Market Trends of Europe Adaptive Steering Industry
This section covers the major market trends shaping the Europe Adaptive Steering Market according to our research experts:
Sale of Passenger Cars Poised to Fuel Demand
The automotive industry in Europe is the one of the important sectorscontributing for GDP. In 2018, the automotive industry accounted for nearly 20% of the total German industry revenue. The increasing adaptive steering market in this region is also due to the growing population and rising income levels, which have led to increased demand for automobiles.
But other automated steering with technologies, such as lane-keeping assistance and lane-centering capabilities, and other huge investments in their development may hinder the growth of the adaptive steering market. For instance,
- In June 2018, ZF Friedrichshafen AG had introduced sMotion technology with Fully Active Chassis System (FACS) that enhances driving dynamics. This technology can eliminate most car body movement in passenger cars. FACS releases occupants from driving positions for autonomous driving.
However, the rise in demand of automation and advanced driver assist systems technology cease the market share of adaptive steering. Steer-by-wire (absence of mechanical linkages between road wheels and steering wheel) technology is anticipated to hinder the growth of the market in the coming years.
Additionally, the European region has significant growth potential, owing to low automobile production costs, easy availability of economical labor, lenient emission, and safety norms, and government initiatives to support foreign direct investments (FDIs).
Germany Holds a Significant Share in the Market
The adaptive steering market is Germany holds a significant share compared to other countries in Europe. This is attributed due to the larger automobile market, strong presence of automotive manufacturing and technology companies, and a developed economy. Also, passenger cars had the highest share in adaptive steering technology market share owing to increase in demand.
- Germany is Europe's largest automotive market with car production of about 4.6 million, which accounted for nearly 25% of the European passenger cars manufactured in 2019.
With the installation of new plants by OEM suppliers in Germany, the addition of adaptive steering system and automated steering technology is driving the market towards higher profitability. For instance,
- In February 2017, Robert Bosch GmbH in Germany had introduced parking assistance feature even in midsize cars. Earlier, this feature was available only in premium and luxury cars.
- In March 2020, Knorr-Bremse AG, a leading German manufacturer of steering and braking systems had announced its joint venture with Dongfeng Motor Corporation for the production of steering systems. Also, the joint venture includes the development of driver assistance and automated driving functions.
Thus, owing to the increasing developments, the automotive adaptive steering market in the region is expected to grow at a rapid pace.
