Automotive Steering System Market Trends

Growth Drivers

• Growing Demand for Steering Wheels – It is estimated that by 2025, the revenue of steering wheels, bars, or boxes for motor vehicles in Brazil will account for more than USD 1 billion across the globe.  
• A motor vehicle's steering system comprises some basic parts such as the steering wheel, steering shaft, column, and others. In modern times, where automated technology is spreading in every industry, the automotive industry isn’t left untouched. Investors and key manufacturers are spending large capital in the development of more enhanced autonomous cars to win over their competitors in the market. The rising demand for the steering wheel is expected to boost the growth of the automotive steering system market in the forecasted period.
• Increasing Demand for Fuel-Efficient Cars owing to High Carbon Emission – as the transport sector accounts for more than 20% of global carbon dioxide (CO2) emissions in 2020. Autonomous cars are fuel efficient and beneficial to decrease the utilization of fuel that makes more popular among the global population. Furthermore, it is also observed that nearly 23% of the fuel-efficient vehicles cost approximately 6% less compared to the other type of vehicles.
• Surge in the Penetration of Electromechanical Steering Systems – In 2022, electromechanical steering systems were estimated to be used in around 70% of the cars globally, as it consumes less fuel and provides new comfort and safety features. Furthermore, over 28% of the cars were observed to be using electromechanical steering systems currently, since is electrically controlled and required only when driver needs it. 
• Rising Sales of Passenger Cars – For instance, it is forecasted that India will touch approximately 5 million car sales in 2023.
• Higher Utilization of Automated Steering System in Electric Vehicle (EVs) – For instance, in 2022, approximately 100,000 electric vehicles (EVs) were sold out across the globe which was estimated to witness significant growth of sales volume of around 500% from 2019.

Challenges

• Possibility of Failing Steering Rack Mount - Steering rack mount failure can be very dangerous since in this situation, the driver may lose control over car steering wheel that can lead to severe accidents. Furthermore, it takes excessive effort to move the steering wheel and a sound of clicking and clunking can be heard every time. Therefore, this factor may limit the growth of the market over the forecast period.
• Concern about Power Steering Fluid Leaks
• High-Cost Expenditure on Research & Development (R&D)