Commercial Vehicle Steering Systems - Global Market Outlook (2021 - 2028)

Commercial Vehicle Steering Systems - Global Market Outlook (2021 - 2028)

According to Stratistics MRC, the Global Commercial Vehicle Steering Systems Market is expected to grow at a CAGR of 7.0% during the forecast period. Commercial vehicle steering system is set of components used to control the direction of vehicle motion and help driver maneuver the vehicle as per the requirement.

Market Dynamics:

Driver:

Stringent fuel efficiency norms

Several governments across the globe have introduced stringent emission and fuel economy regulations for vehicles. Regulatory bodies such as the National Highway Traffic and Safety Administration (NHTSA) in the US, the International Council on Clean Transportation (ICCT) in Europe, and other associations have implemented fleet-level regulations. These regulations indicate an average emission limit that needs to be maintained by automotive OEMs. These regulations have compelled automotive OEMs to increase their fuel-efficient steering technologies such as electric power steering. Electrically assisted power steering systems are lighter in weight and are less complex in structure compared to traditional hydraulic steering systems. Moreover, as there are no fuels involved, they are also easier for car owners to maintain.

Restraint:

Limited load-bearing capacity of electric power systems

Due to the low load-bearing capacity, the demand for electric power systems is very limited in the commercial vehicle segment, and they are being replaced by HPS systems. Various conventional electric steering systems, such as pinion assist electric power steering (P-EPS), have the ability to assist 10kN (kilo-Newton) of steering rack force on an average, whereas heavy commercial vehicles require steering systems that can assist 15kN or above steering rack force. Many companies are working towards developing electric power steering systems that can handle high steering rack force. For instance, Nexteer Automotive has developed a dual-pinion electric pinion system that can handle 12.5kN of steering rack force and a 12-Volt rack assist electric power steering system to cater to the heavy commercial vehicle segment.

Opportunity:

Use of electric power systems

Electric power system (EPS) is currently used in light commercial vehicles and has a limited presence in heavy vehicles. With advancements in technology, EPS systems could have a better load-bearing capacity and be used in commercial vehicles as well. The EPS system draws power from the battery and is, hence, fuel-efficient and more reliable than HPS systems. An increase in load-bearing capacity would ensure the use of this technology in commercial vehicles as well. For instance, Volvo has developed Volvo Dynamic Steering, which is powered by an electric motor. The motor controls the steering 2,000 times per second. This technology has been developed on a ‘Torque Overlay’ platform. Nexteer Automotive has also developed a rack-assisted electric power steering for the pickup truck market.

Threat:

Failure of EPS system subcomponents

Many vehicles configured with electric power steering have experienced a failure in their steering system. When the steering wheel gets struck or disengages from the electric motor, EPS malfunctioning occurs. Most of the time, this is caused due to the failure of various electrical components, the failure of steering control modules, and torque sensor defects, resulting in the input of more steering efforts by the driver, which may lead to accidents, especially at low speeds.

The electronic power steering segment is expected to be the largest during the forecast period

The quest for reduced complexity and costs is prompting OEMs to switch from hydraulic automotive steering systems to electronic automotive steering systems. Manufacturers are increasingly inclined towards achieving higher drivetrain efficiency, preferring electric automotive steering systems over hydraulic ones. Electronic automotive steering systems thus help achieve high fuel efficiency, and reduced vehicle weight and costs, offering assistance at lower as well as higher vehicle speeds and in all driving modes, including sports. Furthermore, electric powered automotive steering system can potentially work in tandem with automotive radar, LIDAR in futuristic cars.

The original equipment manufacturer (OEM) segment is expected to have the highest CAGR during the forecast period

EPS cybersecurity-focused innovations are likely to open new avenues for OEMs active in the automotive steering systems market over the forecast period. With the dramatic evolution of the connected, autonomous, and semi-autonomous vehicle ecosystem, leading automakers ought to prioritize the safety and security concerns associated with automotive steering systems, especially electric power steering systems (EPS). Industry experts predict that the next few years will observe soaring demand for EPS in all classes of vehicles, including state-of-the-art technology-based vehicles such as autonomous and connected cars.

Region with largest share:

North America is projected to hold the largest market share owing to the growth in mechanization of farms, flourishing e-commerce industry, and constantly developing construction sector. These factors have boosted the demand for commercial transport vehicles and off-road vehicles in North America. This, in turn, is propelling the commercial vehicle steering market in the region. The demand for light commercial vehicles in the U.S has increased significantly. Prominent automotive giants are thus leveraging advanced driving systems to enhance the comfort factor across prominent automobiles. Introduction of autonomous driving systems has further spurred demand.

Region with highest CAGR:

Europe is projected to have the highest CAGR due to the growing electric vehicle sales and the deployment rate of lightweight steering systems. With the installation of new plants by OEM suppliers in Germany, the addition of lightweight steering systems, such as EPS, in cars is expected to lower the cost incurred on exporting the systems, thus, driving the market toward higher profitability. Advancements in the sensor technology of EPS and the reducing cost of manufacturing these systems have contributed to the growth of the German automotive steering market. Thus, owing to the developments mentioned above, the automotive steering market in the region is expected to grow at a rapid pace.

Key players in the market

Some of the key players profiled in the Commercial Vehicle Steering Systems Market include Robert Bosch GmbH, Mitsubishi Electric Corp., Hyundai Mobis Co. Ltd., Thyssenkrupp AG, ZF Friedrichshafen AG, Nexteer Automotive Corp., Knorr-Bremse AG, JTEKT Corp., Mando Corp., and Showa Corp.

Key developments:

In October 2020: Nexteer launched High-Output Electric Power Steering (EPS) that delivers advanced safety and comfort features as well as enhanced fuel efficiency for heavy-duty trucks and light commercial vehicles.

In May 2020: Koyo Canada Inc. (KCI), a consolidated subsidiary of JTEKT Corporation, acquired the assets of a Halifax, Nova Scotia R&D facility previously owned by KSR International Inc. (KSR), a Canadian company. This acquisition strengthened JTEKT’s ECU development for vehicle steering and driveline products.

In December 2019: Bosch expanded its range of hydraulic steering systems, including additional components that ease the installation of steering systems, at automotive workshops. With the expanded portfolio, Bosch covers some 20 percent of all European vehicles produced by French manufacturers. Step by step, the range will be further expanded by additional steering systems.

Types Covered:
Electronic Power Steering
Hydraulic Power Steering
Electro-Hydraulic Power Steering

Applications Covered:
Light Commercial Vehicles
Medium Commercial Vehicles
Heavy Commercial Vehicles

Sales Channels Covered:
Original Equipment Manufacturer (OEM)
Aftermarket

Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances