Market Overview

The automotive electric power steering market has witnessed significant growth in recent years. With advancements in technology and increasing consumer demand for improved driving experience and vehicle safety, the adoption of electric power steering systems has been on the rise. Electric power steering (EPS) systems offer numerous advantages over conventional hydraulic power steering systems, including improved fuel efficiency, better response, and enhanced control.

Meaning

Automotive electric power steering refers to a system that assists in steering a vehicle using an electric motor rather than traditional hydraulic systems. It uses sensors to detect the driver’s steering input and provides the necessary assistive force to turn the wheels. By eliminating the need for mechanical linkages and hydraulic fluid, electric power steering systems offer improved reliability, efficiency, and performance.

Executive Summary

The automotive electric power steering market is experiencing rapid growth, driven by factors such as increasing vehicle production, rising demand for fuel-efficient vehicles, and stringent government regulations regarding vehicle emissions. The market is witnessing a shift from hydraulic power steering systems to electric power steering systems due to their superior performance and fuel efficiency. Additionally, advancements in technology, such as the integration of electric power steering with advanced driver assistance systems (ADAS), are further propelling market growth.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• Growing vehicle production and the increasing demand for fuel-efficient vehicles are driving the automotive electric power steering market.
• Electric power steering systems offer improved vehicle handling, reduced fuel consumption, and enhanced safety features, leading to their widespread adoption.
• The integration of electric power steering systems with advanced driver assistance systems (ADAS) is expected to drive market growth in the coming years.
• Asia Pacific is anticipated to dominate the market due to the presence of major automotive manufacturing hubs and the increasing demand for passenger vehicles in the region.

Market Drivers

1. Increasing Vehicle Production: The global automotive industry is experiencing steady growth, with rising vehicle production in emerging economies. As the number of vehicles on the road increases, the demand for electric power steering systems also rises.
2. Fuel Efficiency and Environmental Regulations: With the increasing focus on reducing carbon emissions and improving fuel efficiency, automakers are adopting electric power steering systems to meet stringent environmental regulations.
3. Improved Driving Experience: Electric power steering systems offer enhanced vehicle handling, responsiveness, and maneuverability, providing a superior driving experience to consumers.
4. Integration with Advanced Driver Assistance Systems (ADAS): The integration of electric power steering systems with ADAS enables features such as lane-keeping assist and automated parking, driving market growth.

Market Restraints

1. High Initial Costs: Electric power steering systems involve higher initial costs compared to conventional hydraulic systems, which can deter price-sensitive consumers.
2. Potential Reliability Issues: As electric power steering systems rely on electronic components, there is a possibility of malfunction or failure, leading to concerns about reliability and safety.
3. Limited Adoption in Heavy Commercial Vehicles: Electric power steering systems are primarily used in passenger vehicles and light commercial vehicles, with limited adoption in heavy commercial vehicles due to their specific requirements and cost considerations.

Market Opportunities

1. Growing Demand for Electric Vehicles: The increasing adoption of electric vehicles presents significant opportunities for the automotive electric power steering market. Electric power steering systems complement the electrification trend by enhancing the overall efficiency and performance of electric vehicles.
2. Technological Advancements: Continued advancements in electric power steering technology, such as the development of advanced control algorithms and integration with other vehicle systems, create opportunities for market growth.
3. Expansion in Emerging Markets: Emerging economies such as China, India, and Brazil offer immense growth potential for the automotive electric power steering market. The expanding middle-class population and rising disposable incomes in these regions drive the demand for passenger vehicles.

Market Dynamics

The automotive electric power steering market is highly dynamic, driven by various factors such as technological advancements, changing consumer preferences, and government regulations. The market is characterized by intense competition among key players, leading to continuous product innovations and improvements. Additionally, collaborations and partnerships between automotive manufacturers and technology providers are further shaping the market dynamics.

Regional Analysis

The automotive electric power steering market is segmented into several regions, including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among these, Asia Pacific is expected to dominate the market during the forecast period. The region’s dominance can be attributed to the presence of major automotive manufacturing hubs, increasing vehicle production, and the rising demand for passenger vehicles.

Competitive Landscape

Leading Companies in the Automotive Electric Power Steering Market:

1. JTEKT Corporation
2. Nexteer Automotive
3. Robert Bosch GmbH
4. ZF Friedrichshafen AG
5. NSK Ltd.
6. Mando Corporation
7. Hyundai Mobis Co., Ltd.
8. Hitachi Automotive Systems, Ltd.
9. Thyssenkrupp Presta AG
10. Showa Corporation

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The automotive electric power steering market can be segmented based on vehicle type, component, and region.

