Global Steering Thermal Systems Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

The Global Steering Thermal Systems Market has been segmented by Vehicle Type, Technology, Electric Vehicle Type, and Geography, each segment reflecting specific trends, challenges, and growth opportunities in the market. By Vehicle Type, the market is categorized into Passenger Vehicles, Commercial Vehicles, and Electric Vehicles. The Passenger Vehicles segment holds a significant share, driven by the increasing adoption of advanced thermal management solutions to enhance driving comfort and safety. Steering thermal systems are integrated into vehicles to provide optimal temperature regulation for steering mechanisms, improving user experience in both standard and electric vehicles. The Commercial Vehicles segment, including trucks and buses, also demands these systems to maintain vehicle performance under various operational conditions, while Electric Vehicles (EVs) increasingly incorporate steering thermal systems to manage battery temperatures and ensure the efficiency of electric power steering systems.

By Technology, the market is segmented into Conventional Steering Thermal Systems and Electric Steering Thermal Systems. Conventional systems utilize hydraulic steering mechanisms with integrated thermal management, while electric steering systems use electrically powered motors to offer more precise and energy-efficient control. The Electric Steering Thermal Systems segment is expected to see rapid growth, driven by the rising adoption of electric power steering (EPS) in both traditional and electric vehicles. These systems play a crucial role in regulating the temperature of EPS motors, reducing wear and improving system longevity. With the growth of electric vehicles, electric steering thermal solutions are becoming increasingly important, ensuring optimal performance even in high-demand conditions.

By Electric Vehicle Type, the market is divided into Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs). The BEVs segment is anticipated to dominate, given the increasing shift toward fully electric mobility and the need for efficient thermal management to optimize battery performance, vehicle range, and overall driving comfort. PHEVs and HEVs, which combine traditional internal combustion engines with electric propulsion, also require effective thermal management solutions for both powertrain systems. As electric vehicle adoption continues to rise, so does the demand for innovative steering thermal systems to enhance performance and comfort.

Geography, the Asia-Pacific region is expected to hold the largest market share, driven by the strong automotive manufacturing base in countries like China, Japan, and South Korea. These countries are at the forefront of electric vehicle adoption and technological advancements in automotive systems. North America and Europe are also significant markets, with increasing government regulations promoting the development and adoption of electric vehicles. The rise of electric mobility in these regions, along with the push for greener technologies, is expected to fuel demand for steering thermal systems. The Rest of the World, including regions like Latin America and the Middle East, is witnessing steady growth, driven by expanding automotive industries and the growing adoption of electric vehicles.

Global Steering Thermal Systems Segment Analysis

In this report, the Global Steering Thermal Systems Market has been segmented by Vehicle Type, Technology, Electric Vehicle Type and Geography.

Global Steering Thermal Systems Market, Segmentation by Vehicle Type

The Global Steering Thermal Systems Market has been segmented by Vehicle Type into Passenger Car, Light Commercial Vehicle, Truck and Bus.

The Global Steering Thermal Systems Market is segmented by electric vehicle type into Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), Plug-In Hybrid Electric Vehicles (PHEVs), Fuel Cell Electric Vehicles (FCEVs), and 48V Mild Hybrids, with each type presenting unique thermal management needs. Battery Electric Vehicles (BEVs) are the largest segment, driven by the rapid growth of electric vehicle adoption. BEVs rely entirely on electric powertrains, and their power-assisted steering systems generate heat that must be effectively managed to ensure optimal performance and driver comfort. The growing emphasis on energy efficiency and the increasing number of BEV models from major automakers are fueling the demand for steering thermal systems in this segment.

The Hybrid Electric Vehicle (HEV) and Plug-In Hybrid Electric Vehicle (PHEV) segments also represent important areas for steering thermal system adoption. HEVs combine a conventional internal combustion engine with an electric motor, while PHEVs offer the option of charging the battery from an external source. Both vehicle types generate heat in their electric steering systems, necessitating the use of efficient thermal management solutions to maintain optimal performance. The rising demand for fuel-efficient vehicles, particularly in regions with strict emissions regulations, has driven growth in HEVs and PHEVs, increasing the need for advanced steering thermal systems to manage the additional heat generated by the hybrid or plug-in electric powertrains.

Fuel Cell Electric Vehicles (FCEVs) and 48V Mild Hybrids are also emerging as key segments in the global steering thermal systems market. FCEVs, which rely on hydrogen fuel cells, require thermal management systems to control the heat produced by their fuel cells and power-assisted steering components. While this market segment is still in its early stages compared to BEVs and HEVs, the growing interest in hydrogen-powered vehicles and advancements in fuel cell technology are expected to drive demand for steering thermal solutions. Similarly, the 48V Mild Hybrid segment, which uses a 48-volt battery system to assist the internal combustion engine, is gaining traction due to its improved fuel efficiency and lower emissions. As mild hybrids become more popular, the demand for specialized thermal management in their steering systems will rise, contributing to the overall market growth. Each of these electric vehicle types presents a unique set of challenges and opportunities for the steering thermal systems market, with growing adoption across all segments expected to boost demand for these critical components.

Global Steering Thermal Systems Market, Segmentation by Technology

The Global Steering Thermal Systems Market has been segmented by Technology into Active Transmission Warm Up, EGR, Engine Thermal Mass Reduction, Reduced HVAC System Loading and Others.

Active Transmission Warm Up technology is designed to optimize the temperature of the transmission fluid during cold starts, ensuring smoother operation and reducing wear and tear on the transmission components. In the context of steering thermal systems, this technology plays an important role by ensuring that the transmission system operates at its optimal temperature, reducing energy consumption and improving the overall thermal management in electric power steering (EPS) systems. Active transmission warm-up helps in reducing energy losses, which is critical for electric vehicles (EVs), where efficiency is paramount for maximizing driving range.

Exhaust Gas Recirculation (EGR) is another technology used in thermal management systems to reduce the overall temperature of the engine by recirculating a portion of the exhaust gases back into the combustion chamber. This reduces the formation of nitrogen oxides (NOx) and helps in improving the overall engine efficiency. In steering systems, EGR can be integrated into the broader thermal management strategy, especially in hybrid and internal combustion engine (ICE)-powered vehicles, to help manage the heat generated by the engine and ensure that steering systems do not overheat. It contributes to maintaining the temperature balance across various vehicle components, including power steering.

Engine Thermal Mass Reduction refers to the use of advanced materials and design strategies that reduce the overall thermal mass of the engine, which in turn improves engine cooling efficiency and responsiveness. By reducing the thermal load on engine components, this technology helps to keep temperatures under control in high-performance driving scenarios. For steering systems, the reduced thermal mass of the engine directly impacts the temperature regulation in electric power steering (EPS) systems, enabling them to operate more efficiently and for longer periods, particularly in electric vehicles, where managing battery and component temperatures is essential for maintaining system reliability.

Reduced HVAC System Loading is another critical technology that enhances vehicle thermal management. By improving the efficiency of heating, ventilation, and air conditioning (HVAC) systems, energy consumption is minimized, and the overall cooling and heating systems in the vehicle can work more efficiently. In terms of steering thermal systems, reduced HVAC system loading ensures that the thermal systems operate without overburdening the HVAC system, which can be particularly important in electric vehicles that rely on electric power steering. This results in more efficient thermal management, reducing power consumption and increasing overall vehicle range.

Global Steering Thermal Systems Market, Segmentation by Electric Vehicle Type

The Global Steering Thermal Systems Market has been segmented by Electric Vehicle Type into Battery Electric Vehicle, Hybrid Electric Vehicle , Plug-In Hybrid Electric Vehicle, Fuel Cell Electric Vehicle and 48v Mild Hybrid.

The Global Steering Thermal Systems Market is segmented by electric vehicle type into Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), Plug-In Hybrid Electric Vehicles (PHEVs), Fuel Cell Electric Vehicles (FCEVs), and 48V Mild Hybrids, with each type presenting unique thermal management needs. Battery Electric Vehicles (BEVs) are the largest segment, driven by the rapid growth of electric vehicle adoption. BEVs rely entirely on electric powertrains, and their power-assisted steering systems generate heat that must be effectively managed to ensure optimal performance and driver comfort. The growing emphasis on energy efficiency and the increasing number of BEV models from major automakers are fueling the demand for steering thermal systems in this segment.

The Hybrid Electric Vehicle (HEV) and Plug-In Hybrid Electric Vehicle (PHEV) segments also represent important areas for steering thermal system adoption. HEVs combine a conventional internal combustion engine with an electric motor, while PHEVs offer the option of charging the battery from an external source. Both vehicle types generate heat in their electric steering systems, necessitating the use of efficient thermal management solutions to maintain optimal performance. The rising demand for fuel-efficient vehicles, particularly in regions with strict emissions regulations, has driven growth in HEVs and PHEVs, increasing the need for advanced steering thermal systems to manage the additional heat generated by the hybrid or plug-in electric powertrains.

Fuel Cell Electric Vehicles (FCEVs) and 48V Mild Hybrids are also emerging as key segments in the global steering thermal systems market. FCEVs, which rely on hydrogen fuel cells, require thermal management systems to control the heat produced by their fuel cells and power-assisted steering components. While this market segment is still in its early stages compared to BEVs and HEVs, the growing interest in hydrogen-powered vehicles and advancements in fuel cell technology are expected to drive demand for steering thermal solutions. Similarly, the 48V Mild Hybrid segment, which uses a 48-volt battery system to assist the internal combustion engine, is gaining traction due to its improved fuel efficiency and lower emissions. As mild hybrids become more popular, the demand for specialized thermal management in their steering systems will rise, contributing to the overall market growth. Each of these electric vehicle types presents a unique set of challenges and opportunities for the steering thermal systems market, with growing adoption across all segments expected to boost demand for these critical components.

Global Steering Thermal Systems Market, Segmentation by Geography

In this report, the Global Steering Thermal Systems Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Steering Thermal Systems Market Share (%), by Geographical Region, 2024

Asia-Pacific holds the largest market share in the Steering Thermal Systems Market, driven by the automotive manufacturing hubs in countries like China, Japan, and South Korea. The region is experiencing a surge in electric vehicle (EV) production, with significant investments from major automotive manufacturers. The growing adoption of electric power steering (EPS) systems in both traditional and electric vehicles, combined with advancements in automotive thermal management technologies, drives the demand for steering thermal solutions. Additionally, the presence of leading automakers and a strong supply chain ecosystem further bolster the market's growth in this region.

North America is another key region, with the United States and Canada being major players in the automotive industry. The increasing adoption of electric and hybrid vehicles, along with advancements in vehicle safety and performance, is driving the demand for efficient thermal systems in steering mechanisms. North American manufacturers are focusing on incorporating advanced technologies such as active transmission warm-up and engine thermal mass reduction to meet stricter fuel efficiency and emission standards, which further boosts the demand for steering thermal systems. The growing presence of EV startups and established automakers transitioning to EV production also contributes to market growth.

Europe holds a significant share of the market, largely due to stringent environmental regulations and the increasing focus on reducing carbon emissions. The region has a strong presence of automotive manufacturers such as Volkswagen, BMW, and Mercedes-Benz, who are at the forefront of adopting advanced steering thermal systems for electric and hybrid vehicles. Additionally, the European Union’s push for green mobility solutions and the growing trend of electrification are contributing factors to the market's expansion in this region. The demand for energy-efficient thermal systems in steering mechanisms is being driven by these regulatory pressures and a shift toward more sustainable transportation solutions.

Rest of the World includes regions such as Latin America, Middle East, and Africa, where the steering thermal systems market is witnessing gradual growth. The demand for these systems is fueled by the growing automotive sectors in countries like Brazil, India, and South Africa, where automotive production is expanding, and the adoption of electric vehicles is on the rise. While the market share is currently smaller compared to other regions, emerging automotive industries and infrastructure development are expected to drive growth in the coming years.

This report provides an in depth analysis of various factors that impact the dynamics of Global Steering Thermal Systems Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Increasing Adoption of Electric Vehicles (EVs)
• Growing Demand for Energy-Efficient Automotive Solutions
• Advancements in Steering Technologies
• Stringent Environmental Regulations
• Rising Focus on Vehicle Comfort and Safety-

  The rising focus on vehicle comfort and safety is a significant driver in the Global Steering Thermal Systems Market. As automotive manufacturers continue to prioritize enhancing the driving experience, steering thermal systems play a crucial role in improving both comfort and safety for drivers. By efficiently managing the temperature of the steering mechanism, these systems help prevent discomfort caused by extreme temperatures, whether it’s excessive heat in hot climates or cold stiffness in winter conditions. Ensuring that the steering wheel remains at a comfortable temperature can contribute significantly to driver satisfaction, particularly in long-distance or harsh weather driving.

  In addition to comfort, safety is another critical factor driving the adoption of steering thermal systems. By maintaining the optimal operating temperature for steering components, these systems reduce the risk of failure or wear due to overheating, which is particularly important in high-performance vehicles or in electric vehicles (EVs) that rely on electric power steering (EPS). Proper thermal regulation ensures that the steering system operates smoothly and reliably under varying conditions, which directly impacts vehicle safety. Moreover, by preventing overheating in power steering systems, these technologies help extend the life of the components, reducing the need for costly repairs and improving overall vehicle reliability.

  As vehicle automation and advanced driver assistance systems (ADAS) become more prevalent, the integration of thermal systems will also contribute to the functionality and reliability of these technologies. For example, adaptive steering systems that assist in automatic lane-keeping or other safety features require precise and stable performance. Maintaining consistent thermal conditions within the steering mechanism ensures that these advanced systems work effectively, thus enhancing the overall safety and reliability of the vehicle. This rising focus on both comfort and safety in modern vehicles is expected to continue driving innovation and demand for advanced steering thermal systems.

Restraints

• High Initial Cost of Advanced Thermal Systems
• Complex Integration with Existing Automotive Systems
• Limited Awareness in Emerging Markets
• Technical Challenges in Thermal Management for EVs
• Volatile Raw Material Prices-

  Volatile raw material prices pose a significant restraint in the Global Steering Thermal Systems Market. The primary materials used in the production of steering thermal systems, such as metals, plastics, and advanced composites, are subject to fluctuations in price due to global supply chain disruptions, geopolitical factors, and shifts in demand. For example, materials like aluminum, copper, and steel, which are essential for manufacturing components like radiators, pumps, and heat exchangers, can experience price volatility based on market conditions. This volatility makes it challenging for manufacturers to predict costs accurately and maintain consistent pricing, which can impact their profit margins.

  The unpredictability in raw material costs also affects manufacturing efficiency and production schedules. When the prices of essential materials spike unexpectedly, manufacturers may face difficulties in sourcing raw materials within budget constraints, leading to delays in production timelines or the need to adjust design specifications to accommodate available materials. For example, if a key metal becomes too expensive, manufacturers might switch to alternative materials that may not provide the same level of performance or durability, potentially affecting the quality and efficiency of the thermal systems.

  Additionally, supply chain disruptions caused by factors such as natural disasters, labor strikes, or political instability can further exacerbate price volatility. These disruptions can lead to shortages of essential materials, driving up prices and increasing manufacturing costs. As a result, manufacturers in the steering thermal systems market must constantly adapt to these fluctuations by seeking more stable sources of raw materials, optimizing production processes, and potentially passing on cost increases to consumers, which can affect the market’s competitiveness and overall demand. This ongoing challenge underscores the need for strategic planning and cost management to mitigate the impacts of volatile raw material prices in the automotive thermal systems sector.

Opportunities

• Expansion of Electric and Hybrid Vehicle Production
• Adoption of Advanced Thermal Management Technologies
• Growth of Autonomous and Connected Vehicles
• Increasing Investment in Automotive R&D
• Rising Demand for Lightweight and Compact Thermal Systems-

  The rising demand for lightweight and compact thermal systems is a significant driver in the Global Steering Thermal Systems Market, particularly as automotive manufacturers strive to meet the evolving needs of modern vehicles. With increasing emphasis on fuel efficiency and energy conservation, especially in electric vehicles (EVs), manufacturers are prioritizing the development of lightweight components to reduce overall vehicle weight. Lighter vehicles consume less energy, improve fuel efficiency, and offer better handling and performance. In this context, the demand for compact and efficient thermal management systems, including steering thermal systems, is growing, as they help optimize power usage while maintaining high-performance standards.

  As electric vehicles (EVs) and hybrid vehicles gain traction, the need for lightweight thermal solutions becomes even more critical. EVs, in particular, rely on reducing weight to maximize battery range and improve overall energy efficiency. Compact thermal systems that effectively manage the temperature of steering components without adding excess weight are increasingly sought after. These systems help maintain the temperature of key components, such as electric power steering systems, ensuring consistent performance while avoiding excessive power consumption, which can reduce the overall range of electric vehicles. As battery technology improves and manufacturers aim for longer-range EVs, lightweight and compact thermal systems will be pivotal in enhancing vehicle performance.

  Additionally, the trend towards compact designs in modern vehicles, including more efficient use of interior space and integration of advanced technologies, is driving the need for smaller, more efficient thermal systems. As steering components become more integrated with other systems, such as infotainment or driver assistance technologies, space is at a premium. Manufacturers are therefore focusing on reducing the size of thermal systems while maintaining their effectiveness in regulating temperatures. This trend is not only important for the automotive sector but also for commercial vehicles and off-highway vehicles, where efficiency, performance, and space optimization are key considerations. The rising demand for lightweight and compact thermal solutions is likely to continue growing as vehicle manufacturers look to meet regulatory standards and consumer expectations for energy-efficient, high-performance vehicles.

Key players in Global Steering Thermal Systems Market include,

• DENSO CORPORATIO
• MAHLE GmbH
• VALEO
• Hanon Systems
• BorgWarner Inc
• GENTHERM
• Schaeffler Technologies AG & Co. KG
• Johnson Electric Holdings Limited
• Dana Limited

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis