Automotive Steering Parts Market Outlook

The global automotive steering parts market was valued at approximately USD 28 billion in 2023 and is projected to reach around USD 42 billion by 2035, growing at a compound annual growth rate (CAGR) of 6% during the forecast period. Several growth factors are driving this market, including the increasing demand for advanced steering systems, the growing production of vehicles globally, and the rising consumer preference for enhanced driving experiences. Additionally, technological advancements in steering systems, such as the integration of electronic power steering, contribute significantly to the market's expansion. The gradual shift towards electric and autonomous vehicles is also a pivotal factor, as these vehicles often require more sophisticated steering solutions to ensure safety and performance. Furthermore, the increasing demand for fuel-efficient and lightweight vehicles is promoting the development of innovative steering components and systems that can help reduce weight while maintaining performance. The automotive industry's focus on enhancing safety features, including advanced driver-assistance systems (ADAS), further propels the growth of the steering parts market.

Growth Factor of the Market

The automotive steering parts market is experiencing robust growth, driven by several key factors. Firstly, the rising production rates of passenger and commercial vehicles globally are increasing the demand for steering components. With the world transitioning towards electric and hybrid vehicles, car manufacturers are investing significantly in innovative steering technologies that enhance vehicle control and driver comfort. Moreover, the increasing integration of advanced technologies such as electronic power steering (EPS) into new vehicle models is also contributing to market expansion. Additionally, consumers are increasingly prioritizing vehicle safety, leading to a heightened focus on advanced steering solutions that provide better stability and handling. Furthermore, the growing trend of customization in the automotive sector, where manufacturers are keen to offer unique driving experiences, is pushing the demand for specialized steering parts, thus opening additional avenues for market growth.

Key Highlights of the Market

• The market is expected to grow at a CAGR of 6% from 2025 to 2035.
• Advanced steering technologies such as EPS are becoming increasingly prevalent in new vehicles.
• The rise in electric and autonomous vehicle production is driving innovation in steering systems.
• Asia Pacific is projected to dominate the market due to high automotive production rates.
• OEMs continue to hold a significant share of the distribution channel for steering parts.

By Product Type

Steering Rack:

The steering rack is a critical component of a vehicle's steering system, translating the rotational motion of the steering wheel into lateral motion of the wheels. This component typically allows for precise handling and control, making it essential for vehicle performance. As the automotive industry shifts towards electric and advanced steering systems, the design and manufacturing of steering racks are becoming increasingly sophisticated. The market for steering racks is growing due to the increased production of vehicles and the rising demand for enhanced driving dynamics. Moreover, advancements in materials and manufacturing techniques are leading to the development of lighter and more durable steering racks, further driving market growth.

Steering Column:

The steering column is fundamental to the steering system, connecting the steering wheel to the steering mechanism. This component not only provides a pathway for steering controls but also plays a vital role in driver safety, which has led to enhancements in its design for improved crashworthiness. The market for steering columns is expanding as automotive manufacturers focus on integrating advanced features such as tilt and telescopic adjustments and incorporating electronic controls for steering assist. Additionally, the trend toward customization in vehicle interiors also boosts the demand for versatile steering columns that can accommodate various driver preferences and ergonomic needs.

Steering Wheel:

Steering wheels are essential components that provide the driver with the control needed to navigate a vehicle. The design and materials used in steering wheels have evolved significantly over the years, focusing on improving grip, comfort, and aesthetics. The steering wheel market is witnessing growth driven by innovations such as multifunctional steering wheels that integrate controls for infotainment systems and advanced driver assistance features. Furthermore, the increasing trend toward personalized vehicle interiors and the demand for luxurious finishes are prompting manufacturers to invest in high-quality materials and innovative designs, thus fueling the market for steering wheels.

Steering Pump:

Steering pumps play a crucial role in providing the necessary hydraulic pressure for steering systems, particularly in traditional hydraulic steering setups. As the automotive industry gradually shifts towards electric and hybrid steering systems, the demand for hydraulic steering pumps is witnessing a slight decline. However, there is still a significant market for steering pumps in existing hydraulic systems, particularly in regions where traditional vehicles remain prevalent. Advancements in pump technology aimed at improving efficiency and performance are helping to sustain interest in this segment, with manufacturers focusing on developing pumps that reduce energy consumption while maintaining optimal steering performance.

