OTR Power Steering Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 2.29 Billion
CAGR (2026-2031)	7.53%
Fastest Growing Segment	Hydraulic power steering (HPS)
Largest Market	Asia Pacific
Market Size (2031)	USD 3.54 Billion

Market Overview

The Global OTR Power Steering Market will grow from USD 2.29 Billion in 2025 to USD 3.54 Billion by 2031 at a 7.53% CAGR. The Global OTR Power Steering Market consists of hydraulic and electric steering systems designed for large machinery used in construction, mining, and agriculture. These components are essential for ensuring maneuverability and reducing operator fatigue across uneven terrains. The primary drivers supporting growth include increasing global infrastructure expenditure and the mechanization of farming activities, both of which fuel the demand for new equipment. According to the China Construction Machinery Association, in 2024, major manufacturers sold a total of 201,100 excavators, marking a 3.13% increase from the prior year.

While the sector benefits from these economic factors, it faces obstacles regarding the affordability of maintaining complex systems. One significant challenge impeding market expansion is the high cost associated with repairing advanced hydraulic steering units. This expense can discourage equipment upgrades in price sensitive regions and delay the adoption of modern steering technologies required for compliant and efficient operations.

Key Market Drivers

Rapid expansion of global construction and infrastructure development projects acts as a primary catalyst for the OTR power steering sector. As urbanization accelerates, there is a substantial requirement for heavy-duty machinery such as articulated dump trucks, wheel loaders, and motor graders that operate in confined or hazardous sites. These applications necessitate responsive steering systems to ensure operator safety and load stability while maneuvering heavy payloads. Consequently, original equipment manufacturers are scaling production to meet this investment surge, directly benefiting component suppliers. According to Caterpillar Inc., February 2024, in the '2023 Annual Report', the Construction Industries segment reported total sales of $27.38 billion, reflecting the robust demand for equipment that relies on durable hydraulic and electric steering components. This financial performance underscores the direct correlation between infrastructure spending and the procurement of steering-integrated machinery.

Simultaneously, the increasing adoption of agricultural mechanization and precision farming technologies drives the integration of advanced steering solutions. Modern farming relies on high-horsepower tractors and harvesters equipped with automated guidance systems to optimize crop yields and minimize input waste. These applications require steering units capable of interfacing with GPS and sensor arrays for sub-inch accuracy, pushing the market toward electro-hydraulic systems. According to Deere & Company, December 2023, in the '2023 Annual Report', net sales for the Production and Precision Agriculture segment rose to $26.79 billion, highlighting the shift toward technologically advanced fleets. Broader machinery demand remains resilient in key agrarian regions, further supporting component volumes. According to the Federation of Automobile Dealers Associations, in 2024, retail sales of tractors in India reached 892,313 units for the fiscal year ended March 31, ensuring sustained market activity for OTR steering manufacturers.

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Key Market Challenges

The substantial financial burden associated with repairing advanced hydraulic steering systems stands as a formidable barrier to the expansion of the Global OTR Power Steering Market. As these steering units become more integral to modern machinery, the elevated cost of maintaining and servicing them increases the total cost of ownership for fleet operators. In price-sensitive regions, this expense discourages businesses from retiring aging fleets, leading companies to delay the procurement of new, technologically compliant machinery. Consequently, the slow turnover rate of equipment directly diminishes the volume of orders for new OEM steering components, hampering the revenue stream for manufacturers.

This trend of reduced capital expenditure is reflected in recent industry performance data, highlighting the dampening effect of economic and operational cost pressures. According to the VDMA (German Mechanical Engineering Industry Association), in 2024, sales of construction equipment produced in Germany declined by 21% in real terms compared to the previous year. Such a significant contraction in the primary equipment market illustrates how financial constraints effectively stall the adoption rate of modern vehicles, thereby restricting the growth opportunities for the power steering sector that relies on these new installations.

