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The automotive power steering fluid market size is forecast to increase by USD 300.86 billion at a CAGR of 4.33% between 2023 and 2028. The market is experiencing significant growth, driven by the rising production and sales of vehicles worldwide. This trend is fueled by the increasing demand for fuel-efficient and technologically advanced vehicles, leading to the adoption of advanced power steering systems. One of the key trends in the market is the development of electric power steering (EPS) systems, which offer improved fuel efficiency and better driving experience. Another emerging trend is the exploration of power steering fluids that cater to the needs of electric and autonomous vehicles. However, the market faces challenges such as stringent regulations regarding the use of biodegradable fluids and the high cost of synthetic power steering fluids. Additionally, the development of cars without steering wheels, such as Tesla's Autopilot, poses a potential threat to the market's growth. Despite these challenges, the market is expected to grow at a steady pace due to the increasing demand for advanced power steering systems and the adoption of electric vehicles.
The market is a significant segment in the automotive industry, driven by the increasing demand for safe driving and hydraulic assistance in steering systems. Automotive power steering systems use oil to reduce the effort required to turn the steering wheel. The market can be segmented into hydraulic and electric power steering systems. Hydraulic power steering systems use mineral oil or synthetic oil, while electric power steering systems use various fluids. Additives are added to the power steering fluid to prevent foaming, oxidation, wear, and lubrication issues. The market is witnessing growth due to the integration of advanced technologies such as Artificial Intelligence (AI) and robotic efficiency in power steering systems.
Moreover, the active safety systems and OEMs are also contributing to the market's growth. However, the highly contagious nature of power steering fluid can pose challenges to the market. The use of high-quality base oil and additive package in power steering pumps is crucial to ensure the longevity of the power steering system. The market is expected to grow significantly in the coming years due to the increasing demand for passenger cars and power systems.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The mineral oil segment is estimated to witness significant growth during the forecast period. In the automotive industry, power steering systems play a crucial role in ensuring safe driving conditions by providing hydraulic assistance for steering. Both hydraulic and electric power steering systems require specialized fluids for optimal performance. Mineral oil, derived from natural resources, has been the traditional choice for power steering fluids due to its lubricating properties. However, synthetic oils offer superior performance and longer lifespan. These advanced fluids contain additives that prevent foaming, corrosion, and oxidation. OEMs are increasingly integrating artificial intelligence (AI) and machine learning technologies into power steering systems, which may require specialized power steering fluids. For instance, steer-by-wire technology, a key component of these advanced systems, may necessitate the use of high-quality base oil and additive packages.
Moreover, the power steering pumps and steering gears also require regular lubrication with these specialized fluids to ensure smooth operation. In the market for power steering fluids, Pentosin, a subsidiary of FUCHS PETROLUB SE, stands out as a notable company offering a range of mineral oil-based fluids specifically formulated for various automotive power steering systems.
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The mineral oil segment was valued at USD 697.91 million in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in APAC is experiencing significant growth due to the increasing production of passenger cars and commercial vehicles in countries like China, India, Thailand, Indonesia, and South Korea. The region's rapid economic development has led to a substantial increase in per-capita income, enhancing consumers' purchasing power and driving demand for automobiles. Additionally, governments in these countries have invested heavily in infrastructure and industrial development, leading to a high demand for commercial vehicles. In response to the price sensitivity of consumers in emerging markets like India and China, power steering fluid manufacturers are offering both mineral-based and synthetic oil-based fluids to cater to various market segments.
Moreover, the thermal management and vehicle efficacy are crucial factors influencing the choice of power steering fluids in the region. The power steering units in vehicles produced in APAC are designed to operate efficiently under extreme temperatures, making thermal management a critical consideration. Therefore, power steering fluids with excellent thermal stability and high viscosity index are gaining popularity in the market. Furthermore, the demand for power steering fluids in the region is expected to continue growing as vehicle production increases and consumers prioritize vehicle efficacy.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising production and sales of vehicles worldwide is the key driver of the market. The global automotive power steering market is witnessing substantial growth due to the escalating production and sales of vehicles worldwide. With over 80 million units sold in 2023, the automotive industry is experiencing a significant wave in vehicle manufacturing. This trend is driven by the increasing demand from consumers across various regions. Power steering systems are essential components of vehicles, providing hydraulic assistance for safe driving. These systems rely on power steering fluids, primarily made up of mineral oil or synthetic oil, to lubricate the steering gear and power steering pumps. The fluids also contain additives to prevent foaming, oxidation, wear, and corrosion.
Moreover, the market for power steering fluids is further driven by the adoption of advanced technologies such as electric power steering, steer-by-wire technology, and active safety systems in Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs). The integration of power steering systems with artificial intelligence (AI) and machine learning is also expected to boost market growth. However, the highly contagious nature of viruses can pose a challenge to the market, as disruptions in supply chains can impact production and sales. Despite these challenges, the market for automotive power steering fluids is poised for continued growth, as power systems remain a crucial component of modern vehicles.
Technological advancements in power steering systems is the upcoming trend in the market. The automotive power steering market is driven by the evolution of power steering technology in vehicles. Hydraulic power steering systems, which have been the norm for decades, are being replaced by electric power steering (EPS) systems for enhanced safety and fuel efficiency. These advanced power steering systems require specialized fluids, such as high-quality base oil and additive packages, to ensure safe driving and effective lubrication. OEMs and suppliers are investing heavily in research and development to create power steering solutions that offer improved precision, responsiveness, and energy efficiency. Bosch, ZF Friedrichshafen AG, and Nexteer Automotive are some of the industry leaders in this space, developing solutions ranging from traditional hydraulic systems to advanced EPS and steer-by-wire systems.
Moreover, the integration of artificial intelligence (AI) and machine learning in power steering systems is expected to revolutionize the industry. These technologies will enable power steering systems to learn from driving patterns and adapt to various road conditions, enhancing overall vehicle performance and safety. The market for automotive power steering fluids is also influenced by the increasing demand for LCVs and HCVs, which require full power transfer capabilities. However, the use of mineral oil and synthetic oil in power steering fluids poses challenges such as foaming, corrosion, and oxidation. To mitigate these issues, advanced lubricating agents are being developed to ensure optimal performance and longevity of power steering systems.
In conclusion, The market is poised for significant growth, driven by technological advancements in power steering systems and the increasing demand for advanced safety features in vehicles. OEMs and suppliers are at the forefront of this innovation, developing specialized power steering fluids and systems that offer improved performance, energy efficiency, and safety.
The development of cars without steering wheels is a key challenge affecting the market growth. The automotive industry is witnessing significant advancements with the integration of power steering systems, enhancing safe driving experiences. Traditional hydraulic power steering systems use oil to provide hydraulic assistance, while electric power steering systems rely on electric power for lubricating agents. As the automotive industry evolves, there is a shift towards more advanced technologies such as power transfer through natural resources, Artificial Intelligence (AI), and Machine Learning. Autonomous vehicles, also known as self-driving cars, are gaining popularity due to their ability to navigate obstacles and terrains without human intervention. The role of conventional steering systems, including steering wheels and gearboxes, may become obsolete as these vehicles become more prevalent.
Future cities could be designed specifically for autonomous vehicles, with customized roadways guiding these cars. Power steering pumps and gearboxes are essential components of steering systems, requiring regular lubrication with high-quality base oil and additive packages to prevent oxidation, wear, and foaming. Mineral oil and synthetic oil are commonly used as lubricating agents. However, with the increasing adoption of electric power steering systems, the demand for hydraulic oil may decrease. OEMs are investing in advanced technologies such as steer-by-wire technology, which eliminates the need for a physical connection between the steering wheel and the steering gear. This technology enhances robotic efficiency and active safety systems.
However, the highly contagious nature of viruses could pose challenges to these advanced systems, requiring stringent safety measures. In conclusion, the market is expected to experience significant changes due to the shift towards advanced technologies and autonomous vehicles. The role of traditional steering systems may become obsolete, and the demand for hydraulic oil may decrease. OEMs must invest in advanced technologies and ensure the safety and reliability of these systems to meet the evolving needs of the automotive industry.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airosol Co. Inc.: The company offers automotive power steering fluid which is formulated to protect power steering systems against wear and oxidation.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The automotive power steering market is driven by the increasing demand for safe driving and hydraulic assistance in various types of vehicles, including Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs). Power steering systems help in reducing the effort required to steer an engine, making it easier for drivers to maneuver their vehicles. Two primary types of power steering systems are hydraulic and electric power. Hydraulic power steering systems use mineral oil or synthetic oil as a lubricating agent to facilitate power transfer between the engine and the steering gear. On the other hand, electric power steering systems use advanced technologies like Active safety systems, Artificial intelligence (AI), and Machine learning for robotic efficiency.
Moreover, the power steering fluid market is witnessing growth due to the rising demand for high-quality base oil and additive packages in power steering pumps. However, challenges like foaming, oxidation, wear, and corrosion in power steering fluids can affect their performance and lifespan. Steering systems have become an integral part of modern vehicles, and the market is expected to grow significantly in the coming years. The use of steer-by-wire technology in power steering systems is also gaining popularity due to its potential to enhance vehicle efficiency and reduce emissions. The market for power steering fluids is influenced by various factors, including the highly contagious nature of viruses and the impact of the ongoing pandemic on the automotive industry. OEMs are continuously innovating to develop advanced power steering systems to cater to the evolving needs of consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.33% |
Market growth 2024-2028 |
USD 300.86 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.19 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airosol Co. Inc., AMSOIL Inc., Bardahl Manufacturing Corp., BP Plc, Calumet Specialty Products Partners L.P., Chevron Corp., Energizer Holdings Inc., FUCHS PETROLUB SE, General Motors Co., Hi Tec Oils Pty Ltd, Hinduja Group Ltd., Honeywell International Inc., International Lubricants Inc., Penrite Oil Co. Pty. Ltd., Phillips 66, Recochem Inc., Shell plc, TotalEnergies SE, Valvoline Inc., Exxon Mobil Corp., and Lucas Oil Products Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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