Market Trends of Automotive Steering Industry
This section covers the major market trends shaping the Automotive Steering Market according to our research experts:
Increasing Adoption of Sensors
The sensor located in the steering column measures two primary driver inputs - torque (steering effort) and steering wheel speed and position. Thus, three types of sensors are used in such systems: torque sensor, steering wheel speed sensor, and position sensor. These sensors deliver the signals as inputs to an ECU, which provides an appropriate output to the steering system for an action to take place.
Torque sensors are generally non-contact sensors. The sensor measures the steering force applied by the driver and, thus, enables sensitive control of the electric steering support. However, with the growing technological advancements, sensor products are also being consistently upgraded and improved in the automotive industry. For instance:
- May 2022: LeddarTech, a global leader in ADAS and AD sensing technology, has announced the release of LeddarSteer, a digital beam steering solution designed for LiDAR smart sensor developers and Tier 1-2 automotive suppliers.
Moreover, the company may also promote the sensor to manufacturers of EPS, shift-by-wire transmissions, and hybrid systems that use motors as both starter and generator motors. Therefore, major players in the market are developing steer-by-wire systems suitable for all vehicle types. For instance,
- March 2022: ZF demonstrated its latest steering systems at Work Truck Week (WTW). ZF's second-generation Active Kinematics Control (AKC) is focused on the North American market by incorporating steer-by-wire technology, the rear steering system now available to EVs, pickups, and heavy-duty vehicles.
- August 2021: At IAA Mobility 2021, Schaeffler presented The Space Drive steer-by-wire technology, which sends solely electronic driving and steering directions to the vehicle wheels, paving the path for autonomous driving. Since Generation 3 is based on the AUTOSAR software standard, it can communicate directly with car electronics as well as onboard communication and network infrastructures, allowing it to be incorporated into current vehicle assistance systems.
Such improved sensor products for the EPS system are likely to continue to see increasing adoption among automakers during the forecast period.
Moreover, According to the Office for National Statistics (UK), sales of steering wheels, steering columns, steering boxes, and their parts for tractors, automobiles, and other motor vehicles peaked in 2016, totaling approximately 232 million British pounds. Since then, the value has been declining, which is expected to be around 152.7 million British pounds in 2021.
Europe holds a significant share in the Market
The electric vehicle market has been rapidly growing across the world. For instance, In Europe, 2021 was a record year for electric vehicle sales. European automakers have been slow to enter the EV market but quickly emerged as key players. Additionally, several governments worldwide have formulated various policies, incentives, and projects to support the usage of electric vehicles.
By 2024, nearly 4% of the new car sales and 7% of the global car fleet are expected to be electric. With the growing electric vehicle sales, the deployment rate of lightweight steering systems (like electric power steering (EPS)) is expected to see a potential demand during the forecast period.
The automotive industry is the largest industry sector in the European Region. In terms of plug-in electric vehicle sales in 2021, Germany was the largest European market. In Germany, 681,900 plug-in electric vehicles were purchased by motorists. Norway had the largest market share of plug-in electric vehicles among European countries.
However, the country's economy struggled over the summer of 2022 due to weak car production, owing to the enactment of new EU-wide emission measurement procedures. With the European Union moving toward the Worldwide Harmonized Light Vehicle Test Procedure, some German automakers struggled to gain regulatory clearance. At the same time, production was also dampened by significant dealership discounts to clear stock before the new rules came into effect.
With the installation of new plants by OEM suppliers in Germany, the addition of lightweight steering systems, such as EPS, in cars is expected to lower the cost incurred on exporting the systems, thus, driving the market toward higher profitability. Moreover, advancements in the sensor technology of EPS and the reduced cost of manufacturing these systems have contributed to the growth of the German automotive steering market. For instance,
- December 2022: Robert Bosch GmbH has announced that it will exhibit a number of smart products and solutions for future mobility at CES 2023. Its new "Vehicle dynamics control 2.0" smart control concept employs actuators from various vehicle domains, including braking, steering, powertrain, and suspension.
Thus, owing to the developments mentioned above, the automotive steering market in the region is expected to grow at a rapid pace.
