Automotive Steering System Market: Current Analysis and Forecast (2021-2027)

Report Description

Automotive Steering System Market was valued at around US$ 24.8 billion in 2019. The market witnessed a decline in the FY2020-2021 owing to decreased vehicle production and sales due to Covid-19 pandemic. Growing demand for carbon emission reduction have compelled the automotive sector to accelerate the electrification of several typically mechanical systems. Everything from supercharging to power steering in the automotive sector has been electrified to minimize emissions, this has further improved safety, operational simplicity, and a better driving experience. Electronic power steering (EPS) systems have various advantages, compared to their hydraulic equivalents, including weight reduction, low maintenance, and fuel consumption, as well as improved variable steering response at different vehicle speeds. Looking at the flexibility of EPS, automotive manufacturers around the world are working on integrating EPS with other smart systems already in use to enhance vehicle safety and driving experience. For Example, in 2018, Maserati launched models named Ghibli, Levante, and Quattroporte, with electronic power steering, allowing new driver assistance systems. Similarly, Nexteer Automotive Corporation also integrated ADAS systems with the electronic power steering systems which ensures safety to driver.

Share of Vehicle Sales, by Region 2019 & 2020 (%)

In August 2021, Nexteer Automotive expands the output capabilities of its pinion electric power steering (EPS) systems to meet the needs of heavier electric vehicles (EVs). Company’s new high-output options for DPEPS and SPEPS systems increase the steering capability by 12 to 20%, up to 14.5 kilonewtons (kN) for DPEPS and up to 12.5kN for SPEPS. In addition, In June 2021, Indian Auto component maker ANAND Group entered partnership with South Korea’s Mando Corporation to cater to the growing electric vehicles segment in India. The new entity “ANAND Mando eMobility Pvt Ltd” would manufacture and market electric vehicle (EV) components for the two and three-wheelers

Insights Presented in the Report

“Amongst Component, Steering wheel speed sensor segment would witness significant growth”

Based on Component, the Automotive Steering System Market is segmented into Hydraulic Pump, Steering Column, Steering Wheel Speed Sensor, Electric Motor. Owing to the recent evolution of the connected, autonomous, and semi-autonomous vehicle ecosystem, top automakers globally are prioritizing the safety and security concerns associated with automotive steering systems, majorly for the electric power steering systems (EPS).

“Amongst Technology, Electric Power Steering (EPS) segment dominated the market”

Based on Technology, the market is bifurcated into Electric Power Steering (EPS), Electro-Hydraulic Power Steering (EHPS), Hydraulic power steering (HPS), Manual Steering. In 2020, Electric Power Steering (EPS) dominated the market and is expected to witness significant growth during the forecast period. In the year 2016, Electric Power Steering (EPS) became the mainstream of the automotive steering system, accounting for more than 50% share globally.

“Amongst Vehicle Type, Passenger Vehicle segment dominated the market”

Based on Vehicle Type, the market is segmented into Passenger Vehicle, Light commercial vehicle, Heavy commercial vehicle. Owing to high production volume the Passenger Vehicle segment dominate the market and is expected to maintain its dominance throughout the forecast period.

“Amongst Sales Channel, supplies to OEMs’ segment dominated the market”

Based on Sales Channel, the market is segmented into Supplies to OEM, Aftermarket. Automotive Steering System is majorly supplied to the OEMs. European, Japanese, American, Korean, and Chinese car manufacturers dominated the global dominate the automobile industry. In 2020, Toyota managed to produce about 10.5 million vehicles to become the second most valuable car manufacturing company behind Tesla. Volkswagen Group produced around 10.3 million vehicles in 2020.

“Asia-Pacific is expected to dominate the market during the forecast period”

For a better understanding of the demand of Automotive Steering System, the market is analyzed for major regions including North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, India, Japan, South Korea, Rest of Asia-Pacific); and Rest of World. Currently, Asia-Pacific dominates the market. Global all vehicle sales in 2020 accounted to 77.98 million, compared to 90.4 million sales in 2019. Sales of passenger vehicle stood at 53.6 million in 2020, compared to 24.37 million commercial vehicles. Asia/Oceania/Middle East dominated the sales of all vehicles with 51.4% share in 2020, compared to 48.1% in 2019. Some of the major players operating in the market include Robert Bosch, Nexteer Automotive Group Limited, JTEKT Corporation, DENSO Corporation, NSK Steering Systems Co., Ltd., ZF Friedrichshafen AG, Hyundai Mobis Co., Ltd., Cikautxo India Pvt. Ltd., Mitsubishi Electric Automotive America, Inc., Mando Corporation.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Automotive Steering System were the three major steps undertaken to create and analyze the demand and sales of steering system globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Automotive Steering System through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Automotive Steering System, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are Component, Technology, Vehicle Type, Sales Channel. Further regional level analyses were conducted to evaluate the overall demand of Automotive Steering System in global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing demand for personal passenger cars and technological advancement in the automotive sector etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the demand of Automotive Steering System across the major regions globally
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Automotive Steering System Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Automotive Steering System market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Component, Technology, Vehicle Type, Sales Channel, and region.

The main objective of the Automotive Steering System Market Study

The current & future market trends of the Automotive Steering System Market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Automotive Steering System in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments of the industry
• Segments in the study include Component, Technology, vehicle type, Sales channel, and Regions
• Defined analysis of the regulatory framework for the Automotive Steering System industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors pertaining to the industry
• Major regions analyzed in the report include North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, India, Japan, South Korea, Rest of Asia-Pacific); and Rest of World. Define and analyze the competitive landscape of the Automotive Steering System sector and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry