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The automotive steering wheel market size is forecast to increase by USD 11.20 billion at a CAGR of 7% between 2023 and 2028. One of the key factors driving the market growth and trends is the growing adoption of electronic and assisted steering systems. As part of electrification, power steering systems have been developing continuously, and HPS systems have been phased out owing to the popularity of electro-mechanical systems that are controlled by automated control units. In addition, the use of the EPS systems provides fuel efficiency and eliminates the need for hydraulic oil, as the electric motor only runs when the steering wheel is turned by the driver. A key factor shaping the market growth is the debut of gesture recognition technology in steering wheels. Sensor-based systems, including automotive gesture recognition systems, are being used in the automotive industry.
In addition, it is mainly used to offer comfort and convenience to drivers by enabling them to control the in-vehicle system functions such as using vehicle infotainment systems, adjusting overhead lighting or ambient temperature, opening and closing doors and windows, and answer or reject phone calls. Additionally, the integration of steer-by-wire technology enhances the driving experience by providing smoother steering control and facilitating the implementation of advanced safety features.
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The passenger cars segment is estimated to witness significant growth during the forecast period. The demand for passenger cars is fuelled by the economic development of countries due to the direct correlation between industrial output and population demographics. In addition, the segment is expected to dominate the market due to the increasing demand for passenger cars in emerging countries and the revival of the economies of developed economies. Furthermore, Asia is expected to become a key market for passenger cars due to the economic growth of the middle-class population.
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The passenger cars segment was the largest segment and was valued at USD 16.83 billion in 2018. Moreover, the demand for passenger cars has increased in emerging countries like China, Brazil, and India due to economic growth and the rising purchasing power of people. In addition, the growth of these emerging markets has been strong due to rapid industrialization and the rising volume of global trade. Furthermore, the recovery of the automotive industry in developed regions such as North America and Europe is also steadily increasing the demand for passenger cars in these regions. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 52% 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. Several countries including China, India, Thailand, Indonesia, and South Korea, which are the fastest-growing economies in the world, are located in APAC. In addition, the rapid economic growth of the region has increased the per-capita income drastically in the past couple of years, which improved peoples purchasing power and increased the demand for passenger cars. In addition, most countries in the region have been actively spending on infrastructure and industrial development. Therefore, the demand for commercial vehicles is high. Emerging markets such as India are contributing to the high-volume sales of passenger cars and commercial vehicles. Furthermore, China and India have price-sensitive customers. Hence, such factors are driving the market growth in APAC during the forecast period.
The market is witnessing growth driven by the increasing adoption of electronic and assisted steering systems across various vehicle segments, including Electric Vehicles (EVs) and the passenger car segment. A significant trend in this market is the debut of gesture recognition technology in steering wheels, enhancing the Human-Machine Interface (HMI) and driving advancements in vehicle control and safety.
However, the industry faces challenges such as system reliability and uncertainty in user acceptance of automated steering wheels, highlighting the importance of addressing concerns related to safety and user experience. With a focus on market trends and analysis, stakeholders navigate through evolving consumer preferences and regulatory landscape, aligning product offerings with market demands. Innovations in steering components like electric power steering (EPS) systems and steering couplers cater to the changing needs of consumers, particularly in developing economies where luxury and comfort travel preferences drive market growth..
One of the key factors driving the market growth is the growing adoption of electronic and assisted steering systems. As part of electrification, power steering systems have been developing continuously, and HPS systems have been phased out owing to the popularity of electro-mechanical systems that are controlled by automated control units. In addition, the use of the EPS systems provides fuel efficiency and eliminates the need for hydraulic oil, as the electric motor only runs when the steering wheel is turned by the driver.
Moreover, EPS systems are available only for smaller cars and crossovers as the components are not strong enough to meet the high front axle steering load of heavy-duty trucks and light-duty pick-up trucks, which commonly use HPS systems. In addition, HPS systems require power even if the truck is traveling in a straight line, and EPS systems only need power when the driver turns the steering, which makes the vehicle more fuel-efficient. EPS systems provide approximately a 4% improvement in the fuel economy of vehicles. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the debut of gesture recognition technology in steering wheels. Sensor-based systems including automotive gesture recognition systems are being used in the automotive industry. In addition, it is mainly used to offer comfort and convenience to drivers by enabling them to control the in-vehicle system functions such as using vehicle infotainment systems, adjusting overhead lighting or ambient temperature, opening and closing doors and windows, and answer or reject phone calls.
Moreover, gesture moves are processed and recognized using a gesture recognition algorithm by these sensor-based systems to control the onboard systems instead of using physical buttons or touchscreens and haptics. In addition, there are no standards for these gestures. Therefore, the gestures and their respective control may differ among OEMs and Tier-I suppliers. Hence, such factors are driving the market growth during the forecast period.
System reliability and uncertainty in user acceptance of automated steering wheels are one of the key challenges hindering market growth. System reliability impacts the acceptance level of users. In addition, since the passenger vehicles market is likely to register a high number of first-time users of autonomous technologies, customers must be repeatedly assured of the reliability of new technology-enabled systems and subsystems.
Moreover, even though automated steering wheels use advanced ADAS to prevent accidents and assist the driver, clarity about their safety is limited. In addition, even occasional faults in the system can lead to a user discarding such technologies, which could affect the growth of the global automated steering wheel market. Hence, such factors are hindering the market growth during the forecast period.
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.
A.G Industries Pvt. Ltd: The company offers automotive steering wheels for vehicles including Eicher Tractor Regular, Hyundai Verna, Mahindra Bolero and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 market is evolving rapidly with advancements in automotive electrification and the adoption of electric components for enhanced performance and efficiency. Electric Power Steering (EPS) systems have gained prominence due to their contribution to meeting emissions standards and improving fuel consumption. As the industry transitions towards electronic and assisted steering systems, sensors and steer-by-wire steering systems are becoming integral components, offering precise control and safety features.
Gesture recognition technology is revolutionizing steering wheel functionalities, enabling drivers to control various in-vehicle systems effortlessly. This innovation enhances the driving experience and comfort travel by allowing users to adjust settings such as infotainment systems and climate control with simple gestures.
Moreover, the rise of connected cars and autonomous mobility drives the integration of advanced features like Lane-keeping assist and Highway assist, enhancing safety functions and driving efficiency. As luxury cars and light commercial vehicles prioritize luxury and comfort, multi-function steering wheels equipped with cruise control and air conditioning controls offer convenience to users.
In essence, the market is propelled by technological advancements, consumer demand for high-quality products, and regulatory mandates, paving the way for safer, more efficient, and enjoyable driving experiences.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7% |
Market growth 2024-2028 |
USD 11.20 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.7 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A.G Industries Pvt. Ltd., AB Volvo, Autoliv Inc., Dowlais Group plc, Grant Products, GSK InTek Co. Ltd., ISOTTA, Joyson Safety Systems Aschaffenburg GmbH, KKR Metal Components, MOMO Srl, MZW Motor, Nexteer Automotive Group Ltd., Nihon Plast Co. Ltd., SAIC Motor Corp. Ltd., Sun Autoelektrik Pvt. Ltd., Tokai Rika Co. Ltd., Toyoda Gosei Co. Ltd., Valeo SA, ZF Friedrichshafen AG, and Moto Lita Ltd. |
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 analysis and report 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 Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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