Automotive Rack And Pinion Steering System Global Market Report 2025

The automotive rack and pinion steering system market size has grown strongly in recent years. It will grow from $19.07 billion in 2024 to $20.12 billion in 2025 at a compound annual growth rate (CAGR) of 5.5%. During the historic period, growth was driven by several factors, including increased vehicle production, higher demand for fuel-efficient steering systems, greater adoption of electric power steering, an enhanced emphasis on driving comfort and safety, and the expanding incorporation of advanced driver-assistance systems (ADAS).

The automotive rack and pinion steering system market size is expected to see strong growth in the next few years. It will grow to $24.56 billion in 2029 at a compound annual growth rate (CAGR) of 5.1%. Growth during the forecast period is expected to result from the rising adoption of electric and hybrid vehicles, greater demand for lightweight steering parts, increased focus on vehicle automation, the expansion of automotive aftermarket services, and growing investments in steering system innovations. Key trends anticipated in this period include improvements in electric power steering technology, the use of advanced materials to reduce steering system weight, new design innovations tailored for autonomous vehicles, the integration of steer-by-wire systems, and the creation of modular steering architectures.

The increasing demand for fuel-efficient and lightweight vehicles is expected to drive the growth of the automotive rack and pinion steering system market. Fuel-efficient and lightweight vehicles are designed to consume less fuel and are constructed using lighter materials to boost performance and reduce emissions. This demand is growing as stricter government emission regulations push automakers to develop lighter, more fuel-efficient vehicles that cut fuel consumption and carbon emissions. The automotive rack and pinion steering system supports these vehicles by offering a compact, lightweight design that lowers overall vehicle weight while delivering precise steering control, enhancing handling and fuel economy. For example, according to Statistics Canada in March 2025, electric vehicles made up 3% of light-duty vehicle registrations in 2022, up from 2.3% in 2021. Thus, the rising demand for fuel-efficient and lightweight vehicles is propelling the growth of the automotive rack and pinion steering system market.

Key players in the automotive rack and pinion steering system market are focusing on developing advanced technologies such as powerpack-integrated modular steering solutions to improve system compactness and support advanced driver-assistance systems (ADAS) and autonomous driving functions. These modular steering solutions integrate essential components into a compact, all-in-one unit, enhancing system efficiency and simplifying installation. They are particularly suitable for vehicles with limited space or specialized designs. For instance, in April 2023, Nexteer Automotive, a US-based automotive company, introduced its Modular Rack-Assist Electric Power Steering (mREPS) system. This technology offers greater flexibility to meet diverse OEM requirements for advanced steering systems in heavier vehicles, including electric vehicles (EVs) and light commercial vehicles. By adopting a modular approach, Nexteer’s system streamlines design and production, making it easier for OEMs to adapt to various vehicle platforms. The system aims to deliver both high performance and cost efficiency, aligning with the automotive market’s increasing demand for scalable and customizable solutions.

In September 2024, Rane Holdings Ltd., an India-based manufacturer of automotive components, acquired a 51% equity stake in NSK Ltd. for an undisclosed amount. This acquisition aims to strengthen Rane Holdings’ position in the steering systems market by leveraging NSK Ltd.’s advanced technologies and expanding its product portfolio to meet growing demand for components in electric and autonomous vehicles. NSK Ltd., based in Japan, specializes in manufacturing automotive rack and pinion steering systems.

Major players in the automotive rack and pinion steering system market are Robert Bosch GmbH, ZF Friedrichshafen AG, Thyssenkrupp AG, Hyundai Mobis Co. Ltd., Valeo SE, Schaeffler Group, JTEKT Corporation, Dana Incorporated, NSK Ltd., Knorr-Bremse AG, Mando Corporation, Nexteer Automotive Corporation, Johnson Electric Holdings Limited, Leopold Kostal GmbH & Co. KG, ATS Corporation, China Automotive Systems Inc., Rane Holdings Limited, Hitachi Astemo Ltd., Sidem NV, Pailton Engineering Ltd.

North America was the largest region in the automotive rack and pinion steering system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in automotive rack and pinion steering system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the automotive rack and pinion steering system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The rack and pinion steering system is a common steering mechanism found in many modern automobiles. It works by converting the rotational movement of the steering wheel into the linear motion required to steer the wheels. This system features a circular gear called the pinion, which meshes with a straight gear known as the rack, providing precise and responsive steering control. Its design is compact and lightweight, making it ideal for efficient and accurate handling.

Key components of this steering system include the rack, pinion, steering column, tie rods, bushings, and bearings. The rack itself is a flat, toothed bar responsible for transforming the steering wheel’s rotational input into linear movement that turns the wheels. Different technologies support rack and pinion systems, such as traditional mechanical steering, electronic power steering (EPS), hydraulic power steering (HPS), and adaptive steering systems. These steering systems are implemented across various vehicle categories, including passenger cars, commercial vehicles, electric vehicles, and sports cars, and are used both by original equipment manufacturers (OEMs) and in aftermarket applications.

The automotive rack and pinion steering systems market research report is one of a series of new reports that provides automotive rack and pinion steering systems market statistics, including the automotive rack and pinion steering systems industry global market size, regional shares, competitors with the steering column systems market share, detailed automotive rack and pinion steering systems market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive rack and pinion industry. This automotive rack and pinion steering systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The automotive rack and pinion steering system market consists of revenues earned by entities by providing services such as inspection and diagnosis, seal and boot replacement, and power steering fluid service. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive rack and pinion steering system market also includes sales of performance rack and pinion units, remanufactured rack and pinion assemblies, and variable ratio rack and pinion systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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