Mexico Automotive EPS Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Mexico Automotive EPS Market has been segmented by By Application (Passenger Cars and Commercial vehicles), EPS Type (By Rack assist type (REPS), Colum assist type (CEPS), Pinion assist type (PEPS)), and by Demand Category (OEM, Replacement). The Report Offers the Market Size and Forecast of the Mexico Automotive EPS Market in value (USD billion) for the above-mentioned segments.

Market Snapshot

Mexico Automotive Eps Market Overview
Study Period: 2018-2027
Base Year: 2021
CAGR: 5.8 %

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Market Overview

The Mexico Automotive Electric Power Steering Market was valued at USD 1.09 billion in 2021 and is expected to surpass a net valuation of USD 1.50 billion by 2027 end, registering a solid CAGR growth of 5.80% during the forecast period.

The inception of Covid-19 in Mexico halted automotive production including parts and components as well. Thus during the pandemic market EPS remained on the lower side of the graph witnessing a constant decline. Although after 2021, the market has agon regained its growth phase to showcase strong growth potential.

Over the medium term, rising ADAS features in vehicles coupled with improved technology is expted to provide major boost to the demand. As customers are becoming more aware of new safety systems and technology, they are increasingly selecting for vehicles with improved safety features. Automotive manufacturers have been forced to equip their vehicles with driver assistance systems, particularly steering assistance systems, as passenger safety concerns have grown. Such factors are pushing the demand for steering sensors. 

The use of several steering sensors in electric power steering (EPS) helps to provide the driver with extra safety benefits. Furthermore, the adoption of stringent fuel efficiency standards by government and international safety measures, are seen as major drivers for the expansion and development of advanced steering systems (such as EPS), which make extensive use of steering sensors.

The automotive industry's recent shift in attention to technical developments such as electrification and autonomous driving has raised the demand for power steering in Mexico. At the same time, the manufacturers' preference for integrating advancements in vehicles suggests that the market will continue to grow. Autonomous vehicles (especially level 4 and level 5) that feature self-driving systems generally process huge amounts of data to give feedback to the steering system to drive smoothly clearing obstacles or perform turning maneuvers as per traffic signs. Due to this, it is expected that a greater number of sensors need to be incorporated in these types of vehicles, which is expected to drive the market for this segment.

Scope of the report

Automotive EPS Motor is an integral component, due to its basic functionality of allowing the driver to steer the car by augmenting steering efforts needed to turn the steering wheel. Factors such as extensive ownership of personal vehicles and growing technological advancements will see the rise of the EPS market. 

Electric power steering (EPS) has remained key technology for vehicle technology. In addition, EPS has been well equipped to meet the requirements for all small, mid-range, sports cars as well as light commercial vehicles. These EPS has installed electric motor that controls the vehicle steering and provides an optimal steering feel. The Mexico automotive EPS market is segmented by vehicle type, EPS type, and demand category. By application type, the market has been segmented into passenger cars and commercial vehicles. 

By EPS type, the market is segmented into rack assist type (REPS), column assist type (CEPS), and pinion assist type (PEPS)). and by demand category, the market has been segmented into OEM and replacement. For each segment, the market sizing and forecast have been done based on value (USD billion).

Application Type
Passenger Car
Commercial Vehicle
Type
By Rack assist type (REPS)
Colum assist type (CEPS)
Pinion assist type (PEPS)
Demand Category
OEM
Replacement

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Key Market Trends

Passenger Car Segment to Fuel EPS Demand Over Forecast Period

The use of power steering in passenger cars is growing rapidly, owing to its numerous advantages, such as the lack of hoses or fluids in the entire steering system. Some of the major drivers fueling the market growth include the increased adoption of EPS in modern vehicles and the increased penetration of steer-by-wire technology. The demand for power steering is expected to rise as the overall demand for passenger vehicles increases. ​

Mexico is among the large markets for the automotive EPS market, as on average about 1 Million vehicles are sold in the country. As the number of vehicles sold in the country has increased in 2021 from 2020, this will aid in the increase in the demand for automotive EPS. Additionally, Mexico has progressive plans for the transition, and the country is focusing on increasing the share of electric vehicles to 35% by 2024, 40% by 2035, and 50% by 2050.

The automotive manufacturing industry (including manufacturing of automotive parts) is the largest industry in Mexico, with manufacturing plants of 21 major OEMs, including Audi, Ford, General Motors, Nissan, Toyota, Honda, and Volkswagen. The OEMs can manufacture 42 brands and 500 models with an annual production of more than 3 million cars. A portion of the manufactured vehicles in the country is exported to many countries due to its strong network of free trade agreements (FTAs).

OEM in Mexico is upbringing investments and developments to push the EPS demand in Mexico. In addition, they are steadily shifting towards their offering in EPS to witness an improved sales bar in Mexico. For instance:

  • In September 2021, General Motors announced awaited launch of its 2022 Chevrolet Cavalier in Mexico. The new 1.3-liter turbo 3-cylinder engine variant of Cavalier provides a power of 161 hp coupled with 6-speed automatic transmission having electro-power steering (EPS).

With increasing customer awareness of advanced safety systems and technology, people are now concentrating on purchasing cars with improved safety features. Rising passenger safety concerns have compelled automakers to equip their vehicles with driver assistance systems, including steering assistance systems. The use of various steering sensors in electric power steering (EPS) contributes to the driver's added safety. 

