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The automotive power steering fluid market size is forecast to increase by USD 300.86 million at a CAGR of 4.33% between 2023 and 2028.
The market's growth trajectory is influenced by various factors, foremost among them being the escalating production and sales of vehicles on a global scale. This surge in automotive manufacturing and distribution amplifies the demand. Additionally, there's a notable emphasis on enhancing fuel efficiency and vehicle performance, driving the need for high-quality fluids to optimize such systems. Furthermore, the aftermarket segment experiences a notable uptick in sales of automotive fluids, reflecting a growing awareness among vehicle owners regarding the importance of regular maintenance. As consumer preferences shift towards vehicles offering superior fuel economy and performance, the market for automotive fluids is poised for expansion, underpinned by the pivotal role these fluids play in ensuring smooth and efficient vehicle operation. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
Study Period |
2024-2028 |
Base Year For Estimation |
2023 |
CAGR |
4.33% |
Forecast period |
2024-2028 |
Fastest Growing Region |
APAC at 51% |
Largest Segment |
Type |
In the market, ensuring safe driving and optimal performance of passenger cars and other vehicles is paramount. Hydraulic assistance in the steering system relies on formulations, whether mineral oil or synthetic oil, combined with an effective additive package to combat foaming, oxidation, and wear. Integration with Artificial Intelligence (AI) and robotic efficiency enhances active safety systems and supports OEMs in addressing challenges like the suspension of public transport systems. Utilizing high-quality base oil extends oil life, crucial for maintaining power in power systems and power steering pumps.
The market share growth by the mineral oil segment will be significant during the forecast years. In the market, mineral oil-based options have long been favored for their affordability and widespread availability. Despite not matching the performance of synthetic oils, they offer basic lubrication and protection.
The mineral oil segment segment accounted for USD 697.91 million in 2018. Further, pentosin, a subsidiary of FUCHS PETROLUB SE, provides a variety of fluids tailored for different power steering systems, including mineral oil-based solutions suitable for older vehicles. ACDelco, a subsidiary of General Motors Co., and Lucas Oil Products Inc. are also notable vendors in this segment, offering mineral oil-based fluids known for their reliability and compatibility with various vehicles. This will propel the growth of the mineral oil segment during the forecast period.
In the market, the passenger vehicles segment holds significant importance. Prestone, a subsidiary of Honeywell International Inc., and Castrol Limited, a subsidiary of BP Plc, are notable vendors in this segment, offering fluids tailored for passenger vehicles. Another key player, Pennzoil, a subsidiary of Shell plc, provides solutions designed to withstand high temperatures and heavy loads, ensuring reliable performance and protection. As passenger vehicles advance with technology, the demand for quality fluids persists, driving segment growth during the forecast period.
The market caters to the needs of modern engine systems, ensuring safe driving through hydraulic assistance in the steering system. Advanced formulations often incorporate additives and utilize high-quality base oil to enhance performance and extend oil life. As vehicles evolve, integration with Artificial Intelligence (AI) and robotic efficiency enhances active safety systems, crucial for mitigating risks in highly contagious environments. The market also addresses challenges such as foaming and optimizes power steering pumps to ensure smooth operation amid the suspension of public transport systems. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Rising production and sales of vehicles worldwide is the key factor driving the market. Year by year, the automotive industry experiences a surge in vehicle manufacturing, driven by growing consumer demand globally. In 2023, global vehicle sales surpassed 80 million units, indicating a significant increase from previous years. This upswing in production directly correlates with a heightened need for such fluids. As vehicles are manufactured, they require power steering systems to ensure smooth navigation on roads, leading to a parallel rise in demand for these fluids.
Furthermore, as automotive OEMs continue to innovate and introduce advanced technologies, the demand for compatible and high-performance automotive power steering fluids is set to rise. This trend propels the expansion of the global automotive power steering fluid market as manufacturers and consumers seek optimal solutions to enhance vehicle performance and reliability. Consequently, the escalating production and sales of vehicles worldwide are poised to propel the growth of the market during the forecast period.
Technological advancements in power steering systems is the primary trend shaping the market. The market's growth is intricately tied to ongoing technological advancements in automotive power steering systems found in modern vehicles. These advancements not only boost system efficiency and performance but also shape demand for specialized automotive power steering fluids tailored to meet these systems' requirements. Leading automotive OEMs and suppliers, such as Bosch, ZF Friedrichshafen AG, and Nexteer Automotive, continually innovate to develop advanced power steering solutions, ranging from traditional hydraulic systems to EPS and steer-by-wire systems.
Further, the increasing adoption of EPS systems offers advantages like reduced weight and improved fuel efficiency, fueling demand for compatible automotive power steering fluids. Additionally, technological progress has led to synthetic and high-performance fluids with superior lubrication and thermal stability. Key players like Exxon Mobil Corp., Shell plc, and Chevron Corp. offer diverse automotive power steering fluids to meet evolving needs. These factors are poised to drive the market's growth in the forecast period.
The proliferation of counterfeit products is the major challenge that affects market growth. The proliferation of counterfeit automotive power steering fluids, often produced by unauthorized manufacturers, poses significant risks to vehicle performance and safety. These counterfeit products, lacking adherence to industry standards and OEM specifications, can damage vehicle components, leading to several problems, fluid leaks, and costly repairs.
Moreover, they often lack essential additives for optimal performance, compromising lubrication, thermal stability, and corrosion protection. Counterfeit fluids undermine the investments made by OEMs and reputable vendors in R&D, eroding consumer confidence and hindering market growth. Their deceptive packaging and branding make it challenging for consumers to distinguish genuine products, fostering skepticism and reluctance to trust authentic manufacturers. As a result, the presence of counterfeit market growth undermines safety standards in the automotive industry.
An automotive power steering fluid is a specialized hydraulic fluid that is used to transmit power and provide smooth operation by lubricating and cooling the system's components. It helps reduce wear and tear while facilitating easier steering by reducing the efforts required from the driver.
APAC is estimated to contribute 51% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
APAC, encompassing dynamic economies like China, India, Thailand, Indonesia, and South Korea, experiences rapid economic growth, elevating consumer income and driving demand for passenger and commercial vehicles. Infrastructure and industrial investments further fuel the need for commercial vehicles. Price-sensitive markets like China and India drive demand for mid and low-end passenger cars. Despite stringent emission norms, the automotive sector has evolved, with increasing adoption of electric power steering (EPS) systems for fuel efficiency and rising SUV demand. Partnerships between regional OEMs and international vendors enhance commercial vehicle technology. Consequently, APAC emerges as the world's largest and fastest-growing automotive market, with China, Japan, and India leading in vehicle production, fueled by factors like low labor costs and expanding consumer bases.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
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 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 market plays a crucial role in ensuring smooth and efficient vehicle operation. Essential for lubricating steering gear components, these fluids utilize lubricating agents to enhance performance and longevity. They are specifically formulated to meet the demands of various vehicles, from LCVs to HCVs, facilitating effective power transfer within the steering system. As vehicles become more advanced, the market witnesses the integration of technologies like machine learning and steer-by-wire technology, driving the demand for high-performance fluids. Synthetic oil-based power steering fluids are gaining popularity due to their superior thermal management and efficacy, while mineral-based options remain relevant in certain applications. With the automotive sector's emphasis on efficiency and reliability, the power steering fluid market continues to evolve to meet the industry's needs.
Further, in the market, the primary function is to lubricate vital components such as the power steering gear and steering pump, ensuring smooth operation and reducing wear. These fluids, often derived from material oil, are essential for maintaining the efficiency and reliability of power steering systems across various vehicles, including light truck power steering systems and commercial car. With increasing concerns about natural resources and the highly contagious nature of viruses, there's a growing demand for safer and more environmentally friendly options. Manufacturers are responding by developing advanced formulations, including both synthetic oil-based fluids and mineral-based fluids, to optimize vehicle efficacy and prolong the lifespan of power steering units. As the automotive industry continues to evolve, innovation in power steering fluid technology plays a crucial role in ensuring vehicle safety and performance.
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, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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