driving technologies. Also, the shift towards electrification and autonomous driving is expected to drive the growth of this segment.
By Vehicle Type: Passenger vehicles acquired majority of share in the market in 2022 and is the fastest growing segment as well, primarily due to several factors. The rising global automobile market, increased disposable income, and preference for advanced safety and comfort and the incorporation of innovative steering system technologies in passenger vehicles have been key drivers. As consumers place a growing emphasis on comfort, improved experience and cutting-edge technology in their vehicles, automakers are integrating advanced steering solutions to enhance both the consumer’s experience and safety aspects of passenger cars. The shift towards electric and hybrid passenger vehicles is also influencing the demand for innovative steering technologies. Additionally, the revival of economic conditions post-pandemic has led to a surge in consumer confidence and increased purchasing power, driving the demand for new passenger vehicles.
By Sales Channel: OEMs acquired the majority of share in the market in 2022 and is the fastest growing segment as well since OEM increasingly prioritize safety and efficiency. OEM parts are guaranteed to fit and almost always come with a manufacturer-backed warranty. Also, these systems are installed in vehicles during the manufacturing process and are integral to the vehicle’s design. Hence, the demand for OEM steering systems is intricately tied to the overall production and sales of vehicles globally. Additionally, with the ongoing trends in vehicle electrification, connectivity, and automation, the OEM segment is expected to witness sustained demand for innovative steering systems.
By Region:
- Asia Pacific held the highest market share in 2022 and is expected to grow at the fastest rate as well, primarily owing to reasons such as increasing production of passenger vehicles, rising safety concerns, consumer preferences for advanced features, stringent safety regulations, high disposable income of the people and rising sales of luxury cars.
- China is the Asia Pacific’s strongest market for automotive steering system because of its focus on increasing vehicle production, technological advances in automotive steering system, and increasing disposable income of the people.
- On the other hand, the Indian automotive steering system market is anticipated to grow the quickest in Asia Pacific. India is one of the acknowledged markets for automobiles, with domestic sales of 21.2 million units in 2022-23. In December 2022, India surpassed Germany and Japan to take over as the third-largest automobile market. This growth is significantly driven by an upswing in demand for electric vehicles, premium vehicles and the introduction of new models. Furthermore, increased customer demand for enhanced safety and improved comfort and the implementation of strict safety regulations by regulatory agencies are poised to be the major growth drivers.
Market Dynamics:
The growth of the automotive steering system market is closely tied to the sales and production of automotive vehicles. Every vehicle requires steering systems for direction control, safety, and regulatory compliance. Rising disposable income, consumer demand for enhanced driving experiences, government regulations, and the adoption of power steering are key growth drivers.
- Challenges: High production costs due to advanced technologies like Electric Power Steering (EPS) and steer-by-wire systems can be challenging. Intense competition in the automotive sector also puts pressure on companies to offer competitive pricing while maintaining high-quality standards. On the consumer side, EPS systems may require specialized equipment and knowledge for diagnosis and repair, making repairs more expensive compared to hydraulic systems. Shortages of raw materials like semiconductors also pose challenges.
- Trends: Steer-by-wire technology is a major trend gaining momentum in the automotive steering system market. This revolutionary technology eliminates the physical connection between the steering wheel and wheels, allowing for customizable interiors, adaptive driving modes, weight reduction, improved fuel efficiency, and seamless integration with advanced technologies. Other trends include the electrification of vehicles, integration of EPS and Advanced Driver Assistance Systems (ADAS), autonomous driving, and technological advancements such as haptic feedback.
Competitive Landscape and Recent Developments:
Key players of global automotive steering system market are:
- Robert Bosch
- Mitsubishi Electric
- Thyssenkrupp
- NSK
- JTEKT
- Hyundai MOBIS
- Forvia
- HL Mando
- China Automotive Systems
- Nexteer
The key players are constantly investing in strategic initiatives, such as adoption of new technologies, introducing their services to emerging markets, collaboration, investment, and more, to maintain a competitive edge in this market. For instance, Hyundai Mobis has recently launched the “Dual Actuator Rear Wheel Steering System” which can reduce the turning radius by up to 25% and improve stability and comfort when vehicle turns at high speed. In November 2022, ZF intends to invest approximately US$100 million to expand the existing product range and chassis component production capacity at the Zhangjiagang location. The chassis component plant would manufacture control arms, steering knuckles, steering tie rods, and stabilizer links, effectively covering the entire chassis component product line.
For more information about this report visit https://www.researchandmarkets.com/r/yem9zu
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