Global Electric Power Steering (EPS) Market is forecast to reach $37.3 billion by 2025, growing at a CAGR of 6.9% during the forecast period from 2020 to 2025. The Electric Power Steering market is driven primarily by the factors such as increasing demand of automated driving vehicles and the need towards green environment. Moreover, rising investments towards research and development for new technologies are estimated to penetrate the market growth in various countries during the forecast period. Adoption of electric power steering systems in commercial vehicles are also expected to mark a huge growth in the power steering systems during the forecast period.
- The Rack -assist type of electric power steering systems are forecast to have high market growth with CAGR of yz% during forecast period from 2020 to 2025. The rise in demand of commercial vehicles adopting EPS are expected to fuel the market growth in the near future.
- APAC region is anticipated to have a major growth rate for electric power steering system market during the forecast period. Major players such as JTEKT Corporation and Hyundai Mobis Co. Ltd have been highly dominating the market for electric power steering systems.
- With the rising demand towards automation EPS systems in automobiles offering automation features are seen highly attracting the market
Product type – Segment Analysis
Based on product type segmentation, Electric Power Steering (EPS) system can be classified into Column-assist EPS, Rack-Assist EPS and Pinion-assist EPS. With automotive companies rising adoption for EPS systems, market for Rack- and Pinion- EPS systems are expected to dominate the automotive market in the near future. Rack EPS market is expected to grow at a CAGR of 9.9% during forecast period from 2020 to 2025, due to increasing demand of commercial vehicles adopting EPS across different manufactures. Rack-type EPS are specifically designed for heavy commercial vehicles, which can fuel the electric power steering market with popularity of Rack type systems in heavy automobiles. Advancement of technology in electric power steering systems such as fuel consumption and safety systems, has led the automotive market register high market shares and profits than the traditional hydraulic steering systems.
Geography – Segment Analysis
APAC is expected to have a major growth in the global Electric Power Steering market during the forecast period from 2020 to 2025. North America is also anticipated to hold a major share in 2019 at 38.2% due to rising demand for self-driving vehicles and investments in research and development strategies. As of 2019, the region accounts for a leading share of 38.2% in the field of electric power steering systems. Heavy investment towards technology advancement and Government initiatives have helped the APAC market to grow at a rapid rate. Key players like JTEKT Corporation and Hyundai Mobis Co. Ltd have contributed for a major market share in the APAC region. Consequently, with increasing demand of automotive industry adopting electric power steering system is acting as a major driver for the electric steering market.
Drivers – Electric Power Steering Market
Increasing demand for automated driving
The Electric Power Steering market is set to be one of the fastest growing markets during the forecast period. The rising demand of electric power steering systems are growing prior to the high demands for self- driving vehicles in the market. The Servolectric EPS launched by Bosch, is helping to trigger the market growth of electric power steering systems due to its claims of providing highly automated driving and optimum safety in passenger cars and light commercial vehicles. Compared to the conventional power steering systems, use of Servolectric electric power steering systems has helped reduce the product weight leading to 20% savings. According to the company, about more than 70 million passenger cars with Servolectric technology are already in the market which is going to fuel the electric power steering market in the near future. With adoption of automated driving in steering systems, market is anticipated to grow at a rapid rate.am Assist, Parking Maneuver Assist.
Development for a green environment
With the technology advancement and the need to make a green environment, electric power steering market is forecast to grow with x% in the forecast period 2020-2025. Adoption of Electric power steering systems in automated vehicles are in high demand due to their contribution towards fuel efficiency and reduction in C02 emissions. As the automobile growth is rising, there is a need to safeguard the environment from those harmful emissions which are ultimately causing global warming. A step towards green environment is the need of the hour and to which, automotive industries have shifted their focus towards environment-friendly technologies. Government regulations and initiatives are also encouraging the automotive companies to shift their focus towards green technologies
Challenges – Electric Power Steering Market
Chances of operational failure
As the technology is advancing at a rapid pace, automation is getting more and more popular. With the use of electric power steering systems, driving process has become more smooth and efficient. With providing automated driving, these steering systems helps the driver in parking assist, traffic jam assist and other ADAS features. Since power steering systems are developed using various types of components, there are chances of operational failure. In case the steering system has a problem, it becomes dangerous for the driver as well as passengers. This is a major challenge faced in this market and thus, proper maintenance is highly essential in order to prevent any critical conditions.
Partnerships and acquisitions along with product launches are the key strategies of the players in the Electric Power Steering Market. The major key players in the Electric Power Steering Market include Nexteer Automotive, JTEKT Corporation, Hyundai Mobis Co. Ltd., NSK Global, Robert Bosch Automotive Steering, Denso Corporation, ZF Friedrichshafen AG, Thyssenkrupp Mitsubishi Electric, Showa Corporation, Mando Corporation, Hitachi Automotive Systems Ltd., Delphi Automotive Systems, Automation Tooling Systems (ATS) and Federal Mogul.
- On July 25th, Hyundai Mobis had claimed towards developing a dual-mode electronic steering system, which will be providing autonomous driving. The new product has a redundant control mode which causes prevention to accidents with steering errors. The company stated that it is aiming for the mass production of the product in 2020.
- On 2018, ZF had announced the first prototype of electric power steering systems. The launched product ReAx EPS has claimed to provide automated driving with safety features and reduction in energy consumption.