The Electric Power Steering (EPS) Sensor Market Size Projected to Grow at a CAGR of 7.0% and Generate a Revenue of $26,580.8 million by 2030Download Sample Reports Overview
The global electric power steering (EPS) sensor market size is predicted to be valued at $14,642.7 million by 2021, increase from $26,580.8 million in 2030, at a noteworthy CAGR of 7.0%.
COVID-19 Impact on Electric Power Steering (EPS) Sensor Market
The COVID-19 pandemic had a major impact on the automotive industry as a whole. The pandemic has had a significant impact majorly on the European automotive industry. According to the Organization Internationale des Constructeurs d'Automobiles, which is an international motor organization, entire Europe experienced a drop in sales of vehicles, more than 21% on average. All of the major automotive manufacturing countries experienced significant decline in car manufacturing ranging from 11% to nearly 40%. Europe accounted for nearly 22% of global production of automobiles in 2021. As per analysis, despite encouraging reports on vaccine development and vaccine production, number of risks remain for the automobile industry due to uncertainty of the pandemic, and the global vehicle production will not recover to pre-COVID level until at least 2023. This scenario is expected to have an impact on the electric power steering system market, as growth of this market is directly related to vehicle production.
In 2021, several industries were seen working back to normal pace, but the automotive industry did not recover from the pandemic since economy of various countries was struggling to get back to normal. Rise in electric powered cars in major countries such as China, the U.S., and India has boosted the Electric Power Steering (EPS) sensor market share.
Global Electric Power Steering (EPS) Sensor Market Analysis
Electric Power Steering (EPS) sensors are used in the vehicle's power steering system for efficient handling and operation. The EPS system is a replacement for other traditional steering systems such as hydraulic power steering and electro-hydraulic systems. Rising importance of self-driving or autonomous vehicles is expected to fuel the market growth of EPS systems, thereby increasing demand for EPS sensors. The use of an EPS system in a vehicle, which includes an electric power steering pump, a power steering motor, and sensors, helps to reduce overall weight, improve fuel efficiency, and extend vehicle life. Increasing acceptance of EPS systems in passenger and commercial vehicles as a replacement for conventional hydraulic power steering is one of the major driving factors expected to fuel the EPS sensor market revenue growth. The EPS system in a vehicle has components such as electric power steering pump, sensors, and a power steering motor, which reduces overall weight, improves fuel efficiency, and extends vehicle life. Automobile production has increased dramatically in the last half-decade due to low production costs, particularly in China and India. As vehicle production increases, the Electric Power Steering (EPS) sensor market share is expected to expand in the coming years.
The semiconductor shortage is the key factor affecting the electric power steering sensor as the sensor requires semiconductor for its manufacturing and to perform the activity. This factor is expected to hamper the Electric Power Steering (EPS) sensor market demand.
The power steering industry is already moving towards several advancements in Electric Power Steering (EPS) sensor technology that will not only change the way people drive, but will also change the method of servicing the electric power steering in modern cars. The Electric power steering is enabling the future for autonomous cars, with such integration of the modern sensor in power steering, it is able to control the steering movement with input from the surrounding of the car. Steer-by-wire systems and adaptive steering are two most important technologies which are projected to create opportunities in Electric Power Steering (EPS) sensor market.
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.
Based on the vehicle type, the market is divided into passenger vehicle and commercial vehicle. Among these, the commercial vehicle sub-segment is predicted to have fastest market growth and to generate revenue of $20,099.7 million by 2030, increasing from $11,006.5 million in 2021. Increased sales of commercial vehicles, as well as increased implementation of automotive power steering systems in cars, are expected to drive market expansion in the coming years. Increased power steering assistance features are predicted to have a major impact on market in order to improve vehicle safety. Adoption of novel active power steering in commercial vehicles which is user-friendly and compatible with advanced assistance systems will aid in the development of new steering functions and help the Electric Power Steering (EPS) sensor market share to grow.
Based on sensor type, the market is divided into speed sensor, steering torque sensor, and steering wheel position sensor. The steering torque sensor sub-segment is projected to show the fastest growth in market and generate revenue of $9,119.7 million by 2030, increasing from $4,734.6 million in 2021. Many new torque sensor technologies have emerged in recent years as a result of Electric Power Steering (EPS) sensor market trend. The most prominent technologies include photonic, magnetoelastic, and SAW technologies. Sensors based on these technologies are compact and lightweight, and they have high linearity, resolution, and immunity to electromagnetic noise. Furthermore, the increased use of contactless torque sensors by OEMs to improve fuel efficiency is expected to boost revenue growth of the sub-segment.
Based on distribution channel segment, the market is divided into the Original Equipment Manufacturer (OEM) and aftermarket. The aftermarket sub-segment is projected to show fastest market growth and generate a revenue of $9,841.2 million by 2030, increasing from $5,299.5 million in 2021. Increased demand for improvements to existing vehicle electronics systems, such as EPS sensors, is expected to drive revenue growth of the aftermarket sub-segment. The sensor will check oil levels in the EPS system, and also communicate data about the system's requirements to the electronic control unit, which may then adjust engine speed during slower movements with help of ADAS. Thus aftermarket sub-segment is anticipated to drive Electric Power Steering (EPS) sensor market growth.
The Electric Power Steering (EPS) sensor market overview in Asia-Pacific region is projected to show the fastest growth. The market in this region generated a revenue of $5,567.2 million in 2021 and is projected to reach up to $10,499.4 million by 2030. China is the world’s largest automotive manufacturer and followed by Japan and India. To reduce greenhouse emissions, many countries are shifting towards electronic vehicles. Several electronic cars use electric power steering system as they do not have engine to implement hydraulic power steering. The Indian Government has been implementing policies such as FAME which has been giving incentives and subsidies on electric vehicle, which is projected to boost demand for electric vehicles in India. Thus such initiatives are expected to drive Electric Power Steering (EPS) sensors market growth.
Key Players in the Global Electric Power Steering (EPS) Sensor Market
- Robert Bosch GmbH
- DENSO CORPORATION
- Infineon Technologies AG
- Continental AG
- Asahi Kasei Corporation
- HELLA GmbH & Co. KgaA
- TT Electronics
- Sensata Technologies, Inc
- NXP Semiconductors.
In early 2022, Nexteer announced a software solution with Tactile Mobility to improve overall vehicle condition management, safety, and performance by detecting changing road surfaces and changing tyre conditions. This solution is integrated into the vehicle's steering system and will improve the connection between driver, vehicle, and road by utilizing new & advanced road and tyre detection software.