Description
Automotive Steering System Market Overview
The Automotive Steering System Market is projected to be valued at $29.25 billion in 2024, increasing to $30.9 billion in 2025, and is expected to reach $38.13 billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 5.4% from 2025 to 2034.
The market is witnessing steady growth driven by rising vehicle production, technological advancements in steering technologies such as electric power steering (EPS), and increasing demand for driver-assist systems in modern vehicles. These systems are crucial for providing directional control and stability, significantly enhancing vehicle safety and driving experience.
The global Automotive Steering System Market plays a vital role in ensuring directional control, safety, and driving comfort in vehicles. In 2024, the market was valued at USD 37.9 billion and is projected to reach USD 40.7 billion by 2025, growing at a CAGR of 4.59% during the forecast period. This growth is driven by increasing demand for advanced steering technologies such as electric power steering (EPS), steer-by-wire, and active front steering systems.
Technological advancements, coupled with stricter safety and fuel-efficiency regulations, are prompting automakers to adopt lightweight and electronically controlled steering solutions. Furthermore, the integration of autonomous and ADAS features has elevated the importance of precise and responsive steering mechanisms.
The shift from hydraulic to electric systems, particularly in passenger vehicles, is also significantly contributing to the market expansion. Additionally, the rising vehicle production in emerging economies, along with the growth in electric and hybrid vehicle segments, is expected to boost market opportunities in the near future.
The integration of advanced electronic control units and sensors in steering systems is supporting the evolution of semi-autonomous and autonomous driving technologies. Growing concerns regarding road safety, fuel efficiency, and emission norms are also prompting OEMs to adopt lightweight, electronically assisted steering solutions.
Automotive Steering System Market Dynamics
Drivers:
One of the key drivers for the growth of the automotive steering system market is the increasing demand for advanced driver assistance systems (ADAS). These systems require sophisticated steering systems that can handle various driving conditions and improve overall safety. Additionally, the rising production of vehicles globally is also boosting the demand for automotive steering systems.
Restraints:
Despite the positive growth prospects, the automotive steering system market faces some restraints, such as the high cost associated with advanced steering technologies. This can act as a barrier for entry for smaller players in the market. Moreover, the complexity of integrating steering systems with other vehicle components can also pose challenges for manufacturers.
Challenges:
One of the main challenges faced by the automotive steering system market is the increasing competition among key players. With the growing emphasis on electric and autonomous vehicles, companies are under pressure to innovate and develop steering systems that are compatible with these emerging technologies. This can lead to increased R&D costs and pose challenges in terms of market differentiation.
Opportunities:
Despite the challenges, the automotive steering system market presents several opportunities for growth. The rising trend of connected cars and the integration of steering systems with IoT technologies offer new avenues for innovation. Moreover, the increasing focus on improving fuel efficiency and reducing emissions in vehicles presents opportunities for the development of lightweight steering systems.
List of Key Players
- JTEKT Corporation
- Nexteer Automotive
- ZF Friedrichshafen AG
- Robert Bosch GmbH
- NSK Ltd.
- Hyundai Mobis Co., Ltd.
- Showa Corporation
- Thyssenkrupp AG
- Mando Corporation
- Sona BLW Precision Forgings Ltd.
- Hitachi Astemo, Ltd.
- Knorr-Bremse AG
- ATS Automation Tooling Systems Inc.
- Denso Corporation
- China Automotive Systems, Inc.
Recent Developments
JTEKT Corporation
Date: February 2025
Development: Launched a next-gen steer-by-wire system for electric vehicles, featuring advanced driver feedback and emergency steering override capabilities.
Nexteer Automotive
Date: January 2025
Development: Partnered with a global EV manufacturer to develop AI-powered electric power steering with predictive analytics.
Robert Bosch GmbH
Date: March 2025
Development: Unveiled a new integrated steering and braking control module for autonomous driving applications.
Automotive Steering System Market Segmentation
By Technology Type:
- Hydraulic Power Steering (HPS)
- Electric Power Steering (EPS)
- Electro-Hydraulic Power Steering (EHPS)
- Steer-by-Wire
By Steering Mechanism:
- Manual Steering
- Power Steering
- Rack and Pinion
- Recirculating Ball Steering
By Vehicle Type:
- Passenger Vehicles
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Electric Vehicles
By Component:
- Steering Column
- Steering Gear
- Steering Wheel
- Sensors & Control Modules
- Actuators
By End User:
- OEMs
- Aftermarket
By Distribution Channel:
- Online
- Offline
Regional Market Insights: A Breakdown by Region
North America
The North American automotive steering system market is driven by strong demand for advanced driver-assistance systems (ADAS) and electric power steering (EPS) in modern vehicles. The presence of major automakers and early adoption of technology further boost regional growth.
Europe
Europe holds a significant share in the global market due to strict vehicle safety regulations and high demand for luxury vehicles. Countries like Germany, France, and the UK are key contributors, with ongoing developments in steer-by-wire and electrified steering technologies.
Asia-Pacific
Asia-Pacific dominates the global automotive steering system market, primarily led by China, Japan, and India. The growth is fueled by the rising vehicle production, increasing adoption of electric vehicles, and expanding middle-class population with rising disposable incomes.
Latin America
The Latin American market is gradually expanding, supported by growing automotive production and demand for cost-effective steering solutions. Brazil and Mexico are the major markets in this region, driven by domestic manufacturing and export opportunities.
Middle East & Africa
The Middle East & Africa market shows modest growth, driven by infrastructure development and increasing demand for commercial vehicles. However, limited technological penetration and economic instability in certain regions pose challenges to widespread adoption.
Target Audience
Automotive OEMs
Tier-1 and Tier-2 Suppliers
Automotive Component Manufacturers
Automotive Technology Firms
Research & Development Institutions
Vehicle Maintenance and Repair Services
Investors and Analysts
Regulatory and Safety Authorities
Fleet Management Companies
Automotive Aftermarket Suppliers
