Automotive Electric Power Steering (EPS) Market Size [2031]

Report Description

Automotive Electric Power Steering (EPS) Market Outlook 2031

The global automotive electric power steering (EPS) market size was valued at USD 24 Billion in 2022 and is likely to reach USD 39.19 Billion by 2031, expanding at a CAGR of 5.6% during 2023 – 2031. The market's growth is attributed to increasing adoption of EPS in vehicles to enhance fuel efficiency and rising incidence of road accidents.

Growing number of road accidents is expected to boost the demand for electric power steering. Electric power steering reduces the effort of the driver to turn the car steering wheel, ensuring improved handling and control. This reduces traffic collisions and enhances the demand for electric power steering in vehicles. For instance,

• As per the report published by the World Health Organization on June 20, 2022, approximately 1.3 million people die each year around the globe as a result of road traffic crashes.

Get Free Sample Report

Increasing adoption of EPS in vehicles to enhance fuel efficiency is projected to drive the market. Electric power steering systems draw power when needed and do not require power steering fluid to work, making them more fuel-efficient than hydraulic systems. This increases their adoption in passenger and commercial vehicles.

The COVID-19 pandemic hampered the demand for automotive electric power steering (EPS). Rise in COVID-19 infection led the government to impose lockdowns and social distancing which drastically declined the production of motor vehicles, significantly hinders the global market. Electric power steering (EPS) is installed in motor vehicles to provide improved safety, comfort, and convenience. For instance,

• According to data published by the International Organization of Motor Vehicle Manufacturers, a 16% decline was seen in the production of motor vehicles in 2020.

Impact of Artificial Intelligence (AI) on Automotive Electric Power Steering (EPS)

The continuous development in technology is implementing artificial intelligence (AI) in EPS. AI-powered electric power steering can adjust steering based on driving conditions and usage patterns. AI in electric power steering uses machine learning and predictive analytics to predict steering failures with high accuracy and provide early warning to drivers, helping them avoid accidents. Companies are working to develop AI-enabled electric power steering, which creates an immense opportunities in the market.

Automotive Electric Power Steering (EPS) Market Dynamics

Get Free Sample Report

Major Drivers

Growing adoption of automotive safety systems is anticipated to boost the demand for electric power steering. Electric power steering is an integral part of automotive safety systems designed to provide improved convenience, comfort, and safety by reducing the effort of the driver to turn the car steering wheel. Thus, increasing adoption of automotive safety systems is expected to drive the market. For instance,

• According to a report, the automotive safety systems market was valued at USD 93.28 billion in 2021 and is expected to reach USD 127.2 billion by 2027.

Increasing demand for electric vehicles is expected to drive the market. Electric vehicles  (EVs) are equipped with an electric power steering system, as these vehicles run on battery rather than on fuel. EV uses electric power steering to reduce CO₂ emissions, as it does not require steering fluid to operate. Therefore, rising adoption of EVs is estimated to propel the market.

Existing Restraints

System failures associated with automotive electric power steering are projected to hinder the market. EPS systems involve sensors that are susceptible to damage, making the steering wheel rock-solid. Moreover, high cost of electric power steering is expected to hamper the market. Electric power steering is expensive, as it involves a motor, reduction gear, torque sensor, and a module.

Emerging Opportunities

Rising adoption of autonomous vehicles creates immense opportunities in the market. Electric power steering is used in autonomous vehicles, as it involves an electric motor that controls the vehicle steering. Moreover, major companies in the market are heavily investing in R&D activities to develop and introduce new electric power steering for heavy vehicles and light commercial vehicles. For instance,

• On April 17, 2023, Nexteer an automotive supplier delivering electric and hydraulic power steering systems, launched a Modular Rack-Assist Electric Power Steering (mREPS) system to provide flexibility to efficiently meet OEMs' wide-ranging requirements for advanced steering systems of heavy vehicles and light commercial vehicles.

Scope of The Automotive Electric Power Steering (EPS) Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Electric Power Steering (EPS) Market Segment Insights

Type Segment Analysis

Based on type, the automotive electric power steering (EPS) market is categorized as column electric power steering and pinion electric power steering. The pinion electric power steering segment dominated the market in 2022 and is projected to continue its dominance throughout the assessment period due to precise steering response and compact design.

The pinion electric power steering offers responsive and direct control, providing maneuverability and improved handling. It is more compact, efficient, and lightweight than other steering systems, as there are fewer components and less fluid involved. This is estimated to increase its adoption in vehicles.

Get Free Sample Report

Vehicle Type Segment Analysis

In terms of vehicle type, the global market is bifurcated into passenger vehicles and commercial vehicles. The passenger vehicles segment accounted for a major share of the market in 2022 due to superior convenience, flexibility, and safety. Passenger vehicles provide personal transportation, allowing individuals or small groups to travel at their convenience.

Passenger vehicles are equipped with technologically advanced features such as automotive automatic tire inflation systems, airbags, traction control, and electric power steering (EPS) to reduce crashes, and fatalities, ensuring improved safety. This is projected to boost the demand for electric power steering in passenger vehicles.

The commercial vehicle segment is expected to grow at a robust pace during the assessment period owing to rising logistic services and large storage capacity. Electric power steering is used in commercial vehicles to reduce fuel consumption and CO₂ emissions, as it does not require power steering fluid to work. This, in turn, is expected to encourage the adoption of EPS in commercial vehicles.

Regional Outlook

Based on region, the automotive electric power steering (EPS) market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a large share of the market in 2022 due to increasing technological advancements in the automotive sector and the presence of established market players such as Nexteer, Hitachi Astemo Americas, Inc., and KSR International Inc.

Moreover, increasing adoption of autonomous vehicles in the region is propelling the need for electric power steering, as it involves an electric motor that controls the steering of autonomous vehicles. For instance,

• According to a report, the number of autonomous vehicles in the US is estimated to reach 20.8 million by 2030.

The market in Asia Pacific is anticipated to expand at a high CAGR in the coming years owing to increasing vehicle production, rising disposable income, and growing awareness regarding vehicle safety among consumers. Moreover, the expansion of the auto industry in the region is projected to boost the demand for automotive electric power steering, as it is utilized in vehicles to control and assist vehicle steering and providing an optimal and enjoyable steering feel. For instance,

• On February 17, 2023, the Press Information Bureau published a report stating that India aims to double its auto industry size to ₹15 lakh crores by 2024.

Get Free Sample Report