Electronic Power Steering (EPS) Market Research Report and Outlook by 2028

The electronic power steering (EPS) sector is projected to expand from US$ 52,692.31 million in 2019 to US$ 54,933.16 million by 2027, reflecting a compound annual growth rate (CAGR) of 3.6% from 2020 to 2027.

The increasing demand for electronically assisted steering systems in vehicles is significantly influenced by stringent government regulations aimed at enhancing fuel efficiency. Additionally, the rising production of vehicles, coupled with a growing preference for a smoother driving experience and enhanced comfort, is propelling the global demand for electronic steering systems. Currently, most light-duty vehicles are equipped with gasoline-powered spark-ignition engines, which typically exhibit higher fuel consumption. In contrast, diesel engines are more efficient, consuming 10% to 20% less fuel, while hybrid vehicles, which utilize both gasoline and electric power, demonstrate reduced fuel consumption. These hybrid engines operate at optimal efficiency and harness energy from regenerative braking. Electric vehicles (EVs) stand out with the lowest energy consumption, as they rely on batteries and electric motors that are inherently more efficient than traditional internal combustion engines. Numerous manufacturers are striving to ensure that the newly registered fleet in the EU adheres to average CO2 emissions per kilometer by 2030, as failure to comply will result in penalties in the near future. EVs provide original equipment manufacturers (OEMs) with the chance to achieve their targets through additional credits, thereby easing compliance by potentially reducing the stringency of limits by up to 5%, which is further stimulating the growth of the EPS market globally.

In terms of product type, the column-assisted electronic power steering (C-EPS) segment was the market leader in 2019. C-EPS systems are typically utilized in smaller vehicles, capable of handling loads of approximately 6 kN. These systems comprise a steering torque sensor, an engine control unit (ECU), a vehicle speed sensor, a motor, and various assistance components, including a gearbox and gear rack. When operational, the system transmits the driver torque signal and vehicle speed signal to the ECU.

Regionally, the Asia-Pacific (APAC) region dominated the global electronic power steering market in 2019, accounting for nearly 50% of the overall market share. This dominance can be attributed to the widespread adoption of premium vehicles, sedans, and SUVs in APAC countries, which significantly contributes to the region's substantial market presence.

The COVID-19 pandemic has had a profound impact on economies and industries worldwide due to lockdowns, travel restrictions, and business closures. The global EPS market experienced a notable downturn as a result of the pandemic, which originated in Japan and quickly escalated into a worldwide crisis in 2020. The concentration of manufacturing and production facilities among various market players in Japan and China, which host numerous production sites, led to a decline in the output of electronic power steering products. Furthermore, the nationwide lockdowns that followed the rapid spread of COVID-19 disrupted automotive production capabilities and global supply chain operations. Consequently, the electronic power steering market is anticipated to experience a significant drop in revenue generation due to halted production across many facilities worldwide in 2020.

The overall size of the electronic power steering market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the electronic power steering market across all segments and regions. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights into the subject. Participants in this process included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the electronic power steering market. Key players in the market include Hyundai Mobis, JTEKT Corporation, Mitsubishi Electric Corporation, Nexteer Automotive, NSK Ltd., Robert Bosch GmbH, Showa Corporation, Mando Corporation, ThyssenKrupp AG, and ZF Friedrichshafen AG.