Report : Electronic Power Steering (EPS) Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Type (Column Assisted Electronic Power Steering(C-EPS), Pinion Assisted Electronic Power Steering (P-EPS), Rack Assisted Power Steering System (R-EPS), Electronic Hydraulic Power Steering (EHPS)); Application (Light Commercial Vehicles (LCV), Passenger Cars, Heavy Commercial Vehicles (HCV))
Growing Trends of Electrification of Vehicles Provides Growth Opportunities for Electronic Power Steering (EPS) Market
According to our latest study on “Electronic Power Steering (EPS) Market Forecast to 2027 – COVID-19 Impact and Global Analysis – by Type and Application,” the market was valued at US$ 52,692.31 million in 2019 and is projected to reach US$ 54,933.16 million by 2027; it is expected to grow at a CAGR of 3.63% from 2020 to 2027.
There is an increase in adoption of buses and trucks across the world, specifically for logistics and public transportation purposes. In Asia, Oceania, and Europe, populations rely more on public transportation, whereas in North America, transportation is mainly through private vehicles. Growing population in urban areas is propelling the need of expansion of public transportation, with insufficiency of existing transportation infrastructure. The OEMs worldwide are now focusing on reducing the global carbon footprint, thus boosting the use of electric vehicles. With the growing mobility on demand, the manufacturers and users of passenger cars and taxis are focusing on the deployment of greener technologies. The manufacturers are majorly focusing on vehicle electrification, specifically in the passenger cars segment. In May 2019, the Ministry of Transport and various other ministries in China mutually issued the Green Travel Action Plan for 2019–2022 that would promote the use of green vehicles. Further, the country would continue to enhance public transportation facilities and information systems supporting green transportation. The governments across different countries are taking several initiatives to boost the adoption of electric vehicles—such as e-trucks and e-buses—in their public transportation to reduce CO2 emissions; they are offering tax rebates and incentives for this purpose. AA few of the electric vehicle models include BYD K9, Mercedes Benz electric truck, and Tata Starbus Hybrid e-buses. Recently, a few of the commercial vehicle manufacturers introduced electric buses to the automotive market, while several OEMs announced the plans for converting full-size trucks or pickup trucks into battery EV platforms. These factors are expected to create huge opportunities for the implementation of new technologies such as EPS in the world.
Asia Pacific held the largest share of the electronic power steering market in 2019, followed by Europe and North America. Further, the market in Asia Pacific is projected to witness the highest CAGR during the forecast period. The electronic power steering market is segmented on the basis of type, application, and geography. Based on type, the market is segmented into column-assisted electronic power steering (C-EPS), pinion-assisted electronic power steering (P-EPS), rack-assisted power steering system (R-EPS), and electronic hydraulic power steering (EHPS). The C-EPS segment accounted for the largest share of the overall market during the forecast period from 2020 to 2027. On the basis of application, the electronic power steering market is further segmented into light commercial vehicles (LCV), passenger cars, and heavy commercial vehicles (HCV). In 2019, the passenger cars segment accounted for a substantial share in the market.
Impact of COVID-19 Pandemic on Electronic Power Steering (EPS) Market
The emergence and rapid spread of COVID-19 has paralyzed numerous developed and developing countries. The continuous surge in count of infected patients is threatening several industries across the globe. As of December 2020, the US, India, Brazil, Russia, and France are a few of the worst-affected countries in terms confirmed cases and reported deaths. According to the latest WHO figures, the global count of confirmed cases has reached 22,071,625, while the death count has reach 1,773,719. The coronavirus outbreak has been affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. Since majority of the countries are exercising lockdowns, the demand for electronic power steering is decreasing at a prominent rate. This is due to the fact that, the key electronic power steering purchasing countries have been restricting their investment on these components, and are utilizing a fair percentage of their budget to combat COVID-19. The temporary shutdown of manufacturing facilities is also hampering the electronic power steering market.
Hyundai Mobis, JTEKT Corporation, Mitsubishi Electric Corporation, Nexteer Automotive, NSK Ltd., Robert Bosch GmbH, Showa Corporation, The Mando Corporation, ThyssenKrupp AG, and ZF Friedrichshafen AG are among the major companies operating in the electronic power steering market.
The report segments the global electronic power steering (EPS) market as follows: