Automotive Steering Motors Market

Market Overview

The global automotive steering motors market size was valued at USD 14.32 billion in 2023. It is expected to reach USD 22.89 billion by 2032, growing at a CAGR of 5.35% over the forecast period (2024-32). An important factor driving the global market for automotive steering motors is the growing ubiquity of electric power steering (EPS) systems in automobiles. Compared to conventional hydraulic systems, EPS systems have a number of benefits, including as better fuel economy, better vehicle control, and less maintenance needs. Further propelling market expansion are developments in EPS technology, such as the creation of more efficient and compact motors.

Automotive steering motors are electric motors that provide power assistance to a vehicle's steering system. They are mainly used in electric power steering (EPS) systems, replacing the conventional hydraulic power steering (HPS) systems in most modern vehicles. Automotive steering motors offer advantages over HPS systems, such as improved fuel efficiency, reduced emissions, lower maintenance costs, and enhanced steering performance. Automotive steering motors are also essential for implementing advanced driver assistance systems, such as lane-keeping assist, adaptive cruise control, and autonomous driving. Automotive steering motors are widely used in passenger cars, light commercial vehicles, heavy commercial vehicles, electric vehicles, and off-highway vehicles.

Market Dynamics

Market Drivers

Increasing Demand for Electric and Autonomous Vehicles

The automotive steering motors market is expected to grow significantly in the coming years as the demand for electric and autonomous vehicles increases globally. Electric vehicles require electric power steering (EPS) systems, which use electric motors to provide steering assistance and reduce fuel consumption and emissions. Autonomous vehicles also rely on EPS systems, as they enable the integration of advanced driver assistance systems (ADAS), such as lane keeping assist, adaptive cruise control, and self-parking. These systems use sensors, cameras, and software to control the steering angle and torque of the vehicle, enhancing the safety and comfort of the driver and passengers.

For instance, the U.S. Senate proposed the Clean Cars for America plan. This plan aims to accelerate the transition to electric and zero-emission vehicles by providing consumer rebates, building charging infrastructure, and supporting domestic manufacturing of electric vehicles and components. The plan also includes incentives for automakers to produce vehicles with advanced safety features, such as ADAS, which require EPS systems.

Market Restraint

Unavailability of Electric Power Steering for Construction and Mining Equipment

One significant hindrance to the growth of the automotive steering motors market is the absence of electrically assisted power steering mechanisms tailored for construction and mining equipment. These particular machines demand substantial steering forces, typically falling within the range of 50kN to 100kN, which pose challenges for electric motor-based systems to achieve effectively. Consequently, the majority of construction and mining equipment continue to depend on hydraulic or mechanical steering setups. Unfortunately, these alternatives are characterized by lower efficiency, heightened complexity, and increased susceptibility to failures compared to electric power steering systems.

Market Opportunities

Retreading of Tires for Automotive Steering Motors Market

Retreading tires is a process of replacing the worn-out tread on used tires with new treads, extending the tire's life and reducing the environmental impact. Retreading of tires can be an opportunity for the automotive steering motors market, as it can increase the demand for electric power steering systems, which use electric motors to assist the steering. EPS systems are compatible with retreaded tires, as they adjust the steering torque and angle according to the tire condition and road surface. EPS systems also offer benefits such as improved fuel efficiency, reduced noise, and lower maintenance costs compared to hydraulic and manual steering systems.

For instance, the European Union (EU) has adopted a circular economy action plan that aims to promote the reuse and recycling of products, including tires, and reduce waste generation and environmental impact. The plan includes measures such as setting minimum requirements for recycled product content, introducing a new regulatory framework for batteries and vehicles, and supporting innovation and investment in circular economy sectors.

The plan also supports the development of a market for secondary raw materials, such as rubber from retreaded tires, and encourages green public procurement. The EU circular economy action plan could create an opportunity for the automotive steering motors market, as it could increase the demand for retreaded tires and EPS systems, which are more environmentally friendly and resource-efficient than conventional tires and steering systems.

Regional Analysis

Based on region, the global automotive steering motors market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

European automotive steering motors market share is expected to expand substantially during the forecast period. This can be attributed to the high demand for electric and autonomous vehicles, the presence of major automotive manufacturers and suppliers, and the supportive government policies and initiatives for low-emission and fuel-efficient vehicles. Germany, France, and the U.K. are the key markets in this region, as they have a well-developed automotive industry and infrastructure and a high consumer preference for advanced and comfortable vehicles. The region is expected to maintain its dominance in the future as the innovation and competition in the automotive steering system market will increase.

Furthermore, the increasing demand for electric vehicles in Europe, driven by environmental awareness, consumer preferences, and supportive policies, also boosts the market for automotive steering motors. Electric vehicles require electric power steering systems, which use electric motors to provide steering assistance and reduce fuel consumption and emissions. The existence of significant automakers and suppliers in Europe, like Bosch, Daimler, Volkswagen, BMW, and ZF, encourages innovation and the creation of cutting-edge motors and steering systems. These companies invest heavily in research and development to enhance their products' performance, efficiency, and safety.

Moreover, the European Union has implemented various regulations and standards to assure the safety and quality of automotive steering systems and motors. For example, Regulation (EU) 2018/858 sets out the technical requirements and procedures for the type-approval of motor vehicles and their components, including steering equipment. Regulation (EC) No 661/2009 also specifies the general safety requirements for motor vehicles and their systems, parts, and technical units, such as the electronic stability control system integrated with the steering system.

Asia-Pacific is the second most dominant due to the region's quick industrialization and urbanization, rising population and disposable income, expanding demand for passenger and commercial cars, and the developing markets of India, Japan, China, and South Korea. These countries have a huge potential for the automotive steering system market, as they have a large customer base, a low penetration rate of electric vehicles, and favorable government support for the development of the automotive sector.

The region is expected to witness a high growth rate as the adoption of EPS systems and steer-by-wire technology will increase. The National Electric Mobility Mission Plan, which lays out a roadmap for the development of electric vehicles; the National Mission on Transformative Mobility and Battery Storage, which focuses on establishing a local ecosystem for battery manufacturing; and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme are just a few of the initiatives the government has launched to support this goal.

Japan and South Korea are the leaders in autonomous vehicle technology, as they have been investing heavily in research and development, testing, and regulation of self-driving cars. Both nations have been encouraging cutting-edge driver assistance technologies that use electric power steering to regulate the torque and steering angle of the car, such as self-parking, adaptive cruise control, and lane-keeping assistance. Japan has set a target of achieving 80% ADAS penetration by 2030, while South Korea has launched a roadmap to commercialize fully autonomous vehicles by 2027.

Segmental Analysis

The global automotive steering motors market is bifurcated into types and applications.

Based on type, the global automotive steering motors market is segmented into electric power steering (EPS) and electro-hydraulic power steering (EHPS).

Electric power steering (EPS) is the dominant category, revolutionizing driving with its creative approach. In addition to improving mobility, EPS makes a substantial contribution to environmental sustainability by using an electric motor to assist with steering. This is accomplished by lowering emissions and fuel use, which aligns with international initiatives to fight climate change and advance greener modes of transportation.

In addition to being better for the environment, EPS has many advantages over manual and hydraulic steering systems. One of its most notable qualities is its capacity to provide increased fuel efficiency, which is essential in the modern automotive environment where sustainability and efficiency are valued highly. EPS functions at lower noise levels, improving occupants' overall comfort and driving experience. Both automakers and car owners will save money on maintenance when EPS is implemented. Electric power steering systems have fewer moving parts and a simpler design, which reduces wear and tear and necessitates less maintenance and longer service intervals. This promotes the overall dependability and longevity of cars equipped with EPS and improves cost-effectiveness.

Based on application, the global automotive steering motors market is segmented into passenger cars and commercial cars.

Due to their large percentage of worldwide vehicle production and sales, passenger vehicles are the main automotive steering motors market sector. Their extensive use of electric power steering (EPS) systems, representing a significant advancement in steering technology, further contributes to their domination. Through the use of electric motors for steering assistance, EPS not only improves maneuverability but also significantly reduces emissions and fuel consumption, supporting the sustainability objectives of the automobile industry.

Beyond increasing efficiency, EPS systems are attractive because they easily interface with various advanced driver assistance systems (ADAS). These technologies, which include self-parking features, adaptive cruise control, and lane-keeping assistance, mark a paradigm leap in-car comfort and safety. Passenger automobiles are outfitted with improved safety measures, making driving safer and more comfortable for both the driver and passengers by utilizing EPS as a core technology. Moreover, EPS systems' ability to work with ADAS highlights how flexible and adaptive they are to changing vehicle trends. Passenger cars with EPS are well-positioned to spearhead the industry's transition to autonomous driving solutions by offering the framework required to integrate state-of-the-art autonomous driving features.

Recent Developments

• March 2024 - The JSW Group and SAIC Motor-owned MG Motor India, a Chinese automotive manufacturer, officially launched their joint venture. The partnership aims to develop automobiles with internal combustion and electric engines to compete with Maruti and Tata Motors for a significant portion of the Indian market. A steering committee member for the new joint venture, Parth Jindal, introduced JSW MG Motor India's new brand identity after JSW Group bought a 35% share from SAIC in MG Motor India.
• In 2018, the Indian government modified the tax slabs on diesel, gasoline, and hybrid cars, so as to promote vehicle sales. The market is expected to be driven by the sports vehicles segment and growing budgets
• In 2018, the Dubai Chamber of Commerce and Industry announced the formation of the Automotive Manufacturers Business Group for enhancing the focus on the automotive sector
• As of April 2016, Bosch operated it's Electric Power Steering (EPS) business solely with Honda in the Japan market
• In 2015, the German Federal Ministry of Economic Affairs and Energy funded a series of R&D development projects with a focus on Advanced Driver Assistance Systems (ADAS) to advance the thought of computerized driving frameworks
• In November 2013, Honda Odyssey with DP-EPS was launched in the market, and Honda Legend with R-EPS was launched in the market in February 2015