Automotive Steering System Market

Automotive Steering System Market Outlook

Automotive steering system market is expected to grow with a CAGR of 4%, as the consumers prefer to choose driving comfort.

The automotive steering system market to reach nearly US$ 23 Billion in 2020. Redesigning automotive steering systems for easy usage is driving the market growth.

In addition, attaining fuel efficiency plays a major role in accelerating the uptake of automotive steering systems. Thus, the market is expected to surpass a CAGR of 4% in the 2021-2031 assessment period, reaching nearly US$ 34 Billion.

Market Analysis	Values
Global Market CAGR (2021-2031)	4%
US Market Estimated Revenue	US$ 5 Million
Electrically Powered Steering Systems Market CAGR 2031	5%
Heavy Commercial Vehicles (HCV) Segment Market Share	40%

Automotive Steering System Historical Trends 2016-2020 in Comparison to Future Outlook 2021-2031

As per Fact.MR’s report, between 2016 and 2020, the automotive steering system market expanded at nearly 4%, closing in at a value of nearly US$ 23 Bn in 2020.

Manufacturers of automotive steering systems are focusing on developing vehicles that provide comfort. Furthermore, stringent rules and regulations by governments are driving the sales growth of automotive steering systems.

Thus, in the forecast period, the automotive steering system industry is expected to surpass a CAGR of 4% to reach a higher valuation across the 2021-2031 forecast period.

Emphasis on Flexibility to Boost Automotive Steering Systems Demand?

Automotive steering system is a collection of components that includes steering column, steering wheel, front wheel, brakes, and clutches. This enables the driver to effortlessly direct the motion of the vehicle on the desired path.

Current automotive systems have been redesigned to provide efficient and easy driving. Thus, these systems have replaced earlier rigid automotive steering systems and possess incredible flexibility that offers automatic assistance.

How is Autonomous Driving Shaping Demand for Automotive Steering Systems?

Highly automated level 4 and 5 vehicles are shaping the future of the automotive steering system market.

Prominent automotive manufacturers are looking to leverage autonomous driving systems to provide a seamless experience to automobile users. Following the CES 2018, General Motors presumptuously declared that the company would eliminate the automotive steering system from its autonomous vehicle designs by 2019.

With the launch of the Level 5 Chevy Bolt, GM is all set to venture into autonomous vehicles that would function without an automotive steering system and pedals. The company claims that this will be the first-ever production car sans driver control.

Similarly, Ford Motors has already patented a completely detachable automotive steering system and pedals, which has been planned to be available as a customer-requested automotive component option.

Although GM and Ford plan the aforementioned features for highly automated level 4 and 5 vehicles, it is imperative to address several structural, functional, and system related challenges during realistic on-road testing, before the mass production roll-out. This is believed to be highly influential in shaping the future of automotive steering system market.

OEMs Ought to Focus on Cybersecurity of Automotive EPS Systems?

EPS cybersecurity-focused innovations are likely to open new avenues for OEMs active in the automotive steering systems market over the forecast period.

With the dramatic evolution of the connected, autonomous, and semi-autonomous vehicle ecosystem, leading automakers ought to prioritize the safety and security concerns associated with automotive steering systems – especially electric power steering systems (EPS).

Industry experts predict that the next few years will observe soaring demand for EPS in all classes of vehicles, including state-of-the-art technology-based vehicles such as autonomous and connected cars.

Innovations centred on cybersecurity of EPS are likely to open new doors of opportunities for OEMs active in the automotive steering system market in the forecast period.

Electric Powered Automotive Steering Systems Taking over Hydraulics?

The quest for reduced complexity and costs is prompting OEMs to switch from hydraulic automotive steering systems to electric automotive steering systems. Manufacturers are increasingly inclined towards achieving higher drivetrain efficiency, preferring electric automotive steering systems over hydraulic ones.

Although hydraulics have been considered ideal for amplified steering efforts for parking and manoeuvring vehicles through heavy traffic, they tend to undermine both engine power and fuel economy.

Electric automotive steering systems thus help achieve high fuel efficiency, and reduced vehicle weight and costs - offering assistance at lower as well as higher vehicle speeds and in all driving modes, including sports. Furthermore, electric powered automotive steering system can potentially work in tandem with automotive radar, LIDAR in futuristic cars.

Country-wise Analysis

What Growth Prospects Abound across the U.S Market?

The demand for passenger cars and light commercial vehicles in the U.S increased. Prominent automotive giants are thus leveraging advanced driving systems to enhance the comfort factor across prominent automobiles. Introduction of autonomous driving systems has further spurred demand.

As per Fact.MR’s industry analysis, the automotive steering systems demand is expected is expected to register a CAGR around 4%, with revenue estimated to surpass US$ 5 Mn.

Why are East and South Asia Attracting Automotive Steering Systems Manufacturers?

Enforcement of stringent regulations for reducing carbon emissions is prompting automotive manufacturers across countries such as China and India to introduce efficient automobiles. Hence, demand for automotive steering systems is heightening.

Companies such as Hitachi Automotive systems, Hyundai Mobis and Infineon Technologies in China, JTEKT Corporation and NSK steering systems and Hitachi Astemo, Bawai Plant and Bosch Huayu are driving the growth of the automotive steering systems industry in the region. Both regions are poised to account for over 3/5th of overall global demand.

Category-wise Insights

Why are Electrically Powered Steering Systems Acquiring Traction?

The electrically powered steering system (EPS) is expected to be highly popular, as it is not attached to a steering rack or column. Thus, the EPS system reduces emissions and is an economic option. These qualities of the EPS system are making it favourable for use. Fact.MR expects sales of electric power steering systems to expand at a CAGR of over 5% until 2031.

In addition, it also provides assistance for road speed and vehicle type. Not only does the EPS system reduce emissions but it also reduces environmental hazards as there are no chances of leakages. All these factors are driving the sales of the electric power steering systems.

Why are HCV Manufacturers Seeking Automotive Steering Systems?

Revenue Share Worth 40% is Projected for Automotive Steering Systems for Heavy Commercial Vehicles (HCV) segment over the forecast period.

Heavy commercial vehicle (HCV) manufacturers are leveraging hydraulic and electro-hydraulic automotive steering systems for reduced steering control force and enhanced fuel efficiency. A revenue share worth 40% is projected for this segment.

Several advanced technology automotive steering system designs also integrate features such as an electronic stability program and anti-lock braking system. Moreover, manufacturers of the automotive steering systems are also investing their R&D efforts in innovations regarding advanced technology driver assistance and power consumption.

Competitive Landscape

Key players in the automotive steering system are focusing on providing comfort and safety to people. Also, companies are constantly integrating latest technological advancements that would reduce the chances of vehicle failures.

• For instance, in July 2021, Hyundai Mobis has developed world’s first brainwaves based on the ADAS technology. With the help of this technology, the brainwaves can measure the drives state and alert to avoid accidents.

Report Scope

Report Attributes	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Market Segments Covered	Type Vehicle Type Distribution Channel Region
Key Companies Profiled	Nexteer Automotive Group Limited JTEKT Corporation ThyssenKrupp AG NSK Ltd. Mitsubishi Electric Corporation China Automotive Systems Inc. Sona Koyo Steering Systems Limited Robert Bosch Limited

Key Segments Covered

• Type

  • Hydraulic Powered
  • Electrically Powered

• Vehicle Type

  • Passenger Vehicles
  • Light Commercial  Vehicles (LCV)
  • Heavy Commercial Vehicles (HCV)

• Sales Channel

  • OEMs
  • Aftermarkets