The global steering gears market was valued at USD 31.52 billion in 2023 and growing at a CAGR of 6% from 2024 to 2033. The market is expected to reach USD 56.45 billion by 2033. Vehicle production has increased globally. Due to this, the demand for steering gear is also increasing. Along with this, the demand for steering gear will increase due to the increasing adoption of electric vehicles. Along with this, it is the responsibility of the manufacturers to take care of the customers' safety. Updating the steering system technology on time and installing it in new vehicles will further improve the customer's driving experience.
Steering gear is an important component of automotive. With its help, the driver can easily turn the vehicle in any direction and keep the vehicle under his control. With the help of the steering gear, the driver does not have to work hard to give directions to the vehicle. Along with this, with the help of the steering gear, the driver can also get an idea of the road to control the vehicle. With the help of steering gear, it is easy to keep the vehicle stable, even if its speed is slow or high. Steering gear makes turning and controlling the vehicle on difficult terrain easy. This happens because these steering gears are designed to keep the wheel at the right angle during the turn. Due to this, the vehicle does not skid, and the wheel's contact with the road remains. For this reason, steering gears are also used in heavy-duty vehicles. Steering gears in these vehicles manage the extra load and provide stability to the vehicle.
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Focus on Driving Comfort and Safety-Driving comfort and safety are the most important features for any driver. Due to the steering system, the driver does not have to exert extra physical effort to turn the vehicle. Along with this, manufacturers also have to follow safety regulations and standards. Consumers are also ready to pay additional costs to add driving comfort and safety features from manufacturers. Also, safety is the top priority for modern drivers, and they do not compromise on it. Along with this, traffic is also increasing due to increasing urbanization. For this reason, the steering gear is very important for moving the vehicle easily.
Complexity in Design and Manufacturing- Special expertise is required to manufacture steering gears as they are a critical component of the vehicle and require a lot of precision while being manufactured. Its design is also complex, which increases the operational complexity. Due to this, the old manufacturers want to refrain from manufacturing advanced steering gears. This is because to manufacture advanced steering gear, they will have to invest in upgrading the existing equipment, which is more challenging. Because for advanced gear, advanced machines will have to be brought, or the old ones will have to be upgraded, which will take time, and there will be a delay in production, the loss of which will ultimately have to be borne by the respective company.
The rise in the adoption of electric vehicles will propel market growth- The demand for electric vehicles is increasing, and people are showing interest in buying these vehicles. These vehicles are used for both personal and commercial use. Due to this, the demand for these vehicles is increasing, which is expected to increase in the coming years. As the demand for vehicles increases, the demand for their components will also increase and due to this, there will be growth in the steering gear market. Since electric vehicles are a new technology, there is scope for improvement in it, its manufacturers keep making changes in their design so that the vehicles can be made lightweight, so steering gear manufacturers can also make their products light weight and contribute to reducing the weight of the vehicle.
Economic fluctuations- Economic fluctuations have the greatest impact on the automotive industry. If there is an economic issue, the first thing that will happen is a decline in the sales of high-end products and luxury products. Automotive comes under both high-end and luxury categories. So, in a recession or economic downturn, people will stop buying automobiles, and demand will also fall. Due to the fall in demand, vehicle manufacturers will also reduce their production, and due to this, the use and demand of steering gear will fall. Due to this uncertainty, manufacturers may also face long-term planning difficulties.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the largest market for the global steering gears market, with a 45% share of the market revenue in 2023.
Asia Pacific is a developing region. Hence, this region is considered the automotive manufacturing hub. This is because, in this region, it is very easy to procure raw materials, and the labour cost is also low. So due to all this, it is easy for manufacturers to control the cost in this region and increase their profits. Also, this region's middle-class population is high, and their disposable income is also increasing. So due to this, the possibility of an increase in vehicle sales increases. Because of the increase in disposable income, people invest in luxury products. Due to this, the sales of automobiles will increase, and the sales of steering gear will also increase.
Asia Pacific Region Steering Gears Market Share in 2023 - 45%
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The type segment is divided into manual steering gear, hydraulic power steering (HPS) gear, electric power steering (EPS) gear and electro-hydraulic power steering (EHPS) gear. The electric power steering (EPS) gear segment dominated the market, with a market share of 35% in 2023. The main reason Electric Power Steering gears have the highest market share is that they can be used in electric and ICE vehicles. Electric power steering gear is an advanced technology that improves the fuel efficiency of vehicles. Along with this, these gears are made from lightweight materials, due to which their demand is increasing even more. These gears do not require regular maintenance as there is no fluid in them and they also have fewer components.
The vehicle type segment is divided into passenger cars and commercial vehicles. The passenger cars segment dominated the market, with a market share of 58% in 2023. The demand for passenger cars is increasing daily, and due to this, their production is also increasing. Therefore, their market share will be the highest. Keeping in mind the needs of the customers, manufacturers of passenger vehicles try to make the vehicles as comfortable as possible, whether it is related to driving or sitting.
The sales channel segment is divided into OEM and aftermarket. The OEM segment dominated the market, with a market share of 59% in 2023. The OEM market share is high because OEMs send their components directly to automotive manufacturers. This will not stop vehicle production, and genuine parts can be installed in vehicles easily and on time. The quality of the components is also very reliable. These parts are thoroughly tested and examined, and defective parts are removed. Along with this, OEMs keep making necessary and slow changes over time and according to the automotive industry standards to integrate the parts with new technologies.
Attribute | Description |
---|---|
Market Size | Revenue (USD Billion) |
Market size value in 2023 | USD 31.52 Billion |
Market size value in 2033 | USD 56.45 Billion |
CAGR (2024 to 2033) | 6% |
Historical data | 2020-2022 |
Base Year | 2023 |
Forecast | 2024-2033 |
Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level. |
Segments | Type, Vehicle Type, Sales Channel |
As per The Brainy Insights, the size of the steering gears market was valued at USD 31.52 billion in 2023 to USD 56.45 billion by 2033.
The global steering gears market is growing at a CAGR of 6% during the forecast period 2024-2033.
The Asia Pacific region emerged as the largest market for the steering gears.
The focus on driving comfort and safety will influence the market's growth.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global steering gears market based on below-mentioned segments:
Global Steering Gears Market by Type:
Global Steering Gears Market by Vehicle Type:
Global Steering Gears Market by Sales Channel:
Global Steering Gears Market by Region:
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