PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901472
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901472
REPORT HIGHLIGHT
Automotive Rear Axle Steering System Market size was valued at US$ 2,786.98 Million in 2024, expanding at a CAGR of 6.8% from 2025 to 2032.
The automotive rear axle steering system market is becoming more important as carmakers look for new ways to improve vehicle handling, safety, and comfort. Rear axle steering (often called rear-wheel steering) is a technology that allows the rear wheels to turn slightly, either in the opposite direction or the same direction as the front wheels. At low speeds, the rear wheels typically turn in the opposite direction to reduce the turning radius and make parking or maneuvering in tight spaces easier. At higher speeds, they turn in the same direction as the front wheels to improve stability, especially during lane changes or sudden movements.
Automotive Rear Axle Steering System Market- Market Dynamics
Growth of Premium Cars, SUVs, and EVs Increasing Demand for Rear Axle Steering Systems
One of the main drivers for the Automotive Rear Axle Steering System Market is the rising popularity of premium vehicles, large SUVs, and electric vehicles, all of which benefit a lot from better maneuverability and stability. Global light-vehicle sales are generally in the 65-75 million units per year range, and SUVs now make up roughly 45-50% of those sales in many major markets, with even higher shares in places like the U.S. and China. Bigger and heavier vehicles naturally have larger turning circles and can feel less agile in tight city streets or parking lots, so rear axle steering (also called rear-wheel steering or 4-wheel steering) is becoming more attractive as a way to reduce the turning radius at low speeds and improve stability at high speeds. The premium and luxury segment, where rear axle steering first started to appear, has been growing faster than the overall market in regions such as China, Europe, and North America, often at mid-single to low double-digit rates. Many new high-end models from brands like Mercedes-Benz, BMW, Audi, Porsche, Lexus, and several Chinese premium OEMs now offer rear axle steering as standard or as an option on upper trims.
EVs are reinforcing this trend. Global electric vehicle sales (BEVs + PHEVs) have risen to around 10-14 million units per year in 2022-2023, and forecasts suggest they could reach 30-40 million units annually by 2030, which would push the total number of EVs on the road to roughly 200-250 million. EVs often have long wheelbases (because of the battery pack layout) and are relatively heavy due to the battery weight, which can make low-speed maneuvering and high-speed lane changes more demanding. Rear axle steering helps offset these drawbacks by allowing the rear wheels to turn in the opposite direction of the front wheels at low speeds (for tighter U-turns and easier parking) and in the same direction at high speeds (for better lane-change stability). As more vehicles come equipped with advanced driver-assistance systems (ADAS) and move toward higher levels of automation, precise control of both front and rear wheels also becomes useful for automated lane changes, evasive maneuvers, and smooth highway driving. Because premium cars, SUVs, and EVs are all growing faster than basic entry-level segments, and because handling and maneuverability are strong selling points in these categories, demand for electronic rear axle steering systems is expected to increase steadily over the next decade.
The Global Automotive Rear Axle Steering System Market is typically segmented by product type, vehicle type, component, technology, end user, and region. Looking at product type, active rear axle steering systems are getting the most attention. Global light-vehicle sales are usually in the 65-75 million units per year range, and SUVs now account for roughly 45-50% of those sales in many major markets. A growing share of mid- to high-end SUVs and premium sedans offer active rear steering as standard or at least as an option. These systems use actuators and an ECU to change the rear wheel angle in real time: at low speeds the rear wheels turn in the opposite direction to the front wheels, which can reduce the turning circle by roughly 10-20%, making parking and U-turns easier; at higher speeds they turn in the same direction as the front wheels to improve lane-change stability. Because they can adapt to speed and driving conditions through software, active systems fit better with modern, electronics-heavy vehicle platforms than passive rear-steer setups, which rely on fixed geometry or simple mechanical deflection and can't react dynamically.
By vehicle type, passenger vehicles are clearly where most rear axle steering systems are being used. Out of the roughly 1.4-1.5 billion vehicles on the road worldwide, the bulk are passenger cars and SUVs, and they also dominate yearly sales. In regions like Europe, China, and North America, SUVs alone often represent 40-50% or more of new passenger-vehicle registrations. Larger SUVs and premium sedans are the main targets for rear-steer because they have long wheelbases and can feel clumsy in tight spaces without some form of steering aid. At the same time, the premium and luxury segments in markets such as China, the U.S., and Western Europe have been growing faster than the overall car market frequently at mid-single to low double-digit rates which creates more "room" in the price and feature list for advanced chassis systems. While commercial trucks and buses can also benefit from rear steering, they make up a much smaller share of total vehicle production. As a result, most of the current and near-term demand for rear axle steering systems is tied to passenger vehicles, especially SUVs and higher-end cars where handling, comfort, and easy maneuvering are strong selling points.
