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The electric power steering market size is forecast to increase by USD 7.33 billion at a CAGR of 5.05% between 2023 and 2028. The electric power steering market is a sector of the automotive industry that focuses on the production and sales of vehicles equipped with electric power steering systems. Several factors play a crucial role in the market's growth, such as stringent regulations to control vehicular emissions, sharing of increase in production costs by OEMs and end-users and rising adoption of EPS in entry-level and mid-segment vehicles. This market research and analysis report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising adoption of EPS in entry-level and mid-segment vehicles is notably driving the market growth. Automotive steering systems are undergoing continuous improvements and are loaded with several features to enhance the safety, comfort, and convenience of the users. The preference for vehicle personalization increases the demand for customized vehicle components. Such preferences for automotive steering systems were initially observed in the luxury segment vehicle segment. However, the increasing adoption of EPS in entry-level and mid-segment vehicles is compelling luxury vehicle manufacturers to incorporate new technologies for differentiating from mid-segment vehicles.
Further, this has resulted in the introduction of advanced EPS, where the steering column position can be saved and used multiple times with the touch of a button. The advances in automotive EPS in luxury vehicles and the increasing use of EPS in entry-level and mid-segment vehicles will drive the growth of the EPS market during the forecast period.
The development of 3D magnetic steering sensors for EPS is an emerging trend shaping the market growth. The adoption of electronically controlled systems is rapidly increasing in the automotive industry. Increased comfort, improved safety, and better handling characteristics are the major drivers for the integration of innovative technologies in vehicles. 3D magnetic sensors for EPS can significantly improve overall ride quality by improving steering wheel measurements. A 3D magnetic sensor has the inherent advantage of mapping complex movements easily. A test was conducted wherein steering wheel movement was made to connect with the sensor in sync with the suspension system attached to a magnet.
Moreover, the sensor uses magnet-mechanic coupling capable of monitoring and analyzing movements that are not just linear or angular. Further developments are ongoing, with steering system designers and developers working on precise measurements of the steering wheel's linear and angular movements with the help of magnetic sensors. This is being done by the magnetic mapping of different movements. The development of such 3D magnetic sensors will positively impact the growth of the market during the forecast period.
Fluctuating costs of raw materials is a significant challenge hindering the market growth. The EPS is less price-sensitive than several other automotive components. However, fluctuations in raw material costs will impact the pricing of EPS. Steel, aluminium, and hardened deep-drawn steel are among the major raw materials used for producing steering systems. Fluctuations in the cost of raw materials are directly correlated to the price of EPS. The cost of raw materials keeps fluctuating based on various macroeconomic factors, such as inflation, labour costs, and changes in regulatory policies. The increased cost of raw materials is usually borne by the suppliers.
In addition, a slump in infrastructure spending and the decline in iron ore consumption in China reduced the demand for such raw materials, which increased inventories across the world. Such factors may lead to a supply-demand imbalance and are expected to keep the cost of raw materials volatile during the forecast period. Fluctuations in the costs of raw materials lead to uncertainties in the raw material procurement plans of manufacturers, including EPS manufacturers. This may hamper the growth of the EPS market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Electric Power Steering Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
DENSO Corp. - The company offers an electric power steering motor control unit with two drive circuits which is designed to create a safe and secure automobile society.
The research report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The collapsible segment is estimated to witness significant growth during the forecast period. A collapsible EPS system is designed primarily to improve crash safety. It incorporates advanced technology that allows the steering column to retract in the event of a collision, minimizing the potential impact force transmitted to the driver.
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The collapsible was the largest segment and was valued at USD 15.48 billion in 2018. Additionally, collapsible EPS systems offer additional benefits, such as better space utilization and greater flexibility. The collapsible design allows the steering column to be adjusted easily or folded during vehicle assembly or transportation. This feature simplifies the manufacturing process, reduces logistical challenges, and enables the efficient use of space inside the vehicle cabin. From the market perspective, the collapsible EPS segment has witnessed growing demand across different vehicle segments. It is widely adopted in passenger cars, as it enhances the safety of both the driver and passengers. Moreover, collapsible EPS systems are gaining traction in commercial vehicles, where safety regulations and driver comfort are crucial factors. Therefore, these features and properties of collapsible EPS will spur the growth of the EPS market during the forecast period.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China, India, Indonesia, and South Korea are some of the fastest-growing economies in the world because of factors such as rapid economic growth and increased per capita income, which have increased the purchasing power of consumers and intensified competition in many industries, including the automotive industry. The region is a prime offshore location for automotive manufacturing and automotive components manufacturing. Government incentives, low labour costs, and abundant availability of raw materials are a few factors that support these manufacturing activities.
For instance, in December 2022, China Automotive Systems, Inc., one of the key companies operating in China, announced the introduction of a new series of EPS systems for the largest producer of electric vehicles (EVs), BYD Auto. Thus, the presence of a robust supplier base in APAC provides OEMs with significant cost benefits and enables collaborative working models, which fuel innovation in steering technologies which in turn drive the market growth during the forecast period..
The Electric Power Steering Market is witnessing rapid growth driven by advancements in automotive technology and the demand for improved fuel efficiency. Unlike traditional hydraulic power steering, electric power steering systems utilize an electric motor to provide steering assistance, offering greater efficiency and reduced complexity. As automakers seek to enhance performance while reducing weight and operations, electric power steering emerges as a preferred choice. This sector caters to various vehicle types, offering assistance tailored to different driving needs. However, challenges such as technological restraints and market competition remain, but the market continues to evolve, positioning itself as a crucial player in the power steering industry.
This market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Electric Power Steering Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.05% |
Market Growth 2024-2028 |
USD 7.33 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.73 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
DENSO Corp., GKN Sinter Metals Engineering GmbH, HELLA GmbH and Co. KGaA, Hitachi Ltd., Infineon Technologies AG, JTEKT Corp., Knorr Bremse AG, Mando Aftermarket North America, Mitsubishi Electric Corp., Nexteer Automotive Group Ltd., Nissan Motor Co. Ltd., NSK Ltd., NXP Semiconductors NV, Robert Bosch GmbH, STMicroelectronics International N.V., TT Electronics Plc, Valeo SA, Zapi Group, and ZF Friedrichshafen AG |
Market dynamics |
Market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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