1. By Vehicle Type:
   • Passenger Vehicles
   • Light Commercial Vehicles
   • Heavy Commercial Vehicles
2. By Component:
   • Steering Column
   • Steering Gear
   • Sensor & Motor
   • Others
3. By Region:
   • North America
   • Europe
   • Asia Pacific
   • Latin America
   • Middle East and Africa

Category-wise Insights

1. Passenger Vehicles Segment: The passenger vehicles segment holds a significant share in the automotive electric power steering market. Increasing disposable incomes, changing consumer preferences, and the availability of a wide range of passenger vehicle models contribute to the segment’s growth.
2. Steering Gear Component: The steering gear component segment is expected to witness substantial growth due to its critical role in the functioning of electric power steering systems. Steering gears convert the rotational motion of the steering wheel into linear motion, assisting in steering vehicle wheels.
3. Asia Pacific Region: Asia Pacific is the largest market for automotive electric power steering due to the presence of major automotive manufacturing hubs in countries like China, Japan, and India. The region’s growing middle-class population and increasing disposable incomes are driving the demand for passenger vehicles equipped with electric power steering.

Key Benefits for Industry Participants and Stakeholders

• Enhanced Vehicle Performance: Automotive electric power steering systems improve vehicle handling, responsiveness, and control, providing a better driving experience for consumers.
• Fuel Efficiency and Emissions Reduction: Electric power steering systems contribute to improved fuel efficiency and reduced emissions, aligning with environmental regulations and sustainability goals.
• Safety and Driver Assistance: Integration with advanced driver assistance systems (ADAS) enhances vehicle safety features, including lane-keeping assist, parking assist, and collision avoidance systems.
• Market Expansion Opportunities: The growing adoption of electric power steering systems in electric vehicles and emerging markets offers opportunities for industry participants to expand their market presence and capture new customers.

SWOT Analysis

1. Strengths:
   • Improved vehicle handling and maneuverability
   • Enhanced fuel efficiency and reduced emissions
   • Integration with advanced driver assistance systems (ADAS)
   • Growing demand for electric vehicles
2. Weaknesses:
   • Higher initial costs compared to hydraulic systems
   • Potential reliability issues due to electronic components
   • Limited adoption in heavy commercial vehicles
3. Opportunities:
   • Increasing demand for electric vehicles
   • Technological advancements in electric power steering systems
   • Expansion in emerging markets
4. Threats:
   • Intense competition among market players
   • Potential challenges in meeting evolving government regulations
   • Economic downturns impacting the automotive industry

Market Key Trends

1. Integration of Electric Power Steering with ADAS: The integration of electric power steering systems with advanced driver assistance systems (ADAS) is a key trend in the market. This integration enhances vehicle safety features and enables advanced functionalities such as automated parking and lane-keeping assist.
2. Focus on Lightweight and Compact Systems: Automotive manufacturers and suppliers are increasingly focusing on developing lightweight and compact electric power steering systems. These systems help reduce vehicle weight, improve fuel efficiency, and create more space within the vehicle.
3. Development of Steer-by-Wire Systems: Steer-by-wire systems, which eliminate the mechanical connection between the steering wheel and the wheels, are gaining traction in the market. These systems offer flexibility in vehicle design, improved safety features, and potential for autonomous driving applications.

Covid-19 Impact

The Covid-19 pandemic had a significant impact on the global automotive industry, including the automotive electric power steering market. The industry faced disruptions in the supply chain, production halts, and a decline in vehicle sales during the lockdown periods. However, as economies gradually reopened and consumer demand revived, the market started recovering. The shift towards electric vehicles and the focus on improving vehicle efficiency post-pandemic are expected to drive the demand for automotive electric power steering systems.

Key Industry Developments

1. Collaborations and Partnerships: Automotive manufacturers and technology providers are forming collaborations and partnerships to develop advanced electric power steering systems. These collaborations aim to leverage each other’s expertise and resources to enhance product offerings and drive market growth.
2. Product Launches and Innovations: Key players in the market are continuously launching new products and innovations to stay ahead in the competition. These developments focus on improving performance, reliability, and integration with other vehicle systems.

Analyst Suggestions

1. Embrace Technological Advancements: Industry participants should invest in research and development to stay updated with the latest technological advancements in electric power steering systems. This includes developing advanced control algorithms, improving sensor technologies, and integrating electric power steering with emerging vehicle technologies.
2. Focus on Cost Optimization: Given the higher initial costs associated with electric power steering systems, industry participants should focus on cost optimization to make these systems more affordable for a wider consumer base. This can be achieved through efficient manufacturing processes, economies of scale, and strategic partnerships with component suppliers.
3. Collaborate with Automotive Manufacturers: Collaborating with automotive manufacturers can help industry participants understand their specific requirements and tailor electric power steering systems accordingly. Such collaborations can also facilitate early adoption of new technologies and increase market penetration.

Future Outlook

The future outlook for the automotive electric power steering market is positive, with strong growth anticipated. Factors such as increasing vehicle production, the shift towards electric vehicles, and advancements in technology will drive market expansion. As consumers prioritize fuel efficiency, safety, and a superior driving experience, the demand for electric power steering systems will continue to rise.

Conclusion

The automotive electric power steering market is witnessing significant growth, driven by factors such as increasing vehicle production, the demand for fuel-efficient vehicles, and the integration of electric power steering systems with advanced driver assistance systems (ADAS). While the market presents opportunities, it also faces challenges such as high initial costs and potential reliability issues.

However, with technological advancements, collaborations, and a focus on cost optimization, the market is poised for continued expansion. The future outlook for the automotive electric power steering market is optimistic, and industry participants should capitalize on emerging trends and opportunities to maintain a competitive edge.