Active Steering System Market Size (2024 – 2030)

The Active Steering System Market reached a valuation of USD 14.97 billion and is anticipated to achieve USD 27.9 billion in market size by the conclusion of 2030. Throughout the projection period spanning from 2024 to 2030, the market is predicted to register a Compound Annual Growth Rate (CAGR) of 9.3%.

Market Overview

The active steering system market is undergoing rapid evolution, primarily attributed to a substantial surge in demand witnessed in recent years. Active steering systems represent cutting-edge technology designed to enhance vehicle performance by refining steering response and ensuring a smoother ride. These systems contribute to improved handling, stability, and precision, thereby benefitting drivers across various segments including passenger automobiles, commercial vehicles, and sports cars. The escalating necessity for advanced safety features coupled with a heightened demand for superior driving experiences is significantly driving the adoption of active steering systems. Factors such as increasing disposable incomes, amplified emphasis on vehicle safety, and the expanding automotive sector further propel the market. Notably, active steering technology empowers drivers with enhanced control and accuracy, consequently mitigating the risk of accidents and reducing overall vehicle ownership costs through improved fuel economy.

Active Steering System Market Drivers

Surge in demand for enhanced driving experiences fuels market expansion:

The burgeoning appetite for superior driving experiences stands out as a primary catalyst propelling the active steering system market. As consumers gravitate towards premium and high-performance vehicles, there's a palpable demand for innovations augmenting driving experiences. The seamless, responsive ride afforded by active steering systems resonates strongly with customers, while the heightened stability and control instill greater confidence in drivers. Consequently, the market witnesses a surge in demand for active steering systems, driven by the pursuit of enhanced driving satisfaction.

Heightened focus on vehicle safety bolsters market growth:

The market for active steering systems is further buoyed by an augmented emphasis on vehicle safety. Active steering systems offer advanced safety features such as lane departure warnings, collision avoidance systems, and adaptive cruise control, thereby enhancing overall vehicle safety and mitigating collision risks. Consequently, these systems are increasingly embraced, particularly in regions governed by stringent vehicle safety regulations, thereby fostering market growth.

Active Steering System Market Challenges

High costs present impediments to market growth:

The active steering system industry grapples with significant challenges, chief among them being the high costs associated with the technology. The intricate nature of active steering systems, coupled with their reliance on advanced sensors and control systems, contributes to elevated production costs. Moreover, substantial investments in research and development are necessitated to refine the technology, further inflating overall system costs. Consequently, active steering systems may be perceived as prohibitively expensive, particularly for consumers in developing economies. Some manufacturers may opt against integrating these systems into their vehicles, particularly in price-sensitive markets, due to the exorbitant costs involved.

Technical limitations restrain market growth:

Another notable challenge confronting the active steering system market pertains to the technical limitations inherent in the technology. Active steering systems rely on sensors and control mechanisms to effect real-time adjustments to steering angles, a process susceptible to external factors such as weather conditions and road surfaces. Adverse weather conditions, such as heavy rain or snow, may compromise sensor functionality, resulting in diminished system performance or complete failure. Moreover, compatibility issues arise with certain vehicle types, particularly those equipped with mechanical steering systems. Retrofitting active steering systems onto existing vehicles poses logistical and financial challenges, thereby limiting market penetration.

Impact of COVID-19 on the Active Steering System Market:

The COVID-19 pandemic exerted a significant impact on the automotive sector, including the active steering system market. Supply chain disruptions and a precipitous decline in demand precipitated a severe downturn in vehicle sales and manufacturing activities. Production facility closures and mobility restrictions further compounded the challenges faced by the active steering system market. However, the industry is poised for recovery in the post-pandemic landscape, driven by heightened consumer demand for technologically advanced safety features and the escalating adoption of electric and autonomous vehicles. Additionally, the pandemic has accelerated trends towards automation and digitalization, which bodes well for the future proliferation of active steering systems and other advanced driver support technologies.

