The steering motors segment was valued at USD 6.38 billion in 2018 and is expected to witness the fastest growth rate during the forecast period.

The major difference between hydraulic power steering and electric power steering is the steering motor. An electric motor is placed in the EPS, which eliminates the use of fluid and other hydraulic components of hydraulic power steering, thus, eliminating power steering leaks, as well as reducing the overall weight.

This motor is either mounted on the steering column, the rack, or at the pinion shaft, and increases fuel economy by up to 2%, over conventional systems. The EPS is powered by an electric motor, and is not dependent on the engine for its power source. Hence, the steering experience is not affected when the engine is shut off.

Between 2016-2017, the previously used brushed DC motors used in EPS systems were gradually replaced by brushless DC motors. Brushless DC motors showed high efficiency, less maintenance, and low electric noise generation over brushed DC motors, due to the lack of brushes.

Nidec Corporation, Bosch, Johnson Electric, Denso Corporation, and Mitsubishi Electric are some of the major suppliers of motors for EPS systems in the automotive industry. Nidec Corporation expanded its in-vehicle motor production capacity and intends to more than double shipments of in-vehicle motors to over 100 million in the fiscal year 2020 (ends in March 2021), from 2016, by winning more orders for EPS motors, its major product.

The demand for steering motors is likely to continue to increase during the forecast period, as all automakers have started adopting electric power steering systems in all their vehicle models, and are planning to advance electric power steering to steer by wire technology, over the coming years.

In 2019, Asia-Pacific dominated the market and is expected to witness the same trend over the forecast period, with China dominating the market, followed by India and Japan.

The Chinese economy is growing, and the disposable income of the middle-class consumers is also increasing. This, in turn, reflects positively on the growing demand for vehicles. Over the past five years, owing to low production costs in the country, the demand for vehicle production has gone up drastically. However, in 2018, the country witnessed a decline in vehicle sales by 3%, owing to trade tensions and shaky consumer confidence. Additionally, industry experts predict a further decline by 5% in vehicles sales in 2019.

To overcome the contraction, the government has decided to use the slowdown to remove weaker auto manufacturers from the industry. Additionally, in January 2019, the government unveiled numerous measures, with an aim to increase the sales of cars. Moreover, the introduction of the new energy vehicles (NEVs) program is driving automakers in the country to focus more on electric vehicle production over the coming years, which, in turn, is expected to propel the demand for EPS in the country.

India also witnessed a downward trend in vehicle sales, owing to uneven monsoons, Kerala floods, poor festive demand, and high fuel and insurance cost. Passenger vehicle sales recorded single digit growth of 5.32% at 33,93,705 units in 2018, compared to 32,22,220 units in 2017. However, the country shows good potential for automotive EPS business, as automakers in India have gradually started adopting EPS systems in their advanced vehicle models, and this is anticipated to continue in their upcoming models.