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The automotive steering gearbox market size is forecast to increase by USD 8.97 billion, at a CAGR of 8.67% between 2023 and 2028. The growth of the market depends on several factors such as the growing demand for high torque and performance in trucks, the increasing adoption of electric power steering and the stringent regulations to control emissions.
The research report of the Automotive Steering Gearbox Market offers industry forecasts and segmentation based on Type which includes electric power steering, hydraulic power steering and electro-hydraulic power steering. It also segments the market by Application, which comprises passenger cars and commercial cars. Region, the market analysis and report covers APAC, Europe, North America, South America, and Middle East and Africa. The market size, historical data for 2018 - 2022, and future forecasts are presented in terms of value (in USD billion) for all these mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing adoption of electric power steering is notably driving the market growth. The increasing demand for comfort and convenience for the driver and the need to improve the fuel efficiency of vehicles has brought about many developments in the automotive industry. Technological advancements in steering systems are allowing automotive manufacturers to adopt electric power steering and steer-by-wire systems. These transformations have paved the way for the further development of automotive steering system components, including steering columns and steering gearboxes, among others. The pump in a hydraulic power steering system is always on, even when the steering is idle, and this reduces fuel efficiency.
Moreover, an electric power steering system, including components such as automotive steer-by-wire system, costs more than a hydraulic power steering system, which is beneficial for manufacturers of automotive steering systems and steering components in terms of profit margins. Therefore, the growing adoption of automotive electric power steering systems will drive the revenue growth of the global automotive steering gearbox market during the market forecast period
Steering gear for steer-by-wire systems is an emerging trend shaping the market growth. The automotive steer-by-wire system has been developed to eliminate mechanical linkages between steering wheels and wheels of vehicles to enhance driving comfort and improve fuel efficiency. Other power steering systems have a mechanical linkage between steering components, including steering gears. In the steer-by-wire system, the steering wheel is attached to a steering wheel angle sensor that sends signals to the steering actuator. The pinion angle sensor allows the pinon to move over the rack with the help of the electric motor (power assist unit).
Further, as such technology is new on the market, profit margins are expected to be higher from sales of steer-by-wire systems during the forecast period. Thus, the development of the steer-by-wire system, which has a steering gear that works as an electrical actuator, will boost the growth of the global automotive steering gearbox market during the forecast period. Automotive steering torque sensors play a critical role in steer-by-wire systems, providing essential feedback and control over steering input and response. These sensors ensure precise measurement and transmission of steering torque data, enhancing the overall performance and safety of electronic steering systems. As steer-by-wire technology gains traction for its potential to improve vehicle handling and efficiency, the demand for automotive steering torque sensors is expected to increase, driving market growth and innovation in steering system technologies.
Increasing cost of raw materials is a significant challenge hindering the market growth. The growing need for improving fuel efficiency is pushing automotive manufacturers to reduce vehicle weight without compromising on performance. A widely used material to replace iron and steel is aluminum. Most vehicle components are being replaced by aluminum as it is lightweight, and its performance is superior. However, rising prices of this metal are exerting pressure on automotive components manufacturers. Decisions to slap sanctions on suppliers of aluminum have increased the cost of the material.
For instance, by 2030, it is anticipated that each vehicle will contain 556 pounds of aluminum. The higher demand will lead to the high price of aluminum metal. Therefore, manufacturers of automotive steering system components, including steering columns and steering gearboxes, which are made of aluminum, are expected to come under tremendous cost pressures, which will hinder the market growth and trends of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Global Automotive Steering Gearbox Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Akashi Kikai Kogyo Co. Ltd. - The company offers automotive steering gearbox for light vehicles and regular cars having displacement of 1500 or less.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The electric power steering segment is estimated to witness significant growth during the forecast period. The adoption of electric power steering is increasing as it is lightweight and highly efficient. This system has a variable power assist for providing additional assistance at lower speeds and reduced assistance at higher speeds. An electric power steering system does not require significant power when steering assistance is not needed. The need for additional power is calculated based on the torque applied to the steering wheel.
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The electric power steering segment was the largest and was valued at USD 8.92 billion in 2018. There are different forms of electric power steering systems, and they are based on the position of the power assist motor. They include the column assist, pinion assist, direct drive, and rack assist types. Among these, the steering gear plays an important role in the pinion assist and rack assist types of electric power steering. In the pinion assist type electric power steering system, the power assist motor is connected to the steering gears pinion shaft. This type of electric power steering system works well for small cars. Although all types of electric power steering have gearboxes, their designs change based on the position of the power assist motor. The market research and growth of the automotive steering gearbox market by the electric power steering segment will depend on the adoption rates of electric power steering systems during the forecast period.
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APAC is estimated to contribute 64% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC houses some of the fastest-growing economies globally, and they include China, India, Thailand, Indonesia, and South Korea. Economic growth has helped raise per-capita income considerably over the last couple of years and increased consumer purchasing power, leading to higher automobile sales. Further, economic growth has allowed most countries in APAC to proactively spend on infrastructure and industrial development, which has pushed demand for commercial vehicles. APAC is also a prime offshore location for automotive manufacturing, given the favorable government incentives, low costs, and raw material availability. For instance, Nexteer Automotive Group Ltd. has been manufacturing automotive steering systems in China since 2016. Further, ThyssenKrupp AG is building one of the largest steering system production sites in China.
The automotive steering gearbox market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market trends and analysis and market growth analysis and growth opportunities from 2018 to 2028.
Automotive Steering Gearbox Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Market forecasting period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.67% |
Market Growth 2024-2028 |
USD 8.97 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.54 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 64% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akashi Kikai Kogyo Co. Ltd., ATS Automation Tooling Systems Inc., Cardone Industries Inc., China Automotive Systems Inc., DENSO Corp., Ford Motor Co., HL Mando Co. Ltd., Hyundai Motor Co., JTEKT Corp., Knorr Bremse AG, Melrose Industries Plc, Mitsubishi Heavy Industries Ltd., Nexteer Automotive Group Ltd., Robert Bosch GmbH, thyssenkrupp AG, and ZF Steering Gear (India) Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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