Market Overview

The Europe electric power steering (EPS) market is experiencing significant growth and is poised for further expansion in the coming years. EPS systems have revolutionized the automotive industry by replacing conventional hydraulic power steering systems with electrically assisted steering, offering improved performance, fuel efficiency, and enhanced driving experience. This market overview delves into the meaning of electric power steering, provides key insights, explores market drivers, restraints, and opportunities, analyzes market dynamics, presents a regional analysis, discusses the competitive landscape, highlights segmentation and category-wise insights, outlines key benefits for industry participants and stakeholders, conducts a SWOT analysis, examines the impact of COVID-19, showcases key industry developments, offers analyst suggestions, presents a future outlook, and concludes with key takeaways.

Meaning

Electric power steering refers to a technology that assists drivers in steering their vehicles by employing an electric motor instead of traditional hydraulic systems. Unlike hydraulic power steering, EPS systems use an electric motor to provide the necessary torque to steer the vehicle, resulting in improved handling, reduced energy consumption, and better overall control. By electronically adjusting the level of assistance based on driving conditions, EPS enhances driver comfort and maneuverability.

Executive Summary

The Europe electric power steering market has witnessed rapid growth in recent years, driven by the increasing demand for fuel-efficient vehicles, growing preference for advanced steering systems, and strict government regulations regarding emissions and fuel economy. The market is characterized by the presence of several key players offering innovative EPS solutions, and the competition is intense. With the automotive industry shifting toward electric and autonomous vehicles, the demand for electric power steering systems is expected to surge further in the forecast period.

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. Europe is a key market for electric power steering systems, owing to the region’s strong automotive industry, technological advancements, and increasing adoption of electric vehicles (EVs).
2. The market is driven by factors such as stringent emission norms, the need for improved fuel efficiency, and growing consumer demand for enhanced driving experience.
3. Rising investments in research and development activities to develop advanced EPS technologies and integration of EPS with other vehicle systems are propelling market growth.
4. However, the high cost of electric power steering systems and concerns regarding cybersecurity pose challenges to the market expansion.

Market Drivers

The Europe electric power steering market is primarily driven by the following factors:

1. Increasing Demand for Fuel-efficient Vehicles: As environmental concerns and fuel prices continue to rise, there is a growing preference for vehicles with better fuel efficiency. Electric power steering systems contribute to reducing fuel consumption by eliminating the power loss associated with hydraulic systems.
2. Preference for Advanced Steering Systems: Consumers are increasingly seeking advanced steering systems that provide better control, improved handling, and enhanced driver comfort. Electric power steering meets these requirements, offering precise and responsive steering capabilities.
3. Government Regulations and Emission Standards: Stringent government regulations and emission standards in Europe are pushing automakers to adopt technologies that reduce carbon emissions. Electric power steering systems aid in achieving higher fuel efficiency, aligning with these regulations.
4. Growing Adoption of Electric Vehicles: The increasing popularity of electric vehicles in Europe is driving the demand for electric power steering systems. As EVs become more mainstream, the need for efficient and reliable steering systems will continue to rise.

Market Restraints

Despite the positive market outlook, the Europe electric power steering market faces a few challenges:

1. High Cost of Electric Power Steering Systems: The cost of electric power steering systems is relatively higher than traditional hydraulic systems, which poses a barrier to widespread adoption, especially in price-sensitive markets.
2. Concerns Regarding Cybersecurity: With the integration of electronic components and connectivity features in modern vehicles, there is an increased risk of cybersecurity threats. Ensuring the security of electric power steering systems is crucial to maintain consumer trust and confidence.
3. Limited Infrastructure for Electric Vehicles: Although the adoption of electric vehicles is growing, the infrastructure for charging stations and battery swapping stations is still developing. This limits the widespread adoption of electric power steering systems.

Market Opportunities

The Europe electric power steering market offers several opportunities for growth and innovation:

1. Integration with Advanced Driver Assistance Systems (ADAS): Electric power steering systems can be integrated with ADAS technologies to enhance safety and enable advanced functionalities such as lane keeping assist, park assist, and autonomous driving features.
2. Demand for Lightweight Steering Systems: There is a growing demand for lightweight vehicle components to improve fuel efficiency and reduce emissions. Electric power steering systems, being lighter than hydraulic systems, align with this trend and present opportunities for market expansion.
3. Focus on Electric Commercial Vehicles: The rising interest in electric commercial vehicles, including trucks and buses, provides a significant opportunity for electric power steering system manufacturers. These vehicles can benefit from the enhanced performance and energy efficiency offered by EPS.

Market Dynamics

The Europe electric power steering market is dynamic, driven by various factors such as technological advancements, changing consumer preferences, government regulations, and industry collaborations. The market is highly competitive, with key players constantly striving to develop innovative solutions and gain a competitive edge. Collaboration between automotive manufacturers, component suppliers, and technology providers plays a crucial role in driving market growth and fostering advancements in electric power steering technology.

Regional Analysis

The European market for electric power steering is segmented into several regions, including Western Europe, Eastern Europe, Northern Europe, Southern Europe, and Central Europe. Western Europe dominates the market due to its strong automotive industry, high purchasing power, and favorable government regulations. The presence of major automotive manufacturers and technological advancements in countries like Germany, France, and the United Kingdom contribute to the growth of the electric power steering market in this region.

Competitive Landscape

Leading Companies in the Europe Electric Power Steering Market:

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

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 Europe electric power steering market can be segmented based on various factors, including vehicle type, system type, component type, and application. Vehicle type segmentation includes passenger cars, commercial vehicles, and electric vehicles. System type segmentation comprises column-assist EPS, pinion-assist EPS, and rack-assist EPS. Component type segmentation consists of steering column, steering gear, sensors, electric motor, and others. Application segmentation includes compact vehicles, mid-size vehicles, luxury vehicles, and sports vehicles.

Category-wise Insights

1. Passenger Cars: The passenger car segment dominates the Europe electric power steering market, owing to the high demand for compact and mid-size vehicles. Electric power steering systems in passenger cars offer improved maneuverability, enhanced driver comfort, and better fuel efficiency.
2. Commercial Vehicles: The commercial vehicle segment presents a significant opportunity for electric power steering system manufacturers. The adoption of electric power steering in commercial vehicles helps improve handling and control, leading to safer and more efficient operations.
3. Electric Vehicles: With the growing popularity of electric vehicles, the demand for electric power steering systems is witnessing substantial growth. The integration of EPS in electric vehicles enables efficient power utilization and enhances overall driving experience.

Key Benefits for Industry Participants and Stakeholders

Industry participants and stakeholders in the Europe electric power steering market can benefit in the following ways:

1. Improved Market Share: By offering innovative and technologically advanced electric power steering solutions, companies can gain a larger market share and increase their competitive advantage.
2. Enhanced Customer Satisfaction: Electric power steering systems provide better control, responsiveness, and overall driving experience, leading to increased customer satisfaction and brand loyalty.
3. Compliance with Regulations: Electric power steering systems aid automakers in meeting stringent government regulations and emission standards, ensuring compliance and avoiding penalties.
4. Collaborative Opportunities: Collaboration with other industry players, such as automotive manufacturers, technology providers, and component suppliers, opens doors for joint research and development, shared resources, and expanded market reach.

SWOT Analysis

Strengths:

• Improved fuel efficiency and reduced energy consumption
• Enhanced vehicle handling and maneuverability
• Better control and driver comfort
• Alignment with stringent emission standards

Weaknesses:

• Relatively higher cost compared to hydraulic systems
• Concerns regarding cybersecurity and data privacy
• Limited infrastructure for electric vehicles

Opportunities:

• Integration with advanced driver assistance systems
• Lightweight steering systems for improved fuel efficiency
• Focus on electric commercial vehicles

Threats:

• Intense competition among market players
• Economic uncertainties and market fluctuations
• Regulatory changes impacting market dynamics

Market Key Trends

1. Integration of Electric Power Steering with Advanced Technologies: Electric power steering systems are increasingly being integrated with advanced technologies such as ADAS, autonomous driving, and connectivity features, enhancing safety and driving experience.
2. Focus on Energy Efficiency: With environmental concerns and rising fuel prices, energy-efficient solutions are gaining prominence. Electric power steering systems contribute to improved fuel efficiency and reduced carbon emissions.
3. Shift toward Electric and Autonomous Vehicles: The automotive industry is experiencing a significant shift toward electric and autonomous vehicles. As a result, the demand for electric power steering systems is expected to surge in line with this trend.

Covid-19 Impact

The COVID-19 pandemic had a significant impact on the Europe electric power steering market. During the initial phases of the pandemic, automotive production and sales were severely affected due to supply chain disruptions, factory shutdowns, and reduced consumer demand. However, as the industry recovered, the market witnessed a gradual rebound. The pandemic also accelerated the adoption of electric vehicles and the demand for electric power steering systems, driven by a renewed focus on sustainability and reduced emissions.

Key Industry Developments

1. Technological Advancements: Market players are continuously investing in research and development activities to develop advanced electric power steering systems with improved functionalities, increased energy efficiency, and enhanced safety features.
2. Collaborations and Partnerships: Automotive manufacturers, component suppliers, and technology providers are forming strategic partnerships to leverage each other’s strengths, accelerate innovation, and cater to the evolving demands of the electric power steering market.
3. Market Expansion: Key market players are expanding their presence in Europe through mergers, acquisitions, and collaborations with regional players, allowing them to tap into new markets and strengthen their position in the electric power steering segment.

Analyst Suggestions

1. Focus on Technological Advancements: Continuous investment in research and development is essential to develop innovative electric power steering systems with advanced functionalities, improved energy efficiency, and enhanced safety features.
2. Collaborative Partnerships: Collaboration between automotive manufacturers, component suppliers, and technology providers can drive innovation, improve market reach, and foster the development of integrated solutions.
3. Address Cost Concerns: Efforts should be made to reduce the overall cost of electric power steering systems through economies of scale, technological advancements, and optimized manufacturing processes, making them more accessible to a wider range of vehicles.
4. Cybersecurity Measures: Given the increased integration of electronic components and connectivity features in modern vehicles, industry participants should prioritize cybersecurity measures to protect electric power steering systems from potential threats.

Future Outlook

The future of the Europe electric power steering market looks promising, with sustained growth expected in the coming years. The increasing adoption of electric vehicles, advancements in electric power steering technology, and the focus on energy efficiency and enhanced driving experience will be key drivers of market expansion. Collaborative efforts, continuous innovation, and addressing cost concerns will play pivotal roles in shaping the future of this market.

Conclusion

The Europe electric power steering market is witnessing robust growth, driven by factors such as increasing demand for fuel-efficient vehicles, preference for advanced steering systems, and stringent government regulations. Despite challenges like high costs and cybersecurity concerns, the market offers significant opportunities for integration with advanced technologies, lightweight solutions, and electric commercial vehicles. Industry participants can benefit from improved market share, enhanced customer satisfaction, compliance with regulations, and collaborative opportunities. With continuous innovation, strategic partnerships, and a focus on addressing industry trends, the future of the Europe electric power steering market looks promising.