Automotive Steering Sensor Market Segmented By Sensor Type (Health Monitoring Systems, Torque Sensors, Intelligent Multi-functional Sensor Systems, Position Sensors/Angle Sensors, and Other Sensor Types), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles), By Technology (Contacting and Magnetic)), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.72 Billion
CAGR (2026-2031)	6.93%
Fastest Growing Segment	Torque Sensors
Largest Market	Asia Pacific
Market Size (2031)	USD 14.53 Billion

Market Overview

The Global Automotive Steering Sensor Market will grow from USD 9.72 Billion in 2025 to USD 14.53 Billion by 2031 at a 6.93% CAGR. The Global Automotive Steering Sensor Market comprises electromechanical components designed to measure the steering wheel’s angle, torque, and rotational speed, converting these physical inputs into signals for the Electronic Control Unit. These devices are integral to the functionality of Electric Power Steering and Advanced Driver Assistance Systems, ensuring precise vehicle control and stability. The primary drivers supporting market growth include stringent government mandates requiring electronic stability control in passenger vehicles and the rapid electrification of the global automotive fleet, which necessitates the widespread adoption of sensor-dependent steering architectures.

This expansion is heavily influenced by the volume of electric vehicle production, as these platforms predominantly utilize electric steering systems. According to the International Energy Agency, in 2024, global sales of electric cars reached approximately 17 million units, directly amplifying the requirement for compatible steering sensor technologies. However, a significant challenge impeding broader market expansion is the volatility of the semiconductor supply chain, which can cause production delays and increase component costs for manufacturers reliant on these integrated electronic systems.

Key Market Drivers

Accelerated production and adoption of electric vehicles (EVs) fundamentally alters steering architecture, driving the necessity for robust sensor integration. Unlike internal combustion engines, EVs rely heavily on electric power steering (EPS) and emerging steer-by-wire systems to manage the increased curb weight caused by battery packs. These systems depend on high-precision torque and angle sensors to replicate road feedback and ensure responsive handling without mechanical linkages. This shift is evident in major manufacturing hubs; according to the China Association of Automobile Manufacturers, October 2024, in the 'September 2024 Automobile Production and Sales' report, the production of new energy vehicles reached 1.307 million units in a single month. This surge in electrified platforms directly correlates to higher volumes of redundant sensor arrays needed to ensure fail-safe operations in modern chassis designs.

The increasing integration of Advanced Driver Assistance Systems (ADAS) further propels the market as vehicles transition toward semi-autonomous capabilities. Features such as lane-keeping assist and automated parking require steering sensors to provide real-time data on wheel position and driver intent to the electronic control unit. Regulatory bodies are accelerating this trend by standardizing safety technologies that rely on these inputs. According to the National Highway Traffic Safety Administration, April 2024, in the 'Federal Motor Vehicle Safety Standards' final rule, automatic emergency braking must be standard on all new passenger cars and light trucks by September 2029, a regulation that necessitates comprehensive sensor suites for effective vehicle control. Additionally, general manufacturing growth supports this demand; according to the International Organization of Motor Vehicle Manufacturers, in 2024, finalized data indicated that global motor vehicle production reached 93.5 million units in the prior year, creating a vast baseline requirement for steering components.

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Key Market Challenges

The volatility of the semiconductor supply chain presents a formidable barrier to the Global Automotive Steering Sensor Market. Modern steering systems, particularly those integral to electric power steering and safety applications, are heavily dependent on complex microchips to process torque and angle data. When the supply of these semiconductors fluctuates, sensor manufacturers experience immediate production bottlenecks and increased manufacturing costs. This instability forces automotive Original Equipment Manufacturers to delay vehicle assembly, thereby reducing the volume of orders for steering sensors and creating revenue unpredictability for component suppliers.

The impact is most acute in the electric vehicle segment, which serves as the primary growth engine for steering sensor technologies. Since electric platforms require a higher density of electronic components, they are disproportionately affected by supply disruptions and production slowdowns. According to the Society of Motor Manufacturers and Traders, in January 2025, data revealed that the annual market share for battery electric vehicles in 2024 stalled at 19.6%, missing the statutory target of 22% due to prevailing market headwinds. This stagnation in electric vehicle output directly restricts the addressable market for steering sensors, limiting the industry’s ability to capitalize on the electrification trend.

Key Market Trends

The Proliferation of Steer-by-Wire Sensor Architectures is fundamentally reshaping the market by decoupling the steering wheel from the road wheels, thereby necessitating advanced sensor suites to replace mechanical linkages. This architecture requires robust, fail-operational configurations that utilize redundant torque and angle sensors to ensure safety and precise feedback in the absence of a physical column. The commercial viability of this technology is rapidly materializing as suppliers secure high-volume production contracts. According to Nexteer Automotive, March 2025, in the 'Nexteer Reports 2024 Year End Results' press release, the company achieved $6.0 billion in total bookings for the fiscal year 2024, a milestone driven notably by securing its first-ever Steer-by-Wire production program with a leading Chinese Original Equipment Manufacturer.

Simultaneously, the Development of AI-Enhanced Predictive Maintenance Algorithms is transforming steering sensors from passive input devices into intelligent health monitoring tools. By integrating machine learning directly into the sensor's processing unit, these devices can analyze micro-vibrations and torque irregularities to predict component wear or potential failures before they occur, a capability essential for software-defined vehicle platforms. This strategic pivot toward intelligent, software-driven hardware is attracting substantial investment; according to Robert Bosch GmbH, January 2025, in the 'The 2024 business year: Bosch held back by market developments' press release, the company expects to generate sales of more than €6 billion with software and services by the early 2030s, emphasizing that artificial intelligence has become an integral part of its mobility product portfolio.

Segmental Insights

The Torque Sensors segment is projected to be the fastest-growing category in the Global Automotive Steering Sensor Market. This growth is primarily driven by the rapid automotive industry transition from hydraulic systems to Electric Power Steering, which offers superior fuel efficiency. Furthermore, stringent safety regulations and assessment programs from entities like the National Highway Traffic Safety Administration encourage the integration of advanced driver-assistance systems. Torque sensors are critical for these technologies as they accurately measure driver input to ensure precise vehicle control and stability during operation.

Regional Insights

Asia Pacific maintains a leading position in the global automotive steering sensor market, driven primarily by high vehicle manufacturing output in China, India, and Japan. The region has witnessed a significant shift toward electric power steering systems to comply with fuel efficiency mandates and evolving safety protocols. For instance, safety performance criteria established by the China New Car Assessment Program drive the integration of essential steering components in modern passenger vehicles. Additionally, the rapid expansion of the regional electric vehicle sector supports the sustained demand for these sensors, establishing Asia Pacific as the central hub for market expansion.

Recent Developments

• In October 2025, Melexis introduced a dual-input inductive sensor integrated circuit capable of processing signals from two coils simultaneously for high-precision automotive measurements. The component was specifically developed to enhance safety-critical applications such as steering torque feedback and steering angle sensing within steer-by-wire systems. By integrating dual-channel capability into a single compact package, the innovation eliminated the need for multiple separate sensors, reducing both system complexity and manufacturing costs. The sensor provided zero-latency processing and high-resolution output, ensuring the synchronized and reliable data transmission necessary for the responsive performance of modern electric power steering and autonomous driving controls.
• In August 2025, Forvia Hella commenced the mass production of its latest generation of steering sensors for a major Chinese automotive manufacturer. This milestone represented the company's third production launch of the year for fully electric steer-by-wire sensor systems, following successful deployments with other customers in Germany and China. The advanced sensors were designed to detect steering wheel torque and angle electronically, removing the need for a mechanical link between the steering wheel and the vehicle's wheels. This technology enabled automakers to implement customizable steering settings and flexible cockpit designs, supporting the industry's transition toward software-defined vehicles and redundant safety architectures.
• In November 2024, Continental Automotive Technologies entered a strategic collaboration with NOVOSENSE Microelectronics to co-develop automotive-grade sensor integrated circuits. The partnership focused on advancing the safety and reliability of vehicle systems through the creation of functional safety-compliant components, such as Hall-based angle encoder sensors and linear position sensors used in steering applications. This agreement aimed to integrate the semiconductor company's products into Continental’s global platforms, thereby diversifying the supply chain and enhancing the performance of safety applications. The joint effort leveraged Continental’s system expertise and the partner's chip design capabilities to support the rigorous requirements of next-generation electric and automated steering systems.
• In January 2024, Infineon Technologies launched the XENSIV TLI5590-A6W, a new magnetic position sensor utilizing Tunnel Magneto-Resistance (TMR) technology. This component was engineered to replace optical encoders and traditional Hall sensors in high-precision automotive applications, including steering angle measurement. The sensor offered superior linearity and temperature stability, which allowed for more accurate detection of the steering wheel's position in modern vehicle architectures. By enabling direct digitization of magnetic bridge outputs via microcontrollers, the product facilitated significant miniaturization of steering system designs. This innovation addressed the growing industry demand for compact, low-power sensing solutions that save physical space while maintaining high reliability in safety-critical steering functions.

Key Market Players

• Robert Bosch GmbH
• DENSO Corporation
• HELLA GmbH & Co. KgaA
• Methode Electronics Inc.
• Continental AG
• Honeywell Inc.
• Infineon Technology
• NXP Semiconductors N.V.
• Sensata Technologies
• Hitachi Metals.

By Sensor Type	By Vehicle Type	By Technology	By Region
Health Monitoring Systems Torque Sensors Intelligent Multi-functional Sensor Systems Position Sensors/Angle Sensors Other Sensor Types	Passenger Cars Light Commercial Vehicles Heavy Commercial Vehicles	Contacting and Magnetic	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Steering Sensor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Steering Sensor Market, By Sensor Type:

• Health Monitoring Systems
• Torque Sensors
• Intelligent Multi-functional Sensor Systems
• Position Sensors/Angle Sensors
• Other Sensor Types

• Automotive Steering Sensor Market, By Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

• Automotive Steering Sensor Market, By Technology:

• Contacting and Magnetic

• Automotive Steering Sensor Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE