- Get in Touch with Us
Last Updated: Apr 25, 2025 | Study Period: 2024-2030
As of Aug 2021, electric power steering and hydraulic power steering are most common in passenger car segment and Hydraulic /Electro hydraulic steering systems are most common in commercial vehicles.
Rack Type EPS needs higher motor output and handling performance than Column Type EPS and is fitted on mid and high segment vehicles.
EPS and cooperative control is also required for ADAS features like BSD (Blind Spot Detection), Parallel park assist. Therefore, for all steering system suppliers, their ADAS exposure is based completely on electric power steering.
In passenger vehicles, the transition from manual/hydraulic power steering to electric power steering (EPS) is over and 98% of new platforms planned by all OEMs have EPS as standard.
More than 20 car manufacturers have committed to equip all new passenger cars by September 2022 with the low speed automatic emergency braking (AEB) technology.
Steer by wire-L2 automation (2X dollar content compared to conventional steering system) is expected to bring in the revenue growth for all suppliers in next 5 years, especially post 2022 when Euro NCAP 2025 starts approaching. Automatic emergency steering will be the biggest enabler of Steer by wire.
In its first electric SUV, Toyota released a steering wheel like Tesla's "yoke" steering wheel, but the carmaker added a crucial feature that addresses the Tesla yoke's primary flaw.
It generated controversy when Tesla presented the redesigned Model S with the "yoke" butterfly steering wheel.
Some were concerned that the actual design of the wheel would be problematic, while others were concerned that there was no driving stalk to select the drive mode.
Regarding the former, many believed that the manufacturer wouldn't take a chance by releasing the contentious yoke steering wheel without a steer-by-wire system that enables a non-linear steering curve.
Toyota introduced the bZ4X, its first electric vehicle, which interestingly had a steering wheel with a unique shape.
Toyota, in contrast to Tesla, has a drive-by-wire technology in place that allows it to modify the steering for low-speed conditions and fast curves.
Toyota, in contrast to Tesla, has a drive-by-wire technology in place that allows it to modify the steering for low-speed conditions and fast curves.
By individually adjusting the steering torque that the driver feels and the steering angle of the tyres, the steering feel can be increased.
With drive mode choice, steering characteristics can be modified. Only communicates relevant vibrations, such as road information, and blocks superfluous vibrations from tyres.
System regulates tyre movement to maintain vehicle stability when travelling through narrow lanes or over uneven terrain.
The increased popularity of adjustable steering systems in entry-level and mid-segment automobiles is a major driver fueling the market's expansion.
Automotive steering systems are always being improved, and several features, including adjustable steering columns, are included.
The enhancement of safety, comfort, and convenience is the foundation of the steering system improvement. The demand for specialised car parts rises as vehicle customization becomes more popular.
Such options for the steering system in cars were initially only available in luxury automobiles.
The use of automotive adjustable steering systems in mid-segment vehicles is a result of the increased rivalry in the automotive market, which has forced vehicle makers to include technological advancements in a wider range of vehicles.
The global market for adjustable steering systems for automobiles will benefit from advancements and improvements in steering columns in terms of design changes.
A growing number of people are using steering columns due to their sophisticated safety features.
The driver is protected by a passive safety mechanism called a collapsible steering column in the event of a frontal accident.
This newly designed foldable steering column maintains the steering column's safety rating while allowing the driver to move farther within the vehicle during a frontal collision.
The driver is prevented from striking the steering wheel by this design's enhancement of the forces applied to the driver by other passive safety systems like airbags and seat belts.
The global automotive steering system market is estimated at ~$XX Billion in 2024, growing at X% CAGR till 2030.
The average per unit price of steering systems is expected to remain stagnant globally till 2022 when Euro NCAP trials begin.
Many OEMs have already asked for price cuts from their respective steering system suppliers.
China led Asia pacific market accounts for highest number of new product launches for steering system suppliers. Although, the decline in auto production forecast for 2019 and 2020 is unprecedented, it is still the biggest automotive market globally.
| SI No | Timeline | Company | Developments |
| 1 | March 9, 2020
| Knorr-Bremse | The joint venture of Knorr-Bremse and Dongfeng Auto Parts are stepping up their cooperation to add steering systems and associated activities. |
| 2 | July 2021 | China Automotive Systerms | China Automotive Systems, Inc. a leading power steering components and systems supplier in China, announced that it has entered into the OTOP (Off Tool Off Process) phase of new steering development for the leading European auto brand, Alfa Romeo. |
| 3 | Aug 2020 | ZF | ZF launched the dual pinion steering systems in China; Electric Power Steering for enhanced safety and automated driving |
More than 15 OEMs have committed to launch 25 L2+ automated vehicles by 2022. It is an important opportunity for steering suppliers to offset the decline in revenues by supplying advanced steering systems required in these vehicles.
The decline of Chinese passenger car sales (~8% YOY) in 2019 and (~6% YOY) in 2020 is major challenge to the global Automotive steering system market.
China Automotive Steering System Market which is among the biggest supplier of steering systems to domestic brands in China signed an exclusive contract with Great Wall Motor for its low cost EV ORA R1 in H1 2019.It also supplies EPS to domestic as well as foreign origin OEMs.
The brush column steering system market (Torque assist <60Nm) has been on a decline mode in India due to volume erosion in lower segment vehicles.
On, the contrary, the brushless column assist EPS has been growing at higher single digits for past 4 years despite slowdown in overall industry volumes.
Among recent launches, only Tata Harrier (launched in Jan 2019) has a hydraulic power steering, rest all vehicles have electronic power steering system.
Mando India provides steering system for all major Hyundai platforms in India, notably the high margin Creta and high volume i10 and i20 platforms.
Mando is also benefitting from the continued growth of KIA in India has the company crossed 100,000 unit milestone in about 12 months with just one global product in its line-up.
Europe passenger car sales were up by 1% in 2019(YOY) and the volume is expected to decline by ~18-20% in 2020.Europe is among the most important market for steering suppliers as it has the highest penetration of steer by wire, globally.
The recently concluded merger between PSA and FCA could be a great opportunity for existing suppliers of either groups to consolidate their volumes and improve their bottom line.
In US, total passenger car sales were 17.1 Million units but we expect volume erosion of 2-2.5 M units in 2020 on the back of slowdown caused due to COVID.
US is the biggest market for rack assisted power steering system due to 16% share (2.6M units in 2019) in new car sales for pickup trucks.
RAM pickups outgrew the market and grew by 18% YOY in 2019, FCA sources steering from Non-American vendor for both Dodge and Jeep brands for various models.
This is in sharp contrast to GM and Ford who have traditionally relied on American suppliers for steering sourcing.
To know more about Global Hydraulic Steering Market, read our report
The Automotive Steering System Market has been adversely impacted across every region globally as almost all governments implemented nonessential business restrictions to control the pandemic, resulting in production as well as dealership shutdowns during a significant part of H1-2020
The impact of the COVID-19 pandemic on the Automotive Steering System Market for the automotive industry is primarily driven by the sales of vehicles and their production.
The sales of the vehicles during the pandemic decreased due to the lockdowns put in place by governments across the globe.
Due to the lockdowns and halt in production and manufacturing activities, the sales of vehicles experienced a slow growth.
The major hit for the automotive industry is due to the shortage of semiconductor components and chips. The shortage was created mainly due to the lockdown in China and Taiwan.
The industry is now trying to recover the market but due to the excessive backlog, the shortage is affecting the automotive industry the most.
Many OEMs including BMW, Audi and Tesla have announced the delay in the launch of new models and delivery of existing orders due to component shortage.
Some companies have started to use analog meters and devices from the old models to be incorporated in their vehicles.
With the development of new technologies and electric steering systems which are constituted in the steer-by-wire technology, the demand for semiconductor and electronic components in the industry is increasing.
Automakers and automotive parts manufacturers do not keep large inventories of electronic products as the technology keeps evolving and the use of newer, more efficient products keeps increasing.
As a result of which the semiconductor shortage has caused a huge imbalance in the supply chain operations disrupting the economic stability of several OEMs.
The global automotive production peaked in 2017 and has been in decline mode ever since. COVID has again shrunk 2020 auto production by as much as ~22% and Pre-COVID levels are only expected to resume by 2023-2024.
Many OEMs have shelved/postponed plans to launch L4 and L5 autonomous vehicles which will have direct impact on future prospects of highly automated steering systems.
For steering suppliers, while all manufacturing facilities have resumed production with gradual recovery from the April lows, it had a significant negative impact on H1-2020 financial results.
Given the continued market uncertainty, in both near term as well as medium term many suppliers have refused to give guidance for the full year 2020 unless the situation stabilizes further.
The silver lining however lies in the fact that OEMs remain committed to electrification, and advanced safety features related to ADAS Levels 2 and 3 which will have more dollar content from steering suppliers.
Nexteerâs high-output rack EPS could find more takers in the heavy truck market due to continued interest in electric trucks which was until very recently reserved for light duty trucks.
Due to lower OEM vehicle production and temporary operations shutdowns across all regions in the first half of the year as a result of the COVID-19 pandemic.
The steering market experienced an unprecedented and challenging environment. The revenues generated were lower than the preceding years, the sharp decadence experienced as a sequel of the covid wave had been a big loss for the stakeholders.
In contrast to that many companies learnt new ways to operate and move the business forward despite the adversity, there were positive affirmations in the second half as many companies managed to gain profit percentage along with their subsidiaries and collaborations:
In Aug 2021, Nexteer added new high-output options for Single Pinon-Assist EPS (SPEPS) and Dual Pinion-Assist EPS (DPEPS)which along with High-Out Rack-Assist EPS (REPS) will allow the company to provide high-output options for all types of underhood EPS systems.
Nexteer`s high-Output REPS increases the steering capacity of steering up to 24kN of load compared with 10-17kN for a typical REPS system and the company believed it will give it an edge in capitalizing on the growing electrification trend.
Electric vehicles are typically heavier than same segment internal combustion engine (ICE) vehicles.
In July 2021. Mando Steering systems India joined hands with ANAND Group, a leading manufacturer of automotive components in India, to manufacture and market Electric Vehicle (EV) components and systems for the two and three-wheeler applications.
The global automotive steering system market is highly concentrated among less than 10 vendors. There is an intense cost competition among suppliers in lower and mid-segment vehicles as the technology value add is minimal.
The gross margins on EPS products are lowest among all steering types as many tier-1 suppliers are dependent on other suppliers for sub-component sourcing.
In September 2020, the Schaeffler Group announced a partnership which will be targeted primarily on development with Robert Bosch Automotive Steering GmbH.
The partnership is set to expand the companyâs portfolio for intelligent rear wheel steering (iRWS). The Schaeffler group is set to provide the mechatronic iRWS systems where Robert Bosch will incorporate its software and electronics in the steering control units which will be used for the development of an advanced steering system.
Nexteer with Dongfeng Motor parts and components Group announced a joint venture. The venture is named as the Dongfeng Nexteer Steering systems based in Wuhan which will be engaged in the production of Single Pinion Assist EPS systems.
The joint venture is all set to increase the companyâs manufacturing capacity in almost 28 locations across the globe.
ZF recently announced the launch of its new portfolio of eMobility systems with expertise from WABCO to be incorporated to enhance clean and green energy initiatives.
The product portfolio includes an AxTrax electric axle and the CeTrax electric central drive to be developed by the year 2023 for trucks, buses and pickup trucks in the North American region.
The company also released the half yearly fiscal report with sales worth EUR 19.3 billion which is a whopping 43% increase from the sales for the first half of the year 2020 with EUR 13.5 billion.
The company has recovered successfully after the COVID-19 pandemic surpassing the sales worth EUR 18.3 billion in the H1 of 2019.
The Nexteer group recently released the financial results for the first half of the year 2021 with revenue worth $1.73 billion with an increase of 43.3% on comparison with the $1.21 billion recorded for the H1 of the year 2020.
The company has also invested in Tactile Mobility which is a leading virtual sensing and data company based in Israel. The collaboration is set to focus primarily on motion control softwares.
The software will collect data using the vehicleâs sensors including the wheel speed, angle, paddle position, RPM and the gear position to yield actions in real-time.
The company has also collaborated with Continental Ag and CNX motion to develop Brake-to-Steer (BtS) technology which will provide the driver safety with an additional layer of directional control used primarily for automated and autonomous vehicles.
The Schaeffler groupâs Steer-by-wire technology named Space drive has been incorporated in the three DTM race cars by Audi, BMW and Mercedes-AMG.
The technology is based on providing steering to the wheels without the use of a steering column which will be the primary technology used in autonomous vehicles.
The group recently released the financial reports for the first half of the year 2021 with sales worth EUR 4.36 billion which was an approximately 35% increase from the sales of the H1 of the year 2020 which reported EUR 3.26 billion.
The results for the second quarter of the year 2021 also saw a whopping increase of 65.3% from EUR 1.25 billion reported in the Q2 of 2020 to EUR 2.08 billion for the Q2 of 2021.
In China, suppliers are facing two major problems, 1) There is an intense price war (not sustainable in the long run) among suppliers and 2) OEMs are putting up ambitious sales targets which are of-course followed by multiple downward revisions throughout the year.
In these circumstances it will be very difficult for any supplier to improve their revenues and gross margin.
Excellent negotiation skills and recurring revenue from existing platforms and OEMs are key pillars of suppliers` overall business strategy.
JTEKT and Nexteer are specialist steering suppliers who also have an adjacent drive-line business.
Japan headquartered JTEKT generates ~$6-$7 Billion per annum from its steering system business and is a preferred supplier to many Japanese OEMs.
It had more than 25% share of global automotive steering system market in 2019.
ZF, Bosch and Nexteer are market leaders in the commercial vehicle segment.
Nexteer is the market leader in North America and GM North America is its biggest customer (derives ~30% of its global revenues), followed by other OEMs.
China based China Automotive Systems (annual gross margin~14%) entered into a joint venture with Hyoseong Electric Company to produce small electric motors(3 million unitsâ annual production) for use in EPS systems.
As ADAS integrated steering volumes increase in coming years, we expect many more suppliers to take a similar approach to get a better grip on the overall quality and cost control.
South Korea headquartered Mando Corporation is a leading supplier to Hyundai-KIA group and derives ~30% of its annual global sales from Steering system.
It started manufacturing EPS in 2004 which first debuted on Hyundai`s Verna and now supplies to all major OEMs including GM, Nissan, Renault etc.
| SI No | Timeline | Company | Developments |
| 1 | 2022 Jan | BMW | Brand is designing a yoke steering wheel for its future self-driving cars. The concept is a radical development of the yoke-style steering wheel introduced by Tesla with its Model S Plaid â it features swivelling grip handles and can be folded away when self-driving is enabled. |
| 2 | Feb 2021 | Mando Corp | Mando Corp. acquired electronic auto parts maker Mando-Hella Electronics Corp. in a deal valued at 165 billion won ($148 million), the company announced on Feb. 3. |
| 3 | Dec 2020 | Nexteer | Nexteer, Continental team to improve AV steering, braking.The joint ventureâs Brake-to-Steer technology adds another layer of safety by using the electronic brake system to safely steer the vehicle while simultaneously controlling its speed |
2021 DODGE CHARGERâ The electric power steering can be calibrated to optimize steering effort for a variety of driving situations via settings in the SRT Performance Pages
2021 MERCEDES E CLASS- The steering wheel has a comprehensively digitized steering called âthe capacitive steering wheelâ. The rim contains a two-zone sensor mat which detects whether the driverâs hands are gripping the steering wheel. The 2016 E-Class was the first car ever to feature Touch Control buttons on the steering wheel allowing complete infotainment system to be controlled by steering
2021 Schaeffler Group -In August 2021, the company also announced the launch of the Space Drive version 3 which is the third generation drive-by-wire system. The system will include the companyâs force-feedback handwheel (HWA) as well as the safety and comfort enhancing intelligent rear wheel steering stem (iRWS) along with a new rolling chassis.
2021 ZF -The company has developed a new energy management software for electric commercial vehicles. The software will be incorporated as the central power control entity for all auxiliary units such as the steering pumps, air compressors, thermal management as well as coordinating the energy requirements of the driveline.
2021 Hyundai Mobis -The company developed a brainwaves based ADAS technology which is the worldâs first of kind development in the ADAS sector. The technology is all set to measure the driverâs state of mind using brainwaves to alert the ADAS and steering system which will help in avoiding accidents.
2021 China Automotive Systems Inc. -The company announced the launch of a new EPS system which will also empower the ADAS system of the vehicle. The new product will be based on the technologies developed proprietary by CAASâ R&D department. The company is set to begin the production of the system to be incorporated in new vehicle models of Great Wall Motors based in China. The EPS system will enable the drivers to adapt to different conditions on the road which will enhance the userâs experience.
2021 REE Automotive -The company launched the improved REEcorner architecture designs and technology for its EV platform which is designed to be incorporated in commercial electric vehicles. The technology incorporates the critical vehicle components such as the steering system, braking, suspension, powertrain and control circuitry in a single compact module which will be positioned between the wheel and chassis.
2021 Ford -the companyâs new model of the Ford Bronco has included features from Nexteer, such as the incorporation of a high output power rack EPS system enabled with ADAS.
Volvo -The company has developed the Volvo dynamic steering system which is set to be powered by an electric motor controlling the steering system 2,000 times each second. The technology has been developed on a platform known as âTorque Overlayâ.
Nexteer Automotive -the company has developed an electric power steering system incorporating rack-assistance. The system is primarily focused on pickup truck manufacturers.
Robert Bosch GmbH -the company has developed an EPS system for heavy commercial vehicles which is based on the Sevotwin electro-hydraulic steering system.
2018 AUDI A8â The optional, new dynamic all-wheel steering combined direct, sporty steering and stability. The steering ratio for the front wheels varied as a function of speed; with the rear wheels turning in or against the direction of steering depending on the speed range. The dynamic steering was made possible by inclusion of strain wave gearing.
2018 ZF`s DUAL PINION STEERING- In Sep 2018, ZF secured contracts to supply dual pinion steering systems to three domestic Chinese car OEMs. The technology was based on a steering rack carrying two sets of teeth. Every set of rack teeth is driven by a separate pinion and diver`s input torque is transmitted to the rack via a âsteering pinionâ and the assistance torque is transmitted via a âdrive pinionâ.
2018 HYUNDAI MOBIS`S DUAL MODE ELECTRONIC STEERING SYSTEM- The company developed an electric power steering system which uses two electronic circuits during autonomous driving to maintain normal steering capabilities. Hyundai Mobis also succeeded in reducing the size of the electronic control unit (ECU), by using small electronic devices to reduce its size in half without any decline in productivity
2017 TOYODA GOSEI`S STEERING WHEEL WITH A GRIP SENSOR- Toyoda Gosei jointly developed the new steering wheel with Toyota. This steering wheel can detect whether the driver is gripping the steering wheel, for 2018 Lexus LS.
In 2017, Nexteer expanded its automated steering portfolio with addition of two all new products i.e Steering on Demand and Quiet Wheel Steering.
Steering on demand: Steering on Demand for transition between driver and automated driving control. The system also enables the driver to choose between various driving performance options including sport, comfort and manual override modes.
Quiet wheel steering: Quiet Wheel Steering modifies the steering wheel rotation during an automated directional change reducing the potential hazards of a fast rotating steering wheel and improving driverâs safety and sense of security.
Also, in 2017, WABCO developed an active steering technology to improve the comfort and safety of commercial vehicles called OnLaneAssist.
The system works by taking inputs from a forward-looking camera to detect lane markings and evaluate the vehicleâs position relative to the lanes also allowing, active lane correction.
The new product was based on R.H. Sheppard`s steering technology intended for heavy- and medium-duty trucks and buses applications only.
ZF premiered its advanced steer-by-wire system to international media and announced that this technology will be launched with industrial scale by a major global automaker soon.
And ZF has secured new client contracts for its steer-by-wire systems for series production in all key countries, solidifying its position as a leader in this technological area.
Similar to the acceleration side of the equation, ZF is the industry pioneer when it comes to the creation of its Integrated Brake Control system, which is predominantly managed by by-wire technology.
ZF is at the forefront of developing and industrialising new chassis systems with the industry's most complete range of by-wire technologies that no longer need a mechanical connection or system fluids as cars become more electrified, automated, and software controlled.
At low speeds, AKC steers opposite to the front wheelsâ steering angle generating a higher yaw rate for the vehicle to reduce the turning radius by up to 10%.
At higher speeds, 40mph (60km/h) and above, during quick obstacle-avoidance manoeuvres, the system steers the rear wheels in the same direction as the front wheels.
This improves the overall driving dynamics and directional stability of the vehicle.
By the end of 2017, seven premium vehicle manufacturers had implemented AKC in volume production due to benefits just after four years since the product was launched.
Some of the high-volume platforms were Audi Q7, Cadillac CT6 and the BMW 7 Series.
The passenger vehicle space has been relatively insulated for M&As but the commercial vehicle market has seen important acquisitions.
In the commercial vehicle segment, Knorr-Bremse acquired the commercial vehicle integral power steering business (IPS) from Hitachi Automotive Systems in Japan and Thailand in late 2018.
Hitachi`s IPS division was the leading supplier of hydraulic power steering parts for commercial vehicles in Japan, catering from pickup to heavy duty trucks.
Knorr-Bremse continued its acquisition spree in 2020 and acquired another German Commercial vehicle steering supplier for $149.5M in Jan 2020 from WABCO.
ZF Friedrichshafen AG announced the acquisition of the commercial vehicle technology supplier WABCO. The acquisition is set to develop customer-focused technology to advance commercial vehicle technology.
The company also acquired Veoneer US a well as Veoneer Brake Systems LLP as part of an asset deal. The group has expanded its horizon in the braking and steering systems with this acquisition for the global truck and SUV market.
The company Koyo Canada Incorporation which is a consolidated subsidiary of JTEKT Corporation announced plans to acquire the assets of Halifax which is the Nova Scotia R&D department owned previously by KSR international based in Canada.
The acquisition is all set to strengthen the companyâs ECU development used for vehicle steering and driveline products.
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in theIndustry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2024-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2024-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2024-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
© 2017-2025 Mobility Foresights Pvt Ltd. All rights reserved.