Automotive Steering System Market

Automotive Steering System Market Size and Share Forecast Outlook 2025 to 2035

The global automotive steering system market is projected to increase from USD 37.0 billion in 2025 to USD 52.2 billion by 2035, with a CAGR of 3.5% during the forecast period. The growing global production of passenger and commercial vehicles, the increasing adoption of advanced driver-assistance systems (ADAS), and the rising trend toward electric power steering (EPS) for enhanced driving safety and fuel efficiency are the primary factors driving the automotive steering system market.

Quick Stats of Automotive Steering System Market

• Automotive Steering System Market Size (2025): USD 37.0 billion
• Projected Automotive Steering System Market Size (2035): USD 52.2 billion
• Forecast CAGR of Automotive Steering System Market (2025 to 2035): 3.5%
• Leading Technology Segment of Automotive Steering System Market: Hydraulic Power Steering
• Leading Vehicle Type Segment of Automotive Steering System Market: EVs
• Key Growth Regions of Automotive Steering System Market: Japan, Germany, China
• Prominent Players in the Automotive Steering System Market: ZF Friedrichshafen AG, ThyssenKrupp AG, NSK Ltd., Nexteer Automotive Group Limited, Mitsubishi Electric Corporation, and Others.

Metric	Value
Industry Size (2025E)	USD 37.0 billion
Industry Size (2035F)	USD 52.2 billion
CAGR (2025-2035)	3.5%

The global Automotive Steering System market is expected to grow from USD 37.0 billion in 2025 to USD 52.2 billion by 2035, at a CAGR of 3.5%. The market is expanding rapidly, driven by increased vehicle production, rising demand for advanced driver-assistance systems (ADAS), and growing adoption of electric power steering (EPS) for improved fuel efficiency.

According to OICA, global vehicle production is expected to exceed 92.5 million units in 2024, indicating high demand for steering systems in both passenger and commercial vehicles. The market is expected to grow to USD 38.3 billion in 2026 and USD 39.6 billion in 2027, as automated and semi-automated driving technologies gain traction.

Government initiatives to improve vehicle safety and reduce emissions contribute to growth. In the United States, the National Highway Traffic Safety Administration (NHTSA) requires advanced safety technologies, such as lane-keeping assist and electronic stability control, which rely on precise steering systems.

By 2028, the market is expected to be worth USD 41.0 billion, rising to USD 42.4 billion in 2029. Similarly, the European Union's Euro NCAP focuses on active safety features, encouraging manufacturers to incorporate advanced steering solutions, which is expected to boost the market to USD 43.9 billion in 2030 and USD 45.5 billion in 2031.

Electric vehicles (EVs), which require lightweight, energy-efficient EPS systems, provide new opportunities for innovation. Manufacturers are investing in R&D to enhance reliability, minimize electronic malfunctions, and lower operational costs.

The market is expected to grow steadily to USD 47.0 billion in 2032, USD 48.7 billion in 2033, USD 50.4 billion in 2034, and eventually USD 52.2 billion by 2035, driven by regulatory compliance, technological innovation, and rising global vehicle production.

Key Automotive Steering System Market Dynamics

The automotive steering system market is experiencing rapid expansion due to several key factors. The growing demand for advanced driver assistance systems (ADAS) and enhanced vehicle safety features is driving manufacturers to adopt new steering technologies.

Additionally, the increasing global production of passenger and commercial vehicles expands market opportunities. The increasing adoption of electric power steering (EPS) systems, which enhance fuel efficiency and handling, is driving market growth.

However, challenges remain, such as the high development and integration costs of advanced steering technologies, which can affect affordability and adoption rates. Furthermore, the vulnerability of modern steering systems to electronic and software malfunctions, as well as fluctuations in raw material prices, continue to limit market growth.

Growing Demand for Advanced Driver-Assistance Systems

The increasing integration of ADAS in vehicles is a significant growth driver for the automotive steering system market. ADAS technologies, such as lane-keeping assist, collision avoidance, and adaptive cruise control, rely heavily on advanced steering systems to provide precise handling and responsiveness. Consumers and regulators are prioritising road safety, prompting automakers to invest in smart steering innovations that enhance driver control.

As governments around the world implement stricter safety regulations, the adoption of ADAS-equipped steering solutions is increasing, improving both vehicle performance and consumer confidence. This trend strengthens the market's competitive landscape and promotes the expansion of the premium vehicle segment.

Increasing Production of Passenger and Commercial Vehicles Globally

The expansion of the automotive industry directly drives demand for steering systems, as each new vehicle requires a dependable and efficient steering mechanism. Emerging economies, such as India, China, and Brazil, are experiencing significant increases in vehicle ownership, driving OEM demand for high-performance steering products. Developed markets such as the United States and Europe also have consistent vehicle replacement rates, which ensures consistent steering system sales.

This surge in production enables manufacturers to achieve economies of scale and drive investments in advanced technologies, such as steer-by-wire. The increase in global vehicle production underscores the critical role of the steering system market in ensuring safe and smooth mobility.

Rising Adoption of Electric Power Steering (EPS) Systems for Improved Fuel Efficiency

Electric power steering systems are increasingly replacing traditional hydraulic systems due to their fuel efficiency and precision handling. EPS eliminates the constant engine power draw typically found in hydraulic systems, thereby lowering fuel consumption and emissions. Automakers are prioritizing EPS to meet stringent environmental regulations while also improving vehicle performance.

Consumers also appreciate the lighter steering feel and adaptability provided by EPS, making it a popular choice in both passenger cars and light commercial vehicles. As hybrid and electric vehicles become increasingly popular, EPS adoption is expected to continue rising, solidifying its position as a key technology in the automotive steering system market's evolution.

High Development and Integration Costs for Advanced Steering Technologies

Developing advanced steering systems, such as steer-by-wire and EPS, necessitates significant research, testing, and manufacturing investment. Balancing these costs with competitive vehicle pricing presents challenges for automakers. Small and mid-tier manufacturers may struggle to adopt cutting-edge technologies without raising product prices or shrinking profit margins.

Furthermore, integrating advanced steering systems into existing vehicle platforms necessitates redesigning components, which increases engineering complexity and cost. Financial pressures may slow technology adoption in price-sensitive markets or low-cost vehicle segments, limiting overall market growth.

Collaborative partnerships and modular platforms are emerging as strategies for offsetting development costs.

Vulnerability to Electronic and Software Malfunctions in Modern Steering Systems

As steering systems become increasingly dependent on electronics and software, they are becoming more susceptible to malfunctions or cyber threats. Software glitches, sensor failures, or hacking risks can compromise vehicle safety and performance, raising concerns among regulators and consumers.

High-profile recalls due to electronic steering failures have also damaged brand reputations in the past. Manufacturers must invest in rigorous testing, cybersecurity protocols, and fail-safe mechanisms to ensure system reliability.

These additional safeguards add to production costs and complexity. Persistent concerns about electronic vulnerabilities may hinder consumer confidence in adopting advanced steering technologies, particularly in cost-conscious and developing markets.

Fluctuating Raw Material Prices Impacting Manufacturing Costs

The automotive steering system market is sensitive to price fluctuations in raw materials like steel, aluminum, and electronic components. Volatile commodity prices can raise manufacturing costs, reducing profit margins or forcing price increases.

Global supply chain disruptions, such as those caused by the pandemic or geopolitical tensions, exacerbate these issues. To address these risks, automakers and suppliers are implementing long-term procurement strategies, recycling initiatives, and alternative materials.

However, ongoing price volatility remains a constraint, particularly for manufacturers operating in highly competitive and price-sensitive markets, where cost control is crucial to maintaining competitiveness.

Analyzing the Automotive Steering System Market by Key Regions

The Asia Pacific region is expected to lead the market, driven by the strong automotive industries in China, India, and Japan. The region's expansion is driven by increased vehicle production and sales, as well as rising demand for advanced steering systems. The presence of major automotive manufacturers and suppliers in the region reinforces its dominant market position, making it a key hub for steering system innovation and production.

North America is another significant market for automotive steering systems, with a strong emphasis on technological advancement and regulatory compliance. The United States, in particular, is at the forefront of adopting advanced steering technologies, due to its mature automotive market and stringent safety and emissions regulations.

The increased use of electric power steering and ADAS-compatible systems in modern vehicles is driving growth in North America. The region's commitment to innovation and sustainability is expected to fuel ongoing demand for cutting-edge steering solutions.

Europe is also poised for significant growth, owing to a well-established automotive industry and a strong focus on safety and environmental standards. The region's automotive manufacturers are known for their emphasis on quality and performance, which drives demand for advanced steering systems that improve vehicle dynamics.