Furthermore, the adoption of severe fuel efficiency standards, as well as safety measures by governments and international organizations, are viewed as major drivers for the growth and development of improved steering systems (such as EPS), which employ steering sensors extensively. Considering these factors and developments demand for automotive EPS in Mexico is expected to witness high growth rate during the forecast period.

Trend_1

Original Equipment Manufacturer to Gain Momentum During the Forecast Period

A significant increase in the number of accidents has also encouraged end users to adopt better safety systems. Improvements in roadway and motor vehicle designs have steadily reduced injury and death rates in all first-world countries. However, the accident rates are still higher in some developing countries, and governments are focusing on implementing stringent safety norms and supporting the adoption of various subsystems in vehicles that enhance aspects of safety.

Driven by these factors, automobile manufacturers are incorporating several systems into vehicles that enhance safety. Advanced safety and security features are no longer restricted to premium vehicles. Consumers are now more concerned about safety systems and technologies and are therefore interested in opting for vehicles that are equipped with better safety systems.

Considering these scenarios in Mexico, OEMs are shifting their forefront toward offering EPS in their associated vehicle models. This has helped them to gain popularity among the consumer base in recent times. For instance, In July 2022, General Motors has recently confirmed that it has resumed its production of full-size pickups in the August 2022. In addition, This came after but it will keep its midsize SUV plants idled as it grapples with the global shortage of semiconductor chips.

However, country is focusing on ADAS features in cars which has provided significant momentum to electronic power steering as well which has resulted improved driving comfort. The country is witnessing immense growth in the electric vehicles segment from OEM. For instance, to improve the quality of air with zero carbon emissions, minimize noise pollution, and offer a better commuting experience, the Cities Finance Facility (CFF), under the support of Mexico City, Guadalajara, Monterrey, and Hermosillo set up the country's first national system focused on the electrification of their public transport systems.

To promote electric transportation, many companies are investing and setting up plans to cater the increased demand for electric and IC powered vehicles in the country. For instance, in March 2022, Navistar inaugurated its USD 250 Million invested manufacturing plant in Mexico, that will produce diesel and electric powered class 6-8 trucks. Navistar's existing assembly manufacturing base includes truck assembly plants in Springfield, Ohio, and Escobedo, Mexico, as well as a school bus assembly plant in Tulsa, Oklahoma.

Considering these upcoming launched and developments, the demand for EPS is thus being deeply supported by OEM to witness elevated sales bars during the forecast period.

Trend_2

Competitive Landscape

The Mexico Automotive Power Steering Market is consolidated with existing market players such as JTEKT Corporation, ZF Friedrichshafen AG, NSK Ltd, Mitsubishi Electric Corporation, and Nexteer Automotive which hold the most significant shares. To have an edge over its competitors' companies are making joint ventures, partnerships, and launching new products with advanced technology. Key automakers are expanding their business units in Mexico to witness elevated sales figures. For instance, 

  • In July 2021, JTEKT Automotive Mexico announced the planned expansion of its plant in San Luis Potosí with a net investment worth USD 47 million. Through this investment, the company shall now produce electronic steering systems (EPS), intermediate hydraulic steering shafts, and bearings for OEM customers in Mexico.
  • In September 2020, Schaeffler Group announced a development partnership with Robert Bosch Automotive Steering GmbH, a subsidiary of Robert Bosch GmbH, to expand its intelligent rear wheel steering (iRWS) portfolio. Under this partnership, Schaeffler will provide mechatronic iRWS systems, and Robert Bosch Automotive Steering will contribute software and electronics for the development of advanced steering.

Major Players

  1. ATS Automation Tooling Systems Inc.

  2. Delphi Automotive Systems

  3. GKN PLC

  4. Hitachi Automotive Systems

  5. Hyundai Mobis Co. Ltd

ATS Automation Tooling Systems Inc., Delphi Automotive Systems, GKN PLC, Hitachi Automotive Systems, Hyundai Mobis Co. Ltd

Recent Developments

  • In June 2022, Flex who is an manufacturing partner for diverse industries and end market annouced the expansion of its automotive manufacturing hub in Jalisco, Mexico. This came for company aims behind vision to generate next gen mobility goals.
  • In February 2022, Bosch Mexico, a Robert Bosch subsidiary based in Mexico, has announced an investment of USD 146 million in Mexico to expand the capacity of the Bosch Queretaro factory, which shall be utilized to produce electronic power steering (EPS) components. Moreover, the investment will help company to build a warehouse measuring roughly 12,000 square meters and new, high-tech production lines.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION ( Market Size in Value USD Billion)

    1. 5.1 Application Type

      1. 5.1.1 Passenger Car

      2. 5.1.2 Commercial Vehicle

    2. 5.2 Type

      1. 5.2.1 By Rack assist type (REPS)

      2. 5.2.2 Colum assist type (CEPS)

      3. 5.2.3 Pinion assist type (PEPS)

    3. 5.3 Demand Category

      1. 5.3.1 OEM

      2. 5.3.2 Replacement

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 ATS Automation Tooling Systems Inc.

      2. 6.2.2 Delphi Automotive Systems

      3. 6.2.3 GKN PLC

      4. 6.2.4 Hitachi Automotiec Systems

      5. 6.2.5 Hyundai Mobis Co

      6. 6.2.6 Infineon Technologies

      7. 6.2.7 JTEKT Corporation

      8. 6.2.8 Mando Corporation

      9. 6.2.9 Mitsubishi Electric Corporation

      10. 6.2.10 Nexteer Automotive

      11. 6.2.11 NSK Ltd.

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Frequently Asked Questions

The Mexico Automotive EPS Market market is studied from 2018 - