Global Electric Power Steering (EPS) System Market is Estimated to Witness High Growth Owing to Rising Automotive Production and Increasing Demand for Fuel-efficient Vehicles
The Global Electric Power Steering (EPS) System Market is estimated to be valued at US$ 25.56 Bn in 2024 and exhibit a CAGR of 5.3% over the forecast period 2024-2031. The growing automotive production across the globe supported by increasing demand for fuel efficient and low emission vehicles is propelling the demand for electric power steering systems. Furthermore, the development of autonomous and semi-autonomous vehicles strengthened by government regulations mandating safety systems is expected to play a vital role in market growth over the forecast period.
Market Dynamics:
The growth of the Global Electric Power Steering (EPS) System Market is determined by two key drivers - rising automotive production and stringent fuel efficiency norms. Firstly, the automotive production has been increasing significantly across major economies such as China, the U.S., and Germany among others due to growing demand for passenger vehicles as well as commercial vehicles. This is directly enhancing the demand for electric power steering systems from OEMs. Secondly, various countries have implemented stringent norms regarding corporate average fuel economy (CAFE) to reduce vehicular emissions. This is encouraging automakers to focus on developing fuel-efficient and low emission vehicles. Since electric power steering systems improve fuel economy as compared to hydraulic steering systems, their adoption is expected to rise.
Two Key Market Drivers Fuel Growth of EPS Systems
Growing Demand for Fuel Efficiency and Lightweight Vehicles
One of the major drivers for the Electric Power Steering (EPS) System market is the continually increasing focus on fuel efficiency and emission reduction in the automotive industry. EPS systems help reduce vehicle weight compared to traditional hydraulic power steering systems as they have fewer mechanical components. Lighter vehicles result in better fuel economy. Additionally, EPS improves fuel efficiency by consuming less engine power compared to hydraulic power steering which draws energy directly from the engine. Many governments and regulatory bodies around the world have implemented stringent fuel efficiency and emission standards which is prompting automakers to adopt EPS widely.
Autonomous Driving Technology Proliferation
Another key factor driving the Electric Power Steering (EPS) System market is the rapid development of advanced driver assistance systems (ADAS) and autonomous driving technologies. EPS works in conjunction with ADAS features like lane keeping assist, blind spot monitoring, and adaptive cruise control etc. Its integration with advanced sensing components facilitates functions like automated steering for self-driving vehicles. It also enables steering-by-wire capabilities which are crucial for higher levels of autonomous driving. Leading automakers are heavily investing in autonomous driving and most new vehicle models already have some level of ADAS standard. This growing utilization of driverless car technologies will further drive EPS adoption.
Technological Challenges Pose Restraints on Electric Power Steering (EPS) System Market Growth
Reliability and Durability Issues
One of the major challenges faced by EPS systems is reliability issues arising from the complex electronics and sensing components involved. Any faults in the sensors or controls can disrupt the power steering function. Maintaining long term durability under different road and climatic conditions is also difficult with current EPS technology. This hurts consumer confidence and deters widespread adoption. Extensive durability testing and fault tolerance needs to be improved to address reliability concerns.
Higher Development Costs than Hydraulic Steering
While EPS systems promise efficiency gains, their development costs are substantially greater than conventional hydraulic power steering. This is because EPS requires numerous advanced components like electric motors, gears, position sensors, advanced microcontrollers etc. which make the overall system more expensive to engineer and produce. The higher costs present a restraint, especially for mainstream and low-cost vehicle segments where price sensitivity is high. Cost reduction through technology innovation and economies of scale will be important to overcome this barrier.
Promising Opportunities for Electric Power Steering (EPS) System Market Growth
Integration with Autonomous Driving and ADAS Features
As discussed, EPS interfaces very well with autonomous driving and various advanced driver assistance functionalities that are crucial for safer transportation in the future. It allows advanced steering control in self-driving mode. Automakers can leverage this synergistic integration to develop new premium ADAS and autonomous models – presenting a major opportunity to drive additional EPS demand.
Entry into Two-Wheeler and Off-Highway Vehicle Markets
So far EPS adoption has been majorly limited to passenger cars and light commercial vehicles. However, with ongoing technology maturity and cost reductions, the system is gaining relevance even for smaller platforms like scooters, motorcycles and off-highway vehicles. This expansion into new application areas like agricultural, construction and mining equipment as well as electric two-wheelers opens up a fresh set of growth prospects for EPS product manufacturers.
In summary, while technological maturations and higher costs do pose some challenges, the integral role of EPS in improving efficiency and enabling new automated features will ensure robust long term demand growth driven by compelling market drivers and opportunities in the global automotive industry. Continuous innovation is vital to sustain this momentum.
Link - https://www.coherentmarketinsights.com/market-insight/electric-power-steering-system-market-4991
Key Developments:
- In September 2022, NOK Corporation, a prominent Japanese manufacturer known for its expertise in oil seals and automotive components, unveiled a capital investment of JPY 500 million for its Tottori Plant. The investment is targeted at boosting the production capacity of anti-vibration and soundproofing devices essential for electric power steering (EPS), brakes, and gears in electric vehicles over the next three years. NOK Corporation maintains a substantial market presence in oil seals, emphasizing product development that aligns with the trends in electrification and autonomous driving.
- In August 2022, NSK Ltd., a leading Japanese manufacturer specializing in precision machinery and automotive components, revealed its strategy to overhaul its steering operations. Following a substantial order from the Volkswagen (VW) Group for electric power steering (EPS) systems, NSK is preparing to commence large-scale production by spring 2023. This partnership underscores NSK's dedication to advancing steering technologies tailored for electric vehicles, reinforcing its standing in the automotive industry.
- In June 2022, Robert Bosch GmbH, a prominent global provider of technology and services, unveiled its intentions to enhance its manufacturing and development capacities in the mobility sector within Japan. As part of this effort, the company will relocate the assembly line for electric power steering (EPS) systems, which are slated for Japanese automakers, from its facility outside Japan to the Musashi Plant in Namegawa Town, Saitama Prefecture.
- In March 2022, Thyssenkrupp AG, a German multinational conglomerate specializing in industrial engineering and steel production, and NSK Ltd., a renowned Japanese manufacturer recognized for precision machinery and automotive components, entered into a memorandum of understanding (MoU) to investigate the feasibility of forming a joint venture between Thyssenkrupp Automotive and NSK's steering division. This partnership seeks to align technologically and strategically, capitalizing on their respective strengths to address the changing demands of the automotive sector.
Key Players:
Alcatel-Lucent (Nokia Networks), Bosch, DENSO Corporation, Hitachi Astemo (Showa), Hyundai Mobis, JTEKT Corporation, Mando Corporation, Mitsubishi Electric Corporation, Nexteer Automotive, NSK Global, Robert Bosch GmbH, Thyssenkrupp Presta AG, Valeo S.A., ZF Friedrichshafen AG, and Zhuzhou Elite Electro-Mechanical Co. Ltd.