Country-Wise Outlook

Country	CAGR (2025-35)
Japan	4.7%
Germany	4.9%
China	4.8%

Japan Advanced Automotive Steering Market Driven by Safety, Quality, and Innovation

Japan's automotive steering system market is advanced, owing to the country's global leadership in automotive manufacturing. Japan's emphasis on vehicle safety, quality, and innovation fuels demand for precision-engineered steering systems. Domestic automakers like Toyota, Honda, and Nissan prioritize advanced steering technologies to improve vehicle handling, performance, and fuel efficiency.

Electric power steering (EPS) and steer-by-wire systems are gaining popularity in Japan. These technologies are used in hybrid and electric vehicles to reduce energy consumption and increase driving comfort. Japan's stringent safety regulations and emission standards encourage manufacturers to develop steering systems that meet both performance and compliance requirements.

Government initiatives that support advanced automotive technologies, such as subsidies for electric and self-driving vehicles, open up new growth opportunities in the steering system market. Japan's aging population, combined with a focus on assisted driving technologies, is driving demand for intelligent steering systems, particularly in vehicles designed for senior drivers.

• Japan drives advanced steering with EPS and steer-by-wire tech
• Focus on safety, innovation, and compliance fuels growth
• Aging population boosts demand for intelligent steering systems

Germany Robust Automotive Steering Market Driven by Performance and Safety

The German automotive steering system market is robust and competitive, due to the country's strong automotive manufacturing base, which includes major OEMs such as Volkswagen, BMW, and Mercedes-Benz. Germany's emphasis on performance, safety, and premium vehicle segments fuels the demand for precision steering systems.

Electric power steering (EPS) and steer-by-wire systems are gaining popularity in the market, particularly in luxury and electric vehicles, with the goal of reducing fuel consumption and enhancing driving dynamics. The integration of advanced driver-assistance systems (ADAS) with steering mechanisms, such as lane-keeping assist and automated parking, is a significant trend in the German market.

Strict regulatory standards for vehicle safety and emissions in Germany, combined with EU-wide directives, drive manufacturers to innovate and adopt advanced steering solutions. These regulations guarantee high-quality and dependable steering systems while promoting energy efficiency and safety.

• Germany drives precision steering for premium vehicles
• EPS, steer-by-wire, and ADAS integration grow
• Regulations boost innovation and efficiency

China Advances in Automotive Steering System Market with Focus on Rising vehicle production

China's automotive steering system market is rapidly expanding, owing to the country's status as the world's largest automobile manufacturer and consumer. Rising vehicle production, particularly in passenger and commercial vehicles, is driving up demand for both conventional and advanced steering systems.

Electric power steering (EPS) is gaining popularity as manufacturers strive to enhance fuel efficiency and meet government-mandated emissions targets. The integration of steering systems with advanced driver assistance systems (ADAS), such as lane departure warning and autonomous parking, is also gaining popularity, particularly in densely populated urban areas.

Opportunities in China include the growth of the EV market, which necessitates the use of specialized lightweight, energy-efficient steering components, as well as the advancement of autonomous vehicle technologies. Collaboration between global suppliers and domestic automakers is driving innovation in smart steering systems, establishing China as a critical hub for both manufacturing and R&D in advanced steering technologies.

• China’s steering market grows with rising vehicle production and EV adoption
• EPS and ADAS integration drive technological advancement
• Collaboration between domestic and global players boosts smart steering innovation

Category-wise Analysis

Hydraulic Power Steering Dominance Driven by Reliability, Comfort, and Performance

Hydraulic Power Steering (HPS) remains the market leader in the global Automotive Steering System market due to its widespread use in passenger cars, SUVs, and commercial vehicles. HPS provides precise steering control and enhanced driver comfort, particularly in larger vehicles where manual steering can be physically demanding. Its robust design and proven reliability make it a popular choice among traditional automotive manufacturers, particularly in areas with established vehicle production infrastructure.

The system's ability to reduce driver effort while maintaining responsive handling continues to fuel its dominance, particularly in the mid-range and heavy-duty vehicle categories.

The segment benefits from ongoing technological improvements aimed at increasing fuel efficiency and lowering hydraulic fluid leakage. Manufacturers are using lighter materials and optimized pump designs to improve performance while adhering to stricter emission and efficiency regulations. Furthermore, HPS systems are compatible with a variety of vehicle platforms, enabling scalable production and maintenance benefits.

Despite growing interest in electric power steering (EPS), HPS remains a crucial component in markets where cost-effectiveness, durability, and performance in heavy vehicles are highly valued. The segment's reliability, comfort, and adaptability ensure its continued dominance in the automotive steering system market.

• HPS dominates due to reliability, comfort, and precise control
• Technological improvements enhance fuel efficiency and reduce fluid leakage
• Widely used in mid-range and heavy-duty vehicles for cost-effective performance

Electric vehicles (EVs) are Rising in Demand for EPS-equipped steering Systems

The Electric Vehicle (EV) segment is gaining popularity in the Automotive Steering System market, driven by the rapid global shift toward electric mobility. EVs primarily rely on Electric Power Steering (EPS) systems, which are energy-efficient, lightweight, and ideal for battery-powered vehicles.

EPS provides precise steering control, consumes less energy than hydraulic systems, and is compatible with advanced driver assistance systems (ADAS) and autonomous driving technologies.

With increased EV production and adoption around the world, particularly in China, Europe, and North America, demand for EPS-equipped steering systems has increased significantly, positioning this segment as a key market driver.

The segment also benefits from ongoing technological advancements, including motor-assisted steering, enhanced feedback mechanisms, and software-controlled adjustments specifically designed for EV performance. EPS in EVs enables manufacturers to optimize vehicle performance while meeting stricter emissions and efficiency regulations.

Furthermore, EPS systems help to lighten vehicle architecture and reduce maintenance costs, increasing overall EV appeal. As governments and automotive companies accelerate electrification initiatives, the EPS segment gains traction, cementing its position as a critical component in the future of automotive steering systems.

• EPS in EVs offers energy-efficient, precise, and lightweight steering
• Integration with ADAS and autonomous technologies drives market growth
• Technological innovations and regulatory compliance boost EV steering adoption

Competitive Analysis

The competitive landscape of the automotive steering system market is characterized by fierce competition among key players, each vying for a foothold in this dynamic industry. Companies are focusing on innovation, strategic partnerships, and mergers and acquisitions to improve their market positions and product portfolios.

Leading manufacturers are investing heavily in research and development (R&D) to provide advanced steering solutions that meet the evolving needs of the automotive industry. The emphasis is on developing technologies that enhance vehicle performance, safety, and environmental sustainability while aligning with global trends and regulations.

JTEKT Corporation, ZF Friedrichshafen AG, ThyssenKrupp AG, NSK Ltd., Nexteer Automotive Group Limited, Mitsubishi Electric Corporation, Hyundai Mobis Co. Ltd., China Automotive Systems, Inc., Sona Koyo Steering Systems Limited and Robert Bosch Limited are among the leading manufacturers of automotive steering systems.

Robert Bosch GmbH is well-known for its innovative steering technologies and strong presence in global markets. The company's dedication to research and development has enabled it to provide a comprehensive range of steering solutions, including electric power steering and advanced safety systems.

JTEKT Corporation, a market leader, is known for its emphasis on quality and dependability, as well as its diverse product portfolio, which caters to a wide range of vehicle types and segments.

Key Players in the Market

• JTEKT Corporation
• ZF Friedrichshafen AG
• ThyssenKrupp AG
• NSK Ltd.
• Nexteer Automotive Group Limited
• Mitsubishi Electric Corporation
• Hyundai Mobis Co. Ltd.
• China Automotive Systems, Inc.
• Sona Koyo Steering Systems Limited
• Robert Bosch Limited

Recent Developments

• In February 2025, ZF Friedrichshafen AG began production of the latest steer-by-wire system for Chinese automaker NIO's electric flagship, the ET9. The company provides steering wheel and gear actuators, along with the necessary software.
• In April 2025, Nexteer Automotive Corporation has launched high-output column-assist electric power steering (HO-CEPS), a powerful addition to its steering portfolio that delivers up to 110 Nm of assist torque, compared to the standard 40-95 Nm range. This advancement allows the system to support larger, heavier vehicles like SUVs and entry-level EVs while still maintaining steering precision, efficiency, and cost-effectiveness.

Segmentation of Automotive Steering System Market

• By Technology :

  • Steer-by-Wire
  • Hydraulic Power Steering
  • Electronic Power Steering
  • Others

• By Vehicle Type :

  • EVs
  • Light Commercial Vehicles
  • Passenger Cars
  • Off-highway/Agri
  • Heavy Commercial Vehicles

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa