Automotive Steering Systems Market Report 2026

The automotive steering systems market size has grown strongly in recent years. It will grow from $29.83 billion in 2025 to $31.54 billion in 2026 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to vehicle safety regulations, hydraulic steering adoption, automotive production growth, demand for handling performance, component standardization.

The automotive steering systems market size is expected to see strong growth in the next few years. It will grow to $38.66 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to autonomous driving development, ev platform expansion, software-controlled steering, demand for lightweight systems, advanced driver assistance integration. Major trends in the forecast period include shift toward electric power steering, integration of steer-by-wire systems, adoption of advanced steering sensors, demand for enhanced vehicle safety, growth of autonomous steering technologies.

The increasing demand for electric vehicles is expected to propel the growth of the automotive steering systems market going forward. Electric vehicles are automobiles powered by rechargeable batteries, emitting zero tailpipe emissions and offering a sustainable alternative to traditional gasoline-powered vehicles. The growing demand for electric vehicles is attributed to factors such as environmental concerns about emissions, government incentives promoting clean energy adoption, and advancements in battery technology enhancing driving range and performance. Automotive steering systems in electric vehicles ensure efficient and responsive control, optimizing handling and safety in the context of electric propulsion technology. For instance, in April 2024, according to the International Energy Agency, a France-based intergovernmental organization, sales of electric vehicles increased by 3.5 million in 2023 compared to 2022, a 35% annual rise. Therefore, increasing demand for electric vehicles is driving the growth of the automotive steering systems market.

Major companies operating in automotive steering systems are focusing on developing technological advancements, such as modular steering, designed to meet a wide range of original equipment manufacturer requirements for advanced steering systems in heavier vehicles, such as electric vehicles and light commercial vehicles. Modular steering systems feature interchangeable components that facilitate easy configuration and adaptation for a variety of vehicles, thereby offering flexibility and efficiency in both manufacturing and maintenance. For instance, in April 2023, Nexteer Automotive, a US-based technology company, launched the Modular Rack-Assist Electric Power Steering System. This cutting-edge technology aims to redefine vehicle steering capabilities with several unique features. This system integrates a modular design that enhances flexibility and scalability across different vehicle platforms, allowing automakers to efficiently adapt steering systems to various models and configurations. It incorporates advanced electric power assistance, optimizing steering response and providing precise control under varying driving conditions.

In March 2024, ZF Rane Automotive India Pvt Ltd, an Indian-based automotive acquired TRW Sun Steering Wheels Pvt Ltd for an undisclosed amount. The acquisition enables ZF Rane Automotive India Pvt Ltd to expand its customer coverage, leading to occupant safety and system integration services reaching domestic customers. TRW Sun Steering Wheels Pvt Ltd. is an Indian-based automotive company that manufactures steering wheels that are essential components of automotive steering systems, enhancing safety and performance.

Major companies operating in the automotive steering systems market report include Robert Bosch GmbH, Hitachi Ltd., DENSO Corporation, ThyssenKrupp AG, ZF Friedrichshafen AG, Hyundai Mobis Co. Ltd., Eaton Corporation plc, Schaeffler AG, NSK Steering System Co. Ltd., Nexteer Automotive Corporation, Leopold Kostal GmbH & Co. KG, Kayaba Industry Co. Ltd., Showa Corporation, Kongsberg Automotive Holding ASA, Global Steering Systems LLC, China Automotive Systems Inc., Rane Holdings Limited, JTEKT Corporation, Pailton Engineering Ltd., ILJIN Corporation, Dalian Wanda Power Steering System Co. Ltd., Zhejiang Wanda Steering Gear Co. Ltd.

North America was the largest region in the automotive steering systems market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive steering systems market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive steering systems market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive steering systems market consists of sales of steering wheels, power steering pumps, steering control modules, steering dampers, steering fluid, power steering systems, steering sensors, and control units. 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 that 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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