Market Overview

The UK automotive EPS (Electric Power Steering) market has witnessed significant growth in recent years. EPS is a technology that assists in steering a vehicle by using an electric motor rather than a hydraulic system. It offers several advantages, such as improved fuel efficiency, enhanced control, and reduced maintenance costs. The UK automotive EPS market is driven by the increasing demand for fuel-efficient vehicles, the growing emphasis on vehicle safety, and the rising adoption of electric and hybrid vehicles.

Meaning

Automotive EPS refers to the electric power steering system used in vehicles. It replaces the traditional hydraulic power steering system with an electric motor, providing assisted steering control to the driver. The EPS system uses sensors to detect the driver’s steering input and assists in turning the wheels, making steering easier and more responsive. It offers various benefits, including improved fuel efficiency, reduced emissions, and enhanced vehicle handling.

Executive Summary

The UK automotive EPS market has experienced substantial growth in recent years, driven by factors such as the increasing demand for fuel-efficient vehicles and the growing focus on vehicle safety. The market is highly competitive, with several key players offering advanced EPS technologies. The COVID-19 pandemic had a temporary impact on the market, leading to a decline in vehicle sales. However, the market is expected to recover steadily as the automotive industry bounces back and consumer demand for electric and hybrid vehicles increases.

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: The rising concern for environmental sustainability and the need for improved fuel economy have led to an increased demand for vehicles equipped with EPS systems.
2. Focus on vehicle safety: The automotive industry is placing greater emphasis on enhancing vehicle safety features, and EPS plays a crucial role in improving stability, control, and responsiveness during driving.
3. Shift towards electric and hybrid vehicles: The increasing adoption of electric and hybrid vehicles in the UK has created a significant demand for automotive EPS systems, as these vehicles require advanced steering technologies to optimize their performance.
4. Technological advancements: Continuous advancements in EPS technology, such as the integration of sensors and electronic control units, are further driving market growth by enhancing the efficiency and effectiveness of the steering system.
5. Competitive landscape: The UK automotive EPS market is highly competitive, with key players investing in research and development activities to introduce innovative and advanced EPS solutions.

Market Drivers

1. Increasing demand for fuel-efficient vehicles: With growing environmental concerns and rising fuel prices, consumers are increasingly opting for vehicles with higher fuel efficiency, driving the demand for EPS systems.
2. Focus on vehicle safety: The automotive industry is witnessing a significant shift towards incorporating advanced safety features in vehicles. EPS systems offer improved stability, control, and maneuverability, thereby contributing to enhanced vehicle safety.
3. Government regulations promoting electric and hybrid vehicles: The UK government has implemented policies and incentives to encourage the adoption of electric and hybrid vehicles. This has resulted in a surge in demand for EPS systems, as these vehicles require advanced steering technologies.
4. Technological advancements: Ongoing technological advancements in EPS systems, such as the integration of sensors and electronic control units, are driving market growth by offering enhanced performance and functionality.

Market Restraints

1. High initial costs: The implementation of EPS systems in vehicles involves higher initial costs compared to traditional hydraulic power steering systems. This can act as a restraint for cost-conscious consumers, particularly in the price-sensitive segments of the automotive market.
2. Limited aftermarket availability: EPS systems are relatively new in the market, and their availability in the aftermarket might be limited, which could hinder their adoption in older vehicles or for retrofitting purposes.
3. Infrastructure challenges: The widespread adoption of electric and hybrid vehicles requires adequate charging infrastructure. The limited availability of charging stations in some regions can pose a challenge to the growth of the automotive EPS market.

Market Opportunities

1. Increasing demand for electric and hybrid vehicles: The growing popularity of electric and hybrid vehicles presents a significant opportunity for the UK automotive EPS market. These vehicles require advanced steering technologies, making EPS systems a vital component in their design and performance.
2. Integration of autonomous driving technologies: The development of autonomous driving technologies is expected to create new opportunities for EPS systems. These systems can enhance the steering capabilities of autonomous vehicles and improve their overall performance.
3. Collaborations and partnerships: Collaboration between automotive manufacturers, EPS system suppliers, and technology companies can lead to the development of innovative and customized EPS solutions, opening up new opportunities in the market.
4. Rising consumer awareness: As consumers become more aware of the benefits of EPS systems, there is an opportunity for market players to educate and promote the advantages of these systems, further driving their adoption.

Market Dynamics

The UK automotive EPS market is characterized by intense competition among key players, rapid technological advancements, and changing consumer preferences. The market dynamics are influenced by various factors, including government regulations, industry collaborations, and evolving automotive trends. The demand for EPS systems is expected to grow steadily, driven by the increasing adoption of electric and hybrid vehicles, the focus on vehicle safety, and the continuous development of advanced EPS technologies.

Regional Analysis

The UK automotive EPS market is geographically segmented into different regions, including England, Scotland, Wales, and Northern Ireland. England dominates the market, accounting for the largest share due to its strong automotive industry and high vehicle sales. Scotland and Wales also contribute significantly to the market, driven by the presence of automotive manufacturing facilities and increasing consumer demand for electric and hybrid vehicles. Northern Ireland has a smaller market share but shows potential for growth in the automotive EPS sector.

Competitive Landscape

Leading Companies in the UK Automotive EPS Market:

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

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 UK automotive EPS market can be segmented based on vehicle type, component type, and sales channel.

