From USD 27,021.7 million in 2020 to USD 36,987.1 million in 2027, the global automotive steering market size is expected to grow at a CAGR of 5.15%.
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.
Vehicle sales directly impact the growth of the automotive steering 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 market report is segmented into components, technology, steering type, mechanism, pinion type, vehicle type, and sales channel.
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.
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.
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.
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 automobile steering 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 market 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.
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.
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.
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With a significant contribution from China in the worldwide automotive steering industry, Asia-Pacific held the greatest market share of USD 12,489.3 million and has the highest CAGR of 5.72% anticipated between 2021 and 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 automotive steering market 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 are predicted to rise in both the passenger car and commercial vehicle segments.
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