Automotive Steering Systems - Global Strategic Business Report

The global market for Automotive Steering Systems was valued at US$36.3 Billion in 2024 and is projected to reach US$42.0 Billion by 2030, growing at a CAGR of 2.5% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

Global Automotive Steering Systems Market - Key Trends & Drivers Summarized

Why Are Advanced Steering Systems Crucial for Modern Vehicles?

Automotive steering systems are fundamental components that directly impact vehicle handling, stability, and driver safety. Traditionally, steering systems were simple mechanical systems, but with advances in automotive technology, they have evolved into complex electronic systems that offer superior control, responsiveness, and convenience. Steering systems in modern vehicles now include various types, such as hydraulic power steering (HPS), electric power steering (EPS), and electro-hydraulic power steering (EHPS), each designed to provide improved handling and efficiency. EPS, in particular, has gained popularity due to its fuel efficiency and adaptability, as it removes the need for a hydraulic pump, which can consume engine power. These systems play a critical role in ensuring a smooth and responsive driving experience, particularly as vehicles become more complex and powerful.

In an era where safety and precision are paramount, advanced steering systems provide additional layers of control and protection. With the rise of autonomous and semi-autonomous driving technologies, the role of steering systems has expanded beyond basic control. Modern steering systems are now equipped with features like lane-keeping assist, parking assist, and stability control that allow the vehicle to make minor steering adjustments autonomously, enhancing both safety and convenience. Additionally, advanced steering systems are essential in high-performance and luxury vehicles, where precision control and driver comfort are key priorities. As such, steering systems are no longer just functional components but integral to the overall driving experience and safety architecture of modern vehicles.

How Are Technological Advancements Shaping the Steering Systems Market?

Technological advancements have significantly reshaped the automotive steering systems market, driving a shift from hydraulic to electric and automated steering solutions. Electric Power Steering (EPS) is at the forefront of this transformation, offering several benefits, including improved fuel efficiency, reduced weight, and enhanced customization. Unlike traditional hydraulic systems, EPS is powered by an electric motor, allowing for more precise control and making it adaptable to assistive features like lane-keeping and automatic parking. EPS also integrates seamlessly with advanced driver assistance systems (ADAS), making it the preferred choice for automakers looking to incorporate autonomous and semi-autonomous capabilities. These integrations enable features such as automatic steering adjustments, which are essential in autonomous driving applications.

Another notable advancement is steer-by-wire technology, which eliminates the mechanical connection between the steering wheel and the wheels. Instead, it uses electronic controls to relay steering inputs, allowing for faster response times and enabling more flexible vehicle design. Steer-by-wire systems improve fuel efficiency by reducing the system's weight and offering more customizable steering responses based on driving conditions or user preferences. Furthermore, this technology can enhance safety by isolating the steering system from potential physical disruptions or malfunctions. Combined with AI and machine learning, steer-by-wire systems can adapt to driver behavior and road conditions, providing an optimized and personalized driving experience.

Advanced steering systems also benefit from innovations in sensor technology and IoT integration. Modern steering systems can now incorporate real-time data on road conditions, driver inputs, and vehicle dynamics, enabling predictive maintenance and optimizing system performance. These smart systems can detect early signs of wear and malfunction, alerting the driver and reducing unexpected maintenance costs. Additionally, IoT-enabled steering systems allow for remote diagnostics and updates, which is particularly valuable for fleet operators. These technological advancements are making steering systems smarter, more efficient, and better aligned with the future of connected and autonomous vehicles.

How Is Consumer Behavior Influencing the Demand for Advanced Steering Systems?

Consumer expectations for safety, convenience, and enhanced driving experiences are significantly shaping the demand for advanced steering systems. Today’s consumers prioritize vehicles that offer intuitive, smooth handling, and the convenience of automated features. This shift has led automakers to adopt advanced steering systems that include assistive technologies such as lane departure warning, lane-keeping assist, and parking assist to meet these expectations. As safety remains a top priority for vehicle buyers, particularly in family and luxury segments, steering systems that enhance vehicle stability and control are increasingly valued. Consumers are more aware of the role of steering systems in ensuring safety and comfort, which has spurred interest in electric and automated systems.

