Electric Power Steering Market

According to Stratistics MRC, the Global Electric Power Steering Market is accounted for $25.61 billion in 2022 and is expected to reach $35.11 billion by 2028 growing at a CAGR of 5.4% during the forecast period. Electric power steering (EPS) system helps a driver to effortlessly steer the vehicle. The technique makes use of an electric motor that is installed on the steering column or rack. Sensors mounted to the motor monitor the amount of torque, or rotational effort, the driver provides to the steering wheel. The sensors utilize the data they have gathered to calculate how much assistance the driver needs to spin the front wheels. The key element in deciding the output offered by EPS is the vehicle's speed. By adjusting the steering torque to the vehicle speed and delivering active torque in risky driving situations, electric power steering (EPS) increases vehicle safety while boosting handling and steering control.

According to the U.S. Department of Energy (DOE), in absolute condition, EPS systems can improve fuel productivity by 2% to 4%, minimize fuel consumption by up to 6%, and lessen CO2 emissions by 8g/km.



Market Dynamics:

Driver:

Raising shift toward electrically powered vehicles

Automobile manufacturers are introducing electric systems and components into their designs in order to improve the quality and driving experience of automobiles. In order to increase the effectiveness of cars and track the operation of all key components so that defects can be monitored effectively, manufacturers are installing a number of electronic devices and systems. Due to various advantages over hydraulic power steering, including lower maintenance costs and better fuel economy, the penetration of electric power steering systems is expected to rise throughout the projection period.

Restraint:

Maintaining market against steer-by-wire technology

With the shifting dynamics of the automobile industry, the steering market is always changing. OEMs are modernizing the traditional steering mechanism in response to the rise of autonomous cars. One such breakthrough that will take the place of the complete steering system in an autonomous car is steer-by-wire technology. The steering linkage of a conventional electric power steering system will be eliminated by this kind of steering system.

Opportunity:

Technological advancements

The electric motor only draws power when needed. Any advanced driving assistance system (ADAS) that includes steering without the driver's input is enabled by EPS. The electric power steering system has undergone significant new developments, including improved steering control, pleasant driving, and power efficiency. The capacity of EPS to steer itself when necessary is used in features like lane-keep assist, automatic parking and lane changes, and the ability to lead the car around obstacles. As a result, the market growth is expanding exponentially.

Threat:

EPS are quite expensive

The equipment of electric power steering makes it quite pricey. The drawback of electric power steering is that, unlike a hydraulic system, it is more difficult to repair with common components and labor. Only a major dealer is qualified to recalibrate it. EPS systems may need specific tools and expertise to identify and fix electrical problems that might be brought on by a malfunctioning onboard computer or a number of sensors. This makes it more costly and dampens the market demand.

Covid-19 Impact

The COVID-19 pandemic had a severe impact on the entire automotive industry. Several major economies of the world were forced into lockdown and economic activities were halted during this period. All the manufacturing units and OEM plants stopped their production to adhere to the social distancing norms. The demand for passenger vehicles also fell drastically during this period. Yet with the gradual opening up of economies, the demand returned to the market, and markets like China and India witnessed huge demand for passenger cars as the consumer preference changed from public transport to personal vehicles.

The steering torque sensors segment is expected to be the largest during the forecast period

The steering torque sensors segment is estimated to have a lucrative growth. The steering torque sensor records the torsion bar angle required for the steering movement. Torque sensors need less package space and have simpler mechanical designs. They are able to monitor shear, bending, and torque at the component level or contactless within machines. Since the torque sensors don't require any maintenance, they can deliver the necessary measurement data right away.

The passenger vehicle segment is expected to have the highest CAGR during the forecast period

The passenger vehicle segment is estimated to have a lucrative growth owing to the advancements of technology that have been growing at an unprecedented rate. Passenger vehicles have incorporated some sort of advanced power handling, as it provides better fuel efficiency, and therefore no assistance is needed to operate the power handling manually. As a result, advanced product technology continues to play a prominent role in the automated development of the automotive sector, leading to creating substantial growth prospects for the electric power steering market in such applications.

Region with largest share:

North America is projected to hold the largest market share during the forecast period. The region’s automotive market remains to grow at a steady pace in the overall economy. The economic development of the region has posed a significant impact on the production and sale of passenger and power-driven vehicles. Furthermore, the implementation of vehicle safety norms and regulations by the U.S. government is further aiding the electric power steering industry growth.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to high penetration from emerging economies such as India, China, Japan, and South Korea. Japan, holds the largest market share of steering systems in the world. Also, Japan is home to many other leading manufacturers of steering systems, such as Mitsubishi Electric, NSK. The presence of leading manufacturers is a key factor driving the penetration of EPS systems in Japan. The EPS installation is directly proportional to the growth of vehicle production in the Asia Pacific region.



Key players in the market

Some of the key players profiled in the Electric Power Steering Market include Robert Bosch Gmbh, Sensata Technologies, Inc., NXP Semiconductors N.V., Hyundai Mobis, Thyssenkrupp Presta AG, Mitsubishi Electric Corporation, NSK Ltd, Mando Corporation, ZF Friedrichshafen AG, Hubei Henglong Auto System Group, Denso Corporation, Nexteer Automotive, GKN PLC, Continental AG, Hitachi Automotive Systems Ltd, Honeywell Inc, HELLA GmbH & Co. Kga, Valeo SA, Infineon Technology and TT Electronics PLC.

Key Developments:

In March 2023, Honeywell and Lufthansa Technik are enhancing their collaboration on Lufthansa Technik’s digital platform AVIATAR to improve the customer experience in aviation analytics. Honeywell Connected Maintenance analytics are now being fully integrated into AVIATAR’s Predictive Health Analytics (PHA) suite, which will grow to more than 100 Predictors for multiple Airbus and Boeing aircraft types.

In January 2023, Bosch Power Tools launched the New Powerful, Compact, Made-in-India GWS 800 Professional. This is all rounder tool works great at construction sites for wall chasing and wood sandling applications.

In October 2022, Hitachi announced that it has developed a prototype of a new steer-by-wire steering device that eliminates the conventional steering wheel and expands the cabin space. Steer-by-wire is a feature that steers the vehicles electrically–an essential technology for self-driving and other next-generation vehicles.

Types Covered:
• Column Type
• Pinion Type
• Dual Pinion Type

Sensor Types Covered:
• Steering Torque Sensors
• Steering Angle Sensor
• Combination Sensor
• Other Sensor Types

Components Covered:
• Steering column
• Steering Gear
• Bearing
• Electronic Control Unit
• Electric Motor
• Mechanical Rack & Pinion
• Other Components

Mechanism Covered:
• Rigid EPS
• Collapsible EPS

Vehicles Covered:
• Commercial Vehicle
• Passenger Vehicle
• Electric Vehicle
• Agricultural Tractors
• Construction Equipment
• Heavy Duty Trucks
• Buses & Coaches
• Utility Vehicle

Technologies Covered:
• EPS with ADAS
• Conventional EPS

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances