Electric Steering System Market Outlook

The global electric steering system market is poised for significant growth, projected to reach approximately USD 35 billion by 2035, with a compound annual growth rate (CAGR) of around 8% from 2025 to 2035. This growth can be attributed to the increasing demand for advanced automotive technologies, particularly in the realm of enhanced driving experience and safety features. Furthermore, the shift towards electric and autonomous vehicles is driving the adoption of electric steering systems, which offer more efficient and precise control. The rising awareness regarding fuel efficiency and the need for reducing vehicle emissions are also propelling the market forward. As automotive manufacturers increasingly incorporate electric steering systems into their designs, both for performance benefits and regulatory compliance, the market is expected to experience a transformative phase.

Growth Factor of the Market

Several growth factors are contributing to the expansion of the electric steering system market. Firstly, the rapid advancement in automotive technologies has led to increased integration of electric steering systems, which provide superior control and better handling compared to traditional hydraulic systems. Secondly, the growing trend of vehicle electrification, characterized by more electric vehicles hitting the roads, is fostering demand for efficient steering solutions that align with eco-friendly driving. Additionally, consumers are increasingly prioritizing safety features in vehicles; electric steering systems can enhance safety through improved responsiveness and precision. The ongoing trend towards automation in vehicles, including features such as lane-keeping assist, benefits greatly from the capabilities of electric steering systems. Lastly, favorable government regulations focusing on reducing vehicle emissions and improving fuel economy are further stimulating the market growth.

Key Highlights of the Market

• Projected market size of USD 35 billion by 2035 with an 8% CAGR.
• Increased adoption of electric vehicles significantly driving market growth.
• Rising demand for advanced safety and driving assistance technologies.
• Regulatory pressures promoting the development of eco-friendly automotive solutions.
• Technological advancements paving the way for innovative steering system designs.

By Component

Electric Motor :

The electric motor is a crucial component of electric steering systems, as it provides the necessary force for steering assistance. These motors are designed to be compact yet powerful, enabling them to deliver precise control while maintaining power efficiency. The integration of electric motors into steering systems allows for seamless adjustment of steering effort, enhancing vehicle maneuverability. Moreover, advancements in motor technologies, such as the development of brushless DC motors, are leading to improved performance and longer lifespans, further solidifying their importance in modern vehicles. The growing trend towards lightweight materials in automotive design is also benefiting the electric motor segment as manufacturers seek to optimize steering systems without adding significant weight to the vehicle.

Steering Sensor :

Steering sensors play a pivotal role in the functioning of electric steering systems by providing critical feedback regarding the driverÔÇÖs steering inputs. These sensors detect the rotational position and force applied to the steering wheel, allowing the system to adjust the electric motor's assistance accordingly. The evolution of sensor technology, including the adoption of advanced MEMS (Micro-Electro-Mechanical Systems) sensors, is significantly enhancing the accuracy and responsiveness of electric steering systems. As vehicles become more connected and sophisticated, the role of steering sensors is expected to expand, with capabilities for real-time data sharing and integration with other vehicle systems. This trend towards enhanced vehicle intelligence is expected to drive the demand for steering sensors in the coming years.

Control Module :

The control module is the brain of the electric steering system, coordinating the inputs from various sensors and determining the optimal output for the steering motor. This component is key for ensuring that the steering response aligns with driver expectations while adapting to varying driving conditions. The advancement of control algorithms and processing power in microcontrollers is facilitating the development of more sophisticated control modules that can provide superior steering feel and feedback. Furthermore, the ability to update control software over the air is becoming increasingly popular, allowing manufacturers to enhance system performance even after the vehicle has been sold. The growing complexity of vehicle electronics and the push towards autonomous capabilities further underline the importance of robust control modules in electric steering systems.

Steering Column :

The steering column is the structural component that connects the steering wheel to the steering mechanism. In electric steering systems, the column design is critical for ensuring both safety and functionality. Innovations in column design, such as collapsible columns, not only enhance safety in crash scenarios but also optimize space within the vehicle. The integration of electric steering systems into the column allows for a more streamlined design, reducing weight and improving overall vehicle dynamics. As manufacturers place greater emphasis on ergonomics and driver comfort, the steering column is evolving to accommodate features such as adjustable height and reach, contributing to a more personalized driving experience. The demand for better design and functionality in steering columns is expected to support growth in this component segment.

Others :

This category encompasses various additional components that play support roles in electric steering systems. These may include gears, linkages, and electronic components that assist in the smooth operation of the steering mechanism. While they may not be as prominent as the aforementioned components, they are essential for ensuring the durability and reliability of the entire system. Innovations in materials and manufacturing processes for these components are helping to reduce costs and improve performance. As automotive technology continues to advance, the demand for high-quality supporting components is expected to grow, contributing to the overall performance and appeal of electric steering systems.

By Vehicle Type

Passenger Cars :

Passenger cars constitute a significant segment of the electric steering system market, driven by the increasing consumer preference for comfort, safety, and fuel efficiency. The integration of electric steering systems in passenger vehicles enhances the overall driving experience by providing better steering responsiveness and reducing driver fatigue over long journeys. With the rise of compact and lightweight vehicle designs, electric steering systems are particularly well-suited, as they contribute to weight reduction while offering significant performance benefits. Additionally, the growing trend towards semi-autonomous and autonomous driving features in passenger cars is further propelling the demand for advanced electric steering systems, which are essential for achieving higher levels of vehicle autonomy.

Commercial Vehicles :

The commercial vehicles segment is experiencing a transformation with the adoption of electric steering systems, primarily aimed at improving driving efficiency and reducing operational costs. Electric steering aids drivers with enhanced control, especially in larger vehicles that require precise maneuvering. As logistics and transportation companies prioritize safety and efficiency, the integration of robust electric steering systems is becoming more prevalent. Additionally, electric steering systems help reduce energy consumption in commercial vehicles, aligning with the growing emphasis on sustainability within the industry. As the commercial vehicle market continues to evolve, the need for reliable and efficient steering solutions will remain a key focus for manufacturers.

Electric Vehicles :

Electric vehicles (EVs) are at the forefront of driving innovation in the electric steering system market. The inherent design of EVs lends itself to the use of electric steering systems, which offer precise handling and reduced weightÔÇöa critical factor for enhancing driving range. As the global EV market continues to expand, driven by environmental concerns and advancements in battery technology, the demand for integrated electric steering solutions is on the rise. Furthermore, the unique driving dynamics of electric vehicles, including regenerative braking and instant torque delivery, necessitate advanced steering systems that can adapt to various driving conditions. This alignment between electric vehicles and electric steering systems positions the latter as a critical component in the future of automotive technology.

Off-road Vehicles :

The off-road vehicles segment is gaining traction as manufacturers aim to enhance the performance of these vehicles in challenging terrains. Electric steering systems provide the necessary torque and control needed for navigating rough landscapes, improving the overall driver experience. Additionally, these systems allow for customizable steering responses that can be adjusted based on the vehicle's speed or terrain type, making them highly versatile. As the popularity of off-road driving experiences grows, and with the increasing emphasis on vehicle robustness, the demand for electric steering systems in this segment is expected to increase significantly. Manufacturers are recognizing the importance of electric steering systems in producing vehicles that are not only capable but also comfortable and intuitive to drive in off-road conditions.

Others :

The 'Others' category includes various vehicle types not specifically classified in the aforementioned segments, such as specialty vehicles, recreational vehicles, and more. These vehicles are often characterized by unique requirements and driving conditions, creating a niche market for tailored electric steering systems. As manufacturers of these specialty vehicles begin to adopt more advanced technologies, including electric steering, the market for customized solutions is likely to grow. This segment presents opportunities for innovation and differentiation, as manufacturers focus on providing enhanced driving dynamics, safety features, and comfort for their distinct user bases. As the automotive landscape continues to evolve, the demand for specialized electric steering solutions in this category is anticipated to increase.

By Sales Channel

OEMs :

The original equipment manufacturers (OEMs) channel is a dominant segment in the electric steering system market, as many new vehicles come equipped with advanced electric steering technology directly from the factory. OEM partnerships facilitate the seamless integration of electric steering systems into vehicle designs, ensuring that they meet specific performance and safety standards. Additionally, OEMs are increasingly collaborating with technology companies to innovate and enhance the capabilities of electric steering systems, particularly in regard to automation and connectivity. This collaboration not only improves the quality of the components but also supports the introduction of electric steering solutions tailored to meet the demands of modern driving experiences. As the automotive industry continues to embrace electric steering solutions, the OEM channel is expected to maintain a strong presence and contribute significantly to market growth.

Aftermarket :

The aftermarket segment is growing in significance, as vehicle owners seek to enhance or replace steering systems to improve performance or address specific driving needs. The aftermarket for electric steering systems presents opportunities for both established players and new entrants to provide innovative solutions. Consumers often turn to aftermarket options for upgrades that provide better control, responsiveness, and comfort, particularly in vehicles that have been on the road for several years. Additionally, the increasing focus on vehicle personalization and customization is driving demand for specialized electric steering systems in the aftermarket. Companies that can effectively tap into this market by offering high-quality, compatible electric steering systems are likely to experience substantial growth, as consumers look for ways to enhance their vehicle's performance and driving experience.

By Type

Rack-assist Type :

The rack-assist type electric steering system employs an electric motor to assist the driver in turning the steering wheel, resulting in enhanced steering feel and responsiveness. This type of system is widely adopted in both passenger and commercial vehicles due to its ability to provide considerable torque assist while maintaining compact dimensions. The rack-assist design allows for direct connection between the motor and the steering rack, optimizing performance and reducing energy consumption. With advancements in control algorithms, rack-assist systems are now capable of providing varying levels of assistance based on driving conditions, which improves overall driving dynamics. As manufacturers continue to focus on improving vehicle efficiency and driver comfort, the rack-assist type is expected to remain a popular choice in the electric steering system market.

Column-assist Type :

The column-assist type electric steering system integrates the electric motor directly into the steering column, providing assistance to the driver as they turn the wheel. This design is particularly advantageous in terms of space efficiency, making it suitable for smaller vehicles where space is at a premium. The column-assist system is known for its simplicity and reliability, often resulting in lower manufacturing costs compared to other designs. Moreover, this type of system is increasingly being enhanced with advanced features, such as adjustable steering efforts and feedback, further enriching the overall driving experience. As consumer preferences shift towards compact and efficient vehicles, the column-assist type is expected to see continued adoption in the market.

Pinion-assist Type :

The pinion-assist type electric steering system represents another innovative approach, where the electric motor is coupled with a pinion gear to provide steering assistance. This system is often praised for its responsive handling characteristics and excellent torque transfer. The pinion-assist design allows for precise control, which is particularly beneficial in high-performance vehicles where handling and feedback are critical. Additionally, the lightweight nature of pinion-assist systems can contribute to overall vehicle efficiency. As the demand for vehicles with enhanced performance capabilities grows, the pinion-assist type electric steering system is likely to gain traction among manufacturers and consumers alike.

By Region

The North American electric steering system market is experiencing steady growth, driven by the strong presence of automotive manufacturers and the increasing adoption of advanced technologies in vehicles. The market is expected to reach approximately USD 12 billion by 2035, with a CAGR of about 7.5% over the forecast period. The region benefits from a robust automotive infrastructure and a growing emphasis on safety standards, which are fueling the demand for electric steering systems. Additionally, the rise of electric and autonomous vehicles in North America is further pushing the adoption of advanced steering technologies, as manufacturers look for ways to meet evolving consumer expectations.

In Europe, the electric steering system market is anticipated to expand significantly, with a projected market size of around USD 10 billion by 2035. The region is known for its stringent environmental regulations, which are encouraging manufacturers to adopt electric steering solutions that enhance fuel efficiency and reduce emissions. Moreover, the increasing focus on vehicle automation and connectivity is driving demand for advanced electric steering systems. The European market is characterized by a strong emphasis on research and development, with numerous automakers investing in innovative technologies to remain competitive in the evolving automotive landscape. As a result, the electric steering system market in Europe is set to experience substantial growth in the coming years.

Opportunities

The electric steering system market presents numerous opportunities driven by the global shift towards electrification in the automotive industry. As governments around the world tighten regulations concerning emissions and fuel efficiency, there is a pressing need for automakers to innovate and incorporate electric steering systems into their vehicles. This creates an opportunity for component manufacturers to collaborate with automakers to develop cutting-edge technologies that not only comply with stringent regulations but also enhance driver experience. Moreover, with the rise of smart and connected vehicles, the integration of electric steering systems with advanced driver assistance systems (ADAS) is becoming increasingly viable. Manufacturers who can capitalize on these trends by offering integrated solutions that enhance vehicle safety and driving performance are well-positioned for success in this evolving market.

Another significant opportunity lies in the growth of autonomous driving technologies. As the automotive industry moves towards greater automation, electric steering systems will play a central role in the development of fully autonomous vehicles. This shift paves the way for innovations in steering design and functionality, creating opportunities for research and development in areas such as predictive steering assistance and improved feedback mechanisms. Additionally, the commercial vehicle market, which has traditionally lagged in adopting electric steering systems, is beginning to embrace these technologies to improve driver comfort and reduce fatigue. As fleet operators increasingly recognize the benefits of electric steering for enhancing operational efficiency, the market for electric steering systems in commercial applications is expected to grow substantially.

Threats

Despite the promising outlook for the electric steering system market, several threats could hinder growth. One of the primary concerns is the volatility of raw material prices, which can significantly affect manufacturing costs. Components such as electric motors and sensors rely on specific materials like rare earth elements whose prices can be unpredictable. This volatility may lead to increased prices for electric steering systems, potentially deterring manufacturers from adopting these technologies, particularly in cost-sensitive markets or segments. Additionally, competition from traditional hydraulic steering systems may pose a threat, particularly in regions where consumer preferences lean towards proven, established technologies. Manufacturers must find ways to differentiate their electric steering offerings to overcome this competitive pressure.

Another significant threat to the electric steering system market is the rapid pace of technological change, which can lead to obsolescence. As advancements in automotive technology continue to evolve, companies that fail to keep up with trends or invest in research and development may find themselves at a disadvantage. Moreover, the integration of electric steering systems with other vehicle technologies presents a challenge in terms of compatibility and safety. Ensuring that new systems function seamlessly with existing vehicle platforms is vital, and any failures or recalls could damage brand reputation and consumer trust. Consequently, the industry must remain vigilant in addressing these challenges to ensure sustained growth in the electric steering system market.

Competitor Outlook

• Bosch
• Continental AG
• JTEKT Corporation
• Denso Corporation
• Thyssenkrupp AG
• ZF Friedrichshafen AG
• SKF Group
• Mando Corporation
• Aisin Seiki Co., Ltd.
• Hitachi Automotive Systems
• Gentex Corporation
• Nexteer Automotive
• Mahindra & Mahindra Ltd.
• American Axle & Manufacturing Holdings, Inc.
• Raython Technologies Corporation

The competitive landscape of the electric steering system market is characterized by a mix of established automotive suppliers and innovative new entrants. Key players such as Bosch and Continental AG dominate the market, leveraging their extensive experience and resources in automotive technologies to offer advanced electric steering solutions. These companies invest heavily in research and development to stay ahead of technological trends, ensuring that they can meet the evolving demands of consumers for safety, efficiency, and performance. Additionally, collaborations and partnerships between these leading firms and technology companies are becoming increasingly common, allowing for the integration of innovative features into electric steering systems.

Another emerging trend in the competitive landscape is the entry of new players focused solely on electric vehicle technologies, such as Nexteer Automotive and Mando Corporation. These companies are driving innovation and pushing traditional automotive suppliers to rethink their strategies in the face of rapid market changes. The competition is also promoting advancements in electric steering by encouraging suppliers to develop more efficient and lightweight systems, which align with the industry's focus on sustainability and fuel efficiency. As consumer preferences continue to shift towards electric and autonomous vehicles, the competitive dynamics of the electric steering system market are expected to evolve further, fostering a climate of innovation.

Key players in the electric steering system market are also focusing on geographical expansion to strengthen their market positions. For example, companies like ZF Friedrichshafen AG and JTEKT Corporation are increasingly targeting emerging markets in Asia-Pacific and Latin America, where the demand for electric steering systems is on the rise. Simultaneously, established companies are forming strategic alliances with local suppliers to enhance their supply chains and distribution networks in these regions. This approach not only boosts their presence in high-growth markets but also positions them to capitalize on regional trends, such as the increasing adoption of electric vehicles and advancements in connected technologies.