Automotive Steering Racks Market was valued at USD 24.5 Billion in 2022 and is projected to reach USD 34.0 Billion by 2030, growing at a CAGR of 4.5% from 2024 to 2030.
The automotive steering racks market is an essential segment within the global automotive industry, encompassing both traditional and electric steering rack systems. The market size was valued at USD 15 billion in 2024, with an estimated growth rate of 5% annually over the next 5 to 10 years. The increasing demand for advanced automotive technologies, such as electric vehicles EVs and autonomous driving systems, is significantly driving this market’s expansion. Moreover, the growing consumer preference for improved safety, comfort, and performance in vehicles further supports the market's growth trajectory. Technological advancements, such as electronic power steering EPS systems and automated driving technologies, are creating new opportunities in the automotive steering racks market. As a result, these factors are expected to fuel market demand, with key players adapting to innovations and consumer preferences.
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The dynamics of the automotive steering racks market are shaped by multiple drivers, restraints, and opportunities that influence its growth potential and direction:
Drivers:
Technological Advancements: The integration of electric power steering EPS and steer by wire systems is revolutionizing the steering rack market. These systems provide better fuel efficiency, reduced weight, and enhanced vehicle handling, driving demand.
Rising Adoption of Electric Vehicles EVs: The increasing adoption of EVs is one of the primary drivers, as these vehicles require specific steering systems like EPS for better energy efficiency.
Focus on Vehicle Safety: Regulatory demands for improved safety features are prompting automotive manufacturers to incorporate more sophisticated steering technologies that enhance control and reduce accidents.
Restraints:
High Production Costs: The initial investment required for advanced steering systems, including electronic power steering and steer by wire systems, remains high, which can limit market growth in certain regions.
Complexity in Integration: The integration of new technologies such as steer by wire with existing vehicle models poses engineering challenges, potentially delaying market acceptance.
Opportunities:
Autonomous Vehicles: The rise of autonomous driving technologies offers a significant opportunity for automotive steering racks, as these vehicles demand highly precise and adaptive steering systems.
Sustainability and Eco friendly Solutions: Increasing focus on reducing carbon footprints and improving fuel efficiency presents an opportunity for the market, as technologies like EPS reduce energy consumption compared to traditional hydraulic systems.
Additionally, evolving government regulations related to emissions and safety standards, as well as the emphasis on sustainability, are key factors shaping the market. Regulations surrounding vehicle safety, such as lane keeping assistance and autonomous driving capabilities, are indirectly contributing to the growing adoption of advanced steering racks.
The automotive steering racks market can be segmented based on application, end users, and regions. Below is a breakdown of each segment's significance and contribution to overall market growth:
By Application:
Passenger Vehicles: Passenger vehicles represent the largest segment of the automotive steering racks market, driven by growing consumer demand for comfort, safety, and performance features. The increasing number of EVs and hybrid vehicles is expected to fuel this segment’s expansion.
Commercial Vehicles: Steering racks in commercial vehicles, such as trucks and buses, are also growing due to the need for more robust steering systems that provide enhanced maneuverability and comfort over long distances. Commercial vehicles are also witnessing a shift toward electric steering systems for better fuel efficiency and ease of operation.
By End User:
OEMs Original Equipment Manufacturers: OEMs continue to dominate the market, given the ongoing demand for the latest steering rack technologies to be installed in new vehicle models. These manufacturers are investing heavily in R&D to develop advanced steering systems for emerging automotive technologies.
Aftermarket: The aftermarket segment is growing as car owners seek to upgrade their vehicles with more advanced steering technologies or replace worn out components. The aftermarket provides a significant opportunity for advanced steering systems to be integrated into existing vehicles.
By Region:
North America: North America holds a substantial share of the market, driven by the presence of large automotive manufacturers and a strong demand for EVs. The U.S. and Canada are key contributors to the growth of the automotive steering racks market in this region.
Europe: Europe is another major region for automotive steering racks, bolstered by advancements in automotive engineering, strong emission regulations, and the adoption of electric vehicles. Countries like Germany, France, and the UK are leading the charge in adopting electric power steering systems.
Asia Pacific: The Asia Pacific region is expected to witness the fastest growth in the automotive steering racks market. China, Japan, and India are emerging as key players, driven by their expanding automotive manufacturing capabilities and increasing demand for electric vehicles.