In the premium vehicle segment, consumers expect high performance and advanced technology in their driving experience. Precision steering systems that offer a more controlled, responsive, and customizable ride are in high demand among luxury vehicle buyers. Additionally, the rise in electric and hybrid vehicle adoption has influenced consumer behavior, as these vehicles often come equipped with advanced steering systems that align with their high-tech, eco-friendly image. Consumers are drawn to electric power steering for its fuel-saving potential and smoother operation, which has reinforced EPS as the preferred steering technology among environmentally conscious buyers.

With the growing trend of shared mobility services, commercial fleet operators are also prioritizing steering systems that offer safety and durability. Fleet managers look for systems that integrate seamlessly with telematics and allow for remote monitoring, as this helps ensure vehicle reliability and reduces maintenance costs. This demand from fleet operators further drives the adoption of connected and adaptive steering solutions that provide real-time data and insights into vehicle handling. Altogether, consumer expectations for safety, performance, and connectivity continue to drive demand for sophisticated and feature-rich steering systems in the automotive market.

What Factors Are Driving Growth in the Automotive Steering Systems Market?

The growth in the automotive steering systems market is driven by several factors, including advancements in vehicle safety technology, increased adoption of electric vehicles, and rising demand for fuel-efficient and environmentally friendly components. Technological developments, such as electric power steering (EPS) and steer-by-wire, have enabled automakers to design systems that improve fuel efficiency while reducing weight, which is especially relevant in electric and hybrid vehicles. These systems not only enhance efficiency but also integrate well with autonomous and semi-autonomous driving technologies, making them essential in the development of next-generation vehicles. As a result, EPS and steer-by-wire are expected to continue growing as the industry moves toward electrification and automation.

Safety regulations and consumer preferences for safer vehicles are further propelling the demand for advanced steering systems. Governments worldwide have introduced stringent safety standards that require modern steering systems to include features such as stability control, anti-lock braking, and lane-keeping assist. Automakers are responding to these regulations by incorporating steering systems with advanced driver assistance capabilities, making them an industry standard in many markets. Additionally, the expansion of autonomous and connected vehicle technology emphasizes the need for smart, adaptable steering systems that can support self-driving functionalities and real-time data exchange. These trends, combined with the increasing demand for connected and data-driven steering systems, are driving significant growth in the market.

Another driver of growth is the rise in shared mobility and commercial fleet services, where reliability and reduced maintenance are critical. Advanced steering systems that can provide remote diagnostics and predictive maintenance capabilities are in high demand within fleet management, as these features minimize downtime and optimize vehicle use. Additionally, the shift towards environmentally sustainable components and lightweight materials has created opportunities for manufacturers to innovate and offer energy-efficient solutions. Together, these factors - spanning regulatory changes, consumer demand, advancements in connected technology, and the expansion of electric and autonomous vehicles - are fueling robust growth in the automotive steering systems market, positioning it as a vital component in modern vehicle design and functionality.

Scope of the Study

The report analyzes the Automotive Steering Systems market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments:

Power Steering (Electronic Power Steering, Electro Hydraulic Power Steering, Hydraulic Power Steering); End-Use (Passenger Cars End-Use, Commercial Vehicles End-Use).

Geographic Regions/Countries:

World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Electronic Power Steering segment, which is expected to reach US$25.7 Billion by 2030 with a CAGR of a 2.7%. The Electro Hydraulic Power Steering segment is also set to grow at 2.3% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $9.8 Billion in 2024, and China, forecasted to grow at an impressive 4.5% CAGR to reach $8.1 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of major players such as Bosch Auto Parts, Bosch Mobility Solutions, Changhui Group, China Automotive Systems, Inc., CRP Automotive, Inc. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Automotive Steering Systems Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Automotive Steering Systems Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Automotive Steering Systems Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Some of the 39 companies featured in this Automotive Steering Systems market report include:

• Bosch Auto Parts
• Bosch Mobility Solutions
• Changhui Group
• China Automotive Systems, Inc.
• CRP Automotive, Inc.
• GKN Automotive Limited
• Global Steering Systems LLC
• Hitachi Astemo Ltd.
• HL Mando Corp.
• Hyundai Mobis Co., Ltd.