1. By Vehicle Type:
   • Passenger Cars
   • Commercial Vehicles
   • Electric and Hybrid Vehicles
2. By Component Type:
   • Electric Motor
   • Steering Column
   • Sensors
   • Electronic Control Unit (ECU)
   • Others
3. By Sales Channel:
   • OEMs (Original Equipment Manufacturers)
   • Aftermarket

Category-wise Insights

1. Passenger Cars: Passenger cars account for the largest share in the UK automotive EPS market. The increasing demand for fuel-efficient and technologically advanced vehicles, coupled with the growing emphasis on safety features, drives the adoption of EPS systems in passenger cars.
2. Commercial Vehicles: The demand for EPS systems in commercial vehicles is also growing steadily. These systems improve vehicle maneuverability, reduce driver fatigue, and enhance overall safety, making them suitable for commercial vehicle applications.
3. Electric and Hybrid Vehicles: The rising popularity of electric and hybrid vehicles offers significant opportunities for EPS systems. These vehicles require advanced steering technologies to optimize their performance and efficiency, driving the demand for EPS systems.

Key Benefits for Industry Participants and Stakeholders

1. Automotive Manufacturers: EPS systems enable automotive manufacturers to enhance the performance, fuel efficiency, and safety of their vehicles, thereby gaining a competitive advantage in the market.
2. EPS System Suppliers: Companies involved in the supply of EPS systems can capitalize on the growing demand and offer innovative and customized solutions to automotive manufacturers, leading to increased market share and profitability.
3. Component Suppliers: Manufacturers of EPS components, such as electric motors, sensors, and ECUs, can benefit from the growing market by supplying high-quality components to EPS system suppliers and automotive manufacturers.
4. Consumers: Consumers can enjoy the benefits of improved vehicle handling, fuel efficiency, and safety offered by EPS systems, providing a better driving experience and peace of mind.

SWOT Analysis

1. Strengths:
   • Technological advancements in EPS systems
   • Growing demand for fuel-efficient vehicles
   • Increasing adoption of electric and hybrid vehicles
2. Weaknesses:
   • High initial costs compared to traditional power steering systems
   • Limited aftermarket availability
   • Infrastructure challenges for electric and hybrid vehicles
3. Opportunities:
   • Increasing demand for electric and hybrid vehicles
   • Integration of autonomous driving technologies
   • Collaborations and partnerships
4. Threats:
   • Intense competition among key players
   • Economic uncertainties and market fluctuations
   • Regulatory changes and compliance requirements

Market Key Trends

1. Increasing adoption of steer-by-wire technology: Steer-by-wire technology eliminates the mechanical linkages between the steering wheel and the wheels, allowing for more advanced control and customization. This trend is gaining traction in the automotive EPS market.
2. Integration of advanced driver assistance systems (ADAS): EPS systems are being integrated with ADAS features such as lane-keeping assist and automated parking, enhancing vehicle safety and convenience.
3. Focus on lightweight and compact EPS systems: With the growing demand for electric and hybrid vehicles, there is a trend towards developing lightweight and compact EPS systems to optimize space and energy efficiency.
4. Development of EPS systems for autonomous vehicles: The emergence of autonomous driving technology has led to the development of EPS systems specifically designed to meet the unique requirements of autonomous vehicles, such as enhanced steering control and redundancy.

Covid-19 Impact

The COVID-19 pandemic had a significant impact on the UK automotive industry, including the automotive EPS market. The lockdown measures and economic uncertainties led to a decline in vehicle sales and production. Many automotive manufacturers had to temporarily halt their operations, affecting the demand for EPS systems. However, as the automotive industry gradually recovers and consumer confidence improves, the market is expected to rebound. The increasing focus on electric and hybrid vehicles and the growing emphasis on vehicle safety are likely to drive the demand for EPS systems in the post-pandemic era.

Key Industry Developments

1. Introduction of advanced EPS technologies: Key players in the UK automotive EPS market have been introducing advanced EPS technologies, such as brushless electric motors and electronic control units with advanced algorithms, to improve steering performance and functionality.
2. Strategic collaborations and partnerships: Companies in the market have been forming strategic collaborations and partnerships to enhance their product portfolio, expand their market reach, and leverage each other’s expertise in EPS technology.
3. Focus on sustainability: Automotive manufacturers and EPS system suppliers are increasingly focusing on sustainability by developing eco-friendly EPS systems and using recycled materials in their production processes.

Analyst Suggestions

1. Focus on innovation and R&D: Companies operating in the UK automotive EPS market should invest in research and development activities to develop innovative and technologically advanced EPS solutions that cater to the evolving needs of the automotive industry.
2. Collaborate with automotive manufacturers: Establishing partnerships and collaborations with automotive manufacturers can help EPS system suppliers gain a competitive edge by offering customized solutions and strengthening their market presence.
3. Enhance aftermarket availability: To tap into the potential of older vehicles and retrofitting opportunities, market players should focus on expanding the availability of EPS systems in the aftermarket, thereby increasing their customer base.
4. Address cost concerns: Companies should explore ways to reduce the initial costs associated with EPS systems to make them more affordable and attractive to cost-conscious consumers.

Future Outlook

The future outlook for the UK automotive EPS market is promising. The market is expected to grow steadily, driven by the increasing adoption of electric and hybrid vehicles, the focus on vehicle safety, and the continuous technological advancements in EPS systems. The demand for fuel-efficient vehicles and the integration of advanced driver assistance systems will further fuel the market’s growth. Collaboration among industry players, strategic partnerships, and a focus on sustainability will be key factors shaping the future of the market.

Conclusion

The UK automotive EPS market is witnessing significant growth, driven by factors such as the increasing demand for fuel-efficient vehicles, the focus on vehicle safety, and the rising adoption of electric and hybrid vehicles. The market is highly competitive, with key players investing in research and development activities to introduce innovative EPS technologies. While the COVID-19 pandemic had a temporary impact on the market, the automotive industry’s recovery and the growing consumer demand for electric and hybrid vehicles are expected to drive the market’s future growth. The market offers opportunities for industry participants and stakeholders to capitalize on the growing demand for advanced steering technologies and contribute to the sustainable development of the automotive industry.