Power Assisted Steering Market Analysis

Power Assisted Steering Market Analysis

The EV segment is predicted to witness a 5.3% CAGR till 2027 owing to rising sales and production of new energy vehicles over the last five years. In countries, such as China, the U.S., and Norway, the potential of power assisted steering sales is huge as the demand for alternative energy vehicles, such as PHEVs and BEV, is poised to increase significantly.

The passenger cars segment accounted for USD 10 billion in 2020 led by rising passenger car production and increasing EPS adoption in compact and sedan cars. Furthermore, in emerging regions, such as India, Brazil, and Indonesia, among others, the adoption of electric power steering systems and ADAS has increased in passenger cars to improve safety and fuel efficiency. The current electric power steering opens a new hydraulic-to-electric conversion wave for commercial vehicles and heavy-duty pick-up trucks, which enables advanced safety, comfort, and fuel economy. This factor is set to propel the demand for power assisted steering in the passenger car segment. Moreover, the increasing penetration of power assisted steering systems, such as hydraulic power steering, in light trucks and vans will lead to a bigger demand for power assisted steering.

The electric segment in the power assisted steering market is expected to reach USD 12 billion by 2027 on account of its lower fuel consumption, quicker steering, and lower driver exertion compared to hydraulic steering system since it uses an engine driven hydraulic pump to amplify the load, lowering fuel efficiency of the vehicle. Electric power steering has lower maintenance cost, since it does not require any additional fluids or leakage problems. Additionally, the hydraulic steering pump constantly is running, even the steering system is not been used, which results in lower fuel efficiency, which will further foster the electric power steering market. 

The OEM segment dominated more than 95% of the market share in 2020 impelled by the increasing automotive production to meet the rising demand. In 2020 according to the International Organization of Motor Vehicle Manufacturers (OICA), China alone produced around 25.2 million units of automotive vehicles, which are likely to enhance the market during the forecast period.

Asia Pacific power assisted steering market will capture over 50% of revenue share by 2027 owing to large automotive production across Asia Pacific. In 2020, automotive vehicle production in APAC was nearly 43.4 million units. Automotive manufacturers are implementing an inclusive range of advanced technologies in automotive steering to develop semi-autonomous and autonomous driving, such as park assist steering, lane keeping, among others, augmenting the market during the forecast period. In addition, many Asian countries are adopting electric vehicles in public transports.