Automotive Steering System Market Global Analysis & Report 2028

The global automotive steering system market was valued at US$ 22,501.01 million in 2020 and is projected to reach US$ 30,875.8 million by 2028; it is expected to grow at a CAGR of 4.3% during 2021–2028.

There is an increase in use of buses and trucks worldwide, especially for logistics and public transportation. In Asia, Oceania, and Europe, public transportation is preferred over private transportation, while in North America, private cars are the primary mode of transportation. As the population in urban areas is growing, there is a need for increased public transit, and the current transportation infrastructure is proving inadequate. OEMs worldwide are now focused on lowering global carbon emissions, which is leading to increase in use of electric cars. Passenger cars and taxis are concentrating more on the introduction of greener technology as the demand increases. The manufacturers are concentrating their efforts on electrification of vehicles, especially passenger cars. Several countries worldwide are putting a lot of work into creating green transportation. For example, in May 2019, China's Ministry of Transport and other ministries jointly released the Green Travel Action Plan for 2019–2022, which encourages the use of green vehicles. In addition, the country will continue to improve public transportation and information systems that promote green transportation.

Governments across the world are taking several steps to minimize CO2 emissions. They are providing tax cuts and incentives to promote the use of electric vehicles in public transportation, such as e-trucks and e-buses. BYD K9, Mercedes Benz electric truck, and Tata Starbus Hybrid e-buses are a few examples of electric vehicle models. Some commercial vehicle manufacturers have recently unveiled electric buses, and others have announced plans to convert full-size trucks and pickup trucks to battery-electric platforms. Thus, the rising demand for electric vehicles is contributing to the growth of the global  automotive steering system market

Impact of COVID-19 Pandemic on Automotive Steering System Market 

As of March 2021, the US is the worst-hit country in North America, with around 30.5 million confirmed cases of infected individuals facing severe health conditions across the country. The continuous growth of infected individuals has led the government to impose lockdown across the nation’s borders. Majority of the manufacturing plants are shut, municipalities are functioning slowly as compared to past, and the automotive and semiconductor industries are at a halt, which is negatively impacting the automotive steering system market. In terms of patient count and death toll, Canada and Mexico are still at a nascent stage than the US. However, the manufacturing plants, the automotive industry, and several other businesses are functioning slowly, which is hindering the automotive steering system market. The COVID-19 outbreak would have a limited but negative short-term impact on the global market.

Lucrative Regions for Automotive Steering System Market

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Market Insights–Automotive Steering System Market

Stringent Fuel Efficiency Norms Compel Demand for Automotive Steering Systems

Several governments across the world have enacted strict automotive emission and fuel economy legislations. Fleet-level regulations have been enforced by regulatory bodies such as the National Highway Traffic and Safety Administration in the US and the International Council on Clean Transportation in Europe. Automobile manufacturers must adhere to the average pollution cap decided by these regulations. These regulations have pushed automakers to spend more in fuel-efficient steering systems such as electronic power steering. As opposed to conventional hydraulic steering systems, electrically assisted power steering systems are lighter in weight and have a simpler structure.

According to the US Department of Energy, in ideal conditions, electronic power steering (EPS) systems can improve fuel efficiency by 2 to 4%, reduce fuel consumption by up to 6%, and reduce CO2 emissions by 8 grams per kilometer. As per the estimates by Nexteer Automotive Corporation, EPS systems have saved nearly 3 billion gallons of gas since 1999. Unlike hydraulic systems, which pump fluid continuously when the engine is running, these systems only use power when the wheels are turned. Europe has the highest penetration of electrically assisted power steering, followed by North America and Asia Pacific. Thus, the various stringent government norms for ensuring fuel efficient vehicles on road are expected to influence the demand for EPS, thereby contributing to the market growth over the forecast period.

Type Segment Insights

Based on type, the automotive steering system market is segmented into electronic power steering, hydraulic power steering, and electro-hydraulic power steering. The electronic power steering accounted for the largest share in the global market in 2020. In the event of an accident, the collapsible steering column is a mechanism consisting of an upper column and a lower shaft, with the lower shaft going into a housing. In passenger cars and light commercial vehicles, this column is mounted. The primary factors driving the growth of collapsible steering columns in EPS systems are the growing development of passenger cars and light commercial vehicles, and increasing government mandates on road safety.

Vehicle Type Segment Insights

Based on vehicle type, the automotive steering system market is bifurcated into passenger vehicles and commercial vehicles. In 2020, the passenger vehicle segment accounted for a larger share in the global market. Because of the improved economic situation and increase in consumers' disposable incomes, the global automotive industry has seen steady growth in demand for and sales of passenger cars. From transportation to comfortable/convenient transportation, and from convenient transportation to luxurious and secure transportation, the world has seen a gradual change.

Automotive Steering System Market, by Vehicle Type (% Share)

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Source: The Insight Partners Analysis, Primary Interviews, Magazines and Journals, and Secondary Sources

Strategic Insights

The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.

In 2021, China Automotive Systems, Inc. launched a new EPS product to empower ADAS. This new EPS product is based upon proprietary technologies developed by CAAS' research & development team. The company had begun mass production of this product for new vehicle models of the leading Chinese automaker, Great Wall Motors. Seamlessly connected with vehicle data, CAAS' new EPS system enables drivers to adapt to different road conditions and significantly enhances user experiences.

In 2019, JTEKT Corporation was in an exhibition at the 46th Tokyo Motor Show 2019 held at Tokyo big sight from October 24 to November 4. The company showcased its electronic power steering systems.

The Global Automotive Steering System Market has been Segmented as Follows:

Automotive Steering System Market – by Type

• Electronic Power Steering
• Hydraulic Power Steering
• Electro-Hydraulic Power Steering

Automotive Steering System Market – by Vehicle Type

• Passenger Cars
  • Class A
  • Class B
  • Class C 
  • Class D
  • Class E
  • Class F
  • SUV
  • MPV
• Commercial Vehicles  
  • LCVs
  • MCVs
  • HCVs

Automotive Steering System Market – by Geography

• North America

  • US
  • Canada
  • Mexico

• Europe

  • France
  • Germany
  • Italy
  • UK
  • Russia
  • Rest of Europe

• Asia Pacific (APAC)

  • China
  • India
  • South Korea
  • Japan
  • Rest of APAC

• Middle East & Africa (MEA)

  • South Africa
  • Rest of MEA

• South America (SAM)

  • Brazil
  • Argentina
  • Rest of SAM  

Automotive Steering System Market – Companies Profiles

• China Automotive Systems, Inc.
• Nexteer Automotive
• Hitachi Automotive Systems Americas, Inc.
• Hyundai Mobis
• JTEKT Corporation
• The Mando Corporation
• NSK Ltd.
• Robert Bosch GmbH
• Showa Corporation
• ThyssenKrupp AG