|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 320 million
|
|
CAGR (2023-2028)
|
6.19%
|
|
Fastest Growing Segment
|
Light Commercial
Vehicle
|
|
Largest Market
|
Western
|
Market Overview
United States Electric Power Steering Market
has valued at USD 320 million in 2022 and is anticipated to project robust
growth in the forecast period with a CAGR of 6.19%. The United States Electric
Power Steering (EPS) market has witnessed remarkable growth and transformation
in recent years, reflecting the ever-evolving landscape of the automotive
industry. EPS technology has become a pivotal component in modern vehicles,
gradually replacing conventional hydraulic power steering systems due to its
numerous advantages. These advantages encompass fuel efficiency improvements,
enhanced safety features, adaptability to electric and autonomous vehicle
technologies, and the seamless integration with Advanced Driver Assistance
Systems (ADAS). One of the noteworthy trends shaping this market is the
integration of EPS with ADAS, which includes features like lane-keeping assist,
adaptive cruise control, and collision avoidance systems. This integration not
only enhances vehicle safety but also paves the way for semi-autonomous and
autonomous driving capabilities. Moreover, the electrification of the
automotive industry has further fueled the demand for EPS systems. As the shift
towards electric and hybrid vehicles gains momentum, EPS technology is at the
forefront, offering energy-efficient and lightweight solutions that contribute
to vehicle efficiency and performance. Consumers, seeking enhanced vehicle
dynamics, are driving the demand for responsive and precise steering systems.
EPS technology is responding with variable steering assistance, multiple
driving modes, and improved handling to cater to these preferences.
Furthermore, as environmental concerns continue to grow, the trend toward
eco-friendly and sustainable driving practices is fostering the adoption of EPS
systems. With an increasing focus on energy efficiency, sustainability, and
regulatory compliance, EPS technology is aligning seamlessly with the evolving
demands of the United States automotive market.
Key Market Drivers
Fuel
Efficiency and Environmental Concerns
One of
the primary drivers of the United States Electric Power Steering (EPS) market
is the growing emphasis on fuel efficiency and environmental sustainability in
the automotive industry. As concerns about carbon emissions and fuel
consumption continue to rise, manufacturers and consumers alike are seeking
solutions to reduce the environmental impact of vehicles. EPS offers several
advantages in this context: EPS systems are more energy-efficient compared to
traditional hydraulic power steering systems. By eliminating the need for a
hydraulic pump, EPS reduces energy loss, leading to improved fuel efficiency.
This is especially significant in a market where stricter fuel economy
standards are in place to combat emissions. Electric power steering systems are
lighter and more compact than hydraulic systems, contributing to overall
vehicle weight reduction. Lighter vehicles consume less fuel, further enhancing
fuel efficiency. Some EPS systems are designed to harness energy through
regenerative steering, where energy is recovered during turning and returned to
the vehicle's electrical system. This regenerative capability has the potential
to improve fuel efficiency further, especially in hybrid and electric vehicles.
As the automotive industry undergoes a shift toward electric and hybrid
vehicles, EPS systems are well-suited to work in harmony with these
powertrains, contributing to the overall efficiency of electrified vehicles. The
United States has implemented stricter emissions standards in recent years, and
these regulations are expected to become even more stringent in the future. To
meet these standards, automakers are increasingly adopting EPS to help reduce
vehicle emissions. In a market where consumers are demanding more
environmentally responsible vehicles, the fuel efficiency and eco-friendly
attributes of EPS systems make them a critical driver of market growth.
Safety
and Advanced Driver Assistance Systems (ADAS)
Safety
is a paramount concern in the automotive industry, and the integration of
Advanced Driver Assistance Systems (ADAS) has become a significant driver of
the United States Electric Power Steering market. These systems, which include
features like adaptive cruise control, lane-keeping assist, and automated
emergency braking, rely on accurate steering input and feedback. EPS plays a
crucial role in the successful implementation of these safety technologies: EPS
systems offer precise and rapid steering adjustments, ensuring quick response
to sudden safety-related events. This enhances vehicle stability and helps
mitigate accidents. Electric power steering is well-suited for integration with
ADAS technologies. The feedback and control provided by EPS facilitate
functions like lane-keeping assist and adaptive cruise control, improving
driver assistance and enhancing overall vehicle safety. As autonomous driving
technology advances, EPS systems are instrumental in providing the necessary
steering control and feedback. They allow for seamless transitions between
autonomous and manual driving modes, further enhancing vehicle safety. The ease
of steering with EPS can reduce driver fatigue, making it easier for drivers to
maintain focus and control over extended periods, contributing to improved
safety. EPS systems enable more accurate and responsive steering adjustments
for lane-keeping systems and collision avoidance features, enhancing their
effectiveness. The United States market is increasingly influenced by safety-conscious
consumers and evolving regulations, making EPS a critical driver in the
integration of advanced safety technologies.
Enhanced
Vehicle Dynamics and Performance
Vehicle
dynamics, handling, and performance are fundamental aspects that influence
consumer choices. The United States Electric Power Steering market has been
driven by the quest to enhance vehicle dynamics and driving experience: EPS
systems allow for variable steering assistance, meaning that steering effort
can be adjusted based on vehicle speed. This feature enhances driving comfort
and stability, particularly at higher speeds. Many EPS systems offer multiple
driving modes, such as sport and comfort settings, that adjust the steering
response to cater to driver preferences. This flexibility allows consumers to
customize their driving experience. Some EPS systems are designed to simulate
the feel of traditional hydraulic power steering, providing drivers with a more
natural and engaging steering experience, particularly in high-performance and
sports vehicles. The precision and responsiveness of EPS systems contribute to
better vehicle handling and cornering. This is a key consideration for
performance-oriented consumers and sports car enthusiasts. EPS systems can
integrate with dynamic stability control systems to enhance vehicle stability,
especially in challenging road conditions. This feature is highly sought after
in regions with variable weather patterns. In a market where consumers place a
significant emphasis on driving experience and performance, EPS has emerged as
a driving force by enhancing vehicle dynamics and steering precision.
Weight
Reduction and Packaging Efficiency
Weight
reduction and efficient packaging are vital considerations for automotive
manufacturers aiming to meet strict fuel efficiency standards and enhance
vehicle design. EPS systems offer several advantages that drive their adoption
in the quest for lightweight, efficient, and space-saving solutions: EPS
systems are inherently lighter than traditional hydraulic power steering
systems. Reducing vehicle weight is a critical factor in improving fuel
efficiency and handling. With reduced weight, the engine has less work to do to
move the vehicle. This leads to improved overall engine efficiency and better
fuel economy. EPS systems take up less space within the vehicle compared to
hydraulic power steering systems, allowing for more efficient packaging and
design flexibility. This is particularly important in compact and electric
vehicles where space is at a premium. EPS systems are well-suited for use in
hybrid and electric vehicles, where weight reduction and packaging efficiency
are essential to maximize battery range and overall efficiency. The weight
distribution of a vehicle is influenced by the steering system. Lighter EPS
systems can contribute to better weight distribution, enhancing vehicle control
and stability. The United States market is influenced by the demand for
efficient, lightweight vehicles, and EPS systems are a key driver in achieving
these goals.
Integration
with Electric and Autonomous Vehicles
The
rapid growth of electric vehicles (EVs) and autonomous vehicles (AVs) in the
United States has significantly impacted the Electric Power Steering market.
Several factors contribute to the growing adoption of EPS in the context of
electrification and autonomous driving: Electric power steering systems are
highly compatible with EVs, as they complement the electrical architecture of
these vehicles. Their energy-efficient design aligns well with the
energy-saving goals of EVs, contributing to increased range and efficiency. Autonomous
vehicles require precise steering control, especially during transitions
between autonomous and manual driving modes. EPS systems offer the accuracy and
responsiveness needed for seamless integration with AV technology. As AV
technology advances, EPS systems play a crucial role in enhancing driver-assist
features such as automated lane-keeping and parking assistance. EPS systems are
integral components of drive-by-wire systems that replace traditional
mechanical linkages with electronic controls.
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Key Market Challenges
Technical
Complexity and Maintenance Challenges
The
integration of Electric Power Steering (EPS) systems into modern vehicles has
introduced technical complexities that present challenges for both automakers
and consumers. These challenges include EPS systems are electronic and involve
various components, including sensors, controllers, and electric motors. This
complexity can make diagnosing and repairing EPS issues more challenging than
traditional hydraulic power steering systems. Maintenance and repairs of EPS
systems may require specialized equipment and expertise, which can increase
service costs. These complexities can lead to longer service times and higher
maintenance expenses. EPS systems often rely on software for optimal
performance. As with other electronic components in vehicles, software updates
may be necessary, requiring a visit to the dealership or service center for
consumers. Any issues with EPS components can impact vehicle steering, which is
a critical safety aspect. Ensuring the reliability of EPS systems is paramount,
as unexpected failures could lead to accidents and safety concerns. Vehicle
owners may have limited knowledge of EPS systems and how they operate. This can
lead to a lack of awareness about the importance of EPS maintenance, potentially
resulting in neglected upkeep. Automakers and service providers must invest in
training and education to address these challenges and ensure that EPS systems
are maintained and repaired correctly. In addition, the development of
user-friendly diagnostic tools and standardized procedures for EPS maintenance
can help alleviate these technical complexities.
Cost
Considerations and Price Sensitivity
Cost
considerations are a significant challenge for the United States Electric Power
Steering Market. While EPS systems offer numerous advantages, their upfront
cost, maintenance expenses, and repair costs can be a barrier for both
automakers and consumers: Integrating EPS systems into vehicles adds to the
initial production cost. For automakers, this can result in increased
manufacturing expenses, which can be passed on to consumers in the form of
higher vehicle prices. As mentioned earlier, EPS systems can be more expensive
to maintain and repair due to their technical complexity. These costs can be
burdensome for vehicle owners, especially if repairs are not covered by
warranties. Many consumers are price-sensitive and prioritize affordability
when purchasing vehicles. The added cost of EPS systems can deter
budget-conscious buyers, especially in a competitive automotive market. When
EPS components require replacement, the cost of parts can be significant.
Replacing components like electric motors or sensors can be expensive,
particularly if consumers choose original equipment manufacturer (OEM) parts. Consumers
expect reliability and durability from their vehicles, and they may not be
willing to compromise on safety and performance, even if it means paying a
premium for EPS systems. Automakers and EPS component manufacturers must work
to balance cost considerations with the benefits of EPS technology. This may
involve exploring cost-effective manufacturing methods, creating more
affordable maintenance options, and offering transparent pricing structures.
Technical
Standardization and Compatibility
Technical
standardization and compatibility are critical challenges in the United States
Electric Power Steering Market. EPS technology needs to be standardized to
ensure that components from various manufacturers can work together seamlessly.
These challenges include: Some automakers use proprietary EPS systems, making
it difficult for third-party service providers and independent repair shops to
work on these systems. This can limit consumer choices for maintenance and
repair services. Compatibility issues may arise when trying to integrate EPS
systems with other vehicle components, such as advanced driver assistance
systems (ADAS) or autonomous driving technology. Ensuring compatibility is
essential for seamless vehicle integration. Software plays a crucial role in
EPS systems. Compatibility challenges can emerge when software updates are
required, and different software versions are not easily compatible with one
another. Standardized diagnostic tools and software are essential for effective
maintenance and troubleshooting. The lack of standardization can lead to
confusion and inefficiencies when diagnosing and repairing EPS issues. As
vehicles become more connected and dependent on electronic systems,
interoperability between EPS and other vehicle systems becomes increasingly
important to ensure seamless functionality. Standardization and compatibility
are essential for ensuring that EPS systems are not only effective but also
easy to service and maintain. A lack of standardization can result in confusion
and inefficiencies, increasing costs and reducing consumer choices.
Supply
Chain Disruptions and Material Costs
Supply
chain disruptions and material costs are challenges that have been magnified in
recent years, impacting the Electric Power Steering Market. These challenges
include: The automotive industry relies on complex global supply chains.
Disruptions, such as those caused by the COVID-19 pandemic, can lead to delays
in production and a shortage of critical components for EPS systems. The cost
of materials, including metals and electronic components, can fluctuate due to
factors like trade tariffs, supply and demand, and geopolitical events. These
cost fluctuations can impact the overall cost of EPS systems. Some materials
used in EPS systems, such as rare earth elements and specialized sensors, may
have limited supply, which can drive up material costs and create potential
shortages. The manufacturing process for EPS components can be complex, and
bottlenecks or constraints in the production process can result in supply
shortages. Supply chain disruptions and material cost fluctuations can lead to
increased lead times for EPS component production and delivery, affecting the
automotive manufacturing schedule.
Integration
with Autonomous Driving Technology
The
integration of Electric Power Steering (EPS) with autonomous driving technology
presents a significant challenge in the United States Electric Power Steering
Market. While EPS systems play a crucial role in enabling autonomous driving,
they must meet the high standards of safety and reliability required for
autonomous vehicles: Autonomous vehicles require redundant systems to ensure
safety in the event of component failures. EPS systems must be designed with
fail-safe mechanisms to guarantee that steering control can be maintained in
case of a malfunction. Autonomous driving systems rely on precise steering
input to navigate and make driving decisions. The accuracy and responsiveness
of EPS systems are critical for the success of autonomous driving technology. Autonomous
vehicles are equipped with various sensors, such as lidar, radar, and cameras.
EPS systems must seamlessly integrate with these sensors to provide accurate
steering input based on the vehicle's surroundings. Autonomous vehicles require
constant connectivity and communication between various vehicle systems. EPS
systems need to maintain this connectivity to ensure that the steering input
aligns with the vehicle's automated driving decisions. The integration of EPS
with autonomous technology is subject to rigorous safety regulations and
standards. Complying with these regulations is crucial, as non-compliance can
result in safety risks and regulatory challenges.
Key Market Trends
Integration
with Advanced Driver Assistance Systems (ADAS)
The
integration of Electric Power Steering (EPS) with Advanced Driver Assistance
Systems (ADAS) is a prominent trend in the United States automotive market.
ADAS encompasses a wide range of safety and driver-assist features, including
adaptive cruise control, lane-keeping assist, automated emergency braking, and
more. EPS plays a vital role in enabling the accurate and responsive steering
control required for these advanced systems. EPS systems work in conjunction
with lane-keeping assist systems to help drivers maintain their vehicles within
their lane. EPS provides steering input to gently guide the vehicle back into
the lane if it starts to drift, enhancing vehicle stability and safety. Adaptive
cruise control systems rely on EPS for steering control adjustments. EPS
ensures that the vehicle smoothly follows the speed of the vehicle ahead,
maintaining a safe following distance. This enhances the overall effectiveness
and safety of adaptive cruise control. EPS technology contributes to the
effectiveness of collision avoidance systems. When these systems detect an
impending collision, EPS can swiftly and accurately adjust the steering angle
to help the driver maneuver and avoid the collision. Many modern vehicles come
equipped with parking assistance systems that use EPS for precise steering
control during parallel parking and perpendicular parking maneuvers. EPS
technology simplifies parking and enhances driver convenience. As autonomous
driving technology advances, EPS systems play a pivotal role in providing
accurate steering input, allowing for seamless transitions between autonomous
and manual driving modes. EPS systems are key components in ensuring safe and
precise steering during autonomous operation. The integration of EPS with ADAS
not only enhances vehicle safety but also contributes to the development of
semi-autonomous and autonomous driving capabilities. As the demand for advanced
safety features and autonomous technology continues to grow, this trend is
expected to shape the future of the EPS market.
Electrification
of the Automotive Industry
The
electrification of the automotive industry is a transformative trend that is
deeply influencing the United States Electric Power Steering Market.
Electrification includes a shift towards electric vehicles (EVs), hybrid
vehicles, and the integration of electric powertrains with traditional internal
combustion engines. EPS technology aligns seamlessly with electrified vehicles
and is contributing to their efficiency and performance. EPS systems are
well-suited for hybrid and electric vehicles. Their energy-efficient design
complements the goals of electrified powertrains, contributing to increased
range and efficiency in hybrid and electric vehicles. Some EPS systems
incorporate regenerative steering technology, which recovers energy during
turning and feeds it back into the vehicle's electrical system. This
regenerative capability contributes to the energy efficiency of electric
vehicles. Weight reduction is critical in electric and hybrid vehicles, as it
directly impacts energy consumption and range. EPS systems, being lighter than
traditional hydraulic power steering systems, contribute to weight savings in
these vehicles. EPS technology can integrate seamlessly with electric vehicle
features such as torque vectoring, which provides precise control of power
distribution to individual wheels. This enhances vehicle performance and
stability, especially in all-wheel-drive electric vehicles. As automakers
develop electric platforms for their vehicles, EPS technology is easily
adaptable and compatible with these platforms, allowing for a streamlined
integration process. The trend towards vehicle electrification is expected to
accelerate in the United States, driven by stricter emissions regulations and
consumer demand for cleaner and more efficient transportation. As electric and
hybrid vehicles become more prevalent, EPS technology will continue to play a
significant role in supporting their performance and efficiency.
Enhanced
Vehicle Dynamics and Steering Control
Improved
vehicle dynamics and steering control are integral aspects of the Electric
Power Steering Market in the United States. Consumers increasingly prioritize
responsive and precise steering, as well as enhanced handling and driving
experience. Automakers and EPS manufacturers are responding to this demand with
advanced EPS technology: EPS systems offer variable steering assistance,
allowing steering effort to be adjusted based on vehicle speed. This feature
enhances driving comfort and stability, particularly at higher speeds. Many
modern vehicles equipped with EPS systems provide multiple driving modes, such
as sport and comfort settings. These modes adjust the steering response to
cater to driver preferences, allowing for a customized driving experience. Some
EPS systems are engineered to simulate the feel of traditional hydraulic power
steering, providing drivers with a more natural and engaging steering
experience, particularly in high-performance and sports vehicles. The precision
and responsiveness of EPS systems contribute to better vehicle handling and
cornering. This is a key consideration for performance-oriented consumers and
sports car enthusiasts. EPS systems can integrate with dynamic stability
control systems to enhance vehicle stability, especially in challenging road
conditions. This feature is highly sought after in regions with variable
weather patterns. The demand for enhanced vehicle dynamics and steering control
is driven by consumers who seek an engaging and enjoyable driving experience.
As automakers continue to refine EPS technology and develop advanced steering
systems, this trend will be instrumental in shaping the market.
Eco-Friendly
and Sustainable Driving
The
growing emphasis on eco-friendly and sustainable driving practices is a trend
that significantly impacts the United States Electric Power Steering Market.
Consumers are increasingly concerned about the environmental impact of their
vehicles and are seeking technologies that align with sustainability goals: EPS
technology is inherently energy-efficient, as it eliminates the need for a
hydraulic pump. The reduction in energy consumption contributes to improved
fuel efficiency and lower greenhouse gas emissions. Some EPS systems
incorporate sustainable materials and manufacturing processes to reduce their
environmental footprint. This includes the use of bio-based compounds and
recycled materials. Manufacturers often include eco-friendly driving modes in
vehicles equipped with EPS systems. These modes adjust the steering and other
vehicle parameters to optimize fuel efficiency and reduce emissions. To meet
environmental regulations and emissions standards, automakers are increasingly
adopting EPS technology. Compliance with these standards requires technologies
that enhance fuel efficiency and reduce emissions. As consumer awareness of
environmental issues grows, eco-friendly features, including EPS technology,
are becoming significant selling points for vehicles. Many consumers are
willing to invest in environmentally responsible vehicles. The trend towards
eco-friendly and sustainable driving is expected to intensify in the United
States as emissions standards become stricter, and consumers increasingly
prioritize environmentally responsible transportation. EPS technology, with its
energy efficiency and potential for sustainability, is well-positioned to
contribute to this trend.
Segmental Insights
Vehicle
Type Insights
The
Passenger Car market dominate the market. Compact and subcompact cars are known
for their fuel efficiency and affordability. In these segments, EPS is highly
favored due to its lightweight design and energy efficiency. Drivers of these
vehicles appreciate the reduced fuel consumption and nimble steering that EPS
provides. Midsize and full-size sedans, often used for daily commuting
and long-distance driving, benefit from the comfort and stability offered by
EPS. The variable steering assistance of EPS systems ensures a smooth and
effortless driving experience. Luxury cars prioritize a balance between
performance and comfort. EPS technology is commonly integrated into luxury
vehicles, allowing manufacturers to provide a responsive, sporty driving
experience while maintaining a luxurious feel. Crossover vehicles, which
combine the features of both passenger cars and SUVs, benefit from the
versatility of EPS systems. The ability to adjust steering effort based on
speed suits the varied needs of crossover owners who may use their vehicles for
daily commuting and occasional off-road adventures. SUVs and off-road
vehicles demand robust steering systems to handle diverse terrains. EPS
technology enhances off-road performance and flexibility, making it suitable
for these vehicles.
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Regional Insights
The
western region dominates the market. California is known for its strict
environmental regulations and preference for eco-friendly technologies. In this
region, EPS technology is embraced for its contribution to reduced emissions
and improved fuel efficiency. The prevalence of electric and hybrid vehicles in
California further drives the demand for EPS. The Northeast has a mix of urban
and suburban environments, making compact and midsize vehicles popular. EPS
technology is favored for its lightweight design and fuel efficiency, catering
to the needs of daily commuters. Luxury cars with EPS systems are also
well-received in this region. The Midwest region has a strong automotive
manufacturing presence. EPS technology is widely integrated into vehicles
produced in this area, supporting the trend toward lighter and more
fuel-efficient cars and trucks. Full-size trucks with EPS systems are favored
for their fuel-saving benefits. The Southern U.S. is characterized by diverse
terrains and a preference for SUVs and trucks. EPS systems are common in these
vehicles to enhance off-road performance and accommodate towing and hauling
needs.
Recent Developments
- ZF Friedrichshafen AG purchased WABCO in
a USD 7 billion agreement in May 2020. Now that WABCO is part of ZF's
Commercial Vehicle Control Systems Division, ZF and WABCO will work together to
create a global integrated system for commercial vehicle technology. For the
development of solutions like Evasive Maneuver Assist for commercial vehicle
collision mitigation, WABCO and ZF previously cooperated.
- Toyota Motor Corporation sold its Yutaka
Seimitsu Kogyo Ltd. stock to JTEKT in January 2020. Yutaka produces vehicle
parts and distributes gears for various machinery. The agreement aims to
increase the core driveline activities of Toyota and JTEKT's competitiveness.
All future Yutaka operations involving drive components will be moved from
Toyota to JTEKT.
Key Market Players
- Nexteer
- Robert Bosch
- Hyundai Mobis
- Delphi
- Mitsubishi Electric
- Showa Corporation
- ZF Friedrichshafen AG
- JTEKT Corporation
- Federal Mogul
By Type
|
By Component Type
|
By Vehicle Type
|
By Mechanism Type
|
By Region
|
|
|
- Steering Column
- Steering Wheel
- Sensors
- Electronic Control
Unit
- Electric Motor and
Bearings
|
- Passenger Cars
- Medium & Heavy
Commercial Vehicles
- Light Commercial
Vehicles
- Off-the-Road Vehicles
|
|
- South
- West
- Mid-West
- Northeast
|
Report Scope:
In this report, the United States Electric Power
Steering Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- United States Electric Power
Steering Market, By
Type:
o C-EPS
o P-EPS
o R-EPS
- United States Electric Power
Steering Market, By
Component Type:
o Steering Column
o Steering Wheel
o Sensors
o Electronic Control Unit
o Electric Motor and Bearings
- United States Electric Power
Steering Market, By
Vehicle Type:
o Passenger Cars
o Medium & Heavy Commercial Vehicles
o Light Commercial Vehicles
o Off-the-Road Vehicles
- United States Electric Power
Steering Market, By
Mechanism Type:
o Collapsible EPS
o Rigid EPS
- United States Electric Power
Steering Market, By Region:
o South
o West
o Mid-West
o Northeast
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the United States Electric Power Steering Market.
Available Customizations:
United States Electric Power Steering Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India United States Electric Power Steering Market
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