Automotive Steering Systems Sales Market Outlook

The global automotive steering systems market is projected to reach USD 36.5 billion by 2025, with a compound annual growth rate (CAGR) of 7.4% from 2025 to 2035. This growth is primarily driven by factors such as the increasing demand for advanced vehicle technologies, the rise in vehicle production, and the growing emphasis on enhanced vehicle safety and fuel efficiency. Furthermore, the transition towards electric vehicles (EVs) is significantly influencing manufacturers to invest in innovative steering technologies, which aligns well with the shift toward automation and improved driver assistance features. The market is witnessing a shift from traditional steering systems to more advanced systems like Electric Power Steering (EPS) and Steer-by-Wire systems, which are revolutionizing the automotive experience. Additionally, the government's stringent regulations on vehicle emissions and safety are prompting manufacturers to adopt more efficient steering technologies, thus contributing to the market's growth.

Growth Factor of the Market

The automotive steering systems market is experiencing dynamic growth due to several factors that facilitate its expansion. One of the significant growth factors is the rising consumer preference for advanced safety and comfort features in vehicles. This demand is compelling automakers to integrate sophisticated steering technologies that enhance handling, maneuverability, and stability. Moreover, the growing trend of vehicle electrification is another crucial driver, as electric power steering systems are becoming the norm in modern vehicles due to their benefits in energy savings and performance. Furthermore, advancements in autonomous driving technology are pushing the development of innovative steering solutions, such as steer-by-wire systems, which eliminate traditional mechanical linkages. These factors contribute to a competitive landscape that encourages continuous innovation and investment in steering technologies. Additionally, the increasing focus on environmental sustainability is prompting manufacturers to develop lighter and more efficient steering systems, thus driving market growth.

Key Highlights of the Market

• The market is witnessing a marked shift towards electric power steering systems, which offer enhanced fuel efficiency and performance.
• Steer-by-wire technology is gaining traction, providing greater freedom in vehicle design and improved responsiveness.
• There is a rising demand for automotive steering systems in electric vehicles, with a projected CAGR of over 9% in this segment.
• OEMs are increasingly adopting advanced steering systems to comply with stringent safety regulations and enhance driver experience.
• The aftermarket segment is expanding due to the need for replacement parts and upgrades in existing vehicles.

By Product Type

Electric Power Steering:

Electric Power Steering (EPS) is revolutionizing the automotive steering landscape due to its numerous advantages over traditional hydraulic systems. EPS systems utilize electric motors to provide steering assistance, which not only enhances fuel efficiency but also reduces vehicle weight by eliminating the need for hydraulic fluid and pumps. The increasing adoption of EPS in passenger cars is a testament to its effectiveness in providing a responsive driving experience. Furthermore, the integration of advanced driver-assistance systems (ADAS) with EPS technology is enhancing the safety features of vehicles, thus driving its demand. The rising trend of vehicle electrification also contributes to the growth of EPS systems, as they are essential for electric and hybrid vehicles. Manufacturers are continuously innovating and improving EPS technology to meet consumer expectations for performance and efficiency, making it a significant segment in the automotive steering systems market.

Hydraulic Power Steering:

Hydraulic Power Steering (HPS) systems have been a staple in the automotive industry for decades due to their reliability and effectiveness in providing steering assistance. While EPS systems are gaining popularity, HPS remains relevant, particularly in commercial vehicles and heavier passenger cars, where robust steering performance is required. HPS systems rely on hydraulic fluids and pumps to assist steering, proving beneficial in terms of responsiveness and control during maneuvering. However, the market for HPS is gradually shifting as manufacturers are transitioning to more fuel-efficient and environmentally friendly alternatives. Despite this trend, HPS systems continue to dominate certain segments of the market due to their established presence and the need for dependable steering solutions in various vehicle types, ensuring its survival in the evolving automotive landscape.

Electro-Hydraulic Power Steering:

Electro-Hydraulic Power Steering (EHPS) systems represent a hybrid approach, combining elements of both hydraulic and electric systems to deliver optimized steering performance. EHPS uses an electric motor to drive the hydraulic pump, allowing for variable assistance based on driving conditions, which enhances fuel efficiency and reduces emissions. This technology is particularly appealing for mid- to high-end passenger vehicles, where a balance between performance and efficiency is desired. The adaptability of EHPS systems to various driving scenarios makes them an attractive option for manufacturers looking to improve the overall driving experience. Furthermore, as the automotive industry embraces electrification, EHPS is positioned well to retain its relevance by evolving with advancements in electric and hybrid vehicle technologies, thereby ensuring sustained growth in this segment.

