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The Automotive Rack and Pinion Steering System Market size is estimated to grow by USD 5.25 billion at a CAGR of 5.06% between 2022 and 2027. Market growth is being fueled by the rising adoption of electric power steering, delivering advantages like enhanced fuel efficiency and advanced driver assistance functionalities. Simultaneously, rack and pinion steering systems are witnessing increased popularity, particularly for compact and mid-size vehicles, owing to their capacity to enhance control and responsiveness. Moreover, the automotive industry is gravitating towards rack and pinion systems due to their streamlined assembly processes and reduced maintenance needs, further propelling their uptake. The trend underscores a shift towards steering mechanisms that not only optimize vehicle performance but also offer manufacturing efficiencies, aligning with the industry's focus on innovation and enhanced driving experiences.
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This market report extensively covers market segmentation by Application (passenger car and commercial vehicle), Type (electronic, electro-hydraulic, hydraulic, and manual), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The passenger car segment is estimated to witness significant growth during the forecast period. Urban areas account for over half of the world's population, which is growing at an even faster rate. The longer distance commute is being driven by the increase in urbanization. This is increasing the demand for passenger cars, which is enhancing the intensity of competition among OEMs and their suppliers.
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The passenger car segment was the largest segment and was valued at USD 8.74 billion in 2017. The automotive sector is constantly investing in technological progress to maintain a competitive edge and be able to compete in the market. To maintain a competitive advantage and sustain in the market, automotive manufacturers are continuously investing in technological advancements. In addition, the rising number of vehicles is increasing pollution levels, which is forcing the government to implement regulations on reducing vehicular emissions.
Based on type, the electronic segment holds the largest market share. These systems are becoming more popular as a result of the increased desire of consumers for cars with ADAS and autonomous driving features. Furthermore, the requirement for fuel efficiency and strict government rules about vehicle safety is boosting market growth globally, which is expected to drive the growth of the market in focus during the forecast period.
APAC is estimated to contribute 58% 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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APAC, driven by countries like China, India, Thailand, Indonesia, and South Korea, is experiencing rapid economic growth, leading to increased per-capita income and higher automobile sales with a 12.08% growth rate between 2020 and 2021. Infrastructure and industrial development spending in the region has boosted demand for commercial vehicles. As a result, China and India have emerged as the fastest-growing and largest automotive markets globally, attracting automotive manufacturing due to government incentives, low costs, and raw material advantages.
Collaborations between OEMs and suppliers, such as ZF Steering Gear India, offer cost benefits and potential innovations in these technologies. Moreover, major automotive manufacturers in countries like China, Japan, South Korea, and India are emphasizing EPS development to expand their presence in the passenger car and LCV segments. These factors are expected to drive the growth of the market in APAC during the forecast period.
The Q50 model variant and hybrid loader are driving innovation in the automotive steering system market, with a focus on advanced technologies such as rack and pinion steering systems, electric power hydraulic steering (EPHS), and fully electric power steering (EPS). These systems cater to various vehicle types, including passenger vehicles and electric vehicles, ensuring smooth driving experiences and improved fuel efficiency. Additionally, steering systems equipped with autonomous driving controls and advanced braking systems contribute to enhanced safety and control. Major players like Schaeffler and Robert Bosch Automotive Steering GmbH are leading research and development programs to introduce intelligent solutions like Steer by Wire (SbW) and Intelligent Rear Wheel Steering (iRWS).
With a growing emphasis on pollution control and electrically assisted steering systems, the market is witnessing significant advancements in steering technology for automobiles and construction machinery alike. Our researchers analyzed the data with 2022 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. The steering column connects the steering wheel to the vehicle's rack & pinion mechanism, with universal joints facilitating smooth maneuvering in comfortable driving automobiles. While manual steering persists in some OEM models, most contemporary designs rely on power-assisted steering. It's worth noting that the steering column is often a non-replaceable component, emphasizing the need for robust engineering in steering wheels and related systems.
Improving control using rack and pinion steering systems is a key driver in the market. Modern safety systems have transformed the automotive industry, enhancing road safety through effective driver-assist technologies. The increasing adoption of both passive and active safety systems builds trust and confidence among users. In addition to safety systems, improvements in the design of automotive components play a role in reducing on-road fatalities. These advancements align with the broader trends in the automotive industry, including the development of electric vehicles, autonomous driving controls, advanced braking systems, and electrically assisted steering systems. Moreover, there is a growing emphasis on improving fuel efficiency and pollution control, driving new product developments in the market.
