Report

Automotive Steering Market Analysis

The Automotive Steering System market is valued at USD 34.98 billion in 2025 and is forecast to reach USD 48.31 billion by 2030, reflecting a 5.72% CAGR. Growth is anchored in the rapid migration from hydraulic assistance to electronic power steering and the first commercial deployments of steer-by-wire. Tightening global emission limits and the rising share of battery-electric vehicles strengthen the business case for energy-efficient steering technologies, while cybersecurity rules under UNECE R155 accelerate demand for software-defined electronic control units. Asia-Pacific retains a 48.67% revenue share, helped by China's scale advantages and Japan's specialization in high-precision components. Tier-1 suppliers are consolidating core technologies to secure intellectual property and to fund the high up-front investment needed for redundant, "fail-operational" architectures. Opportunities emerge for motor and sensor specialists that can remove rare-earth content, cut weight, and improve functional safety without inflating the bill-of-materials.

Global Automotive Steering Market Trends and Insights



Rapid EPS Penetration in ICE & xEV Platforms

Electronic power steering is highly prevalent in China's passenger-car industry and is approaching ubiquity in Europe and Japan. OEMs gain fuel-saving benefits while unlocking regenerative braking compatibility for electric drivetrains. The technology now scales from compact cars to Class 8 trucks, as ZF's commercial-vehicle EPS delivers up to 8,000 Nm without hydraulic fluid. Column-assist units dominate the value B-segment, whereas rack-assist designs earn a share in premium cars that need higher precision and road feel. The accelerating shift keeps the automotive steering system market steadily growing.

Steer-by-wire Deployment in Premium EVs From 2025

Mercedes-Benz will introduce the first European production steer-by-wire system in 2026, following ZF's 2025 launch on NIO's ET9. Removing the mechanical shaft enables variable steering ratios that ease parking and enhance highway stability. Toyota's "One Motion Grip" wheel shows how 200-degree input strokes can replace the traditional 540-degree turn, improving ergonomics and cabin packaging. Redundant motors, power supplies, and haptic feedback maintain driver confidence, although consumer acceptance studies indicate a learning curve that may extend roll-out timelines beyond luxury nameplates.

Rare-earth Magnet Price Volatility Inflates EPS BOM

China controls roughly 70% of global rare-earth processing and has limited neodymium exports. Magnet costs already account for up to 25% of an EPS motor bill of materials. Ford's temporary halt of Explorer production exposed the risk to OEM schedules. Suppliers respond by advancing rare-earth-free innovations such as ZF's I2SM motor and Magna's investment in Niron Magnetics' iron-nitrogen Clean Earth Magnets.

Other drivers and restraints analyzed in the detailed report include:

Lightweight Steering Columns to Meet Euro 7/CAFE Norms / OEM Demand for ADAS-ready "Fail-operational" Architectures / Automotive MCU Shortage Through 2026 /

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

In 2024, steering columns and racks dominate the automotive steering system market, commanding a 39.26% revenue share. Integrated collapse mechanisms, multi-function switches, and driver-airbag modules keep the sub-segment essential across all platforms. In parallel, electric motors deliver the fastest expansion at an 8.91% CAGR through 2030 as brushless DC designs replace hydraulic pumps and belt-driven units. Cyber-secure electronic control units form the third-largest bucket, their content per vehicle climbing with every new over-the-air feature that UNECE R155 obliges manufacturers to secure.

Torque, angle, and position sensors advance in lockstep with steer-by-wire and ADAS features that depend on millisecond-accurate feedback. TDK's four-mode HAL 39xy chip illustrates how single-package solutions cut wiring weight while resisting magnetic noise from high-voltage powertrains. Suppliers able to merge motor, sensor, and ECU functions inside compact, shielded housings improve system reliability and lower warranty exposure, reinforcing their standing in the automotive steering system market.

In 2024, passenger cars dominated the global automotive steering system market, capturing 63.28% of the revenue. Meanwhile, light commercial vehicles emerged as the fastest-growing segment, boasting a robust 7.56% CAGR. E-commerce fleets value the precise low-speed maneuvering and lower maintenance that EPS provides, while autonomous delivery concepts lean on software-controlled steering for curb-side accuracy. Heavy commercial vehicles shift away from hydraulics as the latest rack-drive EPS units hit industrial torque outputs. Across classes, the automotive steering system market benefits from fleet owners' focus on fuel savings.

Within the passenger-car arena, battery electric models remove the engine vacuum source used by traditional hydraulics, making EPS mandatory. Sport utility vehicles secure a rising share as buyers favor higher ride positions, and their larger footprint translates into higher steering-system content. Multi-purpose vehicles and minivans leverage EPS packaging gains to offer flat-floor cabins. These combined shifts keep the automotive steering system industry on a stable path of unit and value growth.

The Automotive Steering System Market is Segmented by Component (Hydraulic Pump, Electric Motor, and More), Vehicle Type (Passenger Cars, Commercial Vehicles), Mechanism (Electronic Power Steering (EPS), Hydraulic Power Steering (HPS), Electrically Assisted Hydraulic Power Steering, and More), Sales Channel (OEM and Aftermarket), and Geography. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Geography Analysis

In 2024, Asia-Pacific commands a 48.67% share of the automotive steering system market and is set to achieve a robust 6.81% CAGR through 2030. China's extensive electric-vehicle production base drives near-universal EPS fitment, while local challengers such as HIVE Steering undercut incumbent imports by bundling domestic silicon and magnet supply. Japan contributes specialized know-how, including JTEKT's steer-by-wire tests and NSK's low-friction bearing routes, even as NSK considers divesting its steering arm. Regional governments offer clear road maps for autonomous-driving certification, further enhancing demand for by-wire systems in the automotive steering system market.

Europe follows with high per-vehicle value as Euro 7 and UNECE cyber-rules reward advanced ECUs, lightweight columns, and redundant actuation. ZF and Bosch use local technical centers to tune steering feel for premium brands and are already shipping by-wire pilot volumes. OEMs, however, confront raw-material risks, which are highlighted when neodymium shortages force production pauses. That vulnerability fast-tracks research into rare-earth-free motor technology, allowing suppliers to raise content per vehicle without waiting for new model cycles.

North America sees steady take-up of EPS in pick-ups and sport utilities, the region's largest segments by volume. Fleet operators closely monitor the total cost of ownership, and the 3-5% fuel-saving edge of EPS helps underpin adoption. The United States is also a development hub for alignment-free installation and secure over-the-air software to update steering logic during ownership. Meanwhile, South America, the Middle East and Africa adopt electronified steering as factories upgrade platforms. These markets often leapfrog directly to EPS on new models, creating incremental upside for the automotive steering system market over the long run.

List of Companies Covered in this Report:

JTEKT Corporation / Robert Bosch GmbH / ZF Friedrichshafen AG / Nexteer Automotive Corporation / NSK Ltd / Mando Corporation / Showa Corporation / Hitachi Astemo / Hyundai Mobis / ThyssenKrupp Presta / Schaeffler Group / Denso Corporation / Knorr-Bremse AG / China Automotive Systems Inc /

Additional Benefits:

The market estimate (ME) sheet in Excel format /
3 months of analyst support /