LONDON, 2025 — Claritas Intelligence has published its latest global market report on the automotive steering racks industry, sizing the market at USD 24.8 billion in 2025 and projecting it to reach USD 37.2 billion by 2033 under the firm's base case, a compound annual growth rate of 5.2% over the 2025–2033 forecast period.
The single most structurally important demand driver is the ICE-to-BEV platform transition. BEV architectures cannot accommodate engine-driven hydraulic pumps, making Electric Power-Assisted Steering (EPAS) the only viable actuation solution on these platforms. The report estimates EPAS now accounts for approximately 68% of steering rack shipments by volume in 2025, up from roughly 42% in 2019. As global BEV penetration rises from an estimated 18% of new-vehicle sales in 2025 toward 38–42% by 2033 under the base case, EPAS rack demand grows in step. That growth dynamic does carry a counterweight: gigacasting and cross-vehicle platform sharing exert meaningful downward pressure on per-unit rack selling prices in the commodity EPAS segment, with Claritas modelling ASP compression of 1.5–2.5% per year in that tier.
Mandatory ADAS content escalation compounds the volume story with a margin dimension. NHTSA's Automatic Emergency Braking mandate, effective September 2, 2029 for light vehicles, Euro NCAP's 2025 protocol requiring lane-centering assist for five-star ratings, and MIIT's mandatory ADAS platform requirements in China are collectively pulling higher-specification EPAS racks into volume tiers that previously used commodity assemblies. Each L1-to-L2 transition adds an estimated USD 80–150 in steering-system content value per vehicle. At L2+ autonomy, ADAS content-per-vehicle for steering systems reaches USD 180–320, versus USD 55–90 at L0/L1. Steer-by-wire architectures, currently sub-2% of production volume, command average selling prices 3–5x higher than conventional EPAS racks; ZF Friedrichshafen AG and Nexteer Automotive together hold an estimated 35–38% of global EPAS rack revenue in 2025. The UN-R157 certification pathway is creating a defined regulatory on-ramp for production SbW deployment at L3 and above.
Asia Pacific is both the largest and fastest-growing regional market. The region holds approximately 47% of global market share in 2025, anchored by China OEM production volumes under MIIT NEV mandate targets, and the report projects a regional segment CAGR of 6.1% through 2033. The SUV and crossover mix shift, with those body styles representing approximately 55–58% of global new-vehicle sales in 2025, supports per-unit ASP expansion across all regions by requiring higher-load-rated racks with longer travel and heavier motor assemblies.
"The steering rack is being quietly repriced by two forces that most coverage treats separately: the BEV transition, which makes EPAS structurally mandatory, and the ADAS content mandate, which raises the software and sensor interface requirements on every rack sold into an L2+ platform. Suppliers who stay in commodity EPAS assembly will face persistent ASP pressure; the margin opportunity is in steer-by-wire, integrated chassis actuation, and OTA-licensed torque-map software — and the regulatory calendar is now providing a concrete timeline for that transition." — Aditi Rao, Senior Analyst, Claritas Intelligence
The report covers key participants including Nexteer Automotive Group Limited, ZF Friedrichshafen AG, Robert Bosch GmbH, JTEKT Corporation, Mando Corporation, Showa Corporation, Hitachi Astemo Ltd., Thyssenkrupp Presta AG, Linamar Corporation, Schaeffler AG, NSK Ltd., and Knorr-Bremse AG. The study period spans 2019–2033, with 2025 as the base year.
About Claritas Intelligence: Claritas Intelligence is a global market intelligence publisher providing forecast research, competitive analysis, and strategic data across industrial, technology, and consumer sectors. Its research is used by strategy teams, investors, and commercial leaders to support capital allocation and go-to-market decisions.
The full analysis, including segmentation, regional breakdowns, forecasts, and company profiles, is available in the Automotive Steering Racks Market Report.
“Claritas Intelligence projects the global automotive steering racks market to grow from USD 24.8 billion in 2025 to USD 37.2 billion by 2033 at a 5.2% CAGR, as BEV platforms and ADAS mandates accelerate the shift to electric power-assisted steering.”
Aditi Rao
Manager – Automotive