The India Automotive EPS Market is projected to grow with a CAGR of more than 5 % during the forecast period.
- Electric power steering (EPS) system is an alternative to traditional steering systems, such as hydraulic and electro-hydraulic systems. The rising popularity of self-driving vehicles is fueling the demand growth in the electric power steering system market across the world. Vehicles that are equipped with electric power steering tend to have a reduced overall weight, which further increases fuel efficiency.
- On the contrary, when compared to the conventional steering systems, the electric power steering systems are costly, and a rise in vehicle recalls, owing to malfunctioning of sensors or other components, may hinder the growth of the market.
- Electric systems are highly fuel-efficient, due to the absence of belt-driven hydraulic or manual pumps, which run constantly, whether assistance is required or not. EPS provides fuel savings as high as 0.4 l for every 100 km, along with a reduction in CO2 emissions of up to 7 g/km.
Key Market Trends
Government Initiatives and Growing Emphasis on Safer Automotive Systems are Driving the Market
On an average, globally, about 1.24 million people die in road accidents each year, half of whom are vulnerable road users, such as pedestrians and motorcyclists, while the other half die because of side-impact accidents. According to the World Health Organization (WHO), 80% of cars sold in the world are not compliant with the main safety standards. Only 40 countries have adopted the full set of the seven most important regulations for car safety.
A significant increase in the number of accidents has also encouraged end users to adopt better safety systems. Improvements in roadway and motor vehicle designs have steadily reduced injury and death rates in all the first world countries. However, the accident rates are still higher in some developing countries, and governments are focusing on implementing stringent safety norms and supporting the adoption of various subsystems in the vehicles.
Driven by these factors, automobile manufacturers are incorporating several systems in vehicles that enhance safety. Advanced safety and security features are no longer restricted to premium vehicles. Consumers are now more concerned about safety systems and technologies, and therefore, they are more interested in opting for vehicles that are equipped with better safety systems.
- For instance, Infiniti Q50 incorporated direct adaptive steering in vehicles, which involves sensors in the car that constantly monitor the position of the steering wheel. In addition, torque sensors are integrated into the EPS system. The torque sensors measure the effort applied by the driver to steer the vehicle.
Moreover, the stringency in government regulations regarding fuel efficiency and safety initiatives are important drivers for the growth and development of the advanced steering systems that comprehensively employ steering sensors.
Technological Advancement in Components of Electric Power Steering - Driving the Market
Advancements in sensor technology are driving the electric power steering systems market. The early-generation steering sensors were just optical sensors with photodiodes inside, which interpreted evenly-spaced slits in a disc attached to the steering column. In addition, the early steering position sensors were relatively low-resolution sensors, and are expected to typically detect steering movements in 8-9 degree increments. However, the modern steering position sensors are high-resolution magnetic sensors, which are even capable of detecting movements of one degree or less. They can even have resolutions lower than one-tenth of a degree.
The hydraulic power steering, which is used conventionally, is now, increasingly, being replaced with electronic-power assist systems. The electric motor helps to turn the car, with the required power steering assistance. Power steering assistance is provided with the help of ECUs in these systems, which takes all the information from the sensors (in addition to collecting other information, like vehicle speed) and then provides the required steering assistance. Thereby, the development of steering sensors, from just a rotation sensor, has helped to augment the demand for EPS by the OEMs, in the last five years.
The India automotive EPS market is consolidated, with many global players and a decent number of local manufacturers catering to the requirement of the OEMs in the market.
The presence of major players, such as Robert Bosch GmbH, JTEKT Corporation, ZF Friedrichshafen AG and etc., is both by the direct presence and joint ventures with local manufacturers. Joint ventures, such as ZF Shanghai Steering Systems, NSK-Wanda Electric Power Assisted Steering Systems Co. Ltd, and Bosch Huayu Steering Systems Co. Ltd also contributed to an important portion of the market.
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