The Global Electric Power Steering (EPS) Sensor Market Anticipated to Generate a Revenue of $26,736.3 Million, Growing at a CAGR of 8.4% from 2021 to 2028Download Sample Reports Overview
The global electric power steering (EPS) sensor market size is estimated to be valued at $26,736.3 million by 2028, surging from $13,860.0 million in 2020, at a noteworthy CAGR of 8.4%.
COVID-19 Impact on the Electric Power Steering (EPS) Sensor Market
The COVID-19 pandemic impacted negatively on the automotive industry as a whole. According to the International Organization of Motor Vehicle Manufacturers, the pandemic has had a significant impact on the global automobile industry, with production levels declining by 16% in 2020. As the growth of the electric power steering system market is directly tied to vehicle production, this situation is projected to have an impact in the short term.
However, the EPS sensor market is expected to grow throughout the projected period due to better global economic conditions, immunization campaigns around the world, and a revitalization of the auto sector.
Global Electric Power Steering (EPS) Sensor Market Analysis
One of the major driving factors likely to fuel the EPS sensor market during the projected period is the increasing acceptance of EPS system in passenger and commercial vehicles as a substitute to conventional hydraulic power steering. The use of an EPS system in a vehicle, which includes an electric power steering pump, sensors, and power steering motor helps to reduce overall weight, improve fuel efficiency, and extend vehicle life. Variable ratio steering alters the driver's ability to coordinate his actions. Due to cheap production costs, automobile production has increased dramatically in the recent half-decade, particularly in China and India. As vehicle production rises, the EPS sensor market is likely to gain traction in the coming years. Moreover, key players in the industry are developing strategic partnerships to enhance its product portfolio offerings. For instance, in September 2020, Schaeffler, a global automotive and industrial supplier, formed a development relationship with Robert Bosch Automotive Steering GmbH to enhance its intelligent Rear Wheel Steering (iRWS) offering. The partnership's goal is to expand the market for Rear Wheel Steering systems by providing integrated solutions.
High costs of EPS systems than conventional power steering systems and failure of torque sensors are key restraining factors impeding the growth of the EPS sensor market.
However, government rules and mandates across the world requiring greater fuel efficiency and safety initiatives are some of the key factors that present potential opportunities for the growth and development of advanced steering systems that use a variety of steering sensors.
Global Electric Power Steering (EPS) Sensor Market, Segmentation
The global electric power steering (EPS) sensor market is segmented based on vehicle type, sensor type, distribution channel, and region.
The vehicle type segment is further divided into passenger and commercial vehicles. The commercial vehicle sub-segment of the global EPS sensor market is projected to have the substantial growth and surpass $6,542.9 million by 2028. In the coming years, the increased sale of commercial vehicles, as well as the increasing installation of automotive power steering systems in cars, are expected to drive market expansion. Increased power steering assistance features in order to improve vehicle safety are expected to have a significant impact during the forecast period. Adoption of novel active power steering in commercial vehicles that are user-friendly and compatible with advanced assistance systems will aid new steering functions and help the category to flourish.
Based on sensor type, the EPS sensor market has been sub-segmented into speed sensor, steering torque sensor, and steering wheel position sensor of which the electronic power steering torque sensor sub-segment is projected to generate the revenue of $8,847.5 million by 2028, with the fastest compound annual growth rate of 8.8% during the forecast period. As a result of electric power steering (EPS) sensor trends, many new torque sensor technologies have evolved in recent years, the most prominent of which being photonic, magnetoelastic, and SAW technologies. In addition to being compact and lightweight, sensors based on these technologies feature great linearity, substantial resolution, and good electromagnetic noise immunity. Furthermore, OEMs' increased use of contactless torque sensors to improve fuel efficiency is likely to propel the sub-segment's rise.
Based on distribution channel, the EPS sensor market has been divided into original equipment manufacturer (OEM) and aftermarket of which the aftermarket sub-segment is projected to generate the revenue of $9,738.7 million by 2028, with the fastest compound annual growth rate of 8.6% during the forecast period. The increased need for enhancement to existing vehicle electronics systems, which include EPS sensors, is predicted to drive the aftermarket sub-segment’s growth over the forecast period. For example, Elta Automotive's power steering sensors will not only check oil levels in the EPS system, but also communicate data about the requirement on the system to the electronic control unit, which may then modify engine speed during slower movements.
The EPS sensor market for the Asia-Pacific region is projected to witness a rapid growth. This market generated a revenue of $5,258.5 million in 2020 and is further projected to reach up to $10,496.7 million by 2028. The economy of APAC is mostly driven by the economic development of nations such as India and China, although the current scenario is changing due to increased foreign direct investment for the economic development of Southeast Asia. The automotive industries in Southeast Asian countries are expanding rapidly. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), APAC automotive sales increased by approximately 6.52%from 2012 to 2018, with South East Asian countries having enormous growth potential.
Key Players in the Global Electric Power Steering (EPS) Sensor Market
Electronic power steering (EPS) sensor market share has been accounted by key players including
- Robert Bosch GmbH
- DENSO Corporation
- Valeo SA
- Continental AG
- Infineon Technology
- HELLA GmbH & Co. Kga
- Sensata Technologies
- TT Electronics Plc
- NXP Semiconductors
- Asahi Kasei, among others.
Global enterprises typically enter the Chinese market through joint ventures with local firms. For example, Nexteer Automotive, automotive parts supplier, formed Dongfeng Nexteer Steering Systems (Wuhan) Co. Ltd. with Dongfeng Motor Parts & Components Group. The focus of this new venture will be the production of single pinion assist electric power steering (SPEPS) systems.
Along with company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Electric Power Steering (EPS) Sensor Market:
- Bargaining Power of Suppliers: A large range of suppliers provide EPS sensor components to manufacturers, including concentrators, magnets, and hall sensors, among others. Supplier bargaining power is reduced as a result of high component availability, minimal product differentiation, and low switching costs for manufacturers.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: As the industry is flooded with OEMs and aftermarket EPS sensor options, consumers have a tremendous amount of bargaining leverage. Furthermore, the competitiveness among businesses is heightened by aftermarket service providers offering value added services at competitive prices.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Because of economies of scale, the automobile industry has essentially no entry barriers, allowing newcomers to have a sufficient understanding of the market. Furthermore, newcomers to the EPS sensor market are introducing low-cost sensors to entice clients. Because the initial investment in the EPS sensor industry is not high, a new entry can compete with a well-established competitor.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: The automotive steering market is constantly changing to keep up with the sector's changing characteristics. In reaction to the introduction of autonomous vehicles, OEMs are redesigning their traditional steering systems. Steer-by-wire technology is one such development that will replace the entire steering mechanism in an autonomous vehicle. The steering linkage of a normal electric power steering system will be abolished with this type of steering system in the future, which could create a market barrier.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: Despite the fact that the EPS sensor market is relatively fragmented, the overall market share is dominated by a few large competitors. Continental AG, Denso Corporation, Valeo SA, HELLA GmbH & Co., and Robert Bosch are among the well-established participants in the market.
Therefore, competitive rivalry in the market is high.