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The automotive rack and pinion steering system market size is estimated to grow at a CAGR of 5.06% between 2022 and 2027. The market size is forecast to increase by USD 5.25 billion. The growth of the market depends on several factors, such as increasing the adoption of electric power steering, improving control using rack and pinion steering systems, and the design and manufacturing benefits of rack and pinion steering systems.
This automotive rack and pinion steering system 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 the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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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 Increasing adoption of electric power steering is driving growth in the automotive rack and pinion steering system market. The demand for rack and pinion steering systems in cars is thus also rising, driven by the growing use of EPS. The growing need for improving driver safety, comfort, and convenience, as also as enhancing fuel efficiency, has brought about many developments in the automotive industry.
Moreover, In EPS, the motor is mounted on the rack and pinion-type steering gear while torque is applied to the steering column, which assists the driver in turning the steering wheel. The power to assist the steering wheel is obtained from the steering motor and not from the engine, which helps in improving the fuel efficiency of the vehicle. The adoption of EPS in passenger cars, and particularly at entry-level vehicles, has increased because it makes a vehicle more fuel efficient. EPS, together with its components, is more expensive than a hydraulic power steering system and enables manufacturers of automotive steering systems and steering system components to achieve higher profit margins. The increasing adoption of EPS will drive the global automotive rack and pinion steering system market during the forecast period.
The increasing popularity of steer-by-wire systems is a primary trend in the automotive rack and pinion steering system market. In order to improve vehicle comfort and increase fuel efficiency by reducing the use of fewer mechanical components, a steering wire system has been designed so that there are no mechanical connections between vehicles' steering gears and wheels. Mechanical connections between the components of the steering system, including gear drives, are also present in further power steering systems. In the steer-by-wire system, a steering wheel angle sensor is attached to the steering wheel, and it sends signals to the steering actuator.
The steer-by-wire system is expected to improve vehicle performance and raise fuel efficiency, as well as lower manufacturing and operating costs. In view of the fact that this technology is new to the market, steer-by-wire manufacturers are expected to benefit from higher profit margins going forward. Thus, the development of the steer-by-wire system with a rack and pinion steering gear that functions as an electrical actuator is positive for the growth of the global automotive rack and pinion steering system market during the forecast period.
The rising cost of raw materials used in vehicle components is a major challenge in an automotive rack and pinion steering system. In order to meet the increasing demand for improved fuel efficiency, manufacturers are under pressure to limit vehicle weight and keep performance as good as possible. The use of aluminium in the replacement of iron and steel is one method. Materials used in most of the vehicle components are being replaced with aluminium as it is lightweight and has superior performance. However, higher aluminium prices are increasing cost pressures on automotive component manufacturers.
Nevertheless, the cost of aluminium has increased as a result of government decisions to impose sanctions on raw aluminium suppliers. As a result, prices are increasing and are expected to increase even more in the forecast period. Manufacturers of automotive steering system components such as steering columns and steering gearboxes use aluminium extensively, and rising prices are expected to challenge the global automotive rack and pinion steering system market during the forecast period
The market research 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 growth strategies.
Global Automotive Rack and Pinion Steering System Market Customer Landscape
Vendors 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.
BorgWarner Inc. - The company offers automotive rack and pinion steering systems for adaptive ride controls.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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.
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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.
Technavio categorizes the global automotive rack and pinion steering system market as a part of the global automotive components and accessories market within the global auto components market. It is estimated that there will be moderate growth in the world market for automobile components and accessories. Technavio calculates the global automotive components and accessories market size based on combined revenue generated by manufacturers of automotive components and accessories.
The COVID-19 outbreak had a severely negative effect on the global automotive components and accessories market growth in 2020. However, the loosening of trade restrictions and removal of lockdowns led to an increase in sales of car parts and accessories in 2021. This is anticipated to result in a rise in demand for automotive parts and accessories throughout the forecast period, which would favorably affect the market expansion of the global automotive components and accessories market.
The automotive rack and pinion steering system market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Rack And Pinion Steering System 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 Vendors, Market Positioning of Vendors, 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 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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