The automotive industry’s shift towards stricter emission standards is accelerating the transition to electrification, significantly impacting the steering systems market in the Asia-Pacific (APAC) region.
Against this backdrop, the APAC steering systems market is forecast to register a negative compound annual growth rate (CAGR) of 0.3% over 2024-29, according to GlobalData.
Go deeper with GlobalData
Its latest report: Sector Innovation Report – Steering Systems – Q2 2024 reveals that the APAC automotive steering systems market size is estimated to decline from 50.6mi units in 2024 to 49.7m in 2029, driven by increased automotive technological advancements.
Lucy Tripathi, automotive senior analyst, at GlobalData, said: “The adoption of electric vehicles (EVs) is rapidly increasing worldwide, diminishing the demand for traditional steering systems. As electric power steering (EPS) and steer by wire steering systems gain popularity due to their advantages such as improved fuel efficiency, reduced emissions, and enhanced vehicle performance, the market for conventional hydraulic and manual steering systems is shrinking.
“Steer-by-wire systems’ ability to offer more flexible vehicle design and customisation, eliminating the need for mechanical linkages, further contributes to the decline. Additionally, EPS and steer-by-wire systems’ lower maintenance requirements and longer lifespans reduce the demand for replacement and repair, decreasing the overall steering system market.”
Additionally, the manual steering segment is likely to experience steady decline due to its inherent limitations, such as leakage, reduced durability, vibration issues, and the considerable human effort required to steer the vehicle.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThese factors collectively contribute to the overall decline of the steering system market.
Increasing sales and production of vehicles by automakers in developing countries are leading to a higher demand for high-tech automotive steering systems. This shift towards advanced steering technologies in developing countries like India and China is contributing to the decline of traditional steering systems. Rapid economic growth, increasing disposable incomes, and expanding automotive industries in these regions are driving the preference for modern, efficient steering solutions, thereby reducing the demand for conventional steering systems.
Tripathi added: “Innovations in EPS and steer-by-wire technology are making these systems more attractive to automakers, leading to a decline in the use of conventional hydraulic and manual steering systems. The growing trend towards autonomous vehicles, which require advanced steering technologies, is contributing to the decline in the market for traditional steering systems. Stricter emission and fuel efficiency standards are pushing automakers to adopt more efficient steering systems like EPS, which negatively impacts the market for less efficient traditional steering systems.”
