Global Automotive Tie Rods Market is segmented By Product Type (Outer tie rods, Inner tie rods), By Vehicle Channel (Passenger car, Commercial vehicle, Heavy duty vehicle), By Sales Channel (OEM, Aftermarket), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030
Market Overview
Global automotive tie rods market reached USD 805.9 million in 2022 and is expected to reach USD 988.2 million by 2030, growing with a CAGR of 4.4% during the forecast period 2023-2030. Automotive tie rods market plays a crucial role in ensuring the safe and smooth functioning of automobiles.
As the automotive industry undergoes continuous advancements and innovations, the demand for high-quality tie rods is on the rise. As automotive manufacturers strive to meet the demands of an evolving industry and adhere to stringent safety and environmental standards, the demand for high-quality and innovative tie rods will continue to grow.
The direct outer tie rods leads the product segment in the global automotive tie rods market, accounting for over half of the market share. Similarly, the Asia-Pacific dominates the automotive tie rods market, capturing the largest market share of over 1/3rd. The region’s growing automotive production act as the major factor that plays key role for the respective dominance.
Market Scope
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Metrics |
Details |
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CAGR |
4.4% |
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Size Available for Years |
2021-2030 |
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Forecast Period |
2023-2030 |
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Data Availability |
Value (US$) |
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Segments Covered |
Product, Vehicle and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
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Fastest Growing Region |
Asia-Pacific |
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Largest Region |
Asia-Pacific |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Global Vehicle Production
The automotive industry is continually evolving, and various components play crucial roles in ensuring the safety and efficiency of vehicles. One such vital component is the automotive tie rod, which connects the steering rack to the steering knuckle, enabling smooth and precise steering control. One of the primary drivers fueling the growth of the automotive tie rods market is the increasing global vehicle production.
According to data from the International Organization of Motor Vehicle Manufacturers (OICA), worldwide vehicle production reached 85.47 million units in 2022. As the automotive industry rebounds from the clutches of the COVID-19 pandemic, the demand for automotive tie rods is also expected to surge, as they are critical components used in almost every vehicle.
Growing Demand for Electric and Hybrid Vehicles
The shift towards cleaner and more sustainable transportation solutions has accelerated the adoption of electric and hybrid vehicles. Governments worldwide are implementing stringent emission regulations and offering incentives to promote the adoption of eco-friendly vehicles. As a result, electric and hybrid vehicle sales have witnessed substantial growth in recent years.
According to the International Energy Agency (IEA), electric vehicle sales in 2020 reached 3.1 million units, a 41% increase compared to the previous year. The respective shift towards electric and hybrid vehicles indicated by aforementioned statistics has positively impacted the automotive tie rods market, as these vehicles also require steering components.
Stringent Regulations and Emission Standards
Governments across the globe are tightening emission standards to curb air pollution and combat climate change. As a result, automakers are under pressure to produce more fuel-efficient and eco-friendly vehicles. To achieve this, automobile manufacturers are exploring lighter materials and alternative technologies, which might lead to a reduction in the use of traditional tie rods.
Moreover, stringent safety regulations by regulatory bodies such as the National Highway Traffic Safety Administration (NHTSA) and the European Commission have led to the adoption of advanced steering systems and safety features. The respective shift towards sophisticated technology may pose challenges to the traditional tie rod market.
Segment Analysis
The global automotive Tie Rods market is segmented based on product, vehicle, sales channel and region.
Growing Demand for Advanced Steering Systems
According to the International Organization of Motor Vehicle Manufacturers (OICA), global automobile production rebounded strongly after the slump in 2020, reaching 85.5 million units in 2022. The resurgence in vehicle production is attributed to the recovery of the automotive industry from the impact of the COVID-19 pandemic. With an increase in vehicle production, the demand for automotive components, including outer tie rods, has also surged.
As automotive technology advances, the demand for sophisticated steering systems with enhanced safety and performance features is rising. Outer tie rods are vital components in various advanced steering systems, such as electric power steering (EPS) and adaptive steering systems. The EPS systems, in particular, have gained popularity due to their energy efficiency and smooth operation, further fueling the demand for outer tie rods.
Geographical Penetration
A Rise in Disposable Income and Urbanization
The automotive industry in Asia-Pacific has experienced significant growth over the past few decades. Countries such as China, India, Japan, South Korea, and Southeast Asian nations have witnessed remarkable economic development, leading to a rise in disposable income and urbanization. As a result, there has been an exponential surge in the demand for automobiles in the region.
According to the International Organization of Motor Vehicle Manufacturers (OICA), Asia-Pacific dominated global automotive production in recent years. For instance, in 2020, Asia accounted for approximately 53.2% of the world's total automobile production, with China and Japan leading the pack. Such robust growth in the automotive sector has translated into a substantial demand for automotive components, including tie rods.
Major Key Players
The major global players in the market include ZF Friedrichshafen AG, TRW Automotive, Federal-Mogul Motorparts, General Motors (ACDelco), Mando Corporation, Sankei Industry Co. Ltd., K.D.K. Upset Forging Co., Honssion Auto Chassis System (ZHETIANG) Co. Ltd., FAI Automotive Plc and Mevotech LP.
COVID-19 Impact Analysis
The global automotive tie rods market relies heavily on a complex and interconnected supply chain that stretches across different regions. COVID-19 caused significant disruptions in this chain, with delays in raw material shipments and reduced workforce capacity in manufacturing facilities.
However, as countries managed to control the initial surge of COVID-19 cases and eased lockdown measures, the automotive industry gradually began its recovery. Governments also introduced various stimulus packages and incentives to boost the automobile sector. However, the speed of recovery varied across regions, with some rebounding faster than others.
By Product
- Outer tie rods
- Inner tie rods
By Vehicle
- Passenger vehicle
- Commercial vehicle
- Heavy duty vehicle
By Vehicle
- OEM
- Aftermarket
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- On April 1, 2021, North American driveline, suspension and steering manufacturer, Mevotech launched new outer tie rod ends MS60668/MS60669 for Honda Accord.
- On November 1, 2021, Delphi Technologies announced that the company would exhibit tie rods including outer and inner tie rodes along with several other products at Automotive Aftermarket Products Expo held in Las Vegas.
- On July 25, 2023, Maruti Suzuki, India recalled 87,599 units of Eeco and S-Presso manufactured between February 2023 and July 2021 due to defect in its steering tie rod.
Why Purchase the Report?
- To visualize the global automotive tie rods market segmentation based on product, vehicle, sales channel and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of automotive tie rods market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global automotive tie rods market report would provide approximately 61 tables, 55 figures and 187 Pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
