According to a new research report titled “Electronic Power Steering (EPS) Market Forecast to 2027 -COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 54,933.16 million by 2027, registering a CAGR of 3.63% from 2020 to 2027.
With constant technological advancements in the automotive sector, along with the development of innovative solutions to complement the overall traveling experience, the quality of automobiles has improved significantly, compared to those developed two decades back. The automotive OEMs have introduced several advanced features that enhance vehicle visual esthetics and efficiencies, among other performance indicators. An electronic power steering is a specially designed system that eliminates the requirement of pump, drive belt, and hoses connected to engine to use variable amounts of power. The EPS has quickly gained prominence and are widely being adopted by several automotive OEMs globally. The automotive manufactures in Asia and Europe have been using EPS in their car models owing to its rising popularity among customers across different economies. Currently, several OEMs offers a wide range of EPS with different features offered by the OEMs as well as after-sales market. The COOVID-19 pandemic has resulted in large-scale production shutdown by major OEMs globally and has negatively influenced the overall EPS market. As a result, annual light vehicle production volumes are anticipated to decrease in 2020, before subsequently picking up pace in 2021 and finally overhauling 2019 standards by 2023.
According to the latest WHO figures, the confirmed COVID-19 positive patient count accounted for 22,071,625 and 1,773,719 total deaths globally. The coronavirus outbreak has been affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns.The semiconductor and automotive industries are among the industries that are prime victims of COVID-19, and since the start of 2020, these industries have been reflecting declining trend, with the imposition of lockdown across countries in North America, Europe, and Asia. Automotive is a labor-intensive industry; on the contrary, the COVID-19 virus is spreading through human involvement, which has hampered the performance of the sector. The declining trend in automotive and semiconductor industry is reflecting a negative impact on the electronic power steering market.
Key Findings of Study:
The global electronic power steering market is segmented into five major regions-North America, Asia Pacific (APAC), Europe, the Middle East and Africa (MEA), and South America (SAM). Asia Pacific held the largest share of the market in 2019, followed by Europe and North America. Further, Asia Pacific is projected to register the highest CAGR in the market during the forecast period.
Nevertheless, several industry players have implemented significant strategic initiatives; for instance, in July 2018, Hyundai Mobis developed an electric power steering system that uses two electronic circuits during autonomous driving for offering normal steering capabilities under any circumstances. Moreover, in October 2019, JTEKT Corporation showcased its electric power steering systems in an exhibition at the 46th Tokyo Motor Show 2019, held at Tokyo big sight from October 24 to November 4.