Key Market Trends

The transition toward zero-emission powertrains is fundamentally altering steering architectures, necessitating a shift from engine-driven hydraulics to electric and electro-hydraulic solutions. As manufacturers electrify fleets to meet decarbonization targets, traditional engine-dependent steering units are being replaced by electric motor-driven pumps or fully electric actuators. This ensures steering efficiency in battery-electric architectures by decoupling hydraulic flow from engine speed, a critical requirement for next-generation machinery. According to Volvo Construction Equipment, January 2024, in the 'Annual Report 2023', the company delivered 895 fully electric machines in 2023, marking a nearly 50% increase compared to the previous year, highlighting the escalating demand for components compatible with electric platforms.

Simultaneously, the expansion of Autonomous Haulage Systems (AHS) in mining drives the adoption of steer-by-wire technology for precise algorithmic control. These interfaces allow heavy-duty trucks to navigate complex haul roads without physical operators, significantly enhancing safety and operational continuity in hazardous environments. Unlike conventional systems, these advanced units require redundant electronic controls to seamlessly interface with centralized fleet management software. According to Komatsu Ltd., March 2024, in a press release titled '700+ Autonomous trucks operating worldwide with Komatsu FrontRunner system', the deployment of their Autonomous Haulage System surpassed 700 trucks as of February 2024, underscoring the critical role of automated steering technologies in modernizing extraction operations.

Segmental Insights

The Hydraulic Power Steering (HPS) segment is emerging as the fastest-growing category within the Global OTR Power Steering Market, driven by its unmatched capability to handle high-torque requirements in heavy-duty machinery. Industry analysis indicates that operators in the construction and mining sectors prioritize HPS for its rugged durability and proven reliability under extreme field conditions, where electric alternatives often face load limitations. Additionally, the accelerating shift from manual to power-assisted steering in the agricultural sector of emerging economies significantly contributes to this segment's rapid expansion, cementing HPS as the preferred choice for high-load off-road vehicles.

Regional Insights

Asia Pacific stands as the dominant region in the Global OTR Power Steering Market, driven primarily by accelerated industrialization and extensive infrastructure development. Major economies such as China and India are heavily investing in urbanization projects, including smart cities and road network expansions, which significantly boosts the demand for construction equipment equipped with reliable steering systems. Furthermore, the region’s robust mining sector, particularly in Australia and Indonesia, sustains a high requirement for heavy-duty machinery. The presence of leading Original Equipment Manufacturers (OEMs) and rising agricultural mechanization further solidify the region's market supremacy.

Recent Developments

In June 2024, Danfoss Power Solutions announced the global launch of its DHRC portfolio of high-performance hydraulic remote controls. This new product line included the DHRCJ joystick, DHRCP foot pedal, and DHRCD sectional valve, all designed to withstand harsh off-highway environments. The controls were engineered for machinery such as excavators, skid steer loaders, and telehandlers, providing superior controllability and operator comfort. The joystick steering mechanism featured a robust, ergonomic design with customizable finger functions, ensuring precise and repeatable operation which is essential for the effective maneuvering and steering of heavy-duty construction and material handling equipment.
In June 2024, CNH Industrial entered into a strategic partnership with Bluewhite, an autonomous technology company, to integrate autonomous capabilities into its New Holland tractors. The collaboration focused on the distribution, manufacturing, and integration of aftermarket autonomy kits that enable driverless operations in vineyards and orchards. This initiative allowed the company's dealers to offer retrofit solutions that transform existing steering and control systems into fully autonomous platforms. The partnership aimed to address labor shortages and increase productivity by deploying advanced guidance and steering automation technologies in the specialty crop market.
In May 2024, Volvo Construction Equipment unveiled a significant update to its product portfolio during the Volvo Days event in Sweden, launching a modernized range of excavators and expanding its electric machinery lineup. The company introduced the L90 Electric and L120 Electric wheel loaders, which are critical additions to the articulated steering vehicle segment. These new machines were equipped with intelligent technology and a new electro-hydraulic system designed to improve operator control, safety, and fuel efficiency. The launch highlighted a shift towards total solutions tailored to customer decarbonization needs, integrating advanced vehicle control systems for better maneuverability in regulated markets.
In April 2024, AGCO Corporation and Trimble completed their joint venture transaction to form PTx Trimble, a new company focused on the precision agriculture market. This collaboration combined Trimble’s precision agriculture business with AGCO’s JCA Technologies to serve farmers with factory-fit and retrofit applications across mixed fleets. The formation of this entity enhanced the company's comprehensive technology offerings, specifically in guidance, autonomy, and data management. This strategic move was designed to provide greater access to next-generation precision agricultural tools, including advanced steering and automated guidance systems, for tractors and implements of various brands.

Key Market Players

Showa Corporation
Nexteer Automotive Corporation
NSK Ltd.
JTEKT Corporation
Robert Bosch GmbH
Mando Corporation
Sona Corporation
ZF Friedrichshafen AG
Hitachi Limited
Danfoss Power Solutions

By Mechanism	By Component	By Region
Electronic power steering (EPS) Hydraulic power steering (HPS) and Electro-Hydraulic Power Steering	Hydraulic Pump Sensors Electric Motor and other components	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

OTR Power Steering Market, By Mechanism:

Electronic power steering (EPS)
Hydraulic power steering (HPS) and Electro-Hydraulic Power Steering

OTR Power Steering Market, By Component:

Hydraulic Pump
Sensors
Electric Motor and other components

OTR Power Steering 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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global OTR Power Steering Market.

Available Customizations:

Global OTR Power Steering Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global OTR Power Steering Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global OTR Power Steering Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Mechanism (Electronic power steering (EPS), Hydraulic power steering (HPS) and Electro-Hydraulic Power Steering)

5.2.2. By Component (Hydraulic Pump, Sensors, Electric Motor and other components)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America OTR Power Steering Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Mechanism

6.2.2. By Component

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States OTR Power Steering Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Mechanism

6.3.1.2.2. By Component

6.3.2. Canada OTR Power Steering Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Mechanism

6.3.2.2.2. By Component

6.3.3. Mexico OTR Power Steering Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Mechanism

6.3.3.2.2. By Component

7. Europe OTR Power Steering Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Mechanism

7.2.2. By Component

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany OTR Power Steering Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Mechanism

7.3.1.2.2. By Component

7.3.2. France OTR Power Steering Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Mechanism

7.3.2.2.2. By Component

7.3.3. United Kingdom OTR Power Steering Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Mechanism

7.3.3.2.2. By Component

7.3.4. Italy OTR Power Steering Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Mechanism

7.3.4.2.2. By Component

7.3.5. Spain OTR Power Steering Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Mechanism

7.3.5.2.2. By Component

8. Asia Pacific OTR Power Steering Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Mechanism

8.2.2. By Component

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China OTR Power Steering Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Mechanism

8.3.1.2.2. By Component

8.3.2. India OTR Power Steering Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Mechanism

8.3.2.2.2. By Component

8.3.3. Japan OTR Power Steering Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Mechanism

8.3.3.2.2. By Component

8.3.4. South Korea OTR Power Steering Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Mechanism

8.3.4.2.2. By Component

8.3.5. Australia OTR Power Steering Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Mechanism

8.3.5.2.2. By Component

9. Middle East & Africa OTR Power Steering Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Mechanism

9.2.2. By Component

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia OTR Power Steering Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Mechanism

9.3.1.2.2. By Component

9.3.2. UAE OTR Power Steering Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Mechanism

9.3.2.2.2. By Component

9.3.3. South Africa OTR Power Steering Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Mechanism

9.3.3.2.2. By Component

10. South America OTR Power Steering Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Mechanism

10.2.2. By Component

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil OTR Power Steering Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Mechanism

10.3.1.2.2. By Component

10.3.2. Colombia OTR Power Steering Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Mechanism

10.3.2.2.2. By Component

10.3.3. Argentina OTR Power Steering Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Mechanism

10.3.3.2.2. By Component

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global OTR Power Steering Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Showa Corporation

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Nexteer Automotive Corporation

15.3. NSK Ltd.

15.4. JTEKT Corporation

15.5. Robert Bosch GmbH

15.6. Mando Corporation

15.7. Sona Corporation

15.8. ZF Friedrichshafen AG

15.9. Hitachi Limited

15.10. Danfoss Power Solutions

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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