The SAM electronic power steering market is expected to grow from US$ 2,354.65 million in 2019 to US$ 2,510.45 million by 2027; it is estimated to grow at a CAGR of 3.9% from 2020 to 2027.
One of the key drivers of the market is the increasing demand for digitally supported steering systems in cars, owing to the strict guidelines launched by the governments for fuel efficiency. In addition, the increasing production of vehicles and the rising preference for smooth driving experience and high comfort are driving the growth of the SAM electronic steering systems market. Most light-duty vehicles are currently well equipped with spark-ignition-engine powertrains powered by gasoline, which appear to have higher fuel consumption. As they have more powerful engine operations, diesel engines use 10–20% less fuel, while hybrid vehicles are powered with the aid of gasoline and have lower fuel consumption. Whilst also accommodating a quantity of energy from regenerative braking, the hybrid vehicle engine works to its peak performance. As they work by batteries, electric vehicles (EV) have the lowest energy consumption, using inherently higher electrical engine performance compared to internal combustion engines.
SAM is adversely affected by the COVID-19 pandemic. In SAM, Brazil has the highest number of COVID-19 confirmed cases, followed by other countries such as Ecuador, Peru, Chile, and Argentina. Governments in SAM are taking several initiatives such as lockdowns, trade bans, and travel restrictions to protect people and control the COVID-19 spread in the region. These measures are expected to have a direct impact on the region’s economic growth as it would face lower export revenues. It is anticipated that South America will face lower export revenues, both from the drop in commodity prices and reduction in export volumes, especially to China, Europe, and the US, which are important trade partners. The sharp decline in the sales of the logistics industry and halt in vehicle production in the region due to lockdown measures is hindering the growth of SAM electronic power steering market. Containment measures in several countries of South America would hamper the economic activity in the manufacturing and service sectors for at least the next quarter, and is expected to rebound once the pandemic is contained.
Based on type, the SAM electronic power steering market for heavy commercial vehicles (HCV) segment is expected to grow faster during the forecast period. The primary function of HCV is the transportation of goods. The general weight of these vehicles is more than 7 metric tons. There is an increasing demand for HCV in Brazil and Argentina, which is expected to drive the market during the forecast period. Generally, the rack type electronic power steering systems are used in heavier vehicles to handle front-axle loads and to optimize packaging space. Nexteer Automotive and Robert Bosch GmbH are among the market players who manufacture electronic power steering systems for HCV.
The overall SAM 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 SAM 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 SAM 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.