The North America electronic power steering market is expected to grow from US$ 9,777.38 million in 2019 to US$ 9,580.34 million by 2027; it is estimated to grow at a CAGR of 2.8% from 2020 to 2027.
Rising adoption of autonomous driving is one of the major factors boosting the adoption of steer-by-wire (SbW) systems in the vehicles. SbW is enhancing the driving experience and safety. The system is currently experiencing a constant surge in the development and demand. The higher levels of autonomous driving require uninterrupted communication, redundant power supply, and steering rack. Additionally, OEMs are focusing on removing the mechanical components to have more flexibility in designing the vehicle interior and engine compartment. The vehicles can be steered from anywhere inside the vehicle with the help of SbW. In addition, there is no requirement of designing and producing the different versions for right and left-hand drive. With the integration of SbW, the direct mechanical link to the road is removed, and the vehicle interior is decoupled acoustically. Moreover, the SbW enhances the safety with the help of driver assistance systems. It also eliminates the intermediate steering shaft and thus, reduces the risk of injury to the driver from mechanical steering components by augmenting the passive safety in the vehicle. Furthermore, the rising need of fuel-efficient vehicles across North America is fueling the growth of the North America electronic power steering market.
Based on type, the rack-assisted power steering (R-EPS) segment led the North America electronic power steering market in 2019. The R-EPS system is one of the types of electronic power steering system. The system is generally used in large-size vehicles that can take load of about 12 KN, handle the higher front-axle loads, and optimize packaging space. It is capable of steering mid-sized vehicles to full-size trucks. The R-EPS system type has the assist unit connected to the steering gear. Moreover, R-EPS systems unitize motor controllers that are easily fitted to different vehicle platforms. The system helps effectively reduce the assembly costs and increase the operating performance than systems employing remote electronic controls. Further, in 2010, Nexteer Automotive produced the first 12-volt R-EPS systems and captured 90% of North America’s full size truck market.
The ongoing COVID-19 pandemic is having a very devastating impact on the countries across North America, especially, the US. The US is one of the largest markets for electronic power steering. The continuous growth in the COVID-19 confirmed cases has led the government to impose lockdown across the nation’s borders. Majority of the manufacturing plants are shut down, municipalities are functioning slowly as compared to past, and the automotive and semiconductor industries are at a halt, which is hindering the North America electronic power steering market. In terms of patient count and death toll, Canada and Mexico are still at a nascent stage than the US. The short-term effect of the pandemic would not affect the recovery of overall sales in the automotive industry in 2021, this is mainly because of the continued promotion of passenger vehicles by various companies in the region.
The overall North America electronic power steering market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the North America electronic power steering market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the North America electronic power steering market. HYUNDAI MOBIS, JTEKT Corporation, Mando Corporation, Mitsubishi Electric Corporation, Nexteer Automotive, NSK Ltd., Robert Bosch GmbH, SHOWA CORPORATION, thyssenkrupp AG, and ZF Friedrichshafen AG are a few players operating in the market.