How Have Advancements in IoT and Semiconductor Technologies Impacted the Automotive Steering Wheel Switch Industry?

Highlights:

• Introduction
• Innovations in automotive steering wheel switches
• Mergers and acquisitions in the sector

The integration of digital technologies and advanced electronics in modern automobiles has  transformed the automotive manufacturing sector in the last few decades. Nowadays, new automobiles with high-tech functionalities and gadgets are being launched by leading manufacturers which not only provide better comfort and convenience to the driver but also enhance his/her overall safety. To help the driver access these functionalities easily and quickly, automobile manufacturers generally provide buttons on the steering wheels. These control levers or keys are usually called automotive steering wheel switches.

Over the years, automobile steering wheel buttons have become the most common way to assist drivers in controlling the essential functions of the vehicle, infotainment options, ADAS functionalities, etc., while maintaining a firm grip on the wheel and eyes on the road ahead. These control switches have, thus, transformed automobile steering wheels into advanced human-machine interfaces, thereby improving the overall operational efficiency of the vehicles.

Innovations in semiconductor manufacturing and material sciences accelerating industry’s growth

The automotive steering wheel switch industry has witnessed tremendous growth in the last few years owing to the increasing technological advancements in the field of electronics and semiconductor chip designing. The market, which accounted for $1.8 billion in 2022, is predicted to gather a revenue of $2.2 billion by 2032, citing a CAGR of 2.3% during 2023-2032. The growing preference and gradual shift toward touchscreen-based interfaces have opened new avenues for growth in the industry. Over the years, innovations in sensors and other electronic gadgets have played an important role in broadening the scope of automotive steering wheel switches.

For example, many consumer electronics companies have developed torque sensors to accurately measure the torque on rotating systems such as engines, gearboxes, etc. These sensing devices capture accurate data from different vehicle components and display it on the dashboard to help drivers track important parameters continuously. Similarly, position sensors aid car owners in monitoring the displacement and movement of their vehicles seamlessly. Along with providing vital information, these technologies form the basis of advanced innovations such as autonomous driving and personalized steering settings.

The advent of connected vehicle technology has further widened the scope of automotive steering wheel switches. This technology makes use of IoT-powered devices to create a network of wireless devices for bi-directional communication between the vehicle and other terminals. Connected vehicle technology essentially helps in adaptive cruise control, automatic traffic, and road signage updates, automatic vehicle braking, etc., which improves the overall operational efficiency of the vehicle significantly. To access these functionalities, car manufacturers have started placing buttons and switches that allow drivers to connect with their peers instantly.

Apart from this, advancements in material sciences and chemical engineering have led to the emergence of polymers and carbon composites that reduce the weight of the steering wheel, while at the same time improving its strength and durability. Automotive studies have demonstrated that a reduction in vehicle components such as the driving wheel improves the fuel efficiency and performance of the vehicle substantially. Moreover, the advent of biodegradable polymers and plastics has helped car manufacturers design environmentally sustainable automotive steering wheel switches, thereby decarbonizing the industry in the long run.

Evolving industry dynamics creating favorable conditions for the growth of the landscape

In the last few years, several multinational corporations have invested heavily in the automotive steering wheel switch market. In addition, certain players have even established strategic alliances with their peers to expand their footprint in the industry. For instance, BCS Automotive Interface Solutions, a major touch-sensitive surfaces developer, announced that it had signed a partnership agreement with UltraSense Systems, an automotive solutions provider. Under this collaboration, both companies will jointly develop solid-surface touch systems featuring multi-mode sensing technology for the automotive OEM sector.

Similarly, in March 2024, ZF Rane Automotive India Private Limited, a steering systems developer, released a press statement announcing the acquisition of a 100% stake in TRW Sun Steering Wheels Private Limited (TSSW), a steering wheel manufacturer. As per the press release, this move is predicted to help ZF Rane Automotive India Private Limited to solidify its position in the industry in the near future.

Winding up, the growth of the automotive steering wheel switch sector is attributed to the increasing integration of advanced electronics in the vehicle manufacturing process. Moreover, the emergence of smart technologies such as IoT and the development of high-quality polymers and carbon fibers is anticipated to maximize the revenue share of the landscape in the coming period.

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