Market Size of Africa Middle East Automotive Eps Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 10.95 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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MEA Automotive EPS Market Analysis
The Africa and Middle-East Automotive EPS Market was valued at USD 858.39 million in 2021, and it is projected to reach USD 1601.21 million by 2027, registering a CAGR of 10.95% during the forecast period (2022-2027).
During the outbreak of the COVID-19 pandemic, the market suffered from supply chain disruptions as several major economies around the world were forced into lockdown and economic activities were halted. To adhere to social distancing norms and limit the spread of the virus, all manufacturing units and OEM plants halted production. During this time, demand for passenger vehicles fell precipitously. The current trend is expected to continue throughout the Forecasts period.
Over the long term, reduction in complexity and an increase in efficiency, OEMs have shifted their focus from hydraulic to electric power steering systems. EPS systems provide steering assistance using an electric motor rather than a hydraulic pump, which helps to reduce vehicle weight. Additionally, due to the lack of belt-driven hydraulic or manual pumps, which run continuously whether assistance is required or not, electric systems are extremely fuel-efficient. The amount of steering force applied by the driver is calculated by electronic sensors and amplified by an electric motor to make steering easier.
Despite the high demand for electric power steering systems, this market still faces some challenges. The higher cost of EPS compared to traditional steering systems, as well as the lack of steering feel, may hamper market growth. However, today, second-hand vehicles in countries in Ethiopia are hugely limited due to high import duties and a limited supply of vehicles pushing for newer automotive and EPS manufacturing factories.
