Automotive Steering Wheel Market Size, Share & Trends Analysis Report By Component (Hydraulic Pump, Steering Column, Steering Wheel Speed Sensor, Electric Motor, ECU), By Application (PCs, LCVs, HCVs), By Electric Vehicle (BEV, PHEV, FCEV), By Technology (Hydraulic Power Steering (HPS), Electrically Assisted Hydraulic Power Steering (EHPS), Electric Power Steering (EPS), Steer-by-Wire, Quadrasteer/Rear Axle Steer-by-Wire), By Electric Motor Type (Brushless, Brushed), By Off-Highway (Agricultural Tractors, Construction Equipment), By Type (Column EPS, Pinion-EPS, Rack-EPS), By Pinion Type (Single Pinion, Dual Pinion), By Mechanism (Collapsible EPS, Rigid EPS), By Vehicle Type (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle), By Sales Channel (OEM, Aftermarket) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global automotive steering wheel market revenue was valued at USD 33.03 billion in 2024,estimated to reach USD 49.35 billion by 2032 at a CAGR of 5.15%. Due to the factors such as demand for electrically assisted steering systems and adoption of Steer-by-Wire Technology, significantly drives the demand by 2027.

Vehicle sales directly impact the growth of the automotive steering wheel market. The market is being driven forward by the increasing development and transition from traditional hydraulic steering to power steering. The use of power steering has established a standard that enables the framework for increased driver safety and fuel efficiency. The global automotive steering wheel industry report is segmented into components, technology, steering type, mechanism, pinion type, vehicle type, and sales channel. A steering wheel and the system to which it is connected are primarily responsible for controlling the direction of a vehicle. The driver's movement is transmitted through the steering system via a series of joints and hydraulic lines before reaching the rubber as it hits the road. Modern steering wheels frequently include accessory functions such as cruise control, audio system selection, and volume control. Some steering wheels are even heated by electricity.

Market Dynamics

Market Drivers

Demand for Electrically Assisted Steering Systems to Upsurge in the Wake of Strict Fuel Efficiency Standards

In order to fulfill the ongoing demand for fuel efficiency and other technical advancements, the automotive sector is subjected to numerous rules and regulations. Automakers and other component manufacturers are working to improve the existing systems in their vehicles. Many automakers have switched from mechanical and hydraulic steering to electric power steering systems to reduce emissions, reorganize complex mechanics, and provide a more comfortable driving experience.

Since electrically assisted steering systems have several advantages over mechanical and hydraulic steering systems, such as lower fuel consumption, reduced overall weight of steering systems, and lower maintenance, automotive regulatory authorities and governments are proposing several standards to encourage automakers to use them.

The automotive regulatory agencies are also working on future trends for hybrid power steering systems, which are divided into three categories: environment-friendly technologies for environmental regulations such as reducing emissions and improving fuel economy, technology for driver convenience using an electric steering control system, and safety technologies to protect drivers, passengers, and other pedestrians.

Market Restraint

The EPS System's Limited Load Bearing Capability to Drop the Demand of Automotive Steering Wheels

The electric power steering system was mainly created to increase the vehicle's fuel efficiency by reducing the vehicle's overall weight. It is critical for an electric power steering system to respond quickly and dynamically in all driving situations. It pulls power from the vehicle's power source and only uses it when necessary.

The new safety standard ISO 26262, which went into effect in November 2011, specifically for safety-related electrical and electronic systems in road vehicles, will be the standard for future advances. Electric power steering systems are widely employed in passenger vehicles, but they are less common in commercial vehicles due to their poor load-carrying capability. Hydraulic steering systems are preferred by commercial vehicle manufacturers for trucks and industrial vehicles since electric power steering systems require more than 15kN steering rack force. Furthermore, due to the failure of electric components, the electric power steering system fails, causing the steering to become locked or disconnected from the power source.

Market Opportunities

Steer-by-Wire Technology to Create Lucrative Opportunities

Steer-by-wire technology is being adopted in the wake of the growing environmental concern and stringent driver safety and comfort regulations. Several automakers reduce the vehicle's weight to improve fuel efficiency, thus reducing carbon emissions. Steer-by-wire is an emerging technology that substitutes any mechanical connection between the wheel and the steering wheel with electronic devices, software programs, and sensors, lowering the vehicle's overall weight.

This technology also gives the driver more stability and control, requiring less effort to steer the car, and paving the way for autonomous driving. Other firms, such as Bosch, Nissan, and Nexteer, have already started working on the technology to raise public awareness. Due to newer advances and digital technologies, the automotive sector is evolving quickly.

Regional Analysis

Phenomenal Growth in Asia-Pacific and Europe

Asia-Pacific's automotive steering wheel industry dominates globally, led by China, with a market share of USD 12,489.3 million. It's expected to grow at a CAGR of 5.72% from 2021 to 2017.Increased vehicle sales and production in China, Japan, and India, growing sales of electric vehicles, government initiatives and incentives to support the growth of electric vehicle sales, and the region's highly competitive landscape are driving the growth in the region.

With USD 6,730.6 million, Europe was the second-largest contributor. Due to the contributions of Germany, France, the United Kingdom, and Italy to the automobile industry, it is regarded as the world's automotive powerhouse. Electric vehicles and vehicles with additional features such as advanced driver assistance systems are also being promoted by European automakers to raise awareness and sales. As a result, overall sales of automotive steering wheel are predicted to rise in both the passenger car and commercial vehicle segments.

Segmental Analysis

By component, Hydraulic pumps are an integral part of a classic steering system, which converts the mechanical energy produced by the engine into hydraulic energy. Hydraulic pumps are extensively utilized in commercial vehicles with hydraulic steering systems because they have a high load-bearing capability. Other components cited in the research with the pricing ratio include the steering column, steering wheel speed sensor, and electric motor.

In terms of technology, electric power steering led the market in 2020, achieving USD 10,901.4 million. It is predicted to increase at a CAGR of 6.2% by 2027. This technique uses a separate motor and torque sensor mounted directly to the steering column to help eliminate the usage of a cylinder and pump from a continuous operation. The benefit of EPS is that it requires less energy from the engine, resulting in better fuel economy and, as a result, a lighter overall vehicle. 

Column EPS, pinion EPS, and rack EPS are the three types of EPS in the global industry. Column-EPS dominated the market in 2021 with a market value of USD 4,443.1 million and is forecasted to grow at a CAGR of 5.56% by 2027. However, rack-EPS is expected to expand at the fastest rate of 7.27% during the projected period.

By pinion type, dual pinion held the largest automotive steering wheel industry share in 2021, reaching USD 1,648.3 million, and is projected to grow at the fastest CAGR of 7.68% over the forecast period. The execution of a primary pinion is designed for vehicle elements, whereas the execution of an auxiliary pinion is optimized for additional support. The modular architecture of the dual-pinion makes it ideal for worldwide platforms.

By mechanism, collapsible EPS dominated the market with a value of USD 7,060.3 in 2021 and is projected to grow at a CAGR of 6.93% by 2027. In an accident, the collapsible EPS is a steering column mechanism fitted on the upper column and a lower shaft, with the lower shaft entering into a lodging. Passenger automobiles and light commercial vehicles are the most common vehicles with collapsible EPS. 

By vehicle type, passenger cars led the market in 2021, reaching USD 18,214.4 million, and are anticipated to grow at a CAGR of 5.37% over the projection period. For personal use, passenger cars range from small to mid-sized vehicles.

By sales channel, OEM dominated the market in 2021 USD 17,442.7 million and is predicted to grow at the fastest rate of 5.52% over the forecast period. Since the OEM is the original manufacturer of a vehicle's components, OEM car parts are indistinguishable from the parts used to build the car. Buyers frequently prefer OEM for repairing damaged vehicle components since it ensures that replacement parts are compatible with the vehicle and delivered according to the same quality standards.

Impact of covid-19

With rising vehicle sales in China and India, the global automotive sector has weathered the impact of the covid-19 pandemic. However, it is projected that pre-covid sales levels will be challenging to achieve in the United States and the United Kingdom. Vehicle sales fell roughly 80% in Europe and 52% in the United States in 2019 compared to the previous year, while sales in China were relatively close to the last year, with only a 3% loss. 

The impact of the pandemic on passenger vehicle sales and consumer perception was mixed. Due to the assumption that public transportation poses a greater danger of virus transmission, many consumers opt to travel in their vehicles than taking public transit. Cars are becoming increasingly popular as a form of mobility in Europe, the United States, and other countries. While public passenger vehicle use is declining, private vehicle use is increasing slightly.

Market Recovery Timeline and Challenges

The COVID-19 pandemic has knocked down significant industries, and it could take years to get back to pre-COVID-19 levels. On the other hand, the automobile sector and the sub-industries and manufacturers affiliated with it are mixed. Since the steering system is an essential part of the vehicle, producers must innovate to keep up with changing legislation and government standards. In achieving the vehicle demand as per pre-covid times, the automotive steering industry is most likely to confront optimistic timeline obstacles. 

Following changes in carbon emission regulation, the adoption of electric vehicles, the growth of steer-by-wire and adaptive steering systems, and innovations in autonomous driving are expected to fuel the vehicle demand and supply by 2025.

Measures Adopted by Top Players

• Focus on modern safety systems, driver assistance technology, and driver training skills
• Purchasing components from local/regional suppliers

Recent Developments

• February 2022- Hyundai Mobis to invest up to USD 6.72 billion on auto chips, robotics
• February 2022- Sustainable production and processing of steel: Thyssenkrupp Steel to become a member of ResponsibleSteel
• January 2022- JTEKT Corporation will unify all business brands to JTEKT in April 2022 to grow further.