Automotive Electro-hydraulic Power Steering Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Automotive Electro-Hydraulic Power Steering Market was valued at USD 21 Billion in 2021 and is expected to reach USD 32.05 Billion by 2027, registering a CAGR of 7.01% during the forecast period (2022-2027).
The Automotive Electro-Hydraulic Power Steering Market registered a steep fall during COVID-19 due to manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic in the year 2020. Furthermore, the fall in automotive production and lack of labor significantly impacted the market. Since automotive manufacturers resumed operations in the year 2021 due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.
Over the long term, increasing investments in R&D by major industry players and a rise in sales of electric and hybrid vehicles as well as rising demand for commercial vehicles from the E-commerce sector are creating demand in the automotive and transportation industry with a surge in sales of automotive electro-hydraulic power steering systems. Some factors like high cost of electro-hydraulic power steering systems and strong focus of major commercial vehicle manufacturers on cost cutting may hamper the growth outlook of automotive electro-hydraulic power steering systems industry.
Key players in the market are expanding their production capacity to cater to the increased demand for electro-hydraulic power steering systems and also engaging in mergers and acquisitions to bolster their portfolio.. For instance, in August 2022 Kogsberg Automotive announced divestiture of its Shawinigan operations in Canada to Bombardier Recreational Products, Inc. (BRP Inc.) for EUR 104 million. The Shawinigan manufacturing facility produces sensors, actuators, electronic power steering, wire harnesses,and dashboard assemblies for powersports and recreational vehicles. Also in June 2021 ZF inuagurated a manufacturing plant of 60000 square meter to produce components for commercial vehicles located at Jiaxing in Zhejiang Province in China. The plant will manufacture commercial vehicle transmissions, electro-hydraulic power steering systems, electric central drive systems, electric axle drive systems, power module assemblies, low-floor axles and next-generation mobility solutions.
The largest market for electro-hydraulic power systems is Asia-Pacific due to the presence of large automotive steering OEMs, high sales of commercial vehicles and well developed automotive components industry. North America and Europe are next biggest markets due to the preence of major OEMs like ZF Friedschafen AG and ThyssenKrupp AG as well as strong sales of commercial vehicles including long distance touring coaches and multi axle trucks.
Key Market TrendsSteering Motor Segment Expected to Dominate the MarketToday most drivers are demanding superior driving comfort and demand for vehicles fitted with power steering including those fitted with electro-hydraulic power steering are seeing a significant rise in sales due to this trend of preferring vehicles that offer high driving comfort. The significant changes in electric power steering (EPS) technologies that are driven by the improvements and advancements in steering sensors are also providing a big impetus to the sales of electro-hydraulic power steering systems.
Many auto manufacturers and OEMs, such as Bosch, Nexteer, Volkswagen, Audi, Peugeot, and Citroen, are increasingly researching and adopting electric power steering in their upcoming vehicles, which may deter the growth of electro-hydraulic systems. Steering OEMs are also launching electro-hydraulic power steering systems designed specifically for electric and autonomous vehicles. For instance,
The Steering Motor sub-segment contributes 80% of revenue to the overall automotive elector-hydraulic power steering market by component type because steering motors are more cost-effective and easy to maintain than other components like sensors. Many manufacturers are introducing new steering motors which simplify the structure and offer good weight reduction by maintaining fewer drive circuits and integrating other components with the motor windings. These new generation electro-hydraulic power steering motors are expected to further strenghten the market share of Steering Motor sub-segment in the Component segment. For instance,
The Asia -Pacific is expected to be dominant market followed by North America and Europe. Asia-Pacific is a huge market for vehicles, such as heavy trucks, construction machinery, and agricultural machinery. India and China are some of the largest markets for commercial vehicles in the world which contribute to almost 20% of the worldwide commercial vehicle sales thus making Asia-Pacific the most lucrative market for electro-hydraulic power steering systems.
China recorded sales of 5.1 million commercial vehicles in 2021 a Year on Year increase of 18.7% and India also saw commercial sales of 0.71 million units registering a Year on Year growth of 26%, thus booming commercial vehicle sales in these markets are anticipated to induce considerable growth in the global automotive electro-hydraulic power steering industry.
Electro-hydraulic power steering systems are employed in the majority of these vehicles within the region. A hydraulic power-assist steering system proposed by Tata Motors from India features a magnetic clutch between the engine and steering pump so that the pump could work only on-demand, which reduces energy consumption. This simple strategy is now being implemented in heavy-duty vehicles.
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. For instance,
The automotive electro-hydraulic power steering is highly consolidated. the market is characterized by the presence of considerably large players who have secured long-term supply contracts with major automotive OEMs. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.
Some of the major players dominating the global market are JTEKT Corporation, Nexteer Automotive Group Ltd, ZF Friedrichshafen AG, NSK Ltd, Hitachi Astemo Ltd., and Robert Bosch GmbH. Key players are launching new products to secure their market position and stay ahead of the market curve. For instance,
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