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China Automotive Electric Power Steering (EPS) Market - Growth, Trends, and Forecast (2019 - 2024)

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  • 75 Pages
  • June 2019
  • Region: China
  • Mordor Intelligence
  • ID: 4534444
Market Overview

The China automotive electric power steering (EPS) market was valued at USD 6.19 billion in 2018 and is anticipated to register a CAGR of about 14.63% during the forecast period (2019 - 2024).
  • The Chinese economy is growing, and the disposable income of middle-class consumers is also increasing. This, in turn, reflects positively on the growing demand for vehicles. Over the past five years, owing to the low production costs in the country, vehicle production has gone up drastically. Due to the hike in vehicle production, the electric power steering component market is also gaining momentum. Moreover, the Chinese government has also cut down the taxes on cars, to increase their sales.
  • The market is expected to be driven by the growth in passenger and sports vehicles. However, OEMs have started focusing on implementing cost-effective and strong EPS systems in commercial vehicles (especially heavy tractors and trucks). Hence, there has been widespread utilization of these technologies in various automotive applications.
  • Additionally, with the rise in sales and demand for luxury cars in the country is also expected to propel the demand for EPS.

Scope of the Report

The Chinese automotive electric power steering (EPS) market has been segmented by vehicle type and component type.

Key Market Trends

Technological Advancement in Components of Electric Power Steering - Driving the Market

Advancements in the 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.

Passenger Cars dominating the China Electric Power Steering Market

The sales of the passenger have been growing continuously from the past few years. However, in 2018, China’s passenger car production reached 23,529,000 units, reflecting a 5.2% decline y/y; while sales reached 23,710,000 units, reflecting a 4.1% decline y/y. Production of passenger vehicles accounted for 84.6% of the total production; while sales accounted for 84.4%. These proportions were 0.9% and 1.2% points lower than those in 2017, respectively. Compared with the same period last year, the growth rate of the first half of 2018 was significantly higher than that of the second half of 2018. The prime reason being the trade tensions with the US and shaky consumer confidence. Additionally, industry experts predict a further decline by 5% in vehicles sales in 2019.

It is anticipated that China will sell about 28,100,000 vehicles in 2019, out of which, 23,700,000 likely to be passenger vehicles sales. After balancing imports and exports in 2019, the annual demand of China’s automotive market will be 28,200,000 units. It is anticipated that the demand for passenger car production is likely to increase, which in turn expected to fuel the demand for EPS in the country.

Furthermore, with an aim to increase the sales of cars, the Chinese government in January 2019, unveiled numerous measures. The National Development and Reform Commission (NDRC) announced that the restrictions will be loosened on the second-hand auto market, and appropriate subsidies will be provided to boost rural sales of some vehicles as well as the purchase of new energy vehicles. This, in turn, is expected to drive the demand for and sales of vehicles in the country in 2019, but at a slow pace, which in turn will propel the demand for EPS.

Competitive Landscape

The China automotive EPS Market in the country is a fairly fragmented market 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 TRW, 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, Bosch Huayu Steering Systems Co. Ltd., also contributed to an important portion of the market.

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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Vehicle Type
5.1.1 Passenger Cars
5.1.2 Light Commercial Vehicle
5.1.3 Heavy Commercial Vehicle
5.2 By Component Type
5.2.1 Steering Column
5.2.2 Sensor
5.2.3 Steering Motor
5.2.4 Others
6.1 Vendor Market Share**
6.2 Company Profiles
6.2.1 ATS Automation
6.2.2 Denso Corporation
6.2.3 GKN PLC
6.2.4 Hitachi Automotive Systems Ltd
6.2.5 Hyundai Mobis
6.2.6 Infineon Technologies
6.2.7 JTEKT Corporation
6.2.8 Mitsubishi Electric Corporation
6.2.9 Nexteer Automotives
6.2.10 NSK Ltd
6.2.11 Robert Bosch GmbH
6.2.12 Thyssenkrupp Presta AG
6.2.13 ZF Friedrichshafen AG

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ATS Automation
  • Denso Corporation
  • Hitachi Automotive Systems Ltd
  • Hyundai Mobis
  • Infineon Technologies
  • JTEKT Corporation
  • Mitsubishi Electric Corporation
  • Nexteer Automotives
  • NSK Ltd
  • Robert Bosch GmbH
  • Thyssenkrupp Presta AG
  • ZF Friedrichshafen AG