Automotive Rear Axle Steering System Market- Geographical Insights
From a geographical point of view, the automotive rear axle steering system market is strongest in regions where premium cars, large SUVs, and advanced chassis tech are common mainly Europe, Asia-Pacific, and North America. Global light-vehicle sales are usually in the 65-75 million units per year range, and SUVs now account for roughly 45-50% of those sales worldwide, with even higher shares in places like the U.S. and China. Europe is especially important because it has a high concentration of premium and luxury brands, and these are the cars that most often get rear axle steering first. Asia-Pacific is the biggest production region overall; China alone sells over 20 million passenger vehicles a year and is seeing rapid growth in mid- to high-end models and EVs where rear steering is used as a selling point. Japan and South Korea also contribute with performance and premium models. In North America, full-size SUVs and pickups take up a big chunk of the market, and these larger vehicles benefit a lot from a smaller turning circle in tight parking lots and city streets, which makes rear axle steering more attractive there than in regions dominated by very small cars.
Automotive Rear Axle Steering System Market- Country Insights
Germany is one of the most influential countries for rear axle steering systems because it is home to several major premium carmakers that actively push this technology. Brands like Mercedes-Benz, BMW, Audi, and Porsche sell millions of vehicles worldwide each year and dominate the premium and luxury segments in Europe, China, and North America. Many of their larger sedans and SUVs such as the Mercedes E-Class and S-Class, BMW 5- and 7-Series, Audi A6/A8 and Q7/Q8, and models like the Porsche Panamera, Cayenne, and Taycan offer rear axle steering either as standard on higher trims or as an optional extra. Germany itself usually registers around 2.5-3 million new passenger cars per year, but the bigger impact comes from exports and from the fact that these brands often set the benchmark for handling and comfort. German suppliers and R&D centers are also heavily involved in developing the actuators, ECUs, and control software that make rear axle steering work, so a lot of the technical know-how in this area is concentrated there. As German OEMs roll out more high-tech EVs and performance SUVs globally, rear axle steering is gradually becoming a more familiar and desirable feature in many markets.
The competitive landscape for automotive rear axle steering systems is dominated by large Tier-1 suppliers that specialize in steering and chassis systems, along with a few more niche technology providers. Big names like ZF Friedrichshafen, Bosch, JTEKT, Nexteer Automotive, and Hitachi Astemo already have a strong presence in conventional steering systems (hydraulic, electric power steering, and in some cases steer-by-wire), and rear axle steering is a natural extension of their product lines. The broader steering and chassis systems market is often valued in the tens of billions of dollars globally, with growth rates of around 4-6% per year, and rear steering is a smaller but faster-growing niche within that. These suppliers compete on how compact and lightweight their systems are, how smoothly they integrate with existing electronic stability control and ADAS, and how much flexibility they offer across different vehicle platforms. Since rear axle steering is still mostly found on higher-priced models, cost is important but performance, reliability, and software integration matter even more. As automakers move toward more EVs and software-defined vehicles, Tier-1 suppliers are working on modular, electromechanical rear steering systems that can be reused across multiple models and can eventually tie into steer-by-wire and higher levels of automated driving, which keeps the competition quite active.
In April 2025, Nexteer Automotive Corporation introduced a new high-output column-assist electric power steering system (HO CEPS). Unlike standard CEPS units that typically provide around 40-95 Nm of assist torque, this new version can deliver up to 110 Nm. That extra torque means it can be used on larger and heavier vehicles, such as SUVs and entry-level EVs, which normally put more load on the steering system. Nexteer says the design still keeps good steering precision and efficiency, while remaining relatively cost-effective, so carmakers can use column-assist EPS in segments where they might previously have needed a more complex or expensive setup.
In September 2022, Hyundai Mobis Co., Ltd. launched an advanced dual-actuator rear-wheel steering system aimed at improving vehicle maneuverability and driving dynamics. The company claims it can reduce a vehicle's turning radius by about 25%, which makes a big difference when you're dealing with tight city streets or cramped parking garages. Besides helping at low speeds, the system is also designed to improve stability and ride comfort during high-speed cornering, so it boosts both everyday drivability and overall handling performance.