Segmentation of the Active Steering System Market by Type:

• Electric Power Steering (EPS)
• Electro-Hydraulic Power Steering (EHPS)
• Others

The segment exhibiting the most growth within the Active Steering System Market is Electric Power Steering (EPS). This can be attributed to its numerous advantages over conventional hydraulic and electro-hydraulic power steering systems. These advantages include enhanced fuel efficiency, superior handling and responsiveness, and reduced maintenance requirements. Electro-Hydraulic Power Steering (EHPS) systems utilize an electric motor to facilitate hydraulic fluid pumping for steering assistance. The "Others" segment encompasses active steering systems employing alternative forms of power assistance, such as mechanical, hydraulic, and pneumatic systems. However, these systems are diminishing in prevalence due to their comparatively lower efficiency and restricted functionalities compared to EPS and EHPS.

Segmentation of the Active Steering System Market by Component:

• Sensors
• Steering Control Module
• Electric Motor
• Others

Among the components within the Active Steering System Market, the steering control module segment is poised for the most significant growth. This prominence is attributed to the steering control module's pivotal role in receiving input from sensors and subsequently adjusting steering parameters. This adjustment capability is crucial for delivering precise and responsive steering assistance, particularly in applications involving advanced driver assistance systems (ADAS) and autonomous driving. Sensors play a critical role in active steering systems by providing input to the steering control module, enabling the system to adapt steering parameters based on road conditions and driver inputs. The electric motor serves as the power source for the active steering system, furnishing power assistance to the steering mechanism. The "Others" segment encompasses additional components utilized in active steering systems, such as pumps, hoses, and valves.

Segmentation of the Active Steering System Market by Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Others

The segment anticipated to experience the most pronounced growth within the Active Steering System Market by vehicle type is passenger cars. This is primarily driven by the escalating adoption of advanced driver assistance systems (ADAS) and the surging demand for electric and autonomous vehicles. Commercial vehicles, including trucks and buses, are also poised to propel the growth of the Active Steering System Market segment by vehicle type. These vehicles necessitate active steering systems capable of delivering enhanced safety, stability, and maneuverability. The "Others" segment encompasses specialty vehicles such as off-road vehicles, farm equipment, and construction machinery.

Segmentation of the Active Steering System Market by Sales Channel:

• OEMs
• Aftermarket

The OEMs segment is expected to witness the most substantial growth among the Active Steering System Market segments by sales channel. OEMs collaborate closely with manufacturers of active steering systems to ensure alignment with specific requirements and compatibility with vehicle platforms. The aftermarket sales channel comprises retailers, distributors, and service providers engaged in the sale and installation of active steering systems post-vehicle manufacture. The aftermarket segment is expanding due to growing demand for retrofitting existing vehicles with advanced technologies like ADAS and active steering systems to enhance safety and performance.

Segmentation of the Active Steering System Market by Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World

The Asia-Pacific region is expected to exhibit the swiftest development in the Active Steering System Market. This can be attributed to several factors, including escalating car manufacturing and sales, particularly of electric vehicles, in countries such as China, Japan, and South Korea. North America is projected to dominate the global market for active steering systems due to widespread adoption of advanced driver assistance systems (ADAS) and the presence of leading automakers. Europe is anticipated to be the second-largest market for active steering systems owing to robust demand for premium automobiles and stringent safety standards. The Rest of the World region is poised for steady growth in the Active Steering System Market, driven by increasing adoption of advanced safety features and rising demand for luxury vehicles.

Key Players in the Active Steering System Market:

The following are the top 10 key players in the Active Steering System Market:

1. Robert Bosch GmbH
2. ZF Friedrichshafen AG
3. JTEKT Corporation
4. Nexteer Automotive Group Ltd.
5. NSK Ltd.
6. Thyssenkrupp AG
7. Knorr-Bremse AG
8. Mando Corporation
9. WABCO Holdings Inc.
10. Hyundai Mobis Co. Ltd.