Electric Power Steering System Market Analysis

In-depth Analysis of Electric Power Steering System Market Industry Landscape

The global electric power steering system market is set to reach US$ 29.4 BN by 2032, at a 5.3% CAGR between years 2023-2032. The recent dynamic transformations in the market can be attributed to novel technological breakthroughs, regulations, and consumer behavior.
Some of the primary drivers of the market are the recent shift from hydraulic systems to electric power steering systems and the growing need for fuel-efficiency and reduced emissions from automobiles. Electric power steering systems provide better than normal energy conservation as compared with their hydraulic counterparts when going out of the industry’s way to sustainability initiatives. Also, the increase in electric and hybrid vehicles has had a profound effect on the market for electric power steering system.
As automakers adopt electrification as a means of satisfying stringent emission limits, the need for EPS becomes essential because it is suitable to electric drivetrains. It has resulted in rapid growth of the market due to an increased interest towards adopting electric power steering systems across various vehicle segments. Another crucial factor influencing market dynamics is the continuous technological progress in automotive electronics.
The introduction of sensors, control units and advanced algorithms has improved the efficiencies and functionalities of electric power steering systems. These developments have resulted in better accuracy, quickness and driving experience overall to enhance appeal of EPS for both manufacturers as well as customers. The safety standards and regulatory measures have also contributed significantly to the evolution of electric power steering system market.
Today as governments of the world are getting tougher with their regulations to ensure better vehicle safety and reduce environmental impaction. For instance, the electric power steering systems that can provide support for ADAS and compliance with safety regulations are gaining popularity.
The competitive structure of the electric power steering system market has also seen a gradual increase in players, from conventional OEM suppliers to new competitors with expertise in electronic and electrical sub-systems. This diversity brings about creativity and further fuels competition, leading to Product innovation continuously lowering costs. Therefore, electric power steering systems provide more options and features to the consumers.
Market dynamics are also driven to a great extent by factors of cost. This has resulted in significant reduction of manufacturing and integration costs for electric power steering systems hence their accessibility to a wider market. The cost-effectiveness of EPS is a major driver behind the widespread use this technology, especially in mid-range and economy vehicle classes; therefore, contributing directly to market growth.
Another market dynamics aspect to note is the aftermarket segment. As the vehicle installed base equipped with electric power steering systems slowly increases, so does the demand for aftermarket services of repair and upgrade. In this respect, there are choices for OEMs and independent service providers to address the continually changing demands of vehicle owners.