Market Trends of Electrically Powered Hydraulic Steering Industry
Advancements in Electric Power Steering Technology is Driving Growth
A significant increase in the number of accidents also encouraged end users to adopt better safety systems. Improvements in roadway and motor vehicle designs steadily reduced injury and death rates in all first-world countries. However, the accident rates are still higher in some developing countries, and governments are focusing on implementing stringent safety norms and supporting the adoption of various subsystems in vehicles that enhance the aspects of safety.
Driven by these factors, automobile manufacturers are incorporating several systems in the vehicles that enhance safety. Advanced safety and security features are no longer restricted to premium vehicles. Consumers are now more concerned about safety systems and technologies. They are therefore interested in opting for vehicles that are equipped with better safety systems.
Several countries throughout the world enacted strict vehicle pollution and fuel economy rules. Fleet-level requirements are adopted by regulatory authorities such as the National Highway Traffic and Safety Administration (NHTSA) in the United States, the International Council on Clean Transportation (ICCT) in Europe, and other organizations. These standards establish an average emission level that carmakers must adhere to.
An increasing preference for electric power steering systems is witnessed for the past decade across the automotive industry with respect to both passenger cars and commercial vehicles around the world to complement the growing regulations. This system eliminates the need for a power steering pump, hoses, hydraulic fluids, and several other such automotive components that are prone to wear over time and require replacement very often. It can make the cost of maintenance for the vehicle high and is therefore replaced by electrically powered steering systems in the newer vehicles today. With a lesser number of components for EPS and an increasing need for lightweight vehicles due to the stringent emission norms across the world, the need for EPS systems and, consequently, the motor is immense.
These requirements forced automakers to invest more in fuel-efficient steering technology like electric power steering. To cater to these requirements, players are collaborating and co-developing advanced steering systems. For instance,
- In March 2022, Thyssenkrupp and NSK Ltd. (NSK) agreed to explore a joint venture between Thyssenkrupp Automotive and NSK's steering division. The MoU calls for a technological and strategic alignment between ThyssenKrupp's automotive business with NSK's steering division.
With the development mentioned above across the globe, it is likely to witness major growth for the market during the forecast period.
Asia-Pacific is Expected to Be Market Leader
China is dominating the vehicle market in the Asia-Pacific region. Increased acceptance of car safety measures, as well as a rise in advanced technology for safety such as ESC, Advanced Driver Assistance Systems (ADAS), etc., are likely to witness major growth for the market during the forecast period.
The use of sensors in vehicles rapidly increased with the increase in demand for passenger vehicles in China. The country introduced safety regulations to run a New Car Assessment Program, C-NCAP, with standards that will match those of Europe. There are significant legal and social changes in China soon after the implementation of these regulations.
The growing trend of vehicle electrification is a significant factor driving the automotive steering sensors market. As a result, automotive manufacturers are increasingly collaborating with sensor manufacturers to suit the needs of their consumers. Additionally, lower system prices also aided in the rapid adoption of modern sensors and semiconductor products in China, which will positively impact the target market's growth.
- In April 2022, the increased frequency of COVID-19 incidences in China created challenges for market players and put negative pressure on the Chinese economy. During this time, the automobile industry and supply chain were pushed to the ultimate challenge. Furthermore, some of the major automakers shut down production and faced enormous logistical challenges, resulting in a collapse in delivery capacity.
Furthermore, the COVID-19 epidemic weakened total buying power and consumer confidence. Although the market recovered over time, it is still facing hurdles as a result of the pandemic.
Companies operating in the supply and distribution of steering sensors are looking forward to their mass expansion in other opportunity regions. Several OEMs are partnering with carmakers to bring enhanced products to market. For instance,
- In July 2021, China Automotive Systems Inc., a major provider of power steering components and systems in China, stated that it reached the OTOP (Off Tool Off Process) phase of new steering development for Alfa Romeo.
With the development mentioned above across the country, the demand for electro-hydraulic power steering in the coming years will increase.
