Automotive Steering System Market: Key Insights
- Increasing prevalence of autonomous and electric vehicles (EVs) would be the key factor defining the growth curve.
- Electronic steering technology continues to attract significant stakeholders’ investments.
- Passenger cars would remain target vehicle category; market players are viewing compact and premium vehicles for relevant returns.
- East Asia continues to lead the way in the global automotive steering system market.
KEY FACTORS SHAPING AUTOMOTIVE STEERING SYSTEM MARKET
Increased Production of Automotive and Long-term Contracts with OEMs
Increase in the production of automobiles is directly proportional to the requirement of automotive steering systems by original equipment manufacturers, as every automotive steering system is an important and integral part of the complete product.
Increase in the production of automotive vehicles in markets such as China, Japan, and India is expected to boost the growth of the automotive steering system market. Moreover, automotive manufacturers are poised for long-term service contracts with OEM players, which is projected to significantly enhance the growth of the automotive steering system market during the forecast period.
Rising Penetration of Electric Vehicles (EVs)
On the back of continuous technological innovations coupled with rising awareness about environmental safety, consumer inclination towards electrical vehicles has been observed over the recent years. Moreover, numerous national and local governments are giving incentives for electric vehicles, tax credits, subsidies, etc. These factors are fuelling the demand for electrical vehicles, subsequently creating numerous growth opportunities for the automotive steering system market over the forecast period.
Acquisitions & Joint Ventures to Boost Market Growth
Leading global automotive steering system manufacturers are poised for acquisitions of small- and medium-sized regional players for attaining highest channel reach and achieving higher market share in the aftermarket in respective regions. Moreover, manufacturers are also establishing joint ventures for the production of high quality products for automotive manufacturers.
For instance, in 2019, Nexteer Automotive announced a joint venture with Dongfeng Motor Parts and Components Group Co., Ltd., to start the mass production of the electric power steering systems. This new JV increases the company’s manufacturing footmark to 28 sites across the world.
Regional Analysis: Asia Pacific to Remain Dominant
Asia Pacific (APAC) is expected to hold nearly half of the global automotive steering system market share by the end of 2030, on the back of huge automotive production in China and India. China is expected to provide the most lucrative opportunities for revenue generation in the automotive steering system market over the forecast period.
However, the automotive industry is facing pressure due to the COVID-19 pandemic, which has resulted in automotive production downtime all over the world. In addition, leading automobile producers in APAC, such as China and India, have reduced production considerably in 2020. Tier-2 and tier-3 players in automotive steering system market are in the front line of the impact of the COVID-19 pandemic.
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Automotive Steering System Market: Structure Analysis
- The global market is highly consolidated, with the top ten players holding nearly 70% of the automotive steering system market share in terms of revenue generation.
- Over the last few years, an increase in the number of joint ventures and acquisitions has been observed within the automotive steering system market. Prominent players are actively entering into partnerships with regional automotive steering system suppliers and expanding their production capacities to meet the growing demand for automotive steering systems.
- Prominent players in the automotive steering system market, such as JTEKT Corporation, Nexteer Automotive Group Ltd, Showa Corporation, ThyssenKrupp AG, Hitachi Automotive System Ltd, Robert Bosch GmbH, and NSK Steering System Co. ltd. are focusing on new product development to enhance their product portfolios.
Report Metrics & Details
- Base Year - 2019
- Historical Period - 2015-2019
- Forecast Period - 2020-2030
- Market Value in 2019 - US$ 22.8 Bn
- Segments Covered - Technology, Vehicle Type, and Region
- Regions Covered - North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and the Middle East & Africa.
- Key Companies - JTEKT Corporation, Nexteer Automotive Group Ltd., Showa Corporation, ThyssenKrupp AG, Hitachi Automotive System Ltd., Robert Bosch GmbH, and NSK Steering System Co. Ltd.
- Growth Drivers -
- Upsurge in automotive production
- Increasing sales of electric vehicles
- Rising adoption of connected technologies in automobiles
Automotive Steering System Market Value to Expand 1.5X by 2030
Automotive steering systems have undergone a transformational shift - from manual to advanced, and user-centric systems. Over the past few years, the automotive steering system market has witnessed several advancements regarding design and integration of safety technologies such as Steer by Wire (SbW) and control technology with existing steering systems.
Emerging trend of electronics in automobiles has influenced automakers to significantly invest in integrating electronics and safety systems.Towards the end of the forecast period, 2020-2030, global adoption of automotive steering systems will surpass the US$ 30 Bn mark. Although the coronavirus (COVID-19) pandemic is hindering automotive production in 2020, the market is set for a V-shape trajectory post containment of the virus.
Electronic Steering Technology to Bring Substantial Returns
Automobile manufacturers are increasingly incorporating electronic steering technology in almost all vehicle models, owing to its excellent fuel-efficiency quotient as compared to conventional systems. Moreover, recent developments in SbW technology are enabling a broader adoption of the technology.
However, commercial vehicles offer considerably limited load-bearing capacity, and, as such, electronic power steering (EPS) is inefficient in these vehicles. Hydraulic steering technology, on the other hand, absorbs road shocks effectively, and thus, market players are also allocating their resources to this advanced automotive technology.
Automotive Steering System Market: Regional Outlook
East Asia is a hub of local and global automotive steering system market players. Global automotive steering system manufacturers are forming joint ventures with regional companies in order to penetrate into East Asian markets. In addition, governments as well as customers in the region are rolling out the red carpet for tech-driven automobile equipment.
Although a decline in automotive production during 2019-2020 is imminent, East Asia continues to represent the most lucrative automotive industry, globally. By 2023, the East Asia automotive steering system market will cross the US$ 10 Bn mark.
Fuel-efficient Vehicles to Shape the Path Forward
Given consistent tech-driven innovations in tandem with increasing awareness regarding environmental safety, customers around the world have been showing staunch inclination towards fuel-efficient vehicles such as electric and hybrid vehicles in the recent past. In addition, several national and local governments are offering incentives, tax credits, and subsidies to propel the adoption of such fuel-efficient vehicles.
The mounting need to abide by fuel efficiency norms is boosting the prominence of electronically-assisted automotive steering systems, which will prop up the graph of the global market in the years ahead.
Automotive Steering System Market Overview
Around 7 out of 10 automotive steering systems would be installed in passenger cars. The trend is poised to follow a positive trajectory, owing to the unprecedented rate of private vehicle ownership, especially in countries - China, Japan, India, and Brazil. Light commercial vehicles (LCVs) are also offering investment opportunities in the automotive steering system market.
Rise in logistics operations for trade activities is encouraging market players to invest in this vehicle category. Furthermore, heavy commercial vehicles (HCVs) are witnessing sluggish production and sales (by volume) as compared to passenger cars, and, as such, would account for a meagre share in the global automotive steering system market.
- Electronic Steering
- Hydraulic Steering
- Manual Steering
- Electro-hydraulic Steering
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- North America
- Latin America
- South Asia & Pacific
- East Asia
- Middle East & Africa