Market Overview

The automotive industry has witnessed a significant transformation over the years, with technological advancements revolutionizing various aspects of vehicle design and performance. One such innovation is the introduction of electric power steering (EPS) systems, which have gained immense popularity in recent times. These systems have replaced traditional hydraulic power steering systems in many vehicles due to their numerous advantages, including enhanced fuel efficiency, improved handling, and reduced maintenance requirements.

Meaning

Electric power steering systems, also known as EPS systems, are a type of steering system that uses an electric motor to assist the driver in steering the vehicle. Unlike traditional hydraulic power steering systems that rely on hydraulic fluid and a pump, EPS systems utilize electrical power to provide the necessary steering assistance. The electric motor assists the driver by applying torque to the steering column, making it easier to turn the wheels and maneuver the vehicle.

Executive Summary

The market for automotive electric power steering systems is experiencing rapid growth due to the increasing demand for fuel-efficient vehicles, growing emphasis on driver safety and comfort, and advancements in automotive technology. EPS systems offer several advantages over conventional steering systems, making them a preferred choice among automakers and consumers alike.

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

• The global automotive electric power steering systems market is expected to witness substantial growth in the coming years.
• The rising demand for electric vehicles (EVs) and hybrid vehicles is a significant driver for the market.
• Technological advancements, such as the integration of advanced sensors and control systems, are further propelling market growth.
• The Asia-Pacific region is expected to dominate the market, followed by North America and Europe.
• Key market players are focusing on strategic collaborations and product innovations to gain a competitive edge.

Market Drivers

1. Growing Demand for Fuel-efficient Vehicles: With increasing concerns about environmental sustainability and rising fuel prices, there is a growing demand for vehicles that offer improved fuel efficiency. Automotive electric power steering systems contribute to fuel economy by reducing the energy required for steering, thereby enhancing the overall efficiency of the vehicle.
2. Emphasis on Driver Safety and Comfort: Electric power steering systems provide better control and responsiveness, enhancing driver safety and comfort. These systems offer variable steering assistance, which can be adjusted based on driving conditions, vehicle speed, and driver preferences. The ability to customize steering assistance improves the overall driving experience and reduces driver fatigue.
3. Advancements in Automotive Technology: The automotive industry is witnessing rapid advancements in technology, and electric power steering systems are no exception. Integration of advanced sensors, control units, and communication networks allows for precise and adaptive steering assistance. These technological advancements contribute to the market growth by providing enhanced performance and reliability.

Market Restraints

1. High Initial Cost: The initial cost of installing an electric power steering system in a vehicle is relatively higher compared to traditional hydraulic power steering systems. This cost can act as a barrier to adoption, particularly in price-sensitive markets.
2. Complex Maintenance and Repair: While electric power steering systems offer several benefits, they can be more complex to maintain and repair compared to hydraulic systems. The complexity of electrical components and the need for specialized knowledge and equipment can increase maintenance costs for vehicle owners.
3. Limited Retrofitting Options: Retrofitting traditional vehicles with electric power steering systems can be challenging and may require significant modifications. This limitation restricts the adoption of EPS systems in existing vehicles and poses a restraint to market growth.

Market Opportunities

1. Growing Electric Vehicle Market: The increasing adoption of electric vehicles presents significant opportunities for the automotive electric power steering systems market. Electric vehicles inherently require electric power steering systems, and as the demand for EVs continues to rise, the market for EPS systems is expected to expand.
2. Integration of Advanced Driver Assistance Systems (ADAS): Electric power steering systems can be integrated with advanced driver assistance systems to provide additional functionalities such as lane-keeping assist and automated parking. The integration of EPS with ADAS presents opportunities for market players to offer comprehensive solutions that enhance vehicle safety and convenience.
3. Expansion in Emerging Markets: Emerging markets, particularly in Asia-Pacific and Latin America, offer untapped growth opportunities for the automotive electric power steering systems market. Rising disposable incomes, changing lifestyles, and increasing vehicle production in these regions contribute to market expansion.

Market Dynamics

The automotive electric power steering systems market is driven by a combination of factors, including technological advancements, changing consumer preferences, and government regulations. The market dynamics are influenced by trends such as the rising demand for electric vehicles, the integration of advanced driver assistance systems, and the shift towards more sustainable and efficient transportation options. Additionally, the market is affected by factors such as economic conditions, supply chain disruptions, and industry collaborations.

Regional Analysis

The global automotive electric power steering systems market can be segmented into several regions, including North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

• Asia-Pacific: The Asia-Pacific region is expected to dominate the market due to the presence of major automotive manufacturing hubs, such as China, Japan, and South Korea. The growing demand for electric vehicles, coupled with supportive government initiatives and investments in automotive technology, contributes to the region’s market dominance.
• North America: North America is a significant market for automotive electric power steering systems, driven by the presence of key automobile manufacturers and the growing demand for fuel-efficient vehicles. The region also witnesses a strong focus on driver safety and technological advancements, further propelling market growth.
• Europe: Europe is another prominent market for EPS systems, primarily due to stringent emission regulations and the increasing popularity of electric vehicles. The region’s emphasis on sustainability and reducing carbon emissions drives the adoption of electric power steering systems in vehicles.
• Latin America, Middle East, and Africa: These regions offer significant growth potential for the automotive electric power steering systems market, fueled by increasing urbanization, rising disposable incomes, and expanding automotive industries.

Competitive Landscape

Leading Companies in the Automotive Electric Power Steering Systems Market:

1. JTEKT Corporation
2. ZF Friedrichshafen AG
3. Nexteer Automotive Group Limited
4. NSK Ltd.
5. Thyssenkrupp Presta AG
6. Mando Corporation
7. Mitsubishi Electric Corporation
8. Hitachi Automotive Systems, Ltd.
9. Robert Bosch GmbH
10. GKN Automotive Limited

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 systems market can be segmented based on vehicle type, component, and geography.

1. By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

2. By Component:

• Steering Column
• Steering Gear
• Steering Motor
• Sensors
• Others

3. By Geography:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Category-wise Insights

1. Passenger Cars Segment: The passenger cars segment dominates the market, driven by the increasing production and sales of passenger vehicles worldwide. The demand for electric power steering systems in passenger cars is primarily attributed to the growing emphasis on driver comfort and safety features.
2. Commercial Vehicles Segment: The commercial vehicles segment is also witnessing significant growth, fueled by the rising adoption of electric power steering systems in commercial vehicles for improved maneuverability, fuel efficiency, and driver convenience.
3. Steering Column Component: The steering column component holds a significant market share due to its crucial role in connecting the steering wheel to the steering system. Advancements in steering column design, such as collapsible and energy-absorbing features, enhance occupant safety in the event of a collision.
4. Steering Gear Component: The steering gear component is essential for converting the rotational motion of the steering wheel into the linear motion required to turn the vehicle’s wheels. Continuous advancements in steering gear technology, such as the introduction of electrically-assisted rack-and-pinion systems, contribute to market growth.
5. Steering Motor Component: The steering motor component is responsible for providing the necessary torque assistance to the steering system. The increasing focus on energy-efficient motor technologies, such as brushless DC motors, drives the adoption of efficient and compact steering motor units.
6. Sensors Component: Sensors play a vital role in electric power steering systems, providing crucial information about vehicle speed, steering angle, and driver inputs. Advancements in sensor technologies, including the integration of intelligent sensing systems and sensor fusion techniques, improve the accuracy and responsiveness of EPS systems.

Key Benefits for Industry Participants and Stakeholders

1. Automakers: The adoption of automotive electric power steering systems enables automakers to offer vehicles with improved fuel efficiency, enhanced safety features, and superior driving experience. These systems also provide automakers with opportunities for product differentiation and a competitive edge in the market.
2. Component Manufacturers: Manufacturers of steering system components, such as steering columns, steering gears, motors, and sensors, benefit from the growing demand for EPS systems. Collaborating with automakers and investing in research and development activities allows component manufacturers to capitalize on market opportunities and expand their customer base.
3. Suppliers and Distributors: Suppliers and distributors of automotive electric power steering systems play a crucial role in the market by ensuring the availability of high-quality components and systems to manufacturers. By establishing strong partnerships with automakers and offering efficient supply chain management, suppliers and distributors can gain a competitive advantage.
4. End-users: End-users, including vehicle owners and drivers, benefit from automotive electric power steering systems through improved steering control, reduced driver fatigue, and enhanced safety features. These systems provide a comfortable and enjoyable driving experience, contributing to overall customer satisfaction.

SWOT Analysis

1. Strengths:

• Enhanced fuel efficiency and reduced emissions
• Improved vehicle handling and maneuverability
• Customizable steering assistance for driver comfort
• Integration with advanced driver assistance systems

2. Weaknesses:

• Higher initial cost compared to hydraulic power steering systems
• Complex maintenance and repair requirements
• Limited retrofitting options for existing vehicles

3. Opportunities:

• Growing electric vehicle market
• Integration with advanced driver assistance systems
• Expansion in emerging markets

4. Threats:

• Intense market competition among key players
• Price sensitivity and cost concerns for consumers
• Potential regulatory changes impacting the automotive industry

Market Key Trends

1. Integration with Advanced Driver Assistance Systems (ADAS): Electric power steering systems are increasingly being integrated with ADAS technologies to enhance vehicle safety and driver convenience. Features such as lane-keeping assist, adaptive cruise control, and automated parking are becoming more common, contributing to the market’s growth.
2. Focus on Energy Efficiency: Market players are emphasizing energy-efficient solutions by utilizing advanced motor technologies, optimizing power consumption, and implementing intelligent control algorithms. These efforts not only enhance the overall performance of EPS systems but also align with the industry’s focus on sustainability.
3. Development of Steer-by-Wire Systems: Steer-by-wire systems, also known as electronic steering systems, are gaining traction in the market. These systems eliminate the mechanical connection between the steering wheel and the wheels, providing greater design flexibility, enhanced safety, and the potential for autonomous driving capabilities.
4. Advances in Sensor Technology: Sensors play a crucial role in electric power steering systems, providing real-time feedback and enabling precise control. Advancements in sensor technology, including the integration of advanced sensors and sensor fusion techniques, improve the accuracy, responsiveness, and reliability of EPS systems.

Covid-19 Impact

The global automotive industry, including the automotive electric power steering systems market, faced significant challenges due to the COVID-19 pandemic. The pandemic disrupted supply chains, resulted in production halts, and caused a decline in consumer demand for vehicles. However, the market showed resilience and exhibited signs of recovery as economies gradually reopened and automotive manufacturing resumed. The pandemic also highlighted the importance of technological innovations in the automotive sector, including electric power steering systems, as a key driver for sustainability and future growth.

Key Industry Developments

1. Collaboration between Automakers and Technology Companies: Many automakers are collaborating with technology companies to develop advanced electric power steering systems that integrate with other vehicle systems, such as ADAS and autonomous driving technologies. These collaborations aim to offer comprehensive and technologically advanced solutions to consumers.
2. Focus on Autonomous Driving: The development of autonomous driving technology is influencing the automotive electric power steering systems market. Electric power steering systems play a vital role in enabling autonomous driving capabilities by providing precise and adaptive steering control. Market players are actively investing in research and development to align with the requirements of autonomous vehicles.
3. Adoption of Steer-by-Wire Technology: Steer-by-wire technology, which eliminates the mechanical connection between the steering wheel and the wheels, is gaining traction in the market. This technology allows for greater design flexibility and paves the way for advanced driver assistance systems and autonomous driving features.

Analyst Suggestions

1. Continuous Innovation: Market players should focus on continuous innovation to develop advanced electric power steering systems that meet the evolving requirements of the automotive industry. This includes incorporating intelligent control algorithms, sensor fusion techniques, and energy-efficient motor technologies.
2. Collaboration and Partnerships: Collaboration among automakers, component manufacturers, and technology companies is essential to leverage synergies and drive market growth. Strategic partnerships can facilitate the development of comprehensive solutions and accelerate technological advancements.
3. Customer-Centric Approach: Understanding customer preferences and addressing their needs is crucial for market success. Market players should prioritize customer-centric approaches by offering customizable steering assistance, improved driving experience, and seamless integration with other vehicle systems.
4. Sustainable Solutions: The industry’s focus on sustainability and environmental responsibility presents opportunities for market players to develop electric power steering systems that contribute to reduced emissions and improved fuel efficiency. R&D efforts should align with sustainable practices and support the transition towards greener transportation.

Future Outlook

The future of the automotive electric power steering systems market looks promising, driven by factors such as the increasing adoption of electric vehicles, technological advancements, and the growing emphasis on driver safety and comfort. The market is expected to witness substantial growth in the coming years, with the Asia-Pacific region projected to dominate the market. Integration with advanced driver assistance systems, expansion in emerging markets, and the development of steer-by-wire systems are likely to shape the future landscape of the market.

Conclusion

The automotive electric power steering systems market is witnessing significant growth and innovation, driven by factors such as the demand for fuel-efficient vehicles, technological advancements, and the integration of advanced driver assistance systems. Despite challenges such as high initial costs and complex maintenance requirements, the market presents substantial opportunities for industry participants and stakeholders. Collaboration, continuous innovation, and a customer-centric approach are crucial for market success in the rapidly evolving automotive industry. With the increasing adoption of electric vehicles and the focus on sustainability, electric power steering systems will continue to play a pivotal role in shaping the future of the automotive industry.