Automotive Steering Market - Growth, Trends, and Forecasts (2020 - 2025)

The sensor located in the steering column measures two primary driver inputs — torque (steering effort) and steering wheel speed and position. Thus, there are three types of sensors used in such systems, namely torque sensor, steering wheel speed sensor, and position sensor.

These sensors deliver the signals as inputs to an ECU, which provides an appropriate output to the steering system for an action to take place.

Torque sensors are generally non-contact sensors. The sensor measures the steering force applied by the driver, and thus, enables sensitive control of the electric steering support.

• It works based on a non-contact magnetic measuring principle. It contains a magnet unit, a flux-tube unit, and a sensor unit. The torque sensor itself has two independent coils of wire. One of the coils determines if a right-hand turn is being made, while the other determines if a left-hand turn is being made. The signal is then sent from the electric power steering (EPS) module to the appropriate coil, which then assists the vehicle in steering.

With the growing advancements in technology, sensor products are also being consistently upgraded and improved in the automotive industry. For instance:

• In June 2018, Infineon Technologies AG developed a new magnetic angle sensor, TLE5014. The new product can be easily integrated into an electric steering system. The TLE5014 sensors meet ISO26262 ASIL C for the single die and ISO26262 ASIL D for the dual die versions.
• Automotive & Industrial Systems Company (Automotive & Industrial Systems), an in-house company of Panasonic Corporation developed a miniature, lightweight, and high-precision magnetic angle sensor that detects rotation angles of automotive motors used in EPS and hybrid systems. The company started delivering sample products in May 2018 and estimates annual sales of JPY 40 billion in 2025.

The company may promote the sensor to manufacturers of EPS and shift-by-wire transmissions, and hybrid systems that use motors, as both starter and generator motors. The company is expected to start accepting orders by around September 2019.

Such improved sensor products for the EPS system are likely to continue to see an increasing adoption among the automakers during the forecast period.

The electric vehicle market has been rapidly growing across the world. For instance, in Europe, electric vehicle sales increased by 37% in 2018, as compared to that of 2017. Additionally, several governments across the world have formulated various policies, incentives, and projects to support the usage of electric vehicles.

By 2024, nearly 4% of the new car sales and 7% of the global car fleet are expected to be electric. With the growing electric vehicle sales, the deployment rate of lightweight steering systems (like electric power steering (EPS)) is expected to see a potential demand during the forecast period.

The automotive industry is the largest industry sector in the country. In 2018, the automotive industry accounted for nearly 20% of the total German industry revenue.

• Germany is Europe’s number one automotive market with car production of about 5.12 million, which accounted for nearly 27% of the European passenger cars manufactured in 2018.

However, the country’s economy struggled over the summer, due to weak car production, owing to the enactment of new EU-wide emission measurement procedures.

• With the European Union moving toward the Worldwide Harmonized Light Vehicle Test Procedure, some German automakers struggled to gain regulatory clearance. At the same time, production was also dampened by significant dealership discounts to clear stock before the new rules came into effect.

With the installation of new plants by OEM suppliers in Germany, the addition of lightweight steering systems, such as EPS, in cars is expected to lower the cost incurred on exporting the systems, thus, driving the market toward higher profitability.

Advancements in the sensor technology of EPS and the reducing cost of manufacturing these systems have contributed to the growth of the German automotive steering market.

Thus, owing to the developments mentioned above, the automotive steering market in the region is expected to grow at a rapid pace.