Automotive Electric Power Steering Market: Current Analysis and Forecast (2021-2027)

Report Description

Demand for automotive electric power steering has witnessed an increased demand in the past few years. It is estimated that more than 60 million electric power steering are sold each year. Ongoing globalization and economic growth of developing economies such as India, Brazil, Thailand, and others have revamped the overall living standard of consumers in these countries. This have increased the overall disposable income of individuals. The increased disposable income has enabled the consumers to spend more on products which offer comfort, passenger cars are one among them. Hence the increasing demand for passenger cars, is expected to drive the market for Automotive Electric Power Steering. Global automotive steering system market is majorly driven by the steady growth in the vehicle sales with the overall demand for the vehicle equipped with power steering system. China is estimated to produce more than 13 million battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) by the end of FY2023, more than any other country globally. China’s estimated production level is also anticipated to exceed the combined output of few major auto manufacturing countries including the United States, Germany, and Japan.

Global Sales of Vehicle, by Type 2019 & 2020 (‘000 units)

Insights Presented in the Report

“Amongst Type, Column-EPS segment would witness significant growth”

Based on Type, the Automotive Electric Power Steering Market is segmented into Column-EPS, Pinion-EPS, Rack-EPS. Currently, Column-EPS dominates the market and is expected to maintain its dominance throughout the forecast period 2021-2027. Major automotive manufacturers globally are leveraging autonomous driving systems to provide a seamless experience to automobile users.

“Amongst Component, EPS Control Module segment dominated the market in 2020”

Based on Component, the market is bifurcated into EPS Control Module, Electric Motor, Rack & Pinion, Steering Column. In 2020, EPS Control Module segment dominated the market. Growth of the segment is expected to be driven by increasing demand for vehicles equipped with power steering and rising popularity for Electric vehicles in major developed economies.

“Amongst Mechanism, Collapsible EPS segment witnessed significant growth”

Based on Mechanism, the market is bifurcated into Collapsible EPS, Rigid EPS. Currently, Collapsible EPS segment dominated the market and is expected to maintain its dominance throughout the forecast period 2021-2027. EPS variants offered by Bosch, meet the requirements for small, mid-range, sports cars as well as light commercial vehicles.

“Amongst Technology, Collapsible EPS segment dominated the market”

Based on Mechanism, the market is bifurcated into Collapsible EPS, Rigid EPS. Currently, Collapsible EPS segment dominated the market and is expected to maintain its dominance throughout the forecast period 2021-2027. As per the US Department of Energy (DOE), in the ideal conditions, Electric Power Steering (EPS) increases fuel efficiency by 2-4%, reduce fuel consumption up to 6%, and decrease CO2 emissions by 8g/km. In addition, as per Nexteer estimation EPS systems have helped save almost 3 billion gallons of gas since 1999.

“Amongst Vehicle Type, Passenger Vehicle segment dominated the market”

Based on Vehicle Type, the market is segmented into Passenger Vehicle, Light commercial vehicle, Heavy commercial vehicle. Owing to high production volume the Passenger Vehicle segment dominate the market and is expected to maintain its dominance throughout the forecast period. Global all vehicle sales in 2020 accounted to 77.98 million, compared to 90.4 million sales in 2019.

“Amongst Sales Channel, OEMs’ segment dominated the market”

Based on Sales Channel, the market is segmented into OEM, Aftermarket. Automotive Electric Power Steering is majorly supplied to the OEMs. European, Japanese, American, Korean, and Chinese car manufacturers dominated the global dominate the automobile industry. Sales of passenger vehicle stood at 53.6 million in 2020, compared to 24.37 million commercial vehicles. Asia/Oceania/Middle East dominated the sales of all vehicles with 51.4% share in 2020, compared to 48.1% in 2019.

“Asia-Pacific is expected to dominate the market during the forecast period”

For a better understanding of the demand of Automotive Electric Power Steering, the market is analyzed for major regions including North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, India, Japan, South Korea, Rest of Asia-Pacific); and Rest of World. Currently, Asia-Pacific dominates the market. According to the Technology Roadmap for Energy Saving and New Energy Vehicles issued by the Society of Automotive Engineers of China, energy-efficient vehicles are expected to hold a 50% market share by 2030. Market for energy-efficient vehicles is majorly driven by rapid growth of new energy vehicles, hence, sales and penetration of Electric Power Steering (EPS) as a standard configuration is expected to increase at a sustainable rate. Some of the major players operating in the market include Robert Bosch, Nexteer Automotive Group Limited, JTEKT Corporation, DENSO Corporation, NSK Steering Systems Co., Ltd., ZF Friedrichshafen AG, Hyundai Mobis Co., Ltd., Cikautxo India Pvt. Ltd., Mitsubishi Electric Automotive America, Inc., Mando Corporation.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Automotive Electric Power Steering were the three major steps undertaken to create and analyze the demand and sales of Electric Power Steering globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Automotive Electric Power Steering through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Automotive Electric Power Steering, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are Type, Component, Mechanism, Technology, Vehicle Type, Sales Channel. Further regional level analyses were conducted to evaluate the overall demand of Automotive Electric Power Steering in global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing demand for personal passenger cars and technological advancement in the automotive sector etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the demand of Automotive Electric Power Steering across the major regions globally
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Automotive Electric Power Steering Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Automotive Electric Power Steering market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Type, Component, Mechanism, Technology, Vehicle Type, Sales Channel, and region.

The main objective of the Automotive Electric Power Steering Market Study

The current & future market trends of the Automotive Electric Power Steering Market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Automotive Electric Power Steering in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments of the industry
• Segments in the study include Type, Component, Mechanism, Technology, Vehicle Type, Sales channel, and Region
• Defined analysis of the regulatory framework for the Automotive Electric Power Steering industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors pertaining to the industry
• Major regions analyzed in the report include North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, India, Japan, South Korea, Rest of Asia-Pacific); and Rest of World. Define and analyze the competitive landscape of the Automotive Electric Power Steering sector and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry