The global automotive steering system market is expected to witness steady growth between 2025 and 2035, driven by rising vehicle production, increasing demand for fuel-efficient steering technologies, and advancements in autonomous and electric vehicle (EV) steering systems. The market is projected to reach USD 25.9 billion in 2025 and expand to USD 37.6 billion by 2035, reflecting a compound annual growth rate (CAGR) of 3.8% during the forecast period.
In view of the fact that the trend of electric cars and the technology of advanced driver assistance systems (ADAS) are becoming more widespread, the steering systems are advancing to give not only greater accuracy but also improved safety and more pleasant driving.
This switch from traditional hydraulic power steering (HPS) to electric power steering (EPS) and steer-by-wire (SBW) technologies is the main factor that turns cars to be more manoeuvrable while saving a lot of energy. These systems are the ones that mainly help in less fuel consumption in the internal combustion engine (ICE) vehicles and also act as a battery extender device in electric vehicles (EVs).
The Automotive Steering System Market is evolving rapidly, driven by the growing demand for enhanced driving comfort, vehicle control, and advanced safety features. With the shift toward electrification, ADAS integration, and autonomous driving, modern steering systems are becoming smarter, lighter, and more efficient.
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Key Takeaways
Increasing adoption of electric power steering (EPS) systems over traditional hydraulic systems
Integration of steer-by-wire technology to support autonomous vehicle development
Rising demand for fuel efficiency and emission reduction influencing component design
OEMs are investing in lightweight materials and modular steering solutions
Rapid growth of SUVs and premium vehicles bolstering market expansion
Key Drivers
Surge in global vehicle production, especially in emerging markets
Increasing installation of advanced driver assistance systems (ADAS)
Government regulations promoting fuel-efficient and safe vehicles
Rise in urban traffic congestion driving demand for effortless steering systems
Technological advancements in electric and autonomous vehicles
Challenges
High Development Costs for Advanced Steering Technologies
Brought by changes in the industry from traditional hydraulic steering to electric power steering and development of steer-by-wire systems, the integration and development of advanced steering solutions has become one of the most significant hurdles due to the high costs involved in it.
Investment in R&D, precision manufacturing, and electronic control units (ECUs) besides the transition from hydraulic steering to electric power steering and the introduction of the steer-by-wire systems of necessity are all contributing factors to the high costs.
Likewise, small and medium-sized car manufacturers can also face the obstacles in terms of upgrading the current steering technologies to meet the standards and safety regulations of autonomous driving on the grounds of additional costs incurred for the modifications. To handle the challenges posed by this, companies are proving their worth in applying cost-effective production techniques, and scalable steering solutions.
Growth Opportunities
Adoption of steer-by-wire in next-gen EVs and autonomous fleets
Demand for ADAS-ready steering systems with integrated sensors
Aftermarket growth in replacement and customization of steering parts
Innovation in compact and high-torque EPS units for commercial vehicles
Expanding vehicle ownership in Asia-Pacific and Latin America
Key Applications
Passenger Cars – Comfort, control, and compact system integration
Light Commercial Vehicles (LCVs) – Efficiency and durability
Heavy Commercial Vehicles (HCVs) – Robust design and heavy-load handling
Electric Vehicles (EVs) – Lightweight, energy-efficient steering units
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Key Players
JTEKT Corporation
Robert Bosch GmbH
Nexteer Automotive
ZF Friedrichshafen AG
NSK Ltd.
Thyssenkrupp AG
Hitachi Astemo, Ltd.
Showa Corporation
Mando Corporation
Hyundai Mobis
Key Segmentations
By Type – Hydraulic Power Steering (HPS), Electro-Hydraulic Power Steering (EHPS), Electric Power Steering (EPS)
By Vehicle Type – Passenger Cars, LCVs, HCVs
By Component – Steering Column, Steering Wheel, Sensors, Hydraulic Pump, Electric Motor
By Mechanism – Manual, Power-Assisted
By Region – North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
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