Active Steering System Market Size (2024 – 2030)

The global active steering system market—valued at USD 1.2 billion in 2023—is projected to register a CAGR of 9.7% from 2024 to 2030 to reach a new market value of USD 2.3 billion in 2030. The increasing demand for advanced vehicle safety features and the growing adoption of autonomous and connected vehicles will drive growth in the market.

Key Market Insights

The application segment named passenger vehicles has the biggest share and is growing in demand due to safety and comfort features.

Europe is the largest in terms of geography followed by North America and Asia-Pacific.

Technological advancements and the high acceptance of electric vehicles further support the market growth in the steering systems sector. Innovations and changes with regard to active steering system market tactics are coming into the picture that might impact the potential course of vehicle safety and performance.

Global Active Steering System Market Drivers:

Rising Demand for Advanced Safety Features in Vehicles is driving the market growth.

A rising demand for advanced safety features in vehicles is expected to be the key driver for the Global Active Steering System Market. The newer the vehicles are, the more sophisticated the safety system is to lower its easy vulnerability to accidents and bring in greater safety for the driver and passengers on board. The steering system contributes majorly to vehicle stability, maneuverability, and control, particularly under difficult driving conditions. It automatically controls the steering angle of the given vehicle according to its speed, road conditions, and steering input applied by the driver for better response and holding on to a road. Increasing awareness towards road safety and government involvement in making it a mandate to include some safety features are part of the vehicle that accelerates active steering systems' adoption rates. Also, the increasing adoption of vehicles with advanced safety features by consumers pushes the market into growth. The use of these active steering systems in vehicles results in safer overall driving but also provides a means of safer maneuvering.

Growing Adoption of Autonomous and Connected Vehicles is driving the market growth.

The growing incorporation of autonomous and connected vehicles is one of the major drivers for the global active steering system market. Autonomous vehicles, also known as self-driving cars, rely on advanced sensors, cameras, and artificial intelligence to navigate and operate without human engagement. In terms of exact control and maneuverability, active steering systems are crucial parts of an autonomous vehicle. They work together with other advanced driver assistance systems to ensure that management is done safely and effectively in driving. A rising trend of active steering systems is brought on by the increased development and deployment of autonomous vehicles by major automotive manufacturers and technology companies. In this regard, with the rise in connected vehicles talking with each other and the surrounding infrastructure, both of them have augmented demand for advanced steering systems aimed at facilitating safety and performance. As such, consequently, the integration of active steering systems in autonomous and connected vehicles is significant to ensure flawless and safe operations. Thus, this factor drives the growth of the market.

Technological Advancements in Steering Systems and Electric Vehicles are driving the market growth.

The trends in technological advancements in steering systems and the adoption of electric vehicles are to be the key drivers of the global active steering system. Automotive steering technology has advanced without end, and today's innovations include electric power steering (EPS) and steer-by-wire systems. These advanced steering systems offer increased efficiency, precision, and control over the traditional hydraulic steering systems. Active steering systems, along with EPS and steer-by-wire technologies, give additional safety and performance features like lane-keeping assists, automated parking, and collision avoidance. In addition, the increasing adoption of electric vehicles is another factor that is boosting the demand for state-of-the-art steering systems. These lightweight vehicles require highly efficient steering systems to further reduce energy consumption and, in the process, increase driving range. The inclusion of active steering further enhances the handling and control of the vehicle and hence contributes, in part, to the improved kind of performance of an electric vehicle. The growth in the active steering system market is driven by continuous technological developments attributed to steering systems along with the growing adoption of electric vehicles.

Global Active Steering System Market Challenges and Restraints:

High costs associated with Active Steering Systems are restricting the market growth.

Active steering systems are considered costly, thus posing a critical challenge to the active steering system market globally. Advanced steering systems, such as active steering, are filled with complex technologies, sensors, and electronic components, which generally raise the price of a vehicle. Immense investment goes into development, testing, and integration of an active steering system, which makes an active steering system more costly compared to others. The factor of cost would become a very good deterrent for price-sensitive consumers and automakers alike, particularly in the economy and mid-range segments of automobiles. Another challenge to the growth of this market would also be the high cost of maintenance and repair of active steering systems. The overall cost of ownership is further increased by the need for specialized skills and equipment for servicing these systems. In fact, the high cost of these systems can seriously curtail their diffusion in areas where disposable incomes are low and the market is highly price-sensitive. The only way to address the cost challenge is through continuous optimization of production processes, the achievement of economies of scale, and the development of cost-effective solutions without compromising performance and safety.

Compatibility and Integration Issues are restricting the market growth.

Compatibility and integration issues are major challenges to the global active steering system market. Active steering systems must integrate seamlessly with other vehicle systems, such as braking, suspension, and ADAS. This means that compatibility and seamless integration should be backed with very thorough testing and validation, which might be very costly and time-consuming. In addition, different vehicle models and manufacturers specify different requirements and have different specifications. This makes it fairly difficult to come up with standardized active steering systems that can be easily adapted for different applications. This, therefore, risks standardization and the actual act of ensuring compatibility, holding back product development and deployment. The integration process may even further complicate and increase the cost of the active steering systems, which would need to be made compatible with the existing vehicle architectures and technologies. In that context, these incompatibility and technological integration issues invite a collective effort on the part of automotive manufacturers, suppliers, and technology providers to come up with standardized solutions that would allow for the problem-free integration of the active steering systems' solution in vehicles.

Market Opportunities

The Global Active Steering System Market has been offered great windows of opportunity for growth and innovation. Key growth opportunities include the growing demand for EVs and sustainable transportation. As the industry moves in the direction of a paradigm shift in automotive electrification, demand is foreseen to grow towards different aspects of next-generation steering, including active steering. EVs are fitted with lightweight, efficient steering systems that would help save energy and contribute to an extended driving range. Hence, by being integrated with electric power steering and steer-by-wire technologies, active steering systems offer better vehicle handling, control, and safety features. Hence, they are more suitable for an EV. Adherence to innovative trends and continuous adaptation of developments help companies compete and pave the way for a strong market opportunity in active steering systems resulting from continuous innovation and the rising penetration of electric vehicles. Additionally, huge opportunities for the active steering system market will increase through the rising trend toward autonomous and connected vehicles. Autonomous operation needs advanced steering systems that can provide maximum control and maneuverability to be safe and operate efficiently. It is expected that the development and operations by key automotive manufacturers and technology companies with their autonomous vehicle lineup will drive demand for active steering systems. Moreover, a growing focus on vehicle safety features and advanced driver-assisted systems is likely to offer a plethora of growth opportunities. Active steering systems will further be used as measures supporting ADAS functionalities, such as lane-keeping assist, automated parking, and collision avoidance. In addition, improvements in ADAS technologies and the growing demand for safety features in vehicles are expected to drive active steering system adoption. Increasing demand for EVs, autonomous and connected vehicles, and advanced driver assistance systems presents immense growth opportunities for the Global Active Steering System Market.

ACTIVE STEERING SYSTEM MARKET REPORT COVERAGE:

Active Steering System Market Segmentation - By Type

• Electric Power Steering (EPS)

• Hydraulic Power Steering (HPS)

• Electro-Hydraulic Power Steering (EHPS)

Electric Power Steering (EPS) is an absolute dominant type of active steering system. EPS systems help drivers steer a vehicle by electrically powered appellation steering effort for better control and less fuel consumption. Increasing the application of EPS in next-generation vehicles because of its efficiency, performance, and integration possibilities with Advanced Driver Assistant Systems (ADAS) is making this the most dominant segment in the active steering system market.

Active Steering System Market Segmentation - By Application

• Passenger Vehicles

• Commercial Vehicles

Passenger Vehicles: The utilization of active steering systems is led by the passenger vehicle segment. The rise of passenger vehicles with demand for advanced safety features, improved driving experience, and comfort is consequently increasing demand for active steering systems. The systems provide improved stability, maneuverability, and control of the vehicle and are, therefore, best suited for passenger cars. The greater consumer demand for vehicles with safety steering technologies increases the dominance of the passenger vehicle segment in the active steering system segment.

Active Steering System Market Segmentation - By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Leading the growth rate in the Active Steering System market is Europe. The strong automotive industry within this region, coupled with technological advancements and the presence of key market players, put it into a dominant position. The rising adoption of advanced driver assistance systems in Europe and increasing concerns about vehicle safety and comfort are more reasons for the rising demand for active steering systems. In view of better safety and comfort, governments in the region enforce stringent regulations related to vehicle safety, which also support the growth of this market.

COVID-19 Impact Analysis on the Active Steering System Market

The pandemic hugely affected the Global Active Steering System Market. The lockdown, disruption in supply chains, and reduced availability of labor forces pushed the automotive sector to reduce its production and sales of vehicles temporarily. These affected the demand for active steering systems. Gradually, the market started to recover as economies were gradually recovering, and automotive manufacturing resumed. Increased demand for active steering systems was realized because of the pandemic, as it escalated demands for advanced safety features and reliable communication systems in vehicles. The accelerated pace of advanced steering system adoption in vehicles is attributed to the fact that during pandemics, there is a focus on contactless and autonomous technologies. Demand for advanced vehicle safety features, along with a rise in the adoption of autonomous and connected vehicles, is a key factor that helps the market regain its pace.

Latest Trends/Developments:

The latest trends and developments that are taking place in the Global Active Steering System Market are the integration of advanced driver assistance systems with active steering technologies. In this regard, modern steering systems have integrated ADAS functions to include lane-keeping assist, automated modes of parking, and collision avoidance. As the demand for EVs increases, the process of developing lightweight and effective steering systems will gain momentum. Active steering, in combination with EPS and steer-by-wire technologies, provides enhanced handling, control, and safety features for electric vehicles. Another area that has the market majorly trending is the increased focus on autonomous and connected vehicles. Autonomous vehicles require highly sophisticated steering mechanisms with high levels of precision to drive and navigate safely and efficiently. Growing demand in this segment will come from continuous technological advancements and deployments of autonomous driving technologies by major automotive manufacturers and technology companies. Besides, advanced interference management techniques are developed to help these systems coexist smoothly without any significant disturbance of any other vehicle systems. It has a minimum interference that lets it optimize and maximize its interference while performing better in the vehicle system.

Key Players:

1. Robert Bosch GmbH

2. ZF Friedrichshafen AG

3. Nexteer Automotive

4. ThyssenKrupp AG

5. JTEKT Corporation

6. Mando Corporation

7. Continental AG

8. Denso Corporation

9. Hyundai Mobis

10. Hitachi Automotive Systems Ltd.