Steering Column Control Module Market Size, Share & COVID-19 Impact Analysis, By Steering Type (Power Steering, Manual Steering), By Vehicle Type (Passenger Cars, Commercial Vehicles), and Regional Forecasts, 2021-2028

The global steering column control module market size was USD 15.64 billion in 2020 and is projected to grow from USD 16.49 billion in 2021 to USD 27.26 billion in 2028 at a CAGR of 7.5% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with steering column control module witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline in growth of 15.24% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The Steering Column Control Module (SCCM) is the interface between the steering wheel and the steering column necessary to transfer the driver's input rotation. It integrates clock springs, steering angle sensors, power tilt/telescope column controls, pedal position controls, and other simple and complex switches. These parts allow the module to integrate the ignition switch and column lock when required. Steering column control modules integrate convenience and security into a single module, and help improve quality and reduce costs.

Factors such as increasing vehicle ownership (with high EV sales in particular) and high dependency of auto manufacturers on steering system providers due to the expertise required will influence the growth of the market.

COVID-19 IMPACT

COVID-19 Led to Decrease in Revenue during the Short Term and Accelerated the Adoption of Alternative Fuel Vehicles and Virtual Means of Buying

The pandemic-induced lockdown caused a severe revenue loss to auto manufacturers in 2020. Due to the decrease in consumer demand, automakers were compelled to decrease support for R&D initiatives and avert a liquidity crunch. Furthermore, decreased production capacity and a shift to shared mobility have compounded the revenue loss faced by key manufacturers. These factors led to a decrease in market revenue in 2020.

However, since the fourth quarter of 2020, automakers worldwide have witnessed a rapid rebound in production with a sharp increase in electric vehicle sales. According to the International Energy Agency (IEA), sales of electric vehicles increased by 43% in 2020. Automakers have also successfully experimented with means of car-buying other than dealership floors, with Tesla, Volvo, and Volkswagen in particular at the forefront of remote and virtual platforms. Other automakers are experimenting with manufacturers or dealer-led models for selling and servicing cars. This will lead to a significant increase in automobile sales in the mid to long term, which, in turn, will lead to positive growth in market revenue during the forecast period.

LATEST TRENDS

Development of Autonomous Driving to Augment Growth

Hands-off detection is an important function in autonomous driving that requires interaction with other systems such as column control modules to enable safe switching between system-controlled and driver-controlled modes. In July 2021, Alps Alpine announced the development and mass production of a hands-off electronic control unit (ECU) that can distinguish drivers’ grip variations and enhance autonomous driving functions. These factors will positively influence the demand for steering column control modules and their related accessories.

DRIVING FACTORS

Increase in Vehicle Ownership in Developing Countries to Drive the Growth of Market

The pandemic has amplified the demand for personal vehicles as people are reluctant to use public transportation. For instance, according to a study conducted by Accenture in China, health concerns among consumers have led to a 27% increase in new car sales. Moreover, there is a shift in consumer preference from sedans to SUVs in India and China, aided by large automakers offering a greater variety of models in this segment. Hence, an increase in vehicle ownership will directly lead to increased steering column control modules sales during the forecast period.

Increasing Sales of Electric Vehicles (EVs) to Augment Growth

With a greater focus on reducing the environmental impact of automobiles, especially in developed countries, sales of EVs have increased exponentially every year. For instance, according to the International Energy Agency (IEA), 3 million new EVs were sold in 2020 as compared to 2019, an increase of 41%. In comparison, the global automobile market witnessed a decline in growth of 16% in 2020. Greater investment in battery manufacturing and the development of widespread charging infrastructure have further propelled the demand for Electric Vehicles (EVs).

Hence, the above-mentioned factors will fuel the growth of the market.

