Industry: Automotive
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 176
Report ID: PMRREP16984
The global automotive steering wheel market is expected to increase from US$29.7 Bn in 2024 to US$53.3 Bn by the end of 2031. The market is anticipated to secure a CAGR of 8.7% during the forecast period from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$29.7 Bn |
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Projected Market Value (2031F) |
US$53.3 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
8.7% |
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Historical Growth Rate (CAGR 2019 to 2023) |
7.1% |
Asia Pacific to Exhibit a CAGR of 9.8%
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Region |
CAGR through 2031 |
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Asia Pacific |
9.8% |
The dominance of Asia Pacific is fueled by burgeoning vehicle production and bolstered by governmental initiatives promoting electric and autonomous vehicles. Asia Pacific is estimated to lead the global automotive steering wheel market through proactive market developments in the coming years.
The region accounted continued growth, driven by increasing vehicle production and technological advancements. The rapid adoption of EPS technology, especially in passenger cars and light commercial vehicles, owing to enhanced driving comfort and better fuel efficiency, is expected to drive market growth in China. The country is the global electronics manufacturing hub, has the advantage of faster adoption of EPS.
Leading automotive manufacturers and suppliers based in Asia Pacific have established a strong presence in the global market. Their expertise, production capabilities, and strategic partnerships enhance the region's influence and competitiveness in steering wheel production and supply chains.
Embedded Control Steering Technology Dominates Global Market Share
Embedded control steering wheels incorporate advanced technologies such as electronic control units (ECUs), sensors, and actuators directly within the steering wheel assembly.
These technologies enable precise control and communication between the driver and the vehicle's electronic systems, enhancing overall vehicle performance, safety, and comfort.
The dominance of the embedded control steering segment in the global automotive steering wheel market is underpinned by its continual evolution through technological advancements.
Some of the leading steering manufacturers like Autoliv Inc, ZF Friedrichshafen AG, and Nexteer Automotive Corp are at the forefront of this innovation. They are actively developing next-generation steering technologies such as steer-by-wire, direct adaptive steering, and intuitive steering systems.
Passenger Vehicles Maintain Supremacy in Adoption
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Category |
Key Insights |
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Passenger Vehicles |
US$29.7 Bn |
Passenger vehicles, including sedans, SUVs, hatchbacks, and luxury cars, constitute a substantial portion of total vehicle production globally. The sheer volume of passenger vehicles manufactured each year drives consistent demand for steering wheel components and systems.
Passenger vehicles have emerged as the reigning monarch of the global automotive market, poised to maintain their supremacy in the foreseeable future. Fueled by escalating disposable incomes and burgeoning sales across developing nations, the segment seized a commanding 69.1% market share in 2023.
Passenger vehicles encompass a wide range of vehicle types and sizes, each requiring steering systems tailored to their specific performance and handling characteristics. This diversity in vehicle types contributes to the broad application of steering wheel technologies across various segments of the automotive steering wheel market.
The automotive steering wheel is not merely a functional component for steering; it serves as a critical interface between the driver and the vehicle. Traditionally made of materials like leather-wrapped steel, steering wheels have evolved to incorporate advanced materials such as carbon fiber, aluminum, and even wood, catering to diverse consumer tastes and preferences.
Key trends impacting the market include rising demand for high performance vehicles, rising need for enhanced services, growing demand for lightweight vehicles, increasing population growth and automobile production, upgraded software and hardware, and a growing global economy.
Asia Pacific is poised to show growth in the coming years to reach a 22.5% share in the automotive steering wheel market towards the end of 2024. Increasing consumer demand for personalized vehicle interiors has driven the market towards offering customizable steering wheel designs, materials, and finishes. Automakers and aftermarket suppliers cater to this trend by providing a wide range of options to suit individual preferences.
Continued development of lightweight, durable materials to improve performance and sustainability. Moreover, increasing integration of touch-sensitive controls, capacitive sensors, and gesture recognition systems enhances user interface and vehicle connectivity.
Steering wheels are becoming hubs for controlling various vehicle functions, contributing to enhanced driver engagement and convenience.
The rise of electric vehicles and the push toward lightweight materials are significant drivers for the market growth. EVs benefit from lightweight steering wheels to maximize efficiency and extend driving range, aligning with the overall goal of reducing vehicle weight to enhance performance and sustainability.
This shift towards lightweight materials such as carbon fiber, aluminum alloys, and advanced plastics not only improves fuel efficiency but also addresses regulatory standards for emissions and safety.
Continued economic recovery and the shift toward electric vehicles (EVs) and advanced driver-assistance systems contributed to growth. Automakers focused on integrating advanced steering wheel technologies to enhance vehicle safety and comfort. The market exhibited a CAGR of 7.1% during the historical period.
The market saw significant growth as automotive production levels approached pre-pandemic figures. Increasing consumer demand for luxury vehicles equipped with innovative steering wheel features further boosted market expansion.
The automotive steering wheel is poised for continued growth in the coming years, driven by ongoing technological advancements, increasing vehicle electrification, and regulatory emphasis on vehicle safety and efficiency.
Manufacturers are expected to focus on innovation, sustainability, and integration of advanced features to meet evolving consumer demands and regulatory requirements. The market is expected to secure a CAGR of 8.7% during the forecast period.
Shift Towards Electric and Autonomous Vehicles
The automotive industry is witnessing a profound shift towards electric vehicles (EVs) and autonomous driving technologies. This transformation is influencing steering wheel designs and functionalities to accommodate the unique requirements of these next-generation vehicles.
Electric vehicles require steering wheels that integrate controls for regenerative braking, energy consumption displays, and EV mode selection. Manufacturers are designing steering wheels with intuitive interfaces and integrated displays to provide EV drivers with real-time vehicle performance feedback and control options.
Autonomous vehicles necessitate steering wheels capable of seamlessly transitioning between manual and autonomous driving modes. Automotive steering wheels with retractable designs or advanced control functionalities are being developed to facilitate this transition and enhance passenger comfort and safety during autonomous driving scenarios.
The shift toward electric and autonomous vehicles is also driving innovation in steering wheel materials and ergonomics. Lightweight materials such as carbon fiber and aluminum alloys are gaining popularity to reduce vehicle weight and improve energy efficiency in electric vehicles.
Integration of ADAS
Advanced driver-assistance systems (ADAS) represent a significant evolution in automotive technology, focusing on enhancing vehicle safety and driving experience.
Steering wheels are pivotal components in ADAS implementations, as they integrate various sensors and control mechanisms to enable functionalities such as lane-keeping assistance, and adaptive cruise control.
Steering wheels are increasingly designed to accommodate sensors that detect driver hand position, grip force, and even monitor driver attention through biometric sensors. This integration supports ADAS functionalities by providing real-time data necessary for accurate vehicle control and safety alerts.
Modern steering wheels incorporate haptic feedback systems that alert drivers through vibrations or resistance variations, signaling lane departure or potential collisions detected by ADAS sensors. This enhances driver awareness and response times, thereby reducing accidents and improving overall safety ratings.
Automakers across the globe are accelerating the integration of ADAS into their vehicle models to meet stringent safety regulations and consumer demand for safer driving experiences. This market trend is propelling the demand for advanced steering wheel technologies capable of supporting these sophisticated ADAS features.
Increasing Cost Pressure, and Supply Chain Disruptions
The automotive steering wheel market faces substantial cost pressures arising from several factors, including raw material costs, regulatory requirements, and technological advancements. These pressures constrain profitability and influence pricing strategies across the industry.
Steering wheels require high-quality materials for durability, safety, and aesthetics. Fluctuations in material prices, particularly for advanced composites and ergonomic designs, directly impact manufacturing costs.
Stringent safety and environmental regulations necessitate continuous investment in research and development (R&D) to meet evolving standards. Compliance with these regulations adds additional costs to manufacturing processes.
Integration of advanced features such as touch-sensitive controls, haptic feedback systems, and sensor technologies requires ongoing R&D investment. This drives up development and production costs, especially for steering wheels designed to support ADAS and autonomous driving functionalities.
Increasing Shift Towards Autonomous Vehicles and Drive-by-Wire Systems
The rapid advancement toward autonomous driving technologies and drive-by-wire systems presents a significant restraint for traditional automotive steering wheel manufacturers.
Such technologies aim to eliminate the need for mechanical steering controls, potentially altering the role and design requirements of steering wheels in future vehicle models.
Autonomous vehicles equipped with drive-by-wire systems replace traditional mechanical steering mechanisms with electronic controls. This shift reduces the complexity and size of steering wheels, impacting demand for traditional steering wheel components.
Autonomous vehicles may require steering wheels with multifunctional interfaces, retractable designs, or alternative control mechanisms to accommodate varying levels of autonomy and passenger preferences. Adapting to these design requirements poses challenges for traditional steering wheel manufacturers.
The emergence of new entrants specializing in electronic control systems and autonomous vehicle technologies intensifies market competition. Established steering wheel manufacturers must innovate rapidly to remain competitive in a shifting automotive landscape.
Development of Steering Wheels for Electric and Autonomous Vehicles
The rapid growth of electric vehicles, and autonomous driving technologies presents a significant opportunity for industry participants to innovate in steering wheel design and functionality.
The next-generation vehicles require steering wheels that not only meet traditional ergonomic and safety standards but also integrate specialized features tailored to the unique requirements of electric and autonomous driving modes.
Steering wheels designed for electric vehicles can incorporate controls for regenerative braking, energy consumption monitoring, and EV mode selection. These features enhance driver control and interaction with EV-specific functionalities, contributing to improved energy efficiency and driving range.
Autonomous vehicles necessitate steering wheels with adaptable designs that accommodate varying levels of autonomy. Retractable steering wheels, multifunctional interfaces, and integrated sensors are key innovations that support seamless transitions between manual and autonomous driving modes.
Lightweight materials such as carbon fiber and aluminum alloys are gaining prominence in steering wheel construction for electric and autonomous vehicles. These materials enhance vehicle efficiency and reduce overall weight, contributing to improved performance and sustainability.
The automotive steering wheel is poised for growth and innovation driven by opportunities in ADAS integration and the development of steering wheels for electric and autonomous vehicles.
Industry participants can leverage these opportunities by investing in research and development, forging strategic partnerships, and aligning their product offerings with evolving consumer preferences and regulatory requirements.
Competition is fueled by ongoing advancements in steering wheel technologies. Companies are investing in research and development to enhance safety features, integrate advanced materials, and support functionalities for electric and autonomous vehicle.
To strengthen market positions and expand technological capabilities, companies are forming strategic alliances with automotive manufacturers, technology firms, and research institutions. These collaborations aim to drive innovation and respond effectively to evolving demands in the market.
Recent Industry Developments
September 2023
Autoliv embarked on a transformative journey by forging a strategic alliance with Great Wall Motor ("GWM") in September 2023 navigating the dynamic currents of the global automotive realm. This partnership underscores Autoliv's commitment to fortifying ties with Chinese OEMs, fostering a synergy that accelerates innovation in advanced technologies while upholding uncompromising standards of quality.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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Increasing shift toward electric and autonomous vehicles is a key driver for market growth.
The market is anticipated to secure a CAGR of 8.7% during the forecast period from 2024 to 2031.
A few of the key players operating in the market are JTEKT Corporation, Toyoda Gosei Co. Ltd, and Autoliv Inc.
Development of steering wheels for electric and autonomous vehicles presents a promising opportunity for the market players.
The automotive steering wheel market is valued at US$29.7 Bn as of 2024.
