Market Overview
The global automotive steering system market size was worth US$ XX Million in 2023 and is estimated to reach US$ XX million by 2031, growing at a CAGR of XX% during the forecast period (2024-2031).
A steering system is an intricate system consisting of a steering wheel, gears, linkages and other components that allow a vehicle to change the direction of its motion. The steering system is an integral part of the vehicle. A good steering system has a precise steering mechanism that is easy to handle. The effort required by the driver for steering is minimal and the system provides good directional stability.
Source: DataM Intelligence Analysis (2022)
Market Dynamics
The demand for automotive suspension systems is driven primarily by the increasing demand for new affordable cars in the emerging markets and the rising global vehicle production rates. The introduction of strict fuel economy norms will be driving the trends for the steering systems market. The high cost of modern power steering systems will be a challenge for the growth of this market.
Stringent fuel economy norms
Consumers and governments globally are becoming more climate-conscious. A major push is underway to decarbonize transportation to avoid the most severe effects of global warming and man-made climate change. Recently, at the COP26 climate conference in Glasgow in November 2021, many governments have pledged net-zero carbon emission targets for the middle of the century. While the complete decarbonization of transportation is still a few decades away, more stringent fuel economy norms are being pursued by national governments globally.
An electric steering system is lighter than a conventional hydraulic steering system, primarily due to the absence of hydraulic fluid and the associated system components such as pumps and fluid lines. A vehicle with a modern electric steering system is, on average, 4% more fuel-efficient than a vehicle with a conventional hydraulic power steering system. The use of electric power steering in conjunction with other fuel-saving technologies can help to increase the fuel economy of vehicles.
Complexity and failure of electric steering system components
Modern electric power steering systems are preferred for weight-saving measures that help raise the vehicle's fuel economy. However, electric power steering systems are prone to frequent malfunctioning due to the disengagement of the wheel from the electric motor. The steering system has a complex design with numerous sensors and a single sensor's failure causes the entire system to fail. Due to the complexity of the electric steering system, maintenance and repairs require expert technical help and involve very high costs. The factors above represent key challenges to the growth of this market.
COVID-19 impact analysis
The automotive industry experienced sharp declines in production and sales in 2020 due to the COVID-19 pandemic. Governments globally imposed lockdowns to curb the pandemic's spread and many manufacturers had to suspend operations temporarily. Industrial manufacturing is a highly capital-intensive business and thus, many component manufacturers were facing bankruptcy.
Vehicle production resumed in a limited capacity after lifting the lockdowns. The COVID-19 pandemics' knock-on effects on the global supply chains have caused shortages of essential components for the automotive industry. It has led to long lead times and reduced production rates, even after the complete lifting of pandemic-related restrictions. The pandemic will have a negligible impact on the long-term growth of the automotive steering system market since the demand for vehicles of all classes remains strong. It will continue to grow significantly in the coming years.
Market Segment Analysis
The automotive steering system market is segmented on component, technology, pinion type, vehicle type and region. The global automotive steering system market is segmented into passenger cars, light commercial vehicles and heavy commercial vehicles based on vehicle type. Passenger cars dominate this segment since the sales of passenger cars are far greater than all classes of commercial vehicles.
Source: DataM Intelligence Analysis (2022)
Market Geographical Share
Asia-Pacific is leading in the global automotive steering system market. The region accounts for the largest market share, primarily due to major emerging markets such as China, India, Indonesia, Malaysia, Thailand and Vietnam and developed automotive markets such as Japan and South Korea. The Asia-Pacific has experienced sustained high economic growth over the previous decade.
The sustained high growth has created favorable socio-economic conditions for a rising middle class with increased purchasing power. It has led to a rise in the purchase of new automobiles, thus creating a surge in demand for new vehicles. Due to their large domestic automotive industries and the rising sales of commercial vehicles, the demand for automotive steering system systems comes primarily from China and India.
Source: DataM Intelligence Analysis (2022)
Market Competitive Landscape
The global automotive steering system market is highly competitive, with many automotive component manufacturers offering different steering systems for different classes of vehicles. Some of the major players contributing to the growth in the segment are JTEKT Corporation, Nexteer Automotive, NSK Ltd., Robert Bosch GmBH, Thyssenkrupp AG, ZF Friedrichshafen AG, Showa Corporation, Hyundai Mobis, Mando Corporation, China Automotive Systems, Inc. The significant players adopt several growth strategies such as new product launches, joint ventures and collaborations, contributing to global growth in the industry.
Nexteer Automotive
Overview: Nexteer Automotive is a major automotive parts supplier for OEMs primarily dealing in hydraulic and electric steering systems, steering columns and driver assistance systems. The company has 45 offices and 27 manufacturing plants globally. Nexteer Automotive was founded in 2009 and is headquartered in Auburn Hills, Michigan, U.S.
Product Portfolio
- Nexteer Column Assist EPS is a new generation electric power steering system that integrates the system electronics and the assist mechanism with the steering column.
Key Developments: In October 2020, Nexteer Automotive launched the High-Output EPS, a new electric power steering system with advanced comfort and safety features for light commercial vehicles.
Why Purchase the Report?
- Visualize the composition of the automotive steering system market segmentation by component, technology, pinion type, vehicle type and region, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the automotive steering system market by analyzing trends and co-development deals.
- Excel data sheet with thousands of the automotive steering system market-level 4/5 segmentation data points.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the critical product of all major market players
The global automotive steering system market report would provide access to an approx. 70 market data tables, 70 figures, and 180 pages.
Target Audience
- Automotive component manufacturers
- Vehicle manufacturers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
