Market Trends of Electro Hydraulic Power Steering Industry
Steering Motors Segment to gain Traction during the Forecast Period
Consumers' growing awareness of environmental hazards, coupled with the government's aggressive strategy to promote the reduction of carbon emissions, is contributing to the growth of the electric vehicle market across the world. It, in turn, positively impacts the demand for steering motors required for electro-hydraulic power steering systems. For instance,
- In July 2023, sales of electric vehicles in the European region recorded a growth of 50% compared to the same month in 2021. Further, battery electric vehicle sales in Europe surged 54.7% in July 2023, compared to the same period in 2022, owing to the easing supply chain restriction.
The integration of an electro-hydraulic steering system in vehicle models requires hydraulic power to be generated by an electric motor. There remains a greater need for advanced steering motors, which can efficiently improve the driver's steering experience.
The significant changes in electo-hydro power steering technologies that are driven by the improvements and advancements in steering motors are also providing a big impetus to the sales of electro-hydraulic power steering systems. Many vehicle and parts manufacturers, such as Nissan Motor, Bosch, and ZF, among others, are actively engaging in the development of advanced steering motors that can be utilized in an electro-hydraulic power steering system. Further, these OEMs are also launching electro-hydraulic power steering motors designed specifically for autonomous vehicles. With the greater adoption of autonomous vehicles in the market, the steering motors segment is anticipated to witness a rapid surge during the forecast period.
The steering motor sub-segment is expected to contribute the majority revenue share to the overall automotive elector-hydraulic power steering market by component type, as steering motors are more cost-effective and easy to maintain than other components like sensors. The introduction of advanced steering motors will assist in simplifying the structure and offer good weight reduction by maintaining fewer drive circuits. These new generation electro-hydraulic power steering motors are expected to further strengthen the market share of the steering motor sub-segment in the component segment.
Asia-Pacific to Remain the Largest Market during the forecast period
The increasing urbanization rate, growing vehicle parc, and the rising per capita disposable income of consumers are driving the automotive market in the Asia-Pacific region. It, in turn, is positively impacting the demand for automotive electro-hydraulic power steering systems in this region. As more consumers migrate to urban for better employment and financial opportunities, the preference towards availing private transportation shoots up. It positively impacts the passenger car market in the region. Coupled with that, the integration of electric vehicles owing to the increasing government's focus on the adoption of new-energy vehicles contributes to the growth electric vehicle market, subsequently impacting the demand for new-age components such as electro-hydraulic power steering systems.
- In FY 2023, new electric four-wheeler sales in India touched 48,105 units, representing a 143.2% Y-o-Y growth compared to FY 2022.
- According to the International Energy Agency, new sales of electric cars in China touched 6 million units in 2022, compared to only 3.3 million units in 2021.
Apart from the growth in passenger vehicles, the commercial vehicles industry in the Asia-Pacific region also acts as a major catalyst for the growth of this segment. It is owing to the advancement in the e-commerce sector, growth in the last-mile delivery sector, and increasing construction activity. The development of advanced power steering systems is essential for the commercial vehicle industry due to the higher weight of these vehicles. It requires a smooth steering system to maintain optimal torque. Therefore, with the increasing sales of commercial vehicles in the Asia-Pacific region, there will exist a greater demand for advanced steering systems. It, in turn, will positively contribute to the growth of the automotive electro-hydraulic power steering market in this region.
- In 2022, new sales of commercial vehicles in India touched 933 thousand units, compared to 677 thousand units in 2021, recording a Y-o-Y growth of 37.8%.
Europe and North America are also major markets due to the large presence of automotive steering OEMs and the prevalence of road transport as a major transport industry, which leads to high commercial vehicle sales in these geographies. Thus, with companies coming up with innovations and capacity expansions in this segment, the market for electro-hydraulic power steering systems is expected to grow over the forecast period for the commercial vehicles segment.