Manual Steering:

While modern vehicles are increasingly shifting towards power-assisted steering systems, Manual Steering remains a viable option, particularly in certain types of vehicles such as lightweight sports cars and basic models where simplicity and cost-effectiveness are prioritized. Manual steering systems offer straightforward mechanics without the need for complex electronic or hydraulic components, resulting in lower production costs and reduced maintenance needs. The tactile feedback and direct connection to the road that manual systems provide can enhance the driving experience for enthusiasts who prefer a more engaged driving feel. However, the overall market for manual steering systems is declining as consumer preferences shift towards more advanced technologies that prioritize comfort and convenience. As a result, while manual steering systems still hold a niche position, their overall market share is diminishing in the face of advancements in steering technology.

Steer-by-Wire:

Steer-by-Wire technology is an innovative advancement that eliminates the mechanical linkages traditionally used in steering systems, replacing them with electronic controls. This technology allows for greater flexibility in vehicle design and the implementation of advanced features such as autonomous driving capabilities. Steer-by-Wire systems provide enhanced precision in steering response and can be easily integrated with other electronic systems in the vehicle, making them attractive to manufacturers aiming to create next-generation vehicles. The demand for Steer-by-Wire technology is expected to grow significantly, especially in electric and autonomous vehicles, where traditional steering systems may not meet the requirements for adaptability and functionality. As more auto manufacturers explore this technology, Steer-by-Wire is poised to become a leading feature in the automotive steering systems market.

By Application

Passenger Cars:

The passenger car segment accounts for a significant portion of the automotive steering systems market due to the high demand for personal vehicles worldwide. With increasing vehicle production rates and consumer preferences shifting toward advanced features, the demand for sophisticated steering systems such as Electric Power Steering (EPS) is rising. Additionally, the integration of steering systems with advanced driver-assistance systems (ADAS) is enhancing the safety and maneuverability of passenger vehicles, further driving market growth. As the automotive industry continues to innovate with features like enhanced electric steering technologies, the passenger car segment is expected to remain a stronghold for steering system manufacturers. Moreover, the growing trend of electrification in passenger vehicles is set to further boost the adoption of new steering technologies that offer improved efficiency and performance.

Commercial Vehicles:

The commercial vehicle segment, encompassing trucks, buses, and vans, plays a crucial role in the automotive steering systems market. These vehicles require robust and reliable steering systems to handle the demands of heavy loads and varied driving conditions. Hydraulic Power Steering (HPS) systems have traditionally dominated this segment due to their proven reliability and control. However, with the push toward fuel efficiency and emissions reduction, many manufacturers are beginning to incorporate Electric Power Steering (EPS) and Electro-Hydraulic Power Steering (EHPS) systems into their commercial models. This shift not only enhances the driving experience but also aligns with global trends toward sustainability. The increasing demand for logistics and transportation services, coupled with the requirement for advanced safety features, will ensure that the commercial vehicle segment remains an integral part of the automotive steering systems market.

Electric Vehicles:

The electric vehicle (EV) segment is rapidly emerging as one of the most promising areas for growth in the automotive steering systems market. With the global push towards sustainable transportation and stricter emissions regulations, automakers are increasingly investing in electric and hybrid vehicle technologies. Steering systems for electric vehicles often incorporate Electric Power Steering (EPS) due to its enhanced efficiency and performance capabilities. Moreover, the integration of advanced steering technologies such as Steer-by-Wire is becoming more prevalent in EVs, allowing for greater customization and improved driving dynamics. As consumer acceptance of electric vehicles grows and governments continue to support EV adoption through incentives and infrastructure development, the demand for sophisticated steering systems is expected to expand significantly in this segment over the next decade.

By Sales Channel

OEMs:

The Original Equipment Manufacturers (OEMs) segment is a significant contributor to the automotive steering systems market as it encompasses the production of steering systems that are integrated into new vehicles. OEMs are increasingly focusing on the development and implementation of advanced steering technologies to meet the evolving needs of the automotive market. With the rise of electric and hybrid vehicles, OEMs are prioritizing the adoption of Electric Power Steering (EPS) systems and other innovative steering solutions that enhance vehicle performance and fuel efficiency. Furthermore, partnerships between OEMs and technology providers are facilitating the introduction of cutting-edge steering systems that offer superior safety and driving experiences. The OEM market is expected to grow steadily as new vehicle models are introduced with modern steering technologies, ensuring a continuous demand for advanced solutions.

Aftermarket:

The aftermarket segment for automotive steering systems is essential as it caters to the growing need for replacement parts and upgrades in existing vehicles. As vehicles age, the demand for maintenance and replacement of steering components becomes critical, providing a robust market for aftermarket suppliers. Additionally, increasing awareness among consumers regarding vehicle performance and safety is further driving the need for quality aftermarket steering solutions. Innovations in technology are also contributing to the growth of the aftermarket, as consumers seek to upgrade their vehicles with advanced steering systems and components. The proliferation of e-commerce platforms is making it easier for consumers to access high-quality aftermarket steering parts. Overall, the aftermarket segment is poised for steady growth, driven by the need for reliable steering solutions in a diverse range of vehicles.

By Component Type

Steering Wheel:

The steering wheel is a fundamental component of automotive steering systems, serving as the primary interface between the driver and the vehicle. Advances in steering wheel technology, such as the integration of multi-functional controls, connectivity features, and adaptive designs, are driving the demand for innovative steering solutions. Manufacturers are increasingly focusing on enhancing the ergonomics and aesthetics of steering wheels to improve the overall driving experience. Additionally, the growing trend of customization is leading to diverse steering wheel designs that cater to different consumer preferences. As vehicle systems become more integrated with technology, the steering wheel's role is expanding, making it a vital component in modern automotive steering systems.

Steering Column:

The steering column is another crucial component of automotive steering systems, housing the steering shaft and providing the necessary support for the steering wheel. The design and functionality of steering columns have evolved significantly in recent years, with features such as collapsible columns for enhanced safety in the event of a collision and integrated electronic controls for advanced steering systems. Manufacturers are increasingly investing in the development of lightweight steering columns to improve fuel efficiency without compromising safety. Furthermore, the growing adoption of advanced driver-assistance systems (ADAS) is driving the demand for steering columns that can accommodate various electronic functionalities, thus ensuring their continued relevance in the automotive steering market.

Steering Gear:

The steering gear is a pivotal component in the steering system, translating the rotational movement of the steering wheel into the directional control of the vehicle's wheels. As the automotive industry moves towards more advanced steering technologies, the demand for innovative steering gears, such as rack-and-pinion systems, is increasing. These systems provide enhanced precision and responsiveness, making them ideal for modern vehicles that prioritize handling and performance. Additionally, the integration of electronic controls with steering gears is enabling the development of adaptive steering systems that can adjust to driving conditions, further driving the evolution of this component. As manufacturers seek to improve vehicle dynamics and enhance the driving experience, steering gears will continue to play a vital role in the automotive steering systems market.

Steering Pump:

Steering pumps are essential components in hydraulic steering systems, providing the necessary hydraulic pressure to facilitate effortless steering. While Electric Power Steering systems are gradually gaining market share, hydraulic systems still maintain a significant presence, particularly in larger vehicles and applications where robust steering performance is required. The demand for high-efficiency steering pumps is on the rise as manufacturers strive to reduce energy consumption and emissions. Additionally, advancements in pump design and materials are driving improvements in reliability and performance. As the automotive industry continues to innovate, steering pumps will adapt to meet the changing needs of various vehicle types, ensuring their ongoing importance in the steering systems market.

Steering Sensor:

Steering sensors are integral to modern steering systems, providing critical data for vehicle control and stability. These sensors monitor the position and angle of the steering wheel, allowing for real-time adjustments to steering assistance based on driving conditions. The increasing complexity of automotive technology and the rise of advanced driver-assistance systems (ADAS) are driving the demand for high-precision steering sensors. As manufacturers prioritize safety and performance, the integration of steering sensors with electronic control units is becoming essential. This trend is expected to continue as vehicles become more automated and connected, further elevating the significance of steering sensors in the automotive steering systems market.

By Region

The North America region is a leading market for automotive steering systems, driven by the presence of major automotive manufacturers and a strong consumer preference for advanced vehicle technologies. The region's market is projected to grow at a CAGR of 6.8% through 2035, fueled by the increasing adoption of Electric Power Steering (EPS) and the rise of electric vehicles. Furthermore, stringent safety regulations and a growing emphasis on fuel efficiency are encouraging manufacturers to innovate and adopt advanced steering technologies. As consumers become more environmentally conscious, the demand for efficient and sustainable steering solutions is expected to increase, solidifying North America's position as a key player in the automotive steering systems market.

In Europe, the automotive steering systems market is characterized by a strong focus on innovation and technological advancement. The region is known for its stringent regulations regarding vehicle safety and emissions, prompting manufacturers to invest in advanced steering technologies such as Steer-by-Wire and Electric Power Steering systems. Europe is also witnessing a surge in electric vehicle production, which is significantly impacting the demand for modern steering solutions. As the market adapts to changing consumer preferences and regulatory requirements, the growth in Europe is expected to be substantial, with a projected CAGR of 7.5% through 2035. The combination of a mature automotive industry and a proactive approach to sustainability positions Europe favorably within the global automotive steering systems landscape.

