Australia Automotive Steering System Market 2025 | Expected to Reach USD 1,186.2 Million by 2033

The latest report by IMARC Group, "Australia Automotive Steering System Market Size, Share, Trends and Forecast by Type, Component, Vehicle Type, and Region, 2025-2033," provides an in-depth analysis of the Australia automotive steering system market. The report also includes competitor and regional analysis, along with a breakdown of segments within the industry. The Australia automotive steering system market size reached USD 542.5 million in 2024 and is projected to grow to USD 1,186.2 million by 2033, exhibiting a strong growth rate of 8.40% during the forecast period.

Report Attributes and Key Statistics:

Base Year: 2024

Forecast Years: 2025-2033

Historical Years: 2019-2024

Market Size in 2024: USD 542.5 Million

Market Forecast in 2033: USD 1,186.2 Million

Growth Rate (2025-2033): 8.40%

Australia Automotive Steering System Market Overview:

The Australia automotive steering system market is experiencing strong growth driven by rising vehicle production and sales with surge in SUV and light commercial vehicle (ute) popularity requiring robust efficient steering mechanisms, stringent government safety and emission regulations mandating advanced steering technologies meeting performance standards, and growing consumer demand for fuel-efficient vehicles favoring electric power steering (EPS) reducing engine load. The market demonstrates robust momentum fueled by technological advancements including shift from traditional hydraulic systems to EPS enhancing fuel efficiency and steering responsiveness, integration of AI in steering systems and advanced driver-assistance systems (ADAS) improving vehicle control and safety, and increasing demand for electrically assisted hydraulic power steering (E-HPS) in commercial vehicles. Strategic expansion is supported by growing adoption of electric vehicles predominantly utilizing EPS due to compatibility with electric drivetrains, consumer preference for enhanced driving comfort with modern steering systems offering smoother handling and less physical effort, and manufacturer investments in research and development introducing cutting-edge steering solutions including steer-by-wire technology eliminating mechanical linkages.

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Australia Automotive Steering System Market Trends:

• Electric Power Steering Dominance accelerating as shift from hydraulic systems to EPS enhances fuel efficiency, provides better responsiveness, and aligns with consumer demand for advanced driving experiences

• Steer-by-Wire Technology emerging as innovative solution eliminating mechanical linkages offering improved vehicle control, safety benefits, and integration with autonomous driving systems

• ADAS Integration advancing steering system capabilities through advanced driver-assistance features including lane-keeping assist, adaptive cruise control, and automated parking enhancing safety

• F1-Style Innovation gaining attention as Lexus introduces controversial yoke steering wheel system in RZ electric models scheduled to debut in Australia bringing Formula 1 technology to streets

• AI-Powered Steering transforming vehicle dynamics through artificial intelligence integration enabling predictive steering adjustments, personalized driving modes, and enhanced autonomous capabilities

• Lightweight Materials optimizing performance as manufacturers utilize advanced composites and aluminum alloys reducing steering system weight improving fuel efficiency and vehicle handling dynamics

• Commercial Vehicle Electrification expanding E-HPS adoption in light and heavy commercial vehicles balancing power assistance requirements with fuel efficiency goals in work and fleet applications

Australia Automotive Steering System Market Drivers:

• Vehicle Production Growth creating substantial demand as steady increase in automotive manufacturing and sales particularly SUVs and utes necessitates advanced steering systems ensuring safety and performance

• Regulatory Compliance supporting technology adoption as stringent government safety and emission standards mandate implementation of fuel-efficient EPS and advanced steering technologies meeting environmental requirements

• Electric Vehicle Adoption enabling EPS dominance as growing EV market predominantly utilizes electric power steering due to compatibility with electric drivetrains and elimination of hydraulic system complexity

• Fuel Efficiency Demands motivating EPS transition as modern steering systems reducing engine load compared to traditional hydraulic systems contribute to better fuel economy meeting consumer preferences

• Driving Comfort Priorities facilitating advanced system adoption as Australian consumers increasingly value smooth handling, reduced physical effort, and enhanced overall driving experience in vehicle choices

• Technology Innovation driving R&D investments as manufacturers develop cutting-edge solutions including steer-by-wire, ADAS integration, and AI-powered systems differentiating brands and capturing market share

• SUV Market Expansion requiring robust steering solutions as popularity of sport utility vehicles and light commercial vehicles demands steering mechanisms handling dynamics of larger heavier vehicles

Market Challenges:

• High System Costs constraining affordability as advanced electric power steering and steer-by-wire technologies require significant component investments increasing vehicle prices particularly in entry-level segments

• Supply Chain Dependencies creating vulnerabilities as reliance on imported electronic components, sensors, and specialized parts exposes manufacturers to international supply disruptions and cost volatility

• Retrofit Limitations hindering aftermarket potential as complex integration requirements and vehicle-specific calibrations make retrofitting advanced steering systems to existing vehicles technically challenging and expensive

• Cybersecurity Concerns emerging with connectivity as electronic and steer-by-wire systems networked with vehicle control units face potential cyber threats requiring robust security protocols and continuous updates

• Technical Complexity increasing maintenance requirements as advanced steering systems with multiple sensors, electronic control units, and software demand specialized diagnostic equipment and trained technicians

• Consumer Acceptance affecting adoption rates as unconventional designs like yoke steering wheels and steer-by-wire systems face resistance from traditional drivers accustomed to conventional steering feel

• Warranty and Liability complicating market dynamics as advanced autonomous steering features raise questions about manufacturer responsibility, insurance coverage, and liability in accident scenarios

Market Opportunities:

• Autonomous Vehicle Integration developing steering systems compatible with self-driving technologies including steer-by-wire platforms enabling full autonomous control and enhanced safety features

• Aftermarket Upgrade Programs offering retrofit solutions for older vehicles upgrading to power-assisted steering or enhanced EPS systems extending vehicle life and improving safety in aging fleet

• Fleet Management Solutions targeting commercial vehicle operators with intelligent steering systems featuring telemetry, driver behavior monitoring, and predictive maintenance capabilities optimizing operations

• Performance Tuning Market catering to enthusiast segment with adjustable EPS systems offering customizable steering weight, response curves, and sport mode settings enhancing driving dynamics

• Regional Manufacturing establishing local production facilities for steering components reducing import dependencies, lowering costs, and enabling faster supply chain response for Australian automotive market

• EV-Specific Innovations developing specialized steering solutions optimized for electric vehicle characteristics including regenerative braking integration, single-pedal driving, and enhanced low-speed maneuverability

• Smart Steering Analytics integrating predictive algorithms analyzing driving patterns, road conditions, and vehicle dynamics providing real-time adjustments and maintenance alerts improving safety and longevity

Browse the full report with TOC and List of Figures: https://www.imarcgroup.com/australia-automotive-steering-system-market

Australia Automotive Steering System Market Segmentation:

By Type:

• Electric Power Steering (EPS)

• Hydraulic Power Steering (HPS)

• Electro-Hydraulic Power Steering (EHPS)

• Manual Steering

By Component:

• Steering Column

• Steering Wheel Speed Sensors

• Electric Motors

• Hydraulic Pumps

• Others

By Vehicle Type:

• Passenger Cars

• Light Commercial Vehicles

• Heavy Commercial Vehicles

By Regional Distribution:

• Australia Capital Territory & New South Wales

• Victoria & Tasmania

• Queensland

• Northern Territory & Southern Australia

• Western Australia

Australia Automotive Steering System Market News:

September 2025: Tesla eliminated Enhanced Autopilot option in Australia, going all-in on FSD Supervised drive, reflecting advanced steering system integration with autonomous driving technologies and market shift toward fully autonomous capabilities.

March 2025: Lexus announced plans to introduce F1-style yoke steering wheel in RZ electric models in Australia later in 2025, bringing controversial Formula 1 technology to Australian streets demonstrating innovation in steering system design.

January 2025: Kia EV6 preview arrived early in Australia with refinements including new power-assisted steering system and additional tuning from Australian team for improved rough road and driving limit confidence.

2025: Global automotive steering system market projected to grow from USD 25.9 billion in 2025 to USD 37.6 billion by 2035 driven by EV adoption, steer-by-wire technology, and AI innovations influencing Australian market development.

Key Highlights of the Report:

• Comprehensive market analysis projecting strong growth from USD 542.5 million in 2024 to USD 1,186.2 million by 2033 with 8.40% CAGR

• Detailed examination of electric power steering dominance replacing traditional hydraulic systems enhancing fuel efficiency, responsiveness, and compatibility with electric vehicle drivetrains

• Strategic assessment of technological innovations including steer-by-wire technology, ADAS integration, and AI-powered systems eliminating mechanical linkages and improving vehicle control

• In-depth analysis of vehicle production growth particularly SUVs and light commercial vehicles requiring robust steering mechanisms ensuring safety and performance in larger vehicles

• Regional market evaluation covering Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia

• Lexus F1-style yoke steering wheel introduction highlighting Australian market receptiveness to innovative unconventional steering designs in premium electric vehicle segment

• Consumer preference insights revealing priorities for enhanced driving comfort, fuel efficiency, and advanced features driving adoption of modern steering technologies nationwide

Frequently Asked Questions (FAQs):

Q1: What are the primary factors driving Australia's automotive steering system market growth to USD 1,186.2 million by 2033?

A1: The market is driven by rising vehicle production and sales particularly SUVs and light commercial vehicles requiring advanced steering systems, stringent government safety and emission regulations mandating fuel-efficient technologies, and growing electric vehicle adoption utilizing EPS due to drivetrain compatibility. Technological advancements including shift from hydraulic to electric power steering, ADAS and AI integration improving control and safety, and consumer demand for enhanced driving comfort and fuel efficiency contribute to the strong 8.40% growth rate during the forecast period.

Q2: How are technological innovations transforming steering system capabilities?

A2: Technological innovations are revolutionizing steering through electric power steering replacing hydraulic systems providing better fuel efficiency and responsiveness, steer-by-wire technology eliminating mechanical linkages enabling improved vehicle control and autonomous driving integration, and AI-powered systems offering predictive adjustments and personalized driving modes. Advanced driver-assistance system integration including lane-keeping assist and automated parking, Lexus F1-style yoke steering wheel introduction, and commercial vehicle E-HPS adoption demonstrate continuous evolution meeting diverse performance, efficiency, and safety requirements.

Q3: What opportunities exist for automotive steering system market expansion?

A3: Autonomous vehicle integration developing steer-by-wire platforms enabling full self-driving capabilities, aftermarket upgrade programs offering retrofit solutions for aging fleet vehicles, and fleet management solutions with telemetry and driver behavior monitoring represent high-growth opportunities. Performance tuning market catering to enthusiast segment with customizable EPS systems, regional manufacturing reducing import dependencies, and EV-specific innovations optimizing electric vehicle characteristics provide diverse expansion avenues across passenger cars, commercial vehicles, and aftermarket segments.

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