Automotive Electric Power Steering Market Forecasts to 2028 - Global Analysis By Component, Vehicle Type, Product, Electric Motor, Mechanism, Fuel Type, Application and Geography

According to Stratistics MRC, the Global Automotive Electric Power Steering Market is accounted for $26.09 billion in 2022 and is expected to reach $40.05 billion by 2028 growing at a CAGR of 7.4% during the forecast period. EPS or EPAS stands for electric power steering, a kind of power steering system. The MDPS acronym stands for motor-driven power steering. An electric motor is used by the electric power steering system to aid the driver in steering. There are sensors that measure the position and force of the steering column and transmit this data to the electronic power steering module. The electronic power steering module subsequently regulates the motor's speed and supplies the necessary torque in response to various driving circumstances.

According to the World Health Organization (WHO), 80% of cars sold in the world are not compliant with the main safety standards. Only 40 countries have adopted the full set of the seven most important regulations for car safety.

Market Dynamics:

Driver:

Penetration in commercial vehicles

Currently, hydraulic power steering (HPS), which has a complex structure, uses a lot of power, leaks quickly, and is challenging to regulate, dominates the market for power steering in commercial vehicles. The benefits of EPS include customizable power, superb steering, minimal fuel usage, and zero emissions. As a result, commercial cars would eventually begin to use it.

Restraint:

Maintaining market against steer-by-wire technology

With the shifting dynamics of the automobile industry, the steering market is always changing. OEMs are modernising the traditional steering mechanism in response to the rise of driverless cars. One such breakthrough that will take the place of the complete steering system in an autonomous car is steer-by-wire technology. The steering linkage of a conventional electric power steering system will be eliminated by this kind of steering system.

Opportunity:

Global measures by OEMs to reduce complexity and weight of vehicles

In an effort to simplify and boost economy, OEMs have recently moved their attention from hydraulic to electric power steering systems. EPS systems give steering assistance by using an electric motor rather than a hydraulic pump, which helps to lighten the weight of the car. Electronic sensors determine how much steering power the driver is using, and an electric motor amplifies that force to make steering simpler.

Threat:

High cost and lack of steering feel

The primary restraint, such as the high cost of automotive electric power steering in comparison to the traditional steering system, may impede the expansion of the worldwide automotive electric power steering market throughout the anticipated time. Electric power steering systems are in strong demand; however, this sector still faces certain challenges. The absence of steering sensation and greater price of EPS in comparison to conventional steering systems may limit market expansion.

COVID-19 Impact:

Due to supply chain problems brought on by many major economies of the globe being placed on lockdown and having all economic activity suspended during the COVID-19 epidemic, the market suffered. All production facilities and OEM plants ceased operations in order to follow social distance rules and prevent virus transmission. During this time, the demand for passenger cars also fell dramatically. The industry experienced a tremendous demand for passenger vehicles in places like China and India as consumer preferences switched from public transit to private autos, but as economies opened up progressively, demand returned to the market.

The Rack EPS (R-EPS) segment is expected to be the largest during the forecast period

The Rack EPS (R-EPS) segment is estimated to have a lucrative growth. Over the course of the forecast period, rack EPS (R-EPS) is expected to hold sizable markets share in the automotive electric power steering sector. The rise in EPS installation rates in commercial vehicles is one of the main benefits of Rack EPS (R-EPS).

The Passenger vehicles segment is expected to have the highest CAGR during the forecast period

The Passenger vehicles segment is anticipated to witness the fastest CAGR growth during the forecast period. The passenger car, light commercial vehicle, and heavy commercial vehicle segments make up the worldwide automotive electric power steering market. Due to rising passenger vehicle production and demand, as well as rising consumer demand for improved steering systems to increase driving comfort and safety, passenger cars currently account for a sizeable portion of the market.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Despite the slow growth of the world's largest automobile market, China, the region is anticipated to dominate the automotive electric power steering (EPS) market. Additionally, the region is thriving with widely dispersed automotive suppliers in China, India, and other countries that are enhancing global supply chain capabilities. The quick acceptance of contemporary sensors and semiconductor goods in China has also been facilitated by decreasing system prices, which will favourably affect the expansion of the target market. Companies engaged in the production and sale of steering sensors are anticipating a significant expansion into new growth markets.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the location of several major vehicle manufacturers; Europe holds the second-largest share of the market, with Germany ranking first. Due to the high vehicle penetration in Europe, this continent is a significant market for Automotive EPS. Additionally, the demand for Automotive EPS is being driven by the region's steadily increasing auto production.

Key players in the market:

Some of the key players profiled in the Automotive Electric Power Steering Market include Denso Corporation, NSK, Hitachi Automotive Systems Ltd, Mitsubishi Electric Corporation, Robert Bosch GmbH, Nexteer Automotive, GKN PLC, Hyundai Mobis Co. Ltd, Bosch, ZF Friedrichshafen AG, Hubei Henglong Auto System Group, Tesla, Sona Koya Steering Systems Ltd. and KSR International Company.

Key Developments:

In August 2022, NSK Ltd. announced its plan to revamp the steering operations. The company received an order for electric power steering (EPS) from the Volkswagen (VW) Group and announced its plans to start volume production during the spring of 2023.

In June 2022, Robert Bosch announced its plans to strengthen production and development capabilities in the field of mobility in Japan. Under this plan, the company will transfer its assembly line for electric power steering (EPS) systems for Japanese automakers from Robert Bosch Group's plant outside Japan to its Musashi Plant located in Namegawa Town.

Components Covered:

• Torque Sensor
• Steering Wheel
• Steering Motor
• Steering Column
• Electric Motor
• Bearing
• Other Components

Vehicle Types Covered:

• Luxury Car
• Small Car
• Sports/Unclassified
• Mid-Size Car
• Other Vehicle Types

Products Covered:

• Pinion Assist EPS (P-EPS)
• Column Assist EPS (C-EPS)
• Rack Assist EPS (R-EPS)
• Single-Pinion Assist EPS
• Dual-Pinion Assist EPS
• Other Products

Electric Motors Covered:

• Brushless Motor
• Brush Motor

Mechanisms Covered:

• Rigid
• Collapsible

Fuel Types Covered:

• Plug-in Hybrid Electric Vehicles (PHEV)
• Diesel
• Hybrid Electric Vehicles (HEV)
• Petrol
• Battery Electric Vehicles (BEV)
• Other Fuel Types

Applications Covered:

• Commercial Vehicle
• Passenger Vehicle
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances