Market Overview:
The global electric power steering market size was valued at around USD 25.8 billion in 2021 and expected to grow at a CAGR of 5.9% during the forecast period. Electric Power Steering (EPS) is a type of power steering system that uses an electric motor to assist in the steering of a vehicle. EPS provides better fuel efficiency, enhanced performance, and improved handling and stability compared to hydraulic power steering systems. It is used in a wide range of vehicles, including passenger cars, commercial vehicles, and heavy-duty trucks. EPS systems use sensors and control modules to analyze data from the driver's input and vehicle conditions, and adjust the steering force accordingly. The electric motor is typically mounted on the steering column or rack and pinion, and provides assistive torque to the steering system, making it easier to turn the wheels. EPS systems are also equipped with various safety features, such as speed sensors, torque sensors, and steering angle sensors, which help prevent accidents and improve vehicle stability.
Covid-19 Impact:
The COVID-19 pandemic has had a significant impact on the global automotive industry, including the electric power steering (EPS) market. The pandemic has caused disruptions in the supply chain and manufacturing activities, leading to a decline in vehicle production and sales. As a result, the demand for EPS systems has also been affected, and the market has witnessed a slowdown in growth.
However, the pandemic has also accelerated the adoption of electric and hybrid vehicles, which are equipped with EPS systems. The increasing demand for sustainable transportation solutions, coupled with government initiatives and incentives, is expected to drive the growth of the EPS market in the long term. Moreover, the increasing focus on safety and comfort features in vehicles is also expected to boost the demand for EPS systems.
In addition, the pandemic has also led to a shift in consumer behavior, with more people opting for personal mobility solutions. This has increased the demand for small and compact vehicles, which are often equipped with EPS systems.
Overall, while the COVID-19 pandemic has had a short-term impact on the electric power steering market, the long-term outlook remains positive, with increasing demand for electric and hybrid vehicles and the growing focus on safety and comfort features expected to drive growth in the market.
Market Dynamics:
Drivers:
Fuel Efficiency and Emissions: Electric power steering systems are more fuel-efficient than hydraulic power steering systems, as they do not require an engine-driven hydraulic pump. This reduces the load on the engine and improves fuel economy. Moreover, the adoption of electric power steering systems is also driven by the need to reduce emissions and comply with regulations, as electric power steering systems emit fewer pollutants compared to hydraulic power steering systems.
Improved Vehicle Performance: Electric power steering systems provide better vehicle performance, handling, and stability compared to hydraulic power steering systems. They offer improved steering response, reduced steering effort, and better road feel, which enhance the driving experience.
Safety: Electric power steering systems are equipped with various safety features, such as torque sensors, steering angle sensors, and speed sensors, which help prevent accidents and improve vehicle stability. EPS systems can adjust the steering force according to the driving conditions, such as speed, road surface, and vehicle load, ensuring optimal steering performance.
Lightweight and Compact Design: Electric power steering systems are lightweight and compact compared to hydraulic power steering systems, making them suitable for small and compact vehicles. This has increased the adoption of electric power steering systems in the growing small car segment.
Growing Demand for Electric and Hybrid Vehicles: The increasing demand for electric and hybrid vehicles, which are equipped with electric power steering systems, is also driving the growth of the electric power steering market. Governments around the world are promoting the adoption of electric and hybrid vehicles through incentives and subsidies, driving the demand for electric power steering systems.
Restraints:
High Cost: Electric power steering systems are more expensive than hydraulic power steering systems, which can limit their adoption in price-sensitive markets. The high cost of electric power steering systems is due to the complex design and the use of advanced technologies and materials.
Dependence on Electronics: Electric power steering systems rely heavily on electronic components, such as sensors, controllers, and software, which can increase the risk of electronic failures and malfunctions. This can lead to safety concerns and higher maintenance costs.
Limited Availability of Raw Materials: Electric power steering systems require certain raw materials, such as rare earth metals, which are limited in availability. This can cause supply chain disruptions and increase the cost of manufacturing.
Regional Analysis:
North America: The North American market for electric power steering is expected to grow significantly due to the increasing demand for fuel-efficient and lightweight vehicles. The presence of major automotive manufacturers, such as Ford and General Motors, is also expected to drive the growth of the market in this region.
Europe: Europe is expected to be one of the largest markets for electric power steering due to the stringent emission regulations and the increasing demand for electric and hybrid vehicles. The region has a significant presence of major automotive manufacturers and suppliers, such as Bosch, ZF Friedrichshafen, and Nexteer Automotive, which is expected to drive the growth of the market.
Asia-Pacific: The Asia-Pacific region is expected to witness significant growth in the electric power steering market due to the increasing demand for small and compact vehicles, which are suitable for the densely populated cities in this region. The region also has a large number of automotive manufacturers and suppliers, such as Toyota, Honda, Hyundai, and JTEKT, which is expected to drive the growth of the market.
Middle East & Africa: The Middle East & Africa region is expected to witness moderate growth in the electric power steering market due to the increasing demand for luxury vehicles and the adoption of advanced technologies in the automotive industry.
Latin America: The Latin American market for electric power steering is expected to grow at a steady pace due to the increasing demand for electric and hybrid vehicles and the growing automotive industry in this region.
Market Segmentation:
Type: The market can be segmented based on the type of electric power steering system, such as column assist, pinion assist, and rack assist.
Component: The market can be segmented based on the components used in the electric power steering system, such as the electric motor, torque sensor, control unit, and steering gear.
Vehicle Type: The market can be segmented based on the type of vehicle, such as passenger cars, light commercial vehicles, and heavy commercial vehicles.
Sales Channel: The market can be segmented based on the sales channel used to distribute electric power steering systems, such as OEMs and aftermarket.
Motor Type: The market can also be segmented based on the type of motor used in the electric power steering system, such as brushless DC motor and brushed DC motor.
Drive Type: The market can be segmented based on the drive type, such as hydraulic, electric, and electro-hydraulic.
Geography: The market can be segmented based on geography, including North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Competitive Landscape:
The global electric power steering market is highly competitive with several key players competing for market share.
Some of the major companies operating in the market are:
JTEKT Corporation
Nexteer Automotive
Robert Bosch GmbH
ZF Friedrichshafen AG
NSK Ltd.
Hyundai Mobis Co. Ltd.
Mitsubishi Electric Corporation
TRW Automotive
Thyssenkrupp AG
Hitachi Automotive Systems
These companies operate across the globe and have a strong presence in different regions. They are continuously investing in research and development to improve their product offerings and gain a competitive advantage. Additionally, they are also focusing on strategic partnerships and collaborations to expand their market reach and strengthen their position in the market.
The market is also witnessing several new entrants, especially in emerging economies, which are further intensifying the competition. These companies are focusing on providing cost-effective and efficient solutions to gain market share. As the demand for electric power steering systems continues to grow, the competition in the market is expected to remain high.