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Heavy truck rack and pinion steering was introduced by Volvo Trucks
In India, TATA MOTORS has different steering setup for different applications and are listed below.
Ashok Leyland Steering system for LCV’s is integrated Hydraulic assisted power steering
Eicher has different steering setup for different applications and are listed below.
The volumes in higher tonnage vehicles including, the multi-axles declined more than the other categories in India truck steering market in 2019.
Rane TRW is a leading player in the manual and hydraulic truck steering system market in India but its revenue and margins have been declining since last year due to drop in commercial vehicle sales in India in past 12 months. Rane TRW supplliers hydraulic steering systems to Tata, Volvo-Eicher, SML-Isuzu, Ashok Leyland and many other OEMs.
In China, most of the LCVs have Electric power steering but in HCVs, Hydraulic power steering is predominant. ZF`s 8118 Hydraulic steering can be found in many HCV applications. All Sinotruk HCVs get it as standard.
China based China Automotive systems is a major truck steering system supplier to leading OEMs like Dongfeng, FAW, and Beiqi Foton. It derives more than 80% of its revenues from non-Electric power steering systems
In US market, where class 8 trucks sell anywhere between 220,000-300,000 units per annum, Hydraulic power steering is a standard fitment on many truck models.
In Sep 2019, Volvo (~16% market share in class 8 trucks) introduced a new ” Dynamic steering” which it claimed can reduce steering force by upto 85% , ultimately reducing driver`s fatigue. Heavy truck rack and pinion steering was introduced by Volvo Trucks
About 10 Million commercial vehicles are sold across the globe every year. Trucks comprise ~7 Million units whereas Vans and buses make up for remaining 3 Million units. More than 65% of all vans sold globally are in Europe and they are predominantly equipped with Electric power steering.
US is the biggest market for full-size pickup truck platforms which also underpins many SUVs at ~3.5 Million units per annum.Majority of them employ rack driven steering systems as compared to Europe where Pinion drive EPS systems are more popular.
Approximately 2 Million Heavy trucks are sold per annum. In HCV segment, the ongoing shift from manual to hydraulic power steering in emerging countries is the #1 trend.
The truck steering system market is estimated st $XXM, growing at 4% CAGR till 2025.
The steering system in an automobile, along with the suspension system, enables the driver to quickly and safely control the direction of the vehicle while driving. The integration of advanced driver assistance systems (ADAS) in vehicles, as well as the enhanced purchasing power of consumers around the world, are some of the factors responsible for the growth of the automotive steering system market. However, due to the outbreak of Covid-19 automotive industry has been drastically impacted, it also has significantly impacted the product demand and supply chain activity, hampering the growth of the market. Factors such as disruptions in the supply chain, permanent closing of small factories owing to the economic crisis, and unavailability of laborers have impacted the growth of the automotive steering system market severely.
It also has affected consumer purchasing behavior, as people are focused on buying essential goods owing to the economic crisis. However, the manufacturing plants, the automotive industry, and several other businesses are functioning slowly, which is hindering the automotive steering system market. The COVID-19 outbreak would have a limited short-term but negative impact on the market which the industries took as a challenge and implemented strategies to get their profits.
Asia-Pacific holds the largest share in the market and is expected to continue its domination over the forecast period owing to the increasing production of vehicles. Relaxations in lockdown restrictions and the resumption of production plants is likely to boost the production and sales of new vehicles, which in turn is expected to increase the adoption of automotive steering systems in new vehicles.
The truck steering system market is extremely concentrated among less than 10 vendors. The gross margin for predominantly hydraulic steering systems on trucks is ~18%-22% for different suppliers, almost double that of EPS on passenger vehicles.
ZF supplies its steering products worldwide to many leading OEMs.Bosch and Nexteer are the global leaders in Rack based EPS systems.
Nexteer derives more than 65% of its global annual revenues from light vehicle based Electric power steering system but is a major supplier in commercial vehicle segment. It also has a JV with Dongfeng in Wuhan,China and Changan in Chongqing for manufacturing steering products and is a leading player in North American market.
As global auto production has stagnated in past 3 years, the steering suppliers are now looking at conquest deals(business taken away from competitors) to grow their revenue. In terms of Mergers and acquisitions, Knorr- Bremse is acquiring US based commercial vehicle steering system supplier RH Sheppard from WABCO as ZF gears up to buy WABCO.
North America
The North American market, particularly the USA, will be one of the prime markets for Truck Steering System Market due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
Europe
The European market, particularly Western Europe, is another prime market for Truck Steering System Market due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for Truck Steering System Market are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of Truck Steering System Market in the region.
Asia
Asia will continue to be the global manufacturing hub for Truck Steering System Market over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa
Africa is expected to see the largest growth in Truck Steering System Market over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
RoW
Latin America and the Oceania region will showcase growth over the forecast period in Truck Steering System Market Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
USA – $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region.
Europe – EIC is investing €1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments.
Asia – There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia.
Africa – Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing.
Latin America – The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region.
Rest of the World – The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand.
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