RESTRAINING FACTORS

Increasing Adoption of Shared Mobility Will Restrain the Growth of Market

Shared mobility provides customers with economic efficiency as compared to car ownership. For instance, according to SOCAR, a Malaysia-based car-sharing service provider, users can save up to USD 300/month compared to owning a car. Additionally, traffic congestion and environmental concerns, especially in China and India are also accelerating the growth of shared mobility. These factors will lead to a decrease in vehicle ownership, which, in turn, may restrain the global steering column control module market growth.

SEGMENTATION

By Steering Type Analysis

Power Steering Segment Expected to Dominate the Market Owing to Improved Safety

By type, the market is segmented into power steering and manual steering. The power steering segment held the largest share of the market. Power steering requires minimum effort and provides better safety and control in critical situations. These factors fuel the dominance of this segment.

The manual steering segment is anticipated to exhibit steady growth during the forecast period due to its lower cost, less complexity, and more precise operation as more steering input is required.

By Vehicle Type Analysis

Passenger Cars Segment Dominated the Market in 2020 Owing to Low Total Costs

Based on vehicle type, the market for global steering column control modules is segmented into passenger cars and commercial vehicles. The passenger car segment dominated the market in 2020, which can be attributed to low maintenance and repair costs, availability of spare parts, higher fuel efficiency, and increased driving comfort associated with passenger cars.

The commercial vehicles segment is also expected to exhibit good growth in the market. The decreasing total cost of ownership and multi-brand manufacturers that are offering more market-tailored products and pricing strategies will fuel the growth of this segment.

REGIONAL INSIGHTS

Asia Pacific holds the largest share of the global steering column control module market and is valued at USD 8.22 billion in 2020. This can be attributed to the increase in customer-friendly measures such as subsidies, lower interest rates, and other incentives that have led to high auto sales in China and India.

North America is also expected to show considerable growth in the market. The majority of the population live in the suburbs in the U.S., which offer poor alternatives to private vehicles. Furthermore, even for commuting, automobiles are used by 87% of workers in the U.S. These factors are responsible for continued growth in automobile sales in the region, which, in turn, will surge the demand for steering column control modules during the forecast period.

Moreover, Europe is expected to show steady growth in the market. Factors such as increasing penetration of online sales and decreasing price of new vehicles (except EVs) will positively influence the growth of the market. Further, the Rest of the World, including the Middle East and Africa and Latin America held the lowest market share in 2020. However, the market is projected to witness certain growth in the coming years owing to expanding automotive industry in Africa and Latin America.

KEY INDUSTRY PLAYERS

Kostal Automobil Elektrik is a Leading Player in the Market Owing to Productive Partnerships and Industry-Leading Products

Kostal Automobil Elektrik (the largest division of the Kostal Group) is one of the leading players in the global market owing to its reliable, innovative, and cost-effective products. It produces steering column modules that integrate a multitude of functions and is also significantly quicker to mount in the customer's plant, creating significant advantages for OEM customers. These factors are responsible for the company's leading position in the market.

LIST OF KEY COMPANIES PROFILED:

• Leopold Kostal GmbH & Co. KG (Ludenscheid, Germany)


• ZF Friedrichshafen AG (Friedrichshafen, Germany)


• Nexteer Automotive (Michigan, U.S.)


• Valeo (Paris, France)


• Merit Automotive Electronics Systems (Barcelona, Spain)


• IDIDIT (Michigan, U.S.)


• Texas Instruments Incorporated (Texas, U.S.)


• HELLA GmbH & Co. KGaA (Lippstadt, Germany)

KEY INDUSTRY DEVELOPMENTS:

• July 2021 – Hella secured further major orders and successfully commenced series production of the latest product generation of steering electronics. Designed as a fail-operational system, the new modules represent an essential key component for automated driving.


• November 2021 – Nexteer Automotive received two awards at CES 2022 Innovation Awards for its Automated Steering Actuator (ASA) and its Steer-by-Wire (SbW) with Stowable Steering Column. The ASA, in particular, offers a single steering solution that solves challenges for shared, autonomous, and electric people mover vehicles.

REPORT COVERAGE

The global steering column control module market report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth in recent years.

Report Scope & Segmentation