Report : Automotive Steering System Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Electronic Power Steering, Hydraulic Power Steering, and Electro-Hydraulic Power Steering) and Vehicle Type (Passenger Cars and Commercial Vehicles)
According to the new research report titled “Automotive Steering System Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 30,875.8 million by 2028, registering a CAGR of 4.3% from 2021 to 2028.
In 2020, APAC led the global automotive steering system market with ~50% of revenue share, followed by Europe and North America. India, China, South Korea, and Japan are among the world's leading vehicle manufacturers. As per OICA, in 2020, India manufactured 3,394,446 vehicles. Also, China manufactured 25,225,242 passenger cars and commercial vehicles in the same year, making it the world's largest vehicle producer. The emergence of the large automotive sector and an increasing number of automotive manufacturers are the key factors propelling the automotive steering system market in the area forward. The rapid growth of the automotive sector in APAC is driven by the continuous development of China and India's economies and the presence of high disposable incomes in South Korea, Japan, and other countries. To retain a broad customer base and produce more sales, car manufacturers tend to integrate cutting-edge solutions into their cars. As a result, the automotive steering system market in APAC is growing due to the strong automotive sector and rising disposable incomes.
In 2020, Europe held the second position with more than 23% revenue share, and it is anticipated to grow with a steady growth rate from 2021 to 2028. Ford, Hyundai Motors, Iveco, and Volkswagen are among the leading manufacturers of passenger cars and commercial vehicles in the Europe. The automotive industry is vital to the region's economic development. Commercial and passenger vehicle production was 16,921,311 units in 2020. Germany is one of the region's main automotive markets. The country's major automobile manufacturers are Daimler AG, BMW, Volkswagen, Opel, and Audi. The automotive steering system market is growing due to increasing vehicle output in Germany. One of the most important end-users of automotive steering systems in the area is the region's booming automotive industry. In addition, national regulatory bodies are taking several steps to promote the growth of the automotive industry in the region, which drives the automotive steering system market in Europe.
North America accounted for about 18.44% in the total revenue share of the global automotive steering system market. The market value is driven by the involvement of well-known automobile manufacturers and automotive steering system manufacturers in North America.
The emergence and rapid spread of novel coronavirus that causes COVID-19 has paralyzed numerous developed as well as developing countries. The continuous surge in the count of infected patients is threatening several industries across the world. As of December 2020, the US, India, Brazil, Russia, and France are among the worst affected countries in terms confirmed cases and reported deaths. Since majority of the countries are imposing lockdowns, the demand for vehicles and thus automotive steering systems has seen a sharp decline in 2020.
Key Findings of Study:
EPS is mainly used in passenger cars and light commercial vehicles, with a small presence in heavy vehicles. With technological advances, EPS systems can carry more weight, and they can be used in commercial vehicles. Due to their higher load-bearing capability than EPS systems, HPS (Hydraulic Power Steering) systems currently dominate the commercial vehicle market. HPS systems use the engine's control, reducing fuel efficiency.
The EPS system is more fuel-efficient and reliable than HPS systems because it draws power from the tank. Increased load-bearing ability will allow this technology to be used in commercial vehicles as well. For instance, Volvo has developed Volvo Dynamic Steering, which uses an electric motor. The steering is regulated 2,000 times per second by the engine. The Torque Overlay platform was used to build this technology. For the pickup truck industry, Nexteer Automotive has designed a rack-assisted electronic power steering system. The Servotwin electro-hydraulic steering system for heavy commercial vehicles was introduced by Robert Bosch, another leading steering system maker. Similarly, in October 2020, Nexteer Automotive Corporation launched EPS systems for commercial vehicles. In the coming years, such advances are expected to generate lucrative opportunities for EPS systems in the commercial vehicle market.