Stringent fuel efficiency and emission standards, a surge in demand for vehicle safety and enhanced vehicle handling, and a rise in the use of advanced driver assistance systems (ADAS) propel the global automotive electric power steering (EPS) market to grow at a CAGR of 5.8% from 2023 to 2032, Allied Market Research has stated.
According to the recent report - 'Automotive EPS Market - Global Opportunity Analysis and Industry Forecast, 2023-2032, published by Allied Market Research, the global automotive EPS industry generated $24 billion in 2022 and is anticipated to generate $42 billion by 2032. However, high initial investment costs, technical challenges, and complexity hamper the market's growth. On the contrary, the development of autonomous driving technology and the rise in the development of compact and cost-effective motor control units for EPS are expected to offer remunerative opportunities for the expansion of the automotive EPS market during the forecast period.
Pandemic
According to the report, the outbreak of COVID-19 impacted the automotive EPS industry due to the delay in the deployment and launch of new EPS, affecting the market's growth. However, post-pandemic, as economies recovered, there was a resumption of operations in the automotive industry. Moreover, Governments across the globe introduced stimulus packages to revive their economies, including the automotive sector. These packages often included measures to incentivise vehicle purchases, which helped drive demand for vehicles equipped with EPS systems, thus positively impacting the growth of the market.
Column E-power Steering
Based on type, the column EPS segment held the highest market share in 2022, accounting for nearly half of the global automotive EPS market revenue, and is estimated to maintain its leadership status throughout the forecast period. Manufacturers develop column steering products to offer flexible solutions for various vehicle platforms, accommodating different vehicle sizes and specifications. However, the pinion EPS segment is projected to manifest the highest CAGR of 7.5% from 2023 to 2032 due to the rise in collaborations between manufacturers and automakers to develop and integrate these steering systems.
PV Segment
In terms of vehicle type, the passenger cars segment held the highest market share in 2022, accounting for nearly three-fourths of the global automotive EPS market revenue, and is estimated to maintain its lead position during the forecast period as there is a surge in the replacement of hydraulic power steering (HPS) systems with EPS systems in passenger cars. However, the commercial vehicles segment would display the highest CAGR of 6.6% from 2023 to 2032 on account rising number of collaborations and contract agreements with system manufacturers to develop EPS systems for commercial vehicles.
ICE To Rule
Based on propulsion type, the ICE segment held the highest market share in 2022, contributing to around 90% of the global automotive EPS market revenue, and is projected to rule the roost by 2032. The growth is attributed to a surge in adopting an EPS system in ICE vehicles due to its positive impact on fuel efficiency. However, the electric segment would portray the highest CAGR of 7.7% from 2023 to 2032, owing to innovative advancements in electric vehicles, including the exploration of drive-by-wire systems.
Asia-Pacific To Dominate
Based on region, Asia-Pacific held the highest market share in terms of revenue in 2022, garnering more than half of the global automotive EPS market revenue, and is likely to dominate the market during the forecast period. Due to the automotive industry in the region, there has been a notable increase in the replacement of hydraulic steering systems with EPS systems, indicating a growing preference for EPS technology. However, Europe is expected to witness the fastest CAGR of 7.9% from 2023 to 2032 due to advancements in EPS systems, such as refined control algorithms, seamless sensor integration, and the introduction of steer-by-wire systems.
Courtesy: Allied Market Research. NB: Photo is representational; courtesy: ZF
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