Germany Automotive Steering Market Overview, 2029

Germany, a powerhouse of automotive innovation and engineering, boasts a rich history and vibrant culture that has shaped its regulatory landscape and government policies, ultimately influencing the automotive steering market. Delving into the country's historical milestones, cultural values, and legislative frameworks provides valuable insights into the unique characteristics of the German automotive industry. The history of Germany's automotive industry dates back to the late 19th century when pioneers like Karl Benz and Gottlieb Daimler invented the first gasoline-powered vehicles. Over time, the industry has evolved and expanded, giving rise to renowned brands such as Mercedes-Benz, BMW, and Audi. This strong foundation has paved the way for continuous advancements in automotive technology, including steering systems. Germany's culture is deeply rooted in precision, quality, and innovation, which are reflected in its automotive engineering and design. This commitment to excellence has resulted in stringent quality standards and rigorous testing procedures for automotive components, including steering systems. As a result, German-made steering components are globally recognized for their reliability, durability, and performance. The German government has established a robust regulatory framework to ensure vehicle safety, emission control, and overall quality. The Federal Motor Transport Authority (KBA) is responsible for implementing and enforcing these regulations. One such regulation is the European Union's General Safety Regulation, which mandates the integration of advanced driver assistance systems (ADAS) in new vehicles, directly impacting the steering market. Germany has implemented environmental policies to reduce greenhouse gas emissions and promote sustainable mobility. The European Union's CO2 emission targets and the shift towards electric vehicles have led manufacturers to develop energy-efficient steering systems, such as electric power steering (EPS), which improves fuel efficiency and reduces emissions. Germany's federal and regional governments also provide support for research and development (R&D) initiatives in the automotive sector. The Federal Ministry of Education and Research (BMBF) and the Federal Ministry for Economic Affairs and Energy (BMWi) offer funding programs for innovative projects, encouraging advancements in steering technologies. According to the research report "Germany Automotive Steering Market Overview, 2029," published by Bonafide Research, the Germany Automotive Steering market is anticipated to grow at more than 3.9% CAGR from 2024 to 2029. This expansion can be attributed to several factors, such as the growing inclination towards luxury vehicles, the integration of advanced driver assistance systems (ADAS), and the heightened emphasis on vehicle safety and comfort. However, this growth also brings forth certain challenges, emphasizing the importance of flexibility in the market. A significant challenge faced by the German automotive steering market is the high cost associated with advanced steering systems. The integration of advanced technologies, like steering sensors and electric power steering (EPS) systems, increases the overall vehicle price, which could potentially hinder market growth in price-sensitive segments. The importing steering components and systems from foreign countries may present logistical issues and additional expenses, further impacting the market. The rising demand for luxury vehicles and SUVs in Germany provides a considerable opportunity for the automotive steering market, as these vehicles generally feature advanced steering systems. The growing preference for premium automobiles is anticipated to drive the demand for steering components. The adoption of ADAS and autonomous driving technologies is expected to propel the steering sensor segment, as these systems require precise and reliable steering inputs. Adaptability is crucial in the German automotive steering market to accommodate the diverse needs of various vehicle segments and keep up with rapidly advancing technologies. Manufacturers should invest in research and development to create innovative, cost-efficient, and high-performing steering solutions that can be easily integrated into different vehicle types.

The German steering system market is segmented into various types that cater to a broad spectrum of automotive needs. At one end of the spectrum lies the manual steering system, a simple yet reliable technology that retains a modest but steady presence in the market. Despite the dominance of power steering systems, manual steering continues to serve a niche audience due to its cost-effectiveness and straightforward design, which is particularly suitable for specific applications. The power steering segment undeniably steals the limelight, emerging as the leading and fastest-growing force within the German market. This segment is further bifurcated into hydraulic power steering (HPS) and electric power steering (EPS), each offering distinct advantages that align with different vehicle requirements. HPS, with its time-tested reliability and consistent performance, has historically been the industry standard. Leveraging hydraulic pressure to assist drivers, HPS systems have found favor in larger vehicles where robustness and reliability are paramount. The tide is gradually turning in favor of EPS, as the market recognizes its potential to address the evolving needs of drivers and manufacturers. EPS systems, which utilize electric motors for steering assistance, offer enhanced fuel efficiency and a reduced carbon footprint, resonating with Germany's broader sustainability goals. Moreover, their seamless integration with advanced driver-assistance systems (ADAS) makes them a natural choice for modern vehicles that prioritize cutting-edge technology and connectivity. Beyond the HPS and EPS dichotomy, the German steering system market also encompasses a range of other technologies. Variable gear ratio steering systems, for instance, offer the best of both worlds by adjusting the steering ratio based on vehicle speed, ensuring optimal maneuverability at low speeds and stability at high speeds. Rack and pinion steering systems, celebrated for their precision and direct feedback, remain a popular choice for passenger cars, enhancing the driving experience with their responsive handling. The German steering system market is characterized by a wide-ranging segmentation based on vehicle types, each catering to distinct automotive needs and preferences. The passenger vehicles segment, which includes cars, SUVs, and vans, takes the lead in this market, driven by the high demand for personal transportation solutions that prioritize driving comfort, agility, and safety. Steering systems designed for this segment focus on delivering precision, responsiveness, and user-friendly operation, ensuring a smooth and enjoyable driving experience in different conditions. Experiencing consistent growth, the commercial vehicles segment encompasses trucks and buses, which play a crucial role in Germany's logistics and public transportation sectors. As the demand for efficient and reliable transportation solutions continues to rise, so does the need for robust and dependable steering systems. Commercial vehicles require steering systems that can handle heavy loads and continuous usage while providing maneuverability in confined urban spaces and stability at higher speeds. This expanding segment offers opportunities for the development of innovative steering technologies that cater to the specific requirements of commercial vehicles. The off-road vehicles segment, consisting of all-terrain vehicles (ATVs), utility task vehicles (UTVs), and dirt bikes, represents a specialized niche within the German steering system market. These vehicles call for specialized steering systems that can perform exceptionally well in off-road environments and withstand challenging conditions. Steering systems for off-road vehicles must offer outstanding control, feedback, and durability to guarantee safe and thrilling experiences for users, whether they are enjoying recreational activities or navigating tough terrains for work purposes. Germany's automotive sector boasts a strong emphasis on innovation and quality in steering system components, ensuring top-notch performance, safety, and driving experiences across various vehicle types. The steering system's components, including the steering column, steering wheel, steering gear, steering pump, steering sensor, and additional parts, all contribute significantly to the overall functionality and reliability. The steering gear stands as the leading component in Germany's market, serving as the core of the steering system. Converting the steering wheel's rotary motion into linear motion, the steering gear enables the wheels to change direction. German manufacturers are recognized for their high-quality steering gears, such as rack and pinion and recirculating ball systems, which offer precision, durability, and smooth operation, consequently increasing demand in both domestic and international markets. Steering sensors represent the growing segment in the German steering component market, as advanced driver assistance systems (ADAS) and autonomous driving technologies become more prevalent. These sensors, including torque sensors, angle sensors, and position sensors, supply vital data to the vehicle's control systems, ensuring safe and efficient steering functions. German companies are pioneering advanced steering sensor technologies to meet the automotive industry's evolving needs. The steering column creates a crucial connection between the steering wheel and the steering gear, ensuring safe and comfortable driving positions. German manufacturers provide adjustable steering columns, allowing drivers to tailor their driving experience while maintaining optimal control. The steering wheel, as the primary connection between the driver and the vehicle, is also essential, with German designers focusing on ergonomics, materials, and integrated controls to enhance comfort and usability. The steering pump is vital in hydraulic power steering systems, supplying the necessary pressure for steering assistance. German manufacturers are known for producing efficient and reliable steering pumps that ensure smooth and effortless steering. Finally, the 'others' category includes various components like steering hoses, seals, and mounting brackets, all contributing to the steering system's overall performance and safety.

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Manmayi Raval

Research Consultant

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Automotive Steering market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type of Steering System • Manual Steering • Power Steering (Hydraulic Power Steering, Electric Power Steering) • Others(Variable Gear Ratio Steering,Rack and Pinion Steering, Recirculating Ball Steering) By Vehicle Type • Passenger Vehicles (Cars, SUVs, Vans) • Commercial Vehicles (Trucks, Buses) • Off-road Vehicles (ATVs, UTVs, Dirt Bikes) By Component • Steering Column • Steering Wheel • Steering Gear • Steering Pump • Steering Sensor • Others By End Use • OEMs (Original Equipment Manufacturers) • Aftermarket The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

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Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the automotive steering industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.