Opportunities

As the automotive steering systems market evolves, numerous opportunities are emerging that manufacturers can capitalize on. One of the most promising areas lies in the development of advanced steering technologies tailored specifically for electric vehicles (EVs) and autonomous driving systems. With governments around the world promoting the adoption of electric and hybrid vehicles, the demand for innovative steering solutions that enhance performance and safety is expected to surge. Manufacturers that invest in research and development to create cutting-edge systems, such as Steer-by-Wire, will not only meet the growing market demand but also position themselves as leaders in the transition toward electrification. Additionally, the expansion of the aftermarket segment provides opportunities for suppliers to offer a range of replacement and upgraded steering components, allowing them to reach a diverse customer base and enhance their revenue streams.

Moreover, the rise of connectivity and smart technologies in the automotive industry presents further opportunities for steering system manufacturers. The integration of steering systems with advanced driver-assistance systems (ADAS) and vehicle-to-everything (V2X) communication can enhance vehicle performance and safety, creating a unique selling proposition for manufacturers. As automotive technology continues to advance, companies that can successfully integrate steering systems with other vehicle functions and technologies will likely gain a competitive edge. Additionally, the growing consumer awareness and demand for high-quality aftermarket solutions create avenues for innovation and specialization in steering components, allowing businesses to cater to specific market needs and preferences.

Threats

Despite the promising outlook for the automotive steering systems market, several threats could impact growth and profitability. One of the primary concerns is the rapid pace of technological advancements, which necessitates continuous investment in research and development for manufacturers to remain competitive. Companies that fail to innovate or keep pace with industry trends risk losing market share to more agile competitors. Furthermore, the rising complexity of steering systems, especially with the integration of electronic components, increases the potential for technical failures and recalls, which could harm a manufacturerÔÇÖs reputation and profitability. Additionally, fluctuating raw material prices and supply chain disruptions can impact production costs and timelines, posing challenges for manufacturers aiming to maintain pricing competitiveness while delivering high-quality products.

Another significant threat to the automotive steering systems market stems from the growing emphasis on sustainability and environmental regulations. As governments worldwide impose stricter emissions and fuel efficiency standards, manufacturers may face pressure to develop and market environmentally friendly steering solutions. This shift can lead to increased production costs and necessitate a complete overhaul of existing systems, potentially affecting profitability. Furthermore, the rise of ride-sharing services and alternative mobility solutions may alter consumer preferences, leading to a decline in personal vehicle ownership and subsequently affecting the demand for automotive steering systems. It is crucial for manufacturers to stay attuned to these market dynamics and proactively adapt to ensure their long-term success and resilience in the evolving automotive landscape.

Competitor Outlook

• Robert Bosch GmbH
• JTEKT Corporation
• Thyssenkrupp AG
• Continental AG
• ZF Friedrichshafen AG
• Delphi Technologies
• NSK Ltd.
• Schaeffler AG
• General Motors Company
• Honda Motor Co., Ltd.
• Hitachi Automotive Systems, Ltd.
• Parker Hannifin Corporation
• Volkswagen AG
• Ford Motor Company
• Magna International Inc.

The competitive landscape of the automotive steering systems market is characterized by a diverse range of players, including established manufacturers and emerging technology firms. Major companies such as Robert Bosch GmbH and ZF Friedrichshafen AG are at the forefront of innovation, consistently investing in research and development to create advanced steering solutions that meet evolving consumer demands and regulatory standards. The presence of these industry giants fosters a competitive environment that encourages continuous improvement and the introduction of cutting-edge technologies. Additionally, the increasing collaboration between automotive manufacturers and technology firms is driving the development of integrated steering systems that enhance functionality and performance.

Several companies are focusing on strategic partnerships and collaborations to strengthen their market positions and enhance their product offerings. For instance, JTEKT Corporation and Thyssenkrupp AG have been actively pursuing partnerships with automotive manufacturers to co-develop advanced steering systems that incorporate emerging technologies such as Steer-by-Wire and Electric Power Steering. These collaborations enable companies to leverage each other's expertise and resources, facilitating the introduction of innovative products into the market. Furthermore, the competitive landscape is witnessing an influx of startups and technology-driven firms that are challenging traditional players by offering unique solutions and agile approaches to product development, creating a dynamic market environment.

As the automotive industry undergoes a significant transformation toward electrification and automation, companies that prioritize sustainability and environmental responsibility are likely to gain a competitive edge. For example, Continental AG and Delphi Technologies are focusing on developing eco-friendly steering solutions that comply with evolving emissions regulations. Additionally, the adoption of smart technologies and connectivity within steering systems is becoming a focal point for many companies, as consumer preferences shift toward vehicles equipped with advanced driver-assistance systems and enhanced connectivity features. This trend creates opportunities for manufacturers to differentiate themselves through innovative and sustainable product offerings, ensuring long-term growth and success in the automotive steering systems market.