Market Overview

The China Electric Power Steering (EPS) market refers to the industry that deals with the production, distribution, and sales of electric power steering systems in China. Electric power steering is a technology that assists the driver in steering a vehicle by using an electric motor rather than a hydraulic system. It offers various advantages such as improved fuel efficiency, enhanced handling, and reduced maintenance costs.

Meaning

Electric power steering (EPS) is a system that assists the driver in steering the vehicle by using an electric motor. Unlike traditional hydraulic power steering systems, EPS does not rely on hydraulic fluid or a pump. Instead, it uses sensors to detect the driver’s steering input and an electric motor to provide the necessary assistance. This technology has gained significant popularity in the automotive industry due to its numerous benefits.

Executive Summary

The China Electric Power Steering market is witnessing significant growth due to the increasing demand for fuel-efficient vehicles, rising disposable incomes, and advancements in automotive technology. The market is highly competitive, with both domestic and international players vying for market share. Key market trends include the shift towards electric vehicles, the integration of advanced driver assistance systems (ADAS) with EPS, and the development of steer-by-wire technology.

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

1. Growing Demand for Fuel-efficient Vehicles: With the increasing emphasis on environmental sustainability and stricter emission regulations, there is a rising demand for fuel-efficient vehicles in China. Electric power steering systems contribute to improved fuel efficiency by eliminating the need for a hydraulic pump, reducing engine load, and enhancing overall vehicle performance.
2. Advancements in Automotive Technology: The automotive industry is witnessing rapid technological advancements, and electric power steering is a crucial component of this progress. EPS systems are becoming more sophisticated, integrating features such as variable assist steering, lane-keeping assist, and parking assist, enhancing driver comfort and safety.
3. Shift towards Electric Vehicles: China has been a frontrunner in the adoption of electric vehicles (EVs). As the demand for EVs continues to rise, the demand for electric power steering systems is expected to grow significantly. EPS technology complements the requirements of electric vehicles by providing precise control and improved energy efficiency.

Market Drivers

1. Government Initiatives and Regulations: The Chinese government has implemented various initiatives and regulations to promote the adoption of electric vehicles and improve fuel efficiency. These policies include subsidies, tax incentives, and stricter emission standards, which are driving the demand for electric power steering systems.
2. Increasing Disposable Income: Rising disposable incomes in China have led to an increase in automotive sales. As consumers have more purchasing power, they are willing to invest in vehicles equipped with advanced technologies such as electric power steering. The growing middle class and urbanization further contribute to market growth.
3. Growing Awareness of Vehicle Safety: Vehicle safety has become a paramount concern for consumers in China. Electric power steering systems enhance vehicle safety by providing stability control, adaptive steering, and advanced driver assistance features. The increasing awareness of safety among consumers is driving the demand for EPS-equipped vehicles.

Market Restraints

1. High Initial Costs: Electric power steering systems involve higher initial costs compared to traditional hydraulic systems. The cost of components such as sensors, control modules, and electric motors adds to the overall vehicle price. This factor may restrain some price-sensitive consumers from opting for vehicles equipped with EPS.
2. Lack of Infrastructure for Electric Vehicles: While China has made significant progress in building charging infrastructure for electric vehicles, there are still some challenges to overcome. The availability and accessibility of charging stations can affect the adoption of electric vehicles, subsequently impacting the demand for electric power steering systems.
3. Technical Challenges: Electric power steering systems require sophisticated electronic components and software integration. Technical challenges related to system complexity, compatibility, and reliability may pose obstacles to market growth. Ensuring the seamless integration of EPS with other vehicle systems is crucial for its successful implementation.

Market Opportunities

1. Increasing Demand for Connected Cars: The growing demand for connected cars presents opportunities for the electric power steering market. Connected cars rely on advanced technologies such as sensors, communication modules, and software integration. Electric power steering systems can be integrated with connected car features to provide enhanced functionality and a superior driving experience.
2. Integration with Advanced Driver Assistance Systems (ADAS): ADAS technologies, such as adaptive cruise control, lane-keeping assist, and automated parking systems, are gaining popularity in China. Electric power steering systems can be integrated with these ADAS features to provide precise control and enhance overall vehicle safety. This integration presents a significant opportunity for market growth.
3. Steer-by-Wire Technology: Steer-by-wire technology eliminates the mechanical linkages between the steering wheel and the wheels, replacing them with electronic controls. This technology offers potential benefits such as weight reduction, improved vehicle packaging, and increased design flexibility. The development of steer-by-wire systems presents opportunities for the electric power steering market.

Market Dynamics

The China Electric Power Steering market is driven by various dynamics, including government initiatives, consumer preferences, technological advancements, and market competition. The market is characterized by intense competition among both domestic and international players. Continuous innovation, cost optimization, and strategic partnerships are key strategies adopted by companies to gain a competitive edge.

Regional Analysis

The China Electric Power Steering market can be analyzed regionally to identify specific market trends and opportunities. Major regions in China, such as Eastern China, Southern China, Northern China, and Western China, have different market dynamics based on factors such as population density, economic development, and consumer preferences. Regional analysis helps companies tailor their strategies to cater to the unique demands of each region.

Competitive Landscape

Leading companies in the China Electric Power Steering Market:

1. Nexteer Automotive
2. JTEKT Corporation
3. Bosch Automotive Steering GmbH
4. ZF Friedrichshafen AG
5. NSK Ltd.
6. China Automotive Systems, Inc.
7. Mando Corporation
8. Thyssenkrupp Presta AG
9. Showa Corporation
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 China Electric Power Steering market can be segmented based on various factors, including vehicle type, component, and technology. The segmentation allows a better understanding of market trends and customer preferences. The major segments in the market include passenger cars, commercial vehicles, electric power steering components (sensors, control modules, motors), and electric power steering technologies (brushed motor, brushless motor).

Category-wise Insights

1. Passenger Cars: The passenger cars segment dominates the China Electric Power Steering market. The increasing demand for passenger cars, fueled by rising disposable incomes and changing consumer preferences, drives the growth of this segment. Electric power steering systems enhance the driving experience and safety of passenger cars, making them a preferred choice among consumers.
2. Commercial Vehicles: The commercial vehicles segment also holds significant market share. Electric power steering systems provide better maneuverability and control for commercial vehicles, improving driver comfort and reducing fatigue. The demand for electric power steering in commercial vehicles is driven by factors such as urbanization, logistics growth, and the need for efficient transportation.
3. Electric Power Steering Components: The electric power steering components segment includes sensors, control modules, and motors. These components are crucial for the functioning of electric power steering systems. The market for electric power steering components is driven by the increasing demand for reliable and efficient components that enhance the performance and safety of the steering system.
4. Electric Power Steering Technologies: The electric power steering technologies segment includes brushed motors and brushless motors. Brushless motors are gaining popularity due to their higher efficiency, lower maintenance requirements, and improved performance. The shift towards brushless motor technology in electric power steering systems is driven by the need for energy-efficient and environmentally friendly solutions.

Key Benefits for Industry Participants and Stakeholders

1. Market Growth Opportunities: The China Electric Power Steering market offers significant growth opportunities for industry participants. The increasing demand for electric vehicles, technological advancements, and government support present favorable market conditions for manufacturers, suppliers, and distributors of electric power steering systems.
2. Technological Advancements: The electric power steering market drives technological advancements in the automotive industry. Industry participants can benefit from being at the forefront of these innovations, leading to improved product offerings and increased customer satisfaction.
3. Collaboration and Partnerships: Collaborations and partnerships among industry participants and stakeholders can lead to mutual benefits. Strategic partnerships enable companies to leverage each other’s strengths, share resources, and expand their market reach. Collaboration with technology providers and automotive manufacturers can result in enhanced product development and market penetration.
4. Positive Impact on Vehicle Safety and Performance: Electric power steering systems contribute to vehicle safety by providing stability control, adaptive steering, and advanced driver assistance features. Industry participants can take pride in manufacturing and supplying systems that improve the safety and performance of vehicles, leading to customer satisfaction and brand loyalty.

SWOT Analysis

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the China Electric Power Steering market provides insights into the internal and external factors that impact the market.

1. Strengths:

• Growing demand for electric vehicles in China.
• Technological advancements in electric power steering systems.
• Strong government support for electric vehicle adoption.
• Increasing disposable incomes and changing consumer preferences.

2. Weaknesses:

• Higher initial costs compared to hydraulic power steering systems.
• Technical challenges related to system complexity and reliability.
• Lack of charging infrastructure for electric vehicles in some regions.

3. Opportunities:

• Increasing demand for connected cars.
• Integration with advanced driver assistance systems.
• Development of steer-by-wire technology.

4. Threats:

• Intense competition among market players.
• Potential impact of trade tensions and geopolitical factors.
• Fluctuations in raw material prices.

Market Key Trends

1. Shift towards Electric Vehicles: The increasing adoption of electric vehicles in China is a key trend driving the electric power steering market. Electric power steering systems are well-suited for electric vehicles due to their energy efficiency and precise control, contributing to the growth of the market.
2. Integration of Advanced Driver Assistance Systems (ADAS): ADAS technologies are being integrated with electric power steering systems to enhance vehicle safety and driver assistance features. The integration of ADAS with EPS enables functions such as adaptive cruise control, lane-keeping assist, and automated parking, making vehicles safer and more convenient to drive.
3. Steer-by-Wire Technology: Steer-by-wire technology eliminates the mechanical linkage between the steering wheel and the wheels, replacing it with electronic controls. This technology offers benefits such as weight reduction, improved vehicle packaging, and increased design flexibility. The development and adoption of steer-by-wire systems are emerging trends in the electric power steering market.

Covid-19 Impact

The Covid-19 pandemic had a significant impact on the automotive industry, including the electric power steering market in China. During the pandemic, automotive production and sales were disrupted due to lockdowns, supply chain disruptions, and reduced consumer spending. However, the electric power steering market showed resilience due to the increasing demand for electric vehicles, as consumers prioritized sustainable and eco-friendly transportation options.

The pandemic also highlighted the importance of vehicle safety and hygiene, leading to an increased focus on touchless and contactless technologies. Electric power steering systems, with their advanced features and seamless integration with other vehicle systems, contribute to improving vehicle safety and hygiene, which gained significance during the pandemic.

Key Industry Developments

The China Electric Power Steering Market has seen several important developments:

1. Product Innovation: Continuous advancements in electric power steering technology, including improvements in energy efficiency, weight reduction, and enhanced vehicle performance.
2. Collaborations with Automakers: Strategic partnerships between steering system manufacturers and automotive OEMs (Original Equipment Manufacturers) are driving innovation and market penetration in China’s automotive sector.
3. Shift Toward Electric Vehicles: With the rise in electric vehicle production in China, there is an increasing demand for electric power steering systems, contributing to market growth.
4. Sustainability Focus: Manufacturers are focusing on producing eco-friendly steering systems that reduce energy consumption and enhance the overall sustainability of vehicles.
5. Cost-Effective Solutions: Local players are introducing cost-effective steering solutions designed to cater to the price-sensitive segment of the Chinese market, especially for smaller and economy vehicles.

Analyst Suggestions

1. Focus on Technological Innovation: Companies operating in the China Electric Power Steering market should prioritize technological innovation to stay ahead of the competition. Continuous research and development efforts can lead to the introduction of advanced features, improved performance, and cost optimization, meeting the evolving demands of consumers and regulatory requirements.
2. Strengthen Partnerships and Collaborations: Collaboration with automotive manufacturers, technology providers, and research institutions can drive innovation and market expansion. Strategic partnerships enable companies to leverage each other’s expertise, share resources, and access new markets, contributing to sustainable growth.
3. Embrace Sustainability and Environmental Initiatives: With the increasing emphasis on sustainability and environmental protection, companies should align their strategies with government policies and market trends. Developing energy-efficient and environmentally friendly electric power steering systems can help companies gain a competitive edge and meet the evolving demands of environmentally conscious consumers.
4. Enhance Customer Support and After-sales Services: Providing excellent customer support and after-sales services can help companies differentiate themselves in the market. Timely technical assistance, warranty support, and product training contribute to customer satisfaction and loyalty. Companies should invest in building strong customer relationships to ensure long-term success.

Future Outlook

The future outlook for the China Electric Power Steering market is positive, driven by various factors such as the increasing demand for electric vehicles, government support, and technological advancements. The market is expected to witness significant growth as electric power steering systems become a standard feature in vehicles, replacing traditional hydraulic systems.

Key factors shaping the future of the market include the continued shift towards electric vehicles, the integration of advanced technologies such as ADAS and steer-by-wire, and the development of energy-efficient and environmentally friendly solutions. Companies that adapt to these trends, prioritize innovation, and build strong partnerships are likely to thrive in the evolving market landscape.

Conclusion

The China Electric Power Steering market is witnessing significant growth and presents numerous opportunities for industry participants and stakeholders. The increasing demand for electric vehicles, advancements in automotive technology, and government support are driving the market. While there are challenges such as higher initial costs and technical complexities, the market offers potential benefits in terms of growth, technological advancements, and positive impact on vehicle safety and performance.

Companies operating in the market should focus on technological innovation, strengthen partnerships, embrace sustainability initiatives, and enhance customer support. The future outlook for the market is positive, with electric power steering systems becoming an integral part of vehicles and driving the advancement of the automotive industry in China.