The automotive steering racks market is competitive, with several key players dominating the landscape. Some of the major companies contributing to the market's growth include:
JTEKT Corporation: Known for its advanced steering technology, JTEKT is a major player in the development of electric power steering systems, providing OEM solutions for global automotive manufacturers.
Robert Bosch GmbH: Bosch is a key player in the automotive industry, offering a wide range of steering systems, including electric power steering EPS and advanced driver assistance systems ADAS for enhanced vehicle control.
Thyssenkrupp AG: Thyssenkrupp is a significant supplier of steering systems and components, focusing on innovations in electro mechanical steering technologies and steer by wire systems.
ZF Friedrichshafen AG: ZF is known for its high performance steering systems, providing innovative solutions such as steer by wire and active steering technologies. ZF’s products are used in both passenger vehicles and commercial vehicles.
Delphi Technologies: Delphi offers a range of steering systems, including electric and hydraulic power steering solutions, that cater to both traditional and electric vehicle platforms.
The automotive steering racks market is seeing continuous innovation and emerging technologies aimed at improving vehicle performance, safety, and efficiency. Notable trends include:
Steer by Wire: Steer by wire technology is gaining traction, eliminating the need for mechanical linkages between the steering wheel and the wheels. This technology provides more flexibility in vehicle design and enhances the driving experience by offering precise and customizable steering inputs.
Integration with Autonomous Vehicles: As autonomous driving technology evolves, the need for advanced steering systems that offer real time adjustments based on vehicle sensors and environmental inputs is driving innovation in the market. These systems aim to provide a smoother and safer driving experience in autonomous vehicles.
Electrification and Lightweighting: The push for more eco friendly vehicles is encouraging the development of lightweight and energy efficient steering systems, particularly in electric vehicles. Electric power steering EPS is a key enabler of these advancements, reducing fuel consumption and improving overall efficiency.
Despite the promising growth of the automotive steering racks market, challenges persist. These include:
Supply Chain Issues: Global supply chain disruptions have impacted the availability of raw materials and components required for manufacturing steering systems. Manufacturers are working to diversify their supply chains and build more resilient production capabilities.
Regulatory Barriers: Strict government regulations regarding safety standards, emissions, and vehicle performance often create obstacles for manufacturers. Adapting to these regulations requires constant innovation and investment in R&D to meet evolving standards.
Solutions to these challenges include increased investment in sustainable production practices, collaboration with technology partners, and adoption of flexible manufacturing systems to improve production efficiency and reduce dependency on specific suppliers.
The automotive steering racks market is poised for steady growth, driven by the increasing demand for electric and autonomous vehicles. The ongoing development of advanced steering technologies such as steer by wire, autonomous driving integrations, and electric power steering systems will continue to shape the future of this market. Emerging economies in Asia Pacific are expected to be key contributors to market expansion, as automakers in these regions ramp up production of EVs and hybrid vehicles. The market will also witness a rise in partnerships and collaborations between automotive manufacturers, technology providers, and component suppliers to innovate and meet evolving consumer demands.
Which regions are leading in the automotive steering racks market? North America, Europe, and Asia Pacific are the leading regions, with Asia Pacific expected to see the fastest growth.
What are the key applications of automotive steering racks? Automotive steering racks are used in passenger vehicles and commercial vehicles, with an increasing focus on EVs and autonomous vehicles.
What are the major challenges in the automotive steering racks market? Supply chain disruptions, high production costs, and regulatory barriers are the key challenges in the market.
Who are the key players in the market? Major players include JTEKT Corporation, Robert Bosch GmbH, Thyssenkrupp AG, ZF Friedrichshafen AG, and Delphi Technologies.
What is the future growth potential of the market? The automotive steering racks market is expected to grow at a rate of 5% annually, driven by advancements in steering technologies, electric vehicle adoption, and regulatory demands for enhanced safety features.
The automotive steering racks market has witnessed substantial growth in recent years. In 2025, the market is estimated to be valued at approximately $14.2 billion, with a projected compound annual growth rate CAGR of 4.8% from 2025 to 2035. This growth is driven by increasing demand for passenger and commercial vehicles, advancements in steering technologies, and a growing focus on vehicle safety and comfort.
Technological advancements, such as the integration of electronic power steering EPS systems, are reshaping the industry. Trends like the electrification of vehicles and the adoption of autonomous driving technologies are influencing steering rack designs, emphasizing precision and durability.
Rising global vehicle production and sales.
Increased adoption of electric and hybrid vehicles, which require advanced steering systems.
Advancements in autonomous vehicle technologies necessitating precise and reliable steering mechanisms.
