Global automotive steering systems market expected to reach USD 49,200 million by 2026 and is expected to grow at a CAGR of more than 4% between 2018 and 2026. The key factors that are expected to trigger the growth of the automotive steering systems include increasing demand for fuel-efficient vehicles and technological advancement in the automotive industry.
Automotive Steering Systems Market
The steering system of a vehicle allows the driver to control the direction of the vehicle through a system of linkages and gears that connects the steering wheel with the front wheels.
Traditional vehicles used manual racks, manual steering linkage system, and manual steering boxes. Moreover, the advancements in the steering system such as hydraulic fluid systems to improve the steering performance, electronically controlled steering systems for greater and smoother performance and maneuverability has increased the demand for the automotive steering system.
The global automotive steering systems market was valued at around USD 34,300 million in the year 2017 and it is expected to reach approximately USD 49,200 million by 2026. The global automotive steering systems market is expected to grow at a CAGR of over 4% between 2018 and 2026.
The rising vehicle production, growing demand for easy vehicle maneuverability, and growing economies of developing countries are the key factors contributing towards the growth of the global automotive steering system market over the forecast period.
Moreover, increasing demand for fuel-efficient vehicles is expected to significantly boost the growth of the automotive steering systems market in the coming years. The electric power steering (EPS) system consumes low fuel as compared to a traditional system or manual steering systems. The continuous increase in the price of fuel at global level increases demand for fuel-efficient vehicles, and this is expected to propel the growth of automotive steering systems market globally. However, high cost for the development of automotive steering systems as it requires high R&D and maintenance cost may restrain the market growth
Automotive Steering Systems Market is expected to register the highest CAGR of around 6% over the forecast period. The electro-hydraulic power system combines both electronic power steering system and hydraulic power steering system. The combination of two technologies provides a simple, electric motor that drives with direct concentric coupling an oil-gear pump, and also it is energy efficient. The increasing demand for technological advancements in steering systems is expected to propel the growth of the segment in the forecast period.
The passenger vehicle is expected to register high CAGR of more than 4% from 2018 to 2026 in the global automotive steering systems market by application. The increasing demand for passenger’s vehicle from China, Japan, India, and Brazil owing to increasing purchasing power of consumers and economic growth is expected to propel the growth of passenger’s vehicle segment in the global market over the forecast period.
Europe accounted for the highest share in the global automotive steering systems in the year 2017 with the share of more than 40%. Europe is the largest hub for automotive manufacturing activities and hence it accounted for the highest share in the automotive steering system market globally. The Asia Pacific is expected to register a high CAGR of around 4.5% from 2018 to 2026 in the global automotive steering system market. The growing adoption of technically advanced products, low cost for labor and raw material, increasing disposable income, and urbanization are the major factors contributing towards the high growth of Asia Pacific automotive steering systems market in the coming years.
The report includes detailed profiles of the prominent market players that are trending in the market. The list of the players that are compiled in the report are Bosch Limited, Nexteer Automotive, Robert Bosch Automotive Steering GmbH, SHOWA Corporation, Sona Koyo Steering Systems Ltd., ThyssenKrupp Business Area Components Technology, China Automotive Systems, Inc., Hyundai Mobis, JTEKT Corporation, ZF Friedrichshafen AG, Yubei Steering Systems Co., Ltd., Zhejiang Wanda Steering Gear Co., Ltd., and Mitsubishi Electric Corporation, among others.
The increasing new product launch, growing strategic geographical expansion such as developing newer manufacturing plants for the development of automotive steering, and increasing partnership among the key players of the automotive steering systems, is significantly contributing towards the growth of the market globally.
For instance, in February 2018, Nexteer Automotive opened a new production facility in Kenitra, Morocco. Initially, the company is going to use the facility for manufacturing Single Pinion-assist Electric Power Steering (SPEPS) systems and later they will extend manufacturing to driveline products in the future. Moreover, in July 2017 Nexteer Automotive opened a new manufacturing plant in Bekasi, West Java in Indonesia. As a wholly-owned subsidiary of Nexteer, the Indonesia plant mainly manufactures brush column-assist electric power steering (CEPS).
In April 2017, Robert Bosch, one of the prominent automobile producer collaborated with Chinese internet giant Baidu Inc. and domestic mapping firms AutoNavi and NavInfo Co. Ltd. The main aim of the collaboration was to focus on automated projects.
In November 2017, the Zhejiang Wanda Steering Gear Co., Ltd. conducted a trial of new product namely RF10 steering column, which is a four-directional adjustable steering column.