Automotive Steering Sensors Market

Market Overview

The global automotive steering sensors market size was valued at USD 9.92 billion in 2022. It is estimated to reach USD 16.29 billion by 2031, growing at a CAGR of 5.67% during the forecast period (2023–2031). The evolution of electric and autonomous vehicles, which work on sensors, drives the global automotive steering sensors market. Further, as customer awareness of new safety systems and technologies increases, they increasingly select vehicles with enhanced safety features. As passenger safety concerns have increased, automakers have been compelled to equip their vehicles with driver assistance systems, particularly steering assistance systems. These factors drive the demand for steering sensors, creating opportunities for market growth.

A car's steering system consists of more than just the steering wheel; it also includes a steering box, a linkage between the steering box and the wheel assembly, and a steering sensor. Steering sensors are essential for measuring the angle of a steering wheel's rotation and communicating this data to the navigation system. These sensors are employed in automated systems requiring electronic command steering (ECS) and electric power steering (EPS) systems.

Electrical power steering systems require information about the steering-wheel angle, wheel speed, and lateral acceleration sensors to determine whether a vehicle is under or over-steering. A standard steering sensor is essential for controlling power-assisted steering for multiple reasons: first, to interpret the rotary torque being transmitted to the input shaft of the steering wheel, and second, to navigate the steering wheel (i.e., the twisting of the steering wheel by the driver).

Market Dynamics

Market Drivers

Revolution of Electric and Autonomous Vehicles

The rapid expansion of electric and autonomous vehicles is transforming the automotive industry. Emerging electric and autonomous technologies rely heavily on sophisticated sensor systems, such as automotive steering sensors, for precision control and navigation. Therefore, it serves as a substantial catalyst for market growth.

IEA data reveals that sales of electric vehicles have increased from 4% in 2012 to 14% in 2022, while the autonomous vehicle market has also made significant progress, with 5-10% of new vehicles expected to have at least Level 2 automation capabilities by 2025. As electric and autonomous vehicles become more prominent, the demand for dependable, high-performance steering sensors for automobiles will skyrocket.

Increasing Demand for Advanced Driver Assistance Systems (ADAS) 

Advanced Driver Assistance Systems have been a game-changer in the automotive industry, fostering increased safety and convenience for drivers. Automotive steering sensors are essential ADAS components, supplying real-time data on vehicle movement, steering angle, and speed. The respective data enables ADAS technologies to operate effectively, including lane-keeping assist, adaptive cruise control, and automated parking systems.

According to the data, the adoption of ADAS systems has increased significantly, with an estimated 30-40% of new vehicles in 2022 equipped with ADAS features. As governments worldwide prioritize road safety, ADAS technologies will likely become a standard requirement, increasing the demand for steering sensors.

Market Restraint

Steering Malfunctioning Issues 

The long-term functionality of electric power steering can be compromised if it is not adequately maintained or fixed in a timely manner when problems occur. Modern automobiles with power steering turn and steer without effort. When the power steering system malfunctions, it can be extremely inconvenient and potentially dangerous for the driver and passengers. Maintenance of the power steering system is essential for preventing safety issues and preserving the vehicle's functionality.

Failure to address the aforementioned warning indicators in a timely manner may lead to system malfunction, hence increasing the likelihood of accidents. The malfunction of electric power steering sensors has resulted in numerous vehicle recalls over the past few years, and it is still prevalent in the automotive industry, thereby restraining the market growth.

Market Opportunities

Growing Emphasis on Safer Automotive Systems 

Globally, approximately 1.24 million people die in road accidents yearly. A significant increase in accidents has also encouraged end users to adopt better safety systems. These factors drive automobile manufacturers to incorporate several vehicle systems that enhance safety. Therefore, an increasing preference for electric power steering systems has been witnessed for the past decade across the automotive industry for passenger cars and commercial vehicles worldwide.

Advanced lane assist systems could also be integrated into EPS systems soon. Based on data from cameras and radars, the time before the vehicle leaves the lane could be calculated in the steering control unit using parameters like lane camber, distance to lane markings, and lane position. This would help create a tiered warning system to alert the driver when the vehicle gets closer to veering out of the lane, enhancing vehicle safety. Such factors are expected to create opportunities for the market's growth.

Regional Analysis

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

Asia-Pacific is the most significant global automotive steering sensors market shareholder and is anticipated to exhibit a CAGR of 6.21% during the forecast period. The Asia-Pacific region is anticipated to become the largest market for the production of these systems, with Japan, India, and China moving toward becoming manufacturing hubs for automotive components and supplying the same to nations such as the United States and Germany. The automobile sector in the Asia-Pacific region has experienced significant dynamism in recent years, mostly due to the rising per capita earnings of the middle class and the cost advantages enjoyed by original equipment manufacturers (OEMs). Companies engaged in the supply and distribution of steering sensors anticipate substantial growth in additional potential markets.

Additionally, several original equipment manufacturers (OEMs) are working with automakers to enhance their products. As technology has progressed, sensor products have also been upgraded continuously. For instance, to consolidate its operations in the Indian market, ZF purchased a majority stake in the joint venture between the Rane Group and TRW Steering Systems in January 2022. Under the name ZF Rane Automotive India, the new joint venture will produce steering systems for commercial automobiles. All these factors drive regional market growth.

North America is estimated to exhibit a CAGR of 4.89% over the forecast period. North America is among one of the leading markets for automotive steering sensors. Technological advancements, investments from key players, growing demand for passenger cars, and continuous growth in the automobile fleet are expected to drive the automotive steering sensor motor market soon. In addition, several major OEMs are collaborating with technology companies for improved products. For instance, in March 2022, the Lucid Group stated that its DreamDrive Pro advanced driver-assistance system (ADAS) would be updated in the future based on NVIDIA DRIVE Hyperion technology. This powerful software-defined platform is already included in every Lucid Air. The DreamDrive Pro has a 32-sensor suite with 14 cameras, one lidar, five radar, and 12 ultrasonic units. Lucid's revolutionary dual-rail power system and proprietary Ethernet Ring provide an extremely high redundancy for critical systems like brakes, steering, and sensors. Such partnerships are expected to boost regional market growth.

In Europe, the soaring demand for electric and autonomous vehicles and expanding government mandates are expected to drive future growth. Similarly, R&D investment in new technologies and dependency on features such as ESC, Advanced Driver Assistance Systems (ADAS), Lane Keep Assist (LKA), Autonomous Emergency Braking (AEB), and other safety features on accuracy from the SAS and changing client demand is likely to augment the market forward in the future. For instance, in the United Kingdom, leading OEMs like Audi, BMW, Mercedes-Benz, Ford, Jaguar Land Rover, Nissan, Tesla, and Volvo provide Level 2 driver assistance technologies. These include devices that assist with steering, acceleration, and braking when driving on highways and dual carriageways. While availability is limited to a few types and models, Level 2 driver assistance technologies are predicted to be installed in more than 30% of all vehicles sold in the United Kingdom by 2030.

In the Middle East and Africa, Saudi Arabia dominated the market. Saudi Arabia is a growing economy, owing to high individual income levels and the country's robust banking and financial sector. As a result, sales of luxury items such as automobiles and other luxury goods have increased. The country is also undergoing tremendous population expansion, and younger buyers are now the most powerful drivers of the luxury market. In addition, international companies are entering Saudi Arabia, increasing the demand for advanced and innovative technologies for electronic sensors, such as steering sensors in the automobile business, and positively impacting market growth during the forecast period. In May 2022, Lucid Group, a manufacturer of electric vehicles based in the United States, announced the establishment of its first overseas facility in Saudi Arabia. The factory will initially service the local market and will be capable of producing 155,000 automobiles per year.

Segmental Analysis

The global automotive steering sensors market is segmented by sensor type, vehicle type, and technology.

Based on sensor type, the global automotive steering sensors market is divided into health monitoring systems, torque sensors, intelligent multi-functional sensor systems, position sensors/angle sensors, and other sensor types. 

The torque sensors segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 5.69% throughout the forecast period. Torque sensors measure the driver-applied steering torque. The torque sensor provides input to the vehicle's electronic control units, and the motor or pump then applies the necessary torque back or assistance to the steering column. In addition, the torque sensor is used in automobiles' electronic and hydraulic power steering systems. In modern times, it is commonplace for all motor vehicles to be outfitted with either hydraulic or electronic power steering systems. The torque and angle sensor market is predicted to experience growth in the foreseeable future due to a rise in global demand for power steering systems.

A health monitoring sensor is built into the steering wheel that tracks vital signs and stress levels utilizing metrics like heart rate and blood oxygen saturation, decreasing distractions or slowing the car down. By utilizing data collected from the sensors, the car can detect driver drowsiness, enhancing the vehicle's safety while operating on the road. The inclusion of health monitoring sensors in a majority of vehicles equipped with advanced driver aid systems (ADAS) is expected to boost the expansion of the automotive steering sensor market sector, owing to the increasing consumer demand for cars with ADAS.

Based on vehicle type, the global automotive steering sensors market is bifurcated into passenger cars, light commercial vehicles, and heavy commercial vehicles. 

The passenger cars segment dominates the global market and is projected to exhibit a CAGR of 5.53% over the forecast period. The use of power steering in passenger vehicles is increasing rapidly owing to its numerous benefits, such as the absence of hoses and fluids throughout the steering system. Increased adoption of EPS in modern vehicles and the penetration of steer-by-wire technology are two of the most important growth drivers for the market. In addition, the demand for power steering is anticipated to increase as the demand for passenger vehicles grows. Moreover, with a growing emphasis on safety and comfort, manufacturers focus on incorporating EPS technology into cars in the entry-level segment, thereby driving demand for steering sensors in passenger vehicles.

The evolution of electric power steering in commercial vehicles is among the primary factors for the growth of the steering sensor market. Electronic power steering is still nascent as they use hydraulic steering systems with a significant sensor market share. The growing logistics and construction sectors worldwide are pushing the demand for light commercial vehicles, especially trucks, which, in turn, may increase the demand in the steering sensors market.

Based on technology, the global automotive steering sensors market is segmented into contacting and magnetic. 

The magnetic segment owns the highest market share and is estimated to exhibit a CAGR of 6.05% during the forecast period. Magnetic sensors provide several advantages, including monitoring mechanical parameters like rotation angle and angular speed without touching them. They are durable and economical to produce. The electronic stability program's (ESP) steering wheel sensor prevents vehicles from spinning. Magnetic sensor technology, such as giant magneto-resistance (GMR) thin film systems, offers several benefits, including longer working distances, more precise angular position measurement over a wider range, smaller and cheaper sensor chips, and cost-effective system solutions due to higher signal output.

Contacting automotive steering sensors measure and derive the data using two or more contacting surfaces or gears. The two sensors that use the contacting technology are the steering position and torque sensors. In certain instances, a contact-type sensor employs a wiper affixed to the torsion bar alongside a voltage divider connected to the revolving bridge circuit located on the steering shaft. The change in resistance measures the torque applied to the steering shaft. Due to the advancement of new technologies, such as the magnetic operation of steering sensors, the market for contact technology is currently limited despite its relatively long history.

Recent Developments

• June 2023- Bosch announced its plans to introduce steer-by-wire steering systems to the market in mass quantities by the middle of this decade. In a partnership with the startup Arnold NextG, the automotive supplier intends to pool its development expertise and expedite the market maturity of its systems.
• September 2023- UltraSense Systems unveiled UltraSense TouchPoint Q, the world's first piezoelectric strain sensor designed to improve the touch experience on automotive interfaces. Tier suppliers are integrating TouchPoint Q to enhance the user experience of their solid-state capacitive touch systems for center and overhead consoles, steering wheels, and door panels.