High costs associated with advanced steering technologies.
Supply chain disruptions impacting the availability of raw materials.
Complexity in integrating new steering systems into existing vehicle platforms.
Emergence of 3D printing and advanced manufacturing techniques to reduce production costs.
Expansion in emerging markets with rising vehicle ownership rates.
Collaboration between automakers and technology providers to enhance product offerings.
Passenger Vehicles: Comprising sedans, SUVs, and hatchbacks, this segment accounts for the largest market share due to high production volumes.
Commercial Vehicles: Includes trucks, buses, and vans, driven by the logistics and transportation sector.
OEMs Original Equipment Manufacturers: Dominating the market as they integrate steering racks into new vehicles.
Aftermarket: Growing demand for replacement steering racks due to wear and tear.
North America: Significant growth driven by the presence of major automotive manufacturers and technological advancements.
Europe: Focus on vehicle electrification and stringent safety regulations is boosting demand.
Asia Pacific: Rapid urbanization, rising disposable income, and expanding automotive production hubs.
Latin America and Middle East & Africa: Emerging as potential growth areas with increasing vehicle ownership rates.
Robert Bosch GmbH: A leader in automotive components, offering a range of electric and hydraulic steering systems.
ZF Friedrichshafen AG: Known for its innovative EPS systems and focus on autonomous driving technology.
JTEKT Corporation: A major supplier of steering racks, emphasizing high quality and durable products.
NSK Ltd.: Specializes in precision steering racks for passenger and commercial vehicles.
Thyssenkrupp AG: Offers advanced steering technologies tailored for electric and autonomous vehicles.
Integration of Artificial Intelligence AI for predictive maintenance and improved steering performance.
Adoption of lightweight materials like aluminum and carbon composites to enhance fuel efficiency.
Collaborative ventures between automakers and technology firms for next generation steering solutions.
Emergence of steer by wire technology, eliminating the need for mechanical linkages and enhancing vehicle control.
Supply Chain Issues: Disruptions in the supply of raw materials and components.
Pricing Pressures: Intense competition leading to reduced profit margins.
Regulatory Barriers: Compliance with stringent safety and environmental standards.
Adopting digital supply chain solutions to enhance transparency and efficiency.
Investing in automation and cost effective manufacturing processes.
Engaging in proactive regulatory compliance through advanced testing and certifications.
The automotive steering racks market is poised for steady growth, with advancements in electrification, autonomous driving, and lightweight materials driving innovation. By 2035, the market is expected to reach $22.3 billion, with robust demand in emerging markets and increasing adoption of EPS systems.
Key growth drivers will include technological innovations, sustainability initiatives, and collaborative ventures between industry stakeholders. The focus on reducing carbon footprints and enhancing vehicle safety will continue to shape the market’s trajectory.
Which regions lead the automotive steering racks market?
North America, Europe, and Asia Pacific dominate the market, with significant contributions from the U.S., Germany, China, and Japan.
What are the key applications of automotive steering racks?
Primarily used in passenger and commercial vehicles, with increasing applications in electric and autonomous vehicles.
What challenges does the market face?
Supply chain disruptions, pricing pressures, and stringent regulatory requirements are major challenges.
Who are the major players in the market?
Robert Bosch GmbH, ZF Friedrichshafen AG, JTEKT Corporation, NSK Ltd., and Thyssenkrupp AG are among the key players.
What is the future growth potential of the market?
The market is projected to grow at a CAGR of 4.8% from 2025 to 2035, driven by technological advancements and rising vehicle production.
Hitachi Astemo
Ltd.
MOOG
Jtekt Corporation
Nexteer
GENERAL RICAMBI
Stiletto
Quaife
Hirsche
Lizarte
Bosch
BORG Automotive Group
AMK
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Global Automotive Steering Racks Market
Passenger Vehicle
Commercial Vehicle
Based on Types the Market is categorized into Below types that held the largest Automotive Steering Racks market share In 2023.
Manual
Electric Power
Hydraulic Power
Global (United States, Global and Mexico)
Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
South America (Brazil, Argentina, Columbia, etc.)
Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
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1. Introduction of the Global Automotive Steering Racks Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Global Automotive Steering Racks Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Global Automotive Steering Racks Market, By Type
6. Global Automotive Steering Racks Market, By Application
7. Global Automotive Steering Racks Market, By Geography
Global
Europe
Asia Pacific
Rest of the World
8. Global Automotive Steering Racks Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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