Report

Global off-the-road (OTR) vehicle power steering market is estimated to observe a CAGR of 6.87% during the forecast period 2024-2031, rising from USD 2.59 billion in 2023 to USD 4.41 billion in 2031. The market has witnessed significant growth in recent years and is projected to maintain a rapid pace of expansion in the coming years due to increased awareness among consumers concerning vehicle safety, rising production of vehicles, and growing demand for safety and operator comfort. Technological innovations in vehicles and applications allow precise control and decrease the risk of accidents, increasing the global OTR vehicle power steering market demand in the forecast period. In different industries, the OTR vehicle power steering plays an important role in improving efficiency and productivity, resulting in the introduction of new market growth opportunities for key participants. Also, OTR power steerings improve the movements of a vehicle precisely and make control easier to navigate heavy equipment. Power steering systems are incorporated with advanced sensors that help to monitor critical variables, including terrain conditions, vehicle speed, and many others. These innovative technological developments address the growing market requirements coupled with propelling market growth in the forecast period.
In addition, governments across the globe are spreading awareness concerning emission reduction initiatives, increasing the growth of the OTR vehicle power steering market. Growing strict regulations to curb pollution and mitigate the environmental impact of heavy machinery surge the demand for OTR vehicle power steering as these are helpful in energy efficiency, and lower emissions compared to traditional hydraulic systems. Moreover, key participants in the global market are significantly announcing joint ventures and partnerships to expand their footprint.
For instance, in July 2023, NSK Ltd. announced a 49.9:50.1% joint venture agreement with Japan Industrial Solutions III Investment Limited Partnership to set out three primary actions. NSK Steering & Control Inc, a subsidiary managing NSK's global steering operation, will issue class shares through a third-party allotment to JIS, providing 50.1% of NS&C voting rights. In addition, JIS and NSK will co-manage NS&C, and before the third-party allotment, NS&C will distribute a special dividend to NSK.
Rising Trends of Customization and Technological Advancements Push Market Growth
In the global OTR vehicle power steering market, customization, integration of innovative features, and rapid technological advancement are the popular trends. The different applications of OTR vehicles demand power steering systems that can be customized, technologically advanced, and adjusted to precise requirements. This requirement for advancements, adaptability, and customization is a foremost factor in the power steering market, as it addresses the requirements of different OTR vehicles. Operators look for power steering solutions that can be customized to fit the vehicle's load capacity, size, and determination. Also, the integration of telematics and connectivity solutions is now widened, enabling diagnostics, remote monitoring, and predictive maintenance. These technological advancements address market demand and propel growth as operators focus on utilizing advanced power steering systems to obtain a competitive edge in their industries.
For instance, in January 2022, IMUZAK Inc. announced the launch of a steering wheel display system to introduce free-floating visual notifications and dashboard controls. This innovation allows features of receiving messages and alters the driver to inbound phone calls.
Integration of Telematics and Operator Assist Features Drives Market Growth
Power steering systems in OTR vehicles are often equipped with operator assist features to foster productivity and safety. These features can involve automated steering controls, collision avoidance technology, and obstacle detection systems. However, integration of telematics allows real-time monitoring of power steering system performance, health, and effectiveness. This data can be sent to central control centers, predictive maintenance, and facilitating remote diagnostics. These technologies rely on specific and responsive power steering to operate efficiently. With increasingly strict safety regulations, operators are seeking power steering systems that improve vehicle control and aid in complete protection, especially in tough off-road conditions. Key participants in the market are launching new products to address the rising demand for advanced steering and enhanced handling in city traffic.
For instance, in August 2023, Georg Friedrich Wilhelm Schaeffler announced a new mechatronic rear-wheel steering system to enhance agility on bends, improve handling in city traffic, improve lane-change stability, and make the vehicle easier to park.
Government Rules and Regulatory Compliance Propels Market Demand
Strict government rules and regulations on vehicle safety drive the global OT vehicle power steering market in the forecast period. Governments globally are starting to spread awareness about mitigating the environmental impact of heavy vehicles and controlling pollution, propelling demand for OTR vehicle power steering as this helps handle heavy loads efficiently, which further decreases the emission of carbon. Key participants are compelled to produce those products that are effective for government regulatory compliance. In addition, governments across the countries are introducing more rules and regulatory standards to benefit the manufacturers and improve the safety of vehicles coupled with drivers and passengers.
For instance, in January 2024, the Ministry of Heavy Industries announced the expansion of a Production Linked Incentive Scheme tenure for auto components and automobiles by one year to offer greater clarity and support to the sector, encouraging competitiveness and growth.
Electric Power Steering Segment Dominates the Global Market Growth, By Type
The electric power steering segment registers the largest market share in the global OTR vehicle power steering market as they have efficient fuel economy and lower emissions. According to the vehicle type, driver preference, and road speed, electric power steering (EPS) is customizable, which further accelerates the global OTR vehicle power steering market share. Moreover, EPS offers different advantages, including precise control, improved energy effectiveness, and lower maintenance requirements compared to conventional hydraulic systems. According to global OTR vehicle power steering market analysis, this move towards electrification fits with the industry's surge for lower emissions and sustainability. These factors propel the growth of the global market in the forecast period.
For instance, in April 2023, Nexteer Automotive Corporation announced the launch of a modular rack-assist electric power steering system, providing flexibility to efficiently address OEMs' broad varying demands for advanced steering systems of heavier vehicles, including light commercial vehicles, EVs, and others.
Asia-Pacific Registers the Largest Market Share
Asia-Pacific dominates the market due to an increase in the production of vehicles, the presence of giant market players, and the high buying power of consumers. In emerging countries, the demand for luxury vehicles is growing, coupled with the sale of vehicles, which is driving the market growth in the forecast period. Governments in Asia-Pacific are introducing fuel economy standards that result in a rise in the usage of fuel-efficient automobiles with an efficient steering system. Manufacturers in this region are working on the efficiency of power steering to offer greater adjustability and flexibility, easily incorporating with other vehicle systems and features comprising ADAS.
For instance, in June 2023, Nidec Corporation, a Japanese manufacturer, announced that it had launched a new electric power steering motor power pack to ensure smooth execution of the lane-keeping assist system and other ADAS functions.
Future Market Scenario (2024-2031F)
� Rapid technological advancements and the integration of innovative features in OTR vehicle power steering systems drive the global market growth.
� A gradual shift towards electrification is projected to be a popular trend in the OTR vehicle power steering market in the forecast period.
� Integration of advanced sensors and real-time data monitoring capabilities in OTR vehicle power steering system offers better control to the operator, surging the global market demand.
� In emerging nations, the increasing sales and production of automakers are likely to propel the automotive steering system market growth.
Key Players Landscape and Outlook
Companies in the global OTR vehicle power steering market are significantly working on expanding their footprint and product portfolio across the globe. Key companies are collaborating with government agencies to optimize vehicle maneuverability and the performance of steering systems. Manufacturers need to implement technologies that decrease carbon emissions and improve environmental sustainability. In addition, key participants in the market are efficiently adopting market growth strategies, including joint ventures, new product launches, mergers and acquisitions, partnerships, and others, to address the rising demand for OTR vehicle power steering.
In May 2022, NSK Ltd. signed a memorandum of understanding (MoU) with thyssenkrupp AG to discover a potential joint venture to compete more efficiently in the global steering industry.
In April 2023, DENSO Corporation's executive Santosh Singh joined the Steering Committee of MEMA's Center on Green Initiatives to contribute his guidance to strengthening eco-friendly practices.