Electric Power Steering Market – Global Leaders & Geographical Growth

Electric Power Steering Market

The Electric Power Steering Market is estimated to grow at a CAGR of 5.0 % during the forecast period, to reach USD 32.2 billion by 2026. Increasing government norms related to air emission standards and fuel efficiency of vehicles are expected to drive the electric power steering market. The rising vehicle production, growing demand for advanced safety and convenience, and increased disposable incomes worldwide are some of the other factors driving the growth of the electric power steering market.

The electric power steering market is dominated by a few globally established players such as JTEKT (Japan), Nexteer (US), Robert Bosch (Germany), ZF (Germany), and NSK (Japan).

Asia Pacific: Dominating The Market For Electric Power Steering From 2018 To 2026

The Asia Pacific is estimated to account for the largest share of the electric power steering market in 2021. The market growth in the Asia Pacific region can be attributed to the steady growth in vehicle production and sales in countries such as China and India post the COVID-19 pandemic. In recent years, the Asia Pacific region has become the largest producer of vehicles in the world. It is thus the largest consumer of electric power steering across the globe. The continuous growth of domestic players along with Tier I companies, newer innovations and developments such as ADAS integration, and increasing mandates for a reduction in emission levels and increase in fuel economy are fostering the growth of the electric power steering market in Asia Pacific region. 

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North America And Europe: Modest Growth In Electric Power Steering Market

The North American and European automotive markets are known for their highly sophisticated technology and safety regulations. The major Tier I suppliers of electric power steering in these regions are Robert Bosch (Germany),  Nexteer (US), ZF (Germany), and Federal-Mogul (US). These companies have already planned to expand their manufacturing facilities in the electric power steering segment. As the North American and European markets are set to attain maturity in the near future, they would grow at a modest rate in the next five years.

Global Measures By Oem To Reduce Complexity And Weight Of Vehicles

The rising demand for modernization and electrification of vehicles is driving the growth of the electric power steering market. The vehicle designers are focusing on developing high-end electric power steering with technologically advanced features that are compact and lightweight. Over the last few years, OEMs have shifted focus from hydraulic to electric power steering systems in the interests of reduced complexity and increased efficiency. EPS systems use an electric motor instead of a hydraulic pump to provide steering assistance and thus help to reduce the weight of the vehicle. The EPS system does not drag on the engine from either a power steering pump or alternator because it will not provide assistance until required by driver input. The configuration of an EPS system can allow the entire power assist system to be packaged on the rack and pinion steering gear or in the steering column.  

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Regulatory Push Toward Efficient Technologies

The governments of various countries are closely monitoring the amounts of fuels used in modern vehicles. Air pollution emission standards have constantly been tightened in recent years, particularly in Europe, the US, China, and Japan. Furthermore, efforts are made to optimize the fuel efficiency of heavy-duty engines and vehicles. By 2025, the Environmental Protection Agency (EPA) expects new cars and light trucks sold in the US to average around 36 miles per gallon (mpg) on the road, up from 25 mpg currently. Also, gas prices are always on a rising trend. Hence, it is important for vehicles to be as fuel-efficient as possible. This is where an EPS system comes into play. By eliminating the need for a power steering pump that can use up to 10 HP under load, an EPS system provides up to a 2–3% increase in fuel economy over the conventional system. Such a system plays a major role in environmental protection as hydraulic fluid is not required for its operation.

COVID-19 Impact on Electric Power Steering Market:

The COVID-19 pandemic had a severe impact on the entire automotive industry. The European automotive industry has been severely impacted by the pandemic and, according to the ACEA (European Automobile Manufacturers Association), the automotive sector in the EU suffered production losses amounting to 3.6 million vehicles worth around USD 110.6 billion, during the first half of 2020 alone. Considering the North American market, according to Boston Consulting Group (BCG), despite encouraging reports on vaccine development, numerous risks remain, and the US will not rebound to pre-COVID levels until 2023 at the earliest. This scenario is expected to affect the electric power steering system market as the growth of this market is directly related to the production of vehicles.