Electric Power Steering Market Share, Size, Trends, Industry Analysis Report, By Component (Steering Column, Sensors, Steering Gear, Mechanical Rack & Pinion, Electronic Control Unit, Electric Motor, Others); By Mechanism; By Type; By Vehicle; By Region; Segment Forecast, 2022 - 2030
- Published Date:Jan-2022
- Pages: 115
- Format: PDF
- Report ID: PM2183
- Base Year: 2021
- Historical Data: 2018 - 2020
Report Outlook
The global electric power steering market was valued at USD 25.09 billion in 2021 and is expected to grow at a CAGR of 5.8% during the forecast period. The rise in a number of government norms and mandates regarding fuel-efficient technologies, increasing production of the automotive vehicle including power-driven vehicles, and the measures taken by OEMs worldwide to reduce the weight and complexity of their vehicles are a few factors influencing the growth of the market.
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In addition, the growing demand for advanced power-driven steering, coupled with regulation and initiatives towards de-carbonization, also favors market growth. The recent outbreak of the COVID-19 pandemic is extensive around the world, tapping automakers under massive pressure. Thus, these companies are undergoing extreme difficulties in managing their output level and supplies of components in the international electric power steering industry.
Although, this pandemic has further fallen down the production unit of automobiles globally. According to the European Automobile Manufacturers Association, the production losses of vehicles due to factory shutdowns valued around 2,446,344 motor vehicles. As a result, the electric power steering market is expected to face a significant downfall in recent years.
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Industry Dynamics
Growth Drivers
Globally, several governments have launched stringent policies related to emission and fuel economy for vehicles. Regulatory bodies such as the National Highway Traffic and Safety Administration (NHTSA) in the U.S., the International Council on Clean Transportation (ICCT) in Europe, and other associations have implemented fleet-level regulations. These norms and policies demonstrate an average emission that limits the needs to be retained by automotive OEMs. As a result, these regulations have compelled concerned OEMs to adopt such advanced technologies. Hence, it has led to the higher implementation of the product and significantly paved the electric power steering industry growth.
As per the U.S. Department of Energy (DOE), in absolute condition, EPS systems can improve fuel productivity by 2% to 4%, minimize fuel consumption by up to 6%, and lessen CO2 emissions by 8g/km. Thus, these environmental initiatives, along with the technology development of the product for immediate and near-term deployment, are progressing throughout the world. This, in turn, is expanding the growth outlook of the global electric power steering industry.
Report Segmentation
The market is primarily segmented on the basis of component, mechanism, type, vehicle, and region.
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By Component |
By Mechanism |
By Type |
By Vehicle |
By Region |
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Insight by Component
On the basis of the component, the sensors segment is expected to hold the largest stake in the global market and also expected to register the fastest CAGR over the foreseen period. This is due to sensors playing a prominent role in the market. Sensors are accountable for ascertaining two primary drivers in the electric power steering industry.
These components are mainly used to detect, transfer, examine, record, and display vehicle performance data of the vehicle’s internal and external environment. With the growing trend of vehicle automation and the escalating demand for connected cars across the world, the demand for the product is expected to grow significantly during the forecast period.
However, the automotive steering system segment accounts for a significant revenue share in the overall market. This is due to constant growth in the production of automobiles is directly proportionate to the need for automotive driving systems by the original equipment manufacturer (OEM). Further, the continual rise in the production of automotive vehicles, especially in markets such as China, Japan, and India, is expected to boost the segment’s growth.
Insight by Vehicle
The passenger cars segment is anticipated to gain a larger share in the global market. This is accredited to the advancements of technology in cars that have been growing at an unprecedented rate. Although several passenger cars already have incorporated some sort of advanced power handling, as it provides better fuel efficiency, and therefore no assistance is needed to operate the power handling manually. As a result, advanced product technology continues to play a prominent role in the automated development of the automotive sector, leading to creating substantial growth prospects for the electric power steering market in such applications.
On the contrary, the electric vehicle segment is projected to register a significant growth rate in the overall electric power steering market. Factors such as the growing penetration of power-driven vehicles among people with the rising focus towards environmental safety and the growing focus of government organizations to promote sustainable development are likely to act as a key factor for driving electric power steering industry growth worldwide.
According to the World Economic Forum, such vehicles are estimated for a share of 4.2% in the overall sales of light vehicles in 2020, almost showing double growth from 2019’s 2.5%. Norway, Iceland, and Sweden are leading the charge, along with the plug-in vehicles accounting for almost 74.8%, 45%, and 32.2% share respectively.
Geographic Overview
Geographically, Asia Pacific is dominating the global electric power steering market in 2021 and is estimated for the major market share on account of the increasing investments for the deployment of the product in the countries, particularly China and India. The recent economic growth in these countries has led to a rapid rise in the production and supply of vehicles.
Automobile manufacturers are looking to opt for the product as an alternative to traditional handling that can help promote fuel efficiency and offer increased capabilities with less effort. As a result, the demand for the product is expected to grow at a significant rate in the overall region.
Moreover, North America is witnessing a considerable growth rate during the forecast period. Over the last few years, the region’s automotive market remains to grow at a steady pace in the overall economy. The economic development of the region has posed a significant impact on the production and sale of passenger and power-driven vehicles, which led to the increasing deployment of the product that promotes fuel efficiency and reduce greenhouse gas emission.
Furthermore, the implementation of vehicle safety norms and regulations by the U.S. government is further aiding the electric power steering industry growth. For instance, the U.S. government enforced Federal Motor Vehicle Safety Standards (FMVSS) for vehicle regulations that specify design, performance, construction, and durability constraints for motor vehicles and regulated Automobile safety-related components, systems, and design features.
Competitive Insight
Some of the major players operating in the global market include BorgWarner, Hycet Technology Co. Ltd., Hyundai Mobis, JTEKT, Mando Corporation, Mitsubishi Electric, Nexteer, NSK, Robert Bosch, Tenneco, ThyssenKrupp, and ZF Friedrichshafen AG.
Electric Power Steering Market Report Scope
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Report Attributes |
Details |
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Market size value in 2021 |
USD 25.09 billion |
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Revenue forecast in 2030 |
USD 41.10 billion |
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CAGR |
5.8% from 2022 - 2030 |
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Base year |
2021 |
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Historical data |
2018 - 2020 |
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Forecast period |
2022 - 2030 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2022 to 2030 |
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Segments covered |
By Component, By Mechanism, By Type, By Vehicle, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key companies |
BorgWarner, Hycet Technology Co. Ltd., Hyundai Mobis, JTEKT, Mando Corporation, Mitsubishi Electric, Nexteer, NSK, Robert Bosch, Tenneco, ThyssenKrupp, and ZF Friedrichshafen AG. |
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