Driven by the policy, the future development trend of the automotive steering gear industry is as follows:

Electrification and Intellectualization of Products

Electric Power Steering (EPS) becomes mainstream:

With the rapid development of the new energy vehicle market and the promotion of environmental protection policies, EPS is gradually replacing Hydraulic Power Steering (HPS) due to its energy-saving and environmental protection characteristics. For example, in urban congested road conditions, EPS can control the steering power more accurately and reduce energy consumption. The encouragement of new energy vehicles will further promote the popularization and application of energy-saving steering gears such as EPS.
Intelligent steering technology development:

policies related to intelligent networked vehicles provide support for the development of intelligent steering gears. Intelligent steering technology combining sensors, control algorithms and actuators will come to the fore, realizing active steering control and improving driving safety and comfort. Functions such as automatic parking and lane keeping require the support of intelligent steering technology.
Technology Innovation and Upgrade

Integration and modularization design:

By integrating the control module and booster motor, the number of parts can be reduced to lower the cost and improve the reliability. At the same time, it also facilitates installation and maintenance by OEMs and improves production efficiency.

Application of new materials and processes:

Lightweight and high-strength materials, such as carbon fiber and titanium alloy, are used to reduce product weight and improve performance to meet the demand for lightweight and high-performance automobiles. Advanced processing equipment and processes, such as precision manufacturing technology, will improve the accuracy and stability of the steering gear.

Digital technology to help R&D and production:

Digital technology will be applied in the design and manufacturing process of steering gears to optimize product design and reduce R&D costs through data analysis and simulation. For example, virtual simulation technology will be used for verification and optimization in the product development stage to shorten the R&D cycle.

Changes in market competition pattern

The industry head effect is obvious: downstream automobile OEMs have higher and higher requirements on suppliers' technology development capability, production capacity and product quality guarantee capability, etc. The competitive advantages of some automobile steering system parts manufacturers with strong technical strength and strong capital will be further revealed. While the low level of technology, capital strength of weak manufacturers may gradually withdraw from the market or be merged, the industry gradually to the leading backbone enterprises, industry concentration.

Increased competition in the international market:

international vehicle manufacturers for procurement cost considerations to implement globalization procurement strategy, China's steering system parts with quality management level and cost advantages, product export sales will continue to increase, and further expand the international auto parts supply market. But at the same time, domestic manufacturers are also facing the international manufacturers through mergers and acquisitions to strengthen the strategic layout in China to bring greater competitive pressure.

Accelerated rise of domestic brands: Domestic brands represented by Great Wall Motor, BYD, etc. are gradually increasing their market share through independent R&D and technological innovation. 
Some of China's outstanding automobile steering enterprises with cost advantages and localized service advantages, to form a competitive advantage in niche areas, and the gradual substitution of imported products, and continue to improve the supply capacity of domestic independent brands of automobile enterprises.

Industry Development Direction

Fit with the development trend of the automobile industry:

with the growth of automobile ownership, especially the outbreak of the new energy vehicle market, the demand for steering gear market is steadily rising. At the same time, consumers' concern for driving experience and safety has increased, and the demand for high-performance steering gears in medium- and high-end models has increased, prompting the steering gear industry to continuously improve product performance and quality.

Development towards electrification, intelligence and lightweight:

in order to reduce automotive energy consumption and improve fuel economy, the automotive steering gear industry will gradually develop in the direction of lightweight, and the use of new materials and optimization of design will become an important trend; with the continuous expansion of the new energy automotive market, the automotive steering gear industry will gradually develop in the direction of electrification, and the demand for electric steering gears will continue to increase; with the continuous advancement of automatic driving technology, the automotive steering gear industry will gradually develop in the direction of electric steering gears. With the continuous progress of automatic driving technology, automotive steering gear industry will gradually develop in the direction of intelligentization, and the demand for intelligent steering gear will also increase.