Automotive Steering System Market Size
The Automotive Steering System Market reached US$ 28.86 billion in 2025 and is expected to reach US$ 45.79 billion by 2033, growing with a CAGR of 5.9% during the forecast period 2026-2033.
A steering system is an intricate system consisting of a steering wheel, gears, linkages and other components that allow a vehicle to change the direction of its motion. The steering system is an integral part of the vehicle. A good steering system has a precise steering mechanism that is easy to handle. The effort required by the driver for steering is minimal and the system provides good directional stability.
Automotive Steering System Market Dynamics
The demand for automotive suspension systems is driven primarily by the increasing demand for new affordable cars in the emerging markets and the rising global vehicle production rates. The introduction of strict fuel economy norms will be driving the trends for the steering systems market. The high cost of modern power steering systems will be a challenge for the growth of this market.
Stringent fuel economy norms
Consumers and governments globally are becoming more climate-conscious. A major push is underway to decarbonize transportation to avoid the most severe effects of global warming and man-made climate change. Recently, at the COP26 climate conference in Glasgow in November 2021, many governments have pledged net-zero carbon emission targets for the middle of the century. While the complete decarbonization of transportation is still a few decades away, more stringent fuel economy norms are being pursued by national governments globally.
An electric steering system is lighter than a conventional hydraulic steering system, primarily due to the absence of hydraulic fluid and the associated system components such as pumps and fluid lines. A vehicle with a modern electric steering system is, on average, 4% more fuel-efficient than a vehicle with a conventional hydraulic power steering system. The use of electric power steering in conjunction with other fuel-saving technologies can help to increase the fuel economy of vehicles.
Complexity and failure of electric steering system components
Modern electric power steering systems are preferred for weight-saving measures that help raise the vehicle's fuel economy. However, electric power steering systems are prone to frequent malfunctioning due to the disengagement of the wheel from the electric motor. The steering system has a complex design with numerous sensors and a single sensor's failure causes the entire system to fail. Due to the complexity of the electric steering system, maintenance and repairs require expert technical help and involve very high costs. The factors above represent key challenges to the growth of this market.
Automotive Steering System Market Segment Analysis
The automotive steering system market is segmented on component, technology, pinion type, vehicle type and region. The global automotive steering system market is segmented into passenger cars, light commercial vehicles and heavy commercial vehicles based on vehicle type. Passenger cars dominate this segment since the sales of passenger cars are far greater than all classes of commercial vehicles.
Automotive Steering System Market Geographical Share
Asia-Pacific is leading in the global automotive steering system market. The region accounts for the largest market share, primarily due to major emerging markets such as China, India, Indonesia, Malaysia, Thailand and Vietnam and developed automotive markets such as Japan and South Korea. The Asia-Pacific has experienced sustained high economic growth over the previous decade.
The sustained high growth has created favorable socio-economic conditions for a rising middle class with increased purchasing power. It has led to a rise in the purchase of new automobiles, thus creating a surge in demand for new vehicles. Due to their large domestic automotive industries and the rising sales of commercial vehicles, the demand for automotive steering system systems comes primarily from China and India.
Automotive Steering System Market Competitive Landscape
The global automotive steering system market is highly competitive, with many automotive component manufacturers offering different steering systems for different classes of vehicles. Some of the major players contributing to the growth in the segment are JTEKT Corporation, Nexteer Automotive, NSK Ltd., Robert Bosch GmBH, Thyssenkrupp AG, ZF Friedrichshafen AG, Showa Corporation, Hyundai Mobis, Mando Corporation, China Automotive Systems, Inc. The significant players adopt several growth strategies such as new product launches, joint ventures and collaborations, contributing to global growth in the industry.
Nexteer Automotive
Overview: Nexteer Automotive is a major automotive parts supplier for OEMs primarily dealing in hydraulic and electric steering systems, steering columns and driver assistance systems. The company has 45 offices and 27 manufacturing plants globally. Nexteer Automotive was founded in 2009 and is headquartered in Auburn Hills, Michigan, U.S.
Product Portfolio
- Nexteer Column Assist EPS is a new generation electric power steering system that integrates the system electronics and the assist mechanism with the steering column.
Key Developments: In October 2020, Nexteer Automotive launched the High-Output EPS, a new electric power steering system with advanced comfort and safety features for light commercial vehicles.
Recent Industry Developments
- March 2026 – ZF Friedrichshafen, Robert Bosch, and Nexteer Automotive expand steer-by-wire and EPS technologies
Key suppliers are accelerating development of electric power steering (EPS) and steer-by-wire systems, enabling improved vehicle control, reduced weight, and compatibility with autonomous driving platforms. - March 2026 – Shift from hydraulic to fully electric steering systems accelerates globally
Hydraulic power steering is rapidly being replaced by electric power steering (EPS) due to better energy efficiency, lower emissions, and compatibility with EV architectures. - February 2026 – JTEKT Corporation and NSK enhance compact and high-efficiency EPS units
Japanese manufacturers are focusing on lightweight, compact EPS systems with improved torque control and energy efficiency for next-generation vehicles. - February 2026 – Integration of steering systems with autonomous driving technologies increases
Steering systems are being integrated with ADAS and autonomous driving stacks, enabling lane keeping, automated parking, and advanced vehicle control features. - January 2026 – Hyundai Mobis and Mando Corporation invest in steer-by-wire platforms
Korean suppliers are advancing redundant electronic steering architectures, critical for safety in autonomous and software-defined vehicles. - January 2026 – Growing adoption of rear-wheel steering and advanced steering architectures
Automakers are introducing rear-wheel steering and variable steering ratios, improving maneuverability, stability, and driving performance. - 2026 – China emerges as a major hub for steering system production and innovation
Companies like China Automotive Systems are expanding production capacity and focusing on EPS and intelligent steering technologies.
Why Purchase the Report?
- Visualize the composition of the automotive steering system market segmentation by component, technology, pinion type, vehicle type and region, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the automotive steering system market by analyzing trends and co-development deals.
- Excel data sheet with thousands of the automotive steering system market-level 4/5 segmentation data points.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the critical product of all major market players
The global automotive steering system market report would provide access to an approx. 70 market data tables, 70 figures, and 180 pages.
Target Audience
- Automotive component manufacturers
- Vehicle manufacturers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