The system's responsive and interactive design has improved driving responsiveness and control, leading to better fuel efficiency. Its lightweight and balanced design supports driving at various speeds and in different conditions, offering assistance in challenging situations. These benefits are expected to fuel the market's growth in the forecast period.
The increasing popularity of dual-pinion steering systems is a key trend shaping the market growth. The rising demand for these systems has driven automotive manufacturers to develop dual-pinion steering systems. This system features both a primary and secondary pinion, with the primary optimized for vehicle dynamics and performance, and the secondary for power assist. Positioned on the power assist motor, respectively, the dual-pinion system efficiently caters to C and D-segment vehicles, offering up to 13 kN rack load. Notably, it helps reduce CO2 emissions and enhances fuel economy, enabling semi-automated driving in mid-sized vehicles.
Manufacturers like Robert Bosch GmbH, ZF Friedrichshafen AG, and Nexteer Automotive Corporation have incorporated this system in their offerings, and its production is expected to expand further during the forecast period. The growing adoption of advanced systems, such as dual-pinion, will positively impact the market.
Recalls of defective rack and pinion steering systems is a key challenge restraining the market growth. In the automotive industry, product recalls are common due to defective components or improper assembly, aimed at preventing harm to users or products. These recalls result in added costs for manufacturers and suppliers throughout the value chain. Shared among all players involved, the costs of recalls pose challenges and impact the overall market.
In the case of these systems, common operational and functional issues include leaks, damaged bearings, and air entering the system. Recalls for such issues add to the costs for manufacturers and continue to be a challenge for the market during the forecast period.
Companies are implementing various 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.
Mando Aftermarket - The company offers automotive rack and pinion steering systems such as pumps, assembles and tie rod ends.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including BorgWarner Inc., China Automotive Systems Inc., HL Mando Co. Ltd., Hyundai Mobis Co. Ltd., JTEKT Corp., Kaz Technologies, Knorr Bremse AG, Mando Aftermarket North America, Nexteer Automotive Group Ltd., NSK Ltd., Rane Holdings Ltd., Robert Bosch GmbH, thyssenkrupp AG, and ZF Friedrichshafen AG
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 is witnessing significant growth driven by various factors including the rising demand for passenger vehicles and the introduction of innovative technologies such as Steer by Wire (SbW). Key players like Schaeffler and Robert Bosch Automotive Steering GmbH are leading the market with their research and development programs. This growth is further fueled by the increasing adoption of electric power steering (EPS) and the need for effective vehicle control. Additionally, the market is influenced by factors like the surge in sales of vehicles, the expansion of the motor industry, and the introduction of power steering systems by original equipment manufacturers (OEMs).
Governments' initiatives, such as electric vehicle incentives, are also contributing to market expansion. The market is experiencing substantial growth fueled by factors like the increasing demand for electric vehicles (EVs) and the adoption of innovative technologies such as Intelligent Rear Wheel Steering (iRWS). Hydraulic power steering (HPS), electric power hydraulic steering (EPHS), and fully electric power steering (EPS) systems are gaining prominence for their role in providing smooth driving experiences. Additionally, advancements in control technology and the integration of rack and pinion mechanisms are enhancing vehicle handling and comfort. The market is further bolstered by rising consumer disposable income, which is driving the demand for fuel-efficient vehicles, particularly in light and heavy commercial segments. Moreover, the initiatives by national and municipal governments to promote environmental safety are encouraging the adoption of automotive steering systems.
The market is witnessing significant growth, driven by factors such as the increasing demand for automobiles and the rise in vehicle production globally. Key players in the automotive industry, including OEMs, are focusing on enhancing steering systems to ensure comfortable driving experiences. Technologies like the rack and pinion mechanism, electro-hydraulic power steering (EHPS), and power steering systems are being widely adopted to improve vehicle handling and maneuverability. From light commercial vehicles to heavy commercial vehicles and even construction machinery like hybrid loaders, steering systems play a crucial role in ensuring safe and efficient operation. Moreover, government bodies are increasingly emphasizing the importance of steering system safety standards, further propelling market growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.06% |
Market growth 2023-2027 |
USD 5.25 billion |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
4.64 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 58% |
Key countries |
US, China, Japan, India, Germany, US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BorgWarner Inc., China Automotive Systems Inc., HL Mando Co. Ltd., Hyundai Mobis Co. Ltd., JTEKT Corp., Kaz Technologies, Knorr Bremse AG, Mando Aftermarket North America, Nexteer Automotive Group Ltd., NSK Ltd., Rane Holdings Ltd., Robert Bosch GmbH, thyssenkrupp AG, and ZF Friedrichshafen AG |
Market dynamics |
Parent market growth analysis, Market Forecasting, 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 market 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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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