Steering Gear:

The steering gear is the mechanism that converts the rotational motion of the steering wheel into the lateral movement of the wheels. This crucial component is essential for precise steering control and overall vehicle handling. The market for steering gears is experiencing growth due to the increasing demand for advanced steering systems and the technological advancements that enhance their functionality. Electronic and rack-and-pinion steering gears are gaining traction, driven by the trend towards more efficient and responsive steering systems. As vehicle manufacturers prioritize safety and performance, the demand for high-quality steering gears that provide better feedback and control is expected to surge, supporting market expansion.

By Application

Passenger Cars:

The passenger car segment is one of the largest applications for automotive steering parts, driven by the high demand for personal vehicles. With increasing urbanization and changing lifestyles, more consumers are investing in passenger cars, leading to a significant rise in the production of these vehicles. This growth prompts manufacturers to innovate steering technologies that enhance vehicle handling, safety, and comfort. Furthermore, the push towards electric vehicles is influencing the design and manufacturing of steering systems, with a focus on lightweight and responsive components that cater to the unique requirements of electric drivetrains. Thus, the passenger car market remains a key driver for automotive steering parts.

Commercial Vehicles:

The commercial vehicle segment encompasses a wide range of vehicles, including trucks, buses, and vans, which require robust and reliable steering systems due to their larger size and weight. The demand for steering parts in this sector is directly linked to the growth of the logistics and transportation industries, particularly as e-commerce continues to expand. Additionally, advancements in steering technology, such as power steering systems that facilitate easier maneuverability for these larger vehicles, are driving the demand for steering parts. As regulations around freight transportation tighten and the need for efficiency increases, the commercial vehicle segment is expected to see sustained growth in its demand for quality steering solutions.

Off-road Vehicles:

Off-road vehicles, including SUVs and all-terrain vehicles, require specialized steering systems that can withstand rugged conditions. The demand for steering parts in this application is driven by the rising popularity of off-road adventures and recreational activities. Manufacturers are focusing on developing more durable and responsive steering systems to enhance the off-road driving experience, which includes features like improved articulation and responsive feedback. As lifestyle changes encourage outdoor activities, the off-road vehicle segment is poised for steady growth, further boosting the demand for high-performance steering components.

Electric Vehicles:

The electric vehicle (EV) segment is experiencing a surge in demand as consumers increasingly prioritize sustainability and energy efficiency. Steering systems in EVs are evolving, with a growing emphasis on electronic power steering that optimizes performance and enhances energy efficiency. The shift towards EVs is transforming the automotive landscape, with manufacturers investing heavily in R&D for advanced steering technologies that support the unique requirements of electric drivetrains. As governments around the world promote EV adoption through incentives and infrastructure development, the demand for steering parts tailored for electric vehicles is expected to rise significantly.

Autonomous Vehicles:

The development of autonomous vehicles is one of the most exciting frontiers in the automotive industry, with steering systems playing a critical role in their functionality. The demand for specialized steering components in this segment is driven by the need for precise control mechanisms that can operate without human intervention. As technology progresses towards fully autonomous vehicles, steering systems must integrate advanced sensors and software to facilitate safe navigation. This evolving landscape presents significant opportunities for innovation in steering parts, as manufacturers strive to create systems that can adapt to various driving conditions and scenarios, ensuring passenger safety and vehicle performance.

By Distribution Channel

OEMs:

The OEM (Original Equipment Manufacturer) channel continues to dominate the distribution of automotive steering parts, as vehicle manufacturers incorporate these components directly into their production lines. This segment benefits from long-term contracts and relationships between manufacturers and suppliers, ensuring a steady demand for steering parts. With the growing number of vehicles produced worldwide, the OEM channel is positioned for strong growth. Additionally, the trend towards electric and advanced steering systems in new models is driving the development of innovative steering solutions that meet the specific needs of OEMs, further bolstering this segment.

Aftermarket:

The aftermarket segment for automotive steering parts provides a significant opportunity for growth, driven by the increasing number of vehicles on the road and their need for maintenance and replacement parts. As vehicles age, steering components may require repairs or replacements due to wear and tear, leading to a robust aftermarket demand. Moreover, the trend towards DIY vehicle maintenance and the availability of online platforms for purchasing parts are enhancing the aftermarket's accessibility and convenience for consumers. With a focus on quality and performance, aftermarket suppliers are expanding their offerings to meet the diverse needs of consumers seeking reliable steering solutions for both traditional and advanced vehicles.

By Material Type

Steel:

Steel remains one of the most widely used materials in automotive steering parts due to its strength, durability, and ability to withstand high stress. The use of steel in components such as steering racks, columns, and gears ensures that these parts can endure the rigorous demands of daily driving. Furthermore, advancements in steel processing technology have led to the development of lighter and stronger steel variants, which are increasingly being incorporated into steering systems to improve overall performance and efficiency. The demand for steel components is expected to remain strong, particularly as vehicle manufacturers prioritize safety and reliability in steering systems.

Aluminum:

Aluminum is increasingly being utilized in automotive steering parts due to its lightweight properties, which can enhance fuel efficiency without compromising strength. The use of aluminum components, such as steering columns and brackets, is on the rise as manufacturers strive to reduce vehicle weight and improve overall performance. Additionally, aluminum's corrosion resistance makes it an attractive option for components exposed to harsh environmental conditions. As the automotive industry continues to focus on sustainability and energy efficiency, the demand for aluminum steering parts is expected to grow, reflecting a shift towards more lightweight and eco-friendly materials.

Plastic:

Plastic components are becoming more prevalent in the automotive steering parts market due to their versatility, lightweight nature, and cost-effectiveness. The use of plastic in steering wheels, covers, and various housing components allows for greater design flexibility and customization. Moreover, advancements in plastic technology have led to the development of high-performance polymers that can withstand the stresses of automotive applications. The growing trend towards electric and autonomous vehicles is further driving the demand for plastic components, as they contribute to weight reduction and improved energy efficiency in these advanced systems.

Composite:

Composite materials are gaining traction in the automotive steering parts market, offering a unique combination of lightweight properties and high strength. The use of composites in steering components allows manufacturers to create parts that are not only lighter than traditional materials but also provide enhanced performance and durability. As the automotive industry continues to innovate and seek ways to improve vehicle efficiency, the demand for composite steering parts is expected to rise. Furthermore, the growing focus on sustainability and eco-friendly materials is prompting manufacturers to explore composite options that align with environmentally conscious practices.

Others:

The term "others" encompasses various alternative materials used in the production of automotive steering parts. This category may include advanced alloys, specialty metals, and innovative synthetic materials designed for specific applications. The use of alternative materials is driven by the need for enhanced performance, weight reduction, and cost efficiency in steering components. As manufacturers continue to explore new materials and technologies, the "others" segment is likely to see growth as companies seek to differentiate their products and meet the evolving demands of the automotive market.

By Region

The regional analysis of the automotive steering parts market highlights significant variations in demand and growth potential across different areas. North America is anticipated to account for a substantial share of the market, driven by a robust automotive industry and a growing preference for advanced steering systems. The region's market is projected to grow at a CAGR of 5.5%, supported by increasing investments in electric vehicle production and technological advancements in steering systems. Meanwhile, Europe remains a key market, with a strong emphasis on safety regulations and sustainability, promoting the adoption of innovative steering solutions across various vehicle segments.

Asia Pacific is expected to dominate the automotive steering parts market due to high production rates, particularly in countries like China and India. With the rising demand for vehicles and an increasing focus on electric and autonomous solutions, the Asia Pacific region is projected to grow at a remarkable CAGR of 7% during the forecast period. Latin America and the Middle East & Africa, while smaller markets, demonstrate potential for growth as vehicle ownership rises and infrastructure development progresses. However, their overall contribution to the global market remains limited compared to North America, Europe, and Asia Pacific.

Opportunities

The automotive steering parts market presents numerous opportunities for growth, especially with the ongoing advancements in technology and increasing demand for electric vehicles. The shift towards electric drivetrains is prompting manufacturers to innovate their steering components, focusing on efficiency and performance to meet the unique requirements of EVs. As governments worldwide implement stricter emissions regulations, the automotive industry is investing heavily in electric vehicle technology, creating a significant demand for advanced steering solutions that enhance vehicle dynamics and safety. Furthermore, the rise of autonomous vehicles offers a unique opportunity for steering system development, as these vehicles require precise control mechanisms that can operate independently. This creates a fertile ground for innovation, allowing companies to capitalize on emerging technologies and produce steering systems that enhance the safety and performance of autonomous vehicles.

Additionally, the increasing trend towards vehicle customization and personalization is opening new avenues for the automotive steering parts market. Consumers are seeking unique driving experiences, leading manufacturers to explore customizable steering components that cater to individual preferences. This trend presents an opportunity for suppliers to develop a diverse range of products, including advanced steering wheels and ergonomic columns that enhance driver comfort and control. Moreover, the aftermarket segment is witnessing growth as vehicle owners seek quality replacement parts and upgrades to improve performance. By focusing on customer needs and preferences, manufacturers can tap into this lucrative market segment and expand their offerings accordingly, ensuring sustained growth in the automotive steering parts market.

Threats

Despite the promising opportunities within the automotive steering parts market, several threats could potentially hinder growth. One of the foremost challenges is the volatility of raw material prices, particularly for metals and plastics used in steering components. Fluctuations in the cost of these materials can impact profitability and pricing strategies for manufacturers, leading to increased operational costs and potential market instability. Furthermore, the rapid pace of technological advancements in the automotive sector means that companies must continuously invest in research and development to remain competitive. Failure to keep up with industry innovations could result in obsolescence and loss of market share, especially as electric and autonomous vehicle technologies continue to evolve.

Another significant threat is the increasing competition from low-cost manufacturers, particularly in emerging markets. These competitors often offer similar products at lower prices, putting pressure on established players to reduce costs while maintaining quality. This situation can lead to price wars and reduced profit margins, which may adversely affect the overall market dynamics. Additionally, stringent regulations regarding vehicle safety and emissions may pose challenges for manufacturers as they strive to comply with evolving standards, requiring further investment in technology and processes. Ultimately, addressing these threats will necessitate strategic planning and adaptability from players within the automotive steering parts market to ensure long-term sustainability.

Competitor Outlook

• JTEKT Corporation
• ZF Friedrichshafen AG
• BorgWarner Inc.
• Thyssenkrupp AG
• NSK Ltd.
• Delphi Technologies
• Robert Bosch GmbH
• TRW Automotive
• Leece-Neville
• Moog Inc.
• Schaeffler AG
• Hitachi Automotive Systems
• GKN Automotive
• Aisin Seiki Co., Ltd.
• Continental AG

The automotive steering parts market is characterized by intense competition, with several established players dominating the landscape. Companies such as JTEKT Corporation, ZF Friedrichshafen AG, and BorgWarner Inc. are recognized for their advanced steering technologies and extensive product portfolios. These manufacturers invest heavily in research and development to stay at the forefront of innovation, particularly as trends in electric and autonomous vehicles reshape the automotive industry. By focusing on technological advancements and strategic partnerships, these players are well-positioned to capture growth opportunities within the market.

Additionally, companies like Delphi Technologies and Robert Bosch GmbH are leveraging their expertise in electronics and software to develop intelligent steering solutions that enhance vehicle performance and safety. The integration of advanced driver assistance systems (ADAS) with steering technologies is a key area of focus, allowing these companies to differentiate their products in an increasingly competitive market. Furthermore, partnerships with automakers and collaborations on joint ventures are becoming common strategies for these competitors to strengthen their market position and expand their reach.

Emerging players such as Aisin Seiki Co., Ltd. and Schaeffler AG are also gaining traction in the automotive steering parts market by offering innovative solutions that address the evolving needs of vehicle manufacturers. These companies are exploring new materials and manufacturing techniques to create lightweight, efficient steering components that appeal to both OEMs and aftermarket consumers. By prioritizing sustainability and meeting regulatory requirements, these competitors are carving out their niche in the market, contributing to a dynamic and competitive landscape. As the automotive steering parts market continues to evolve, the competitive environment will likely see further consolidation and collaboration among key players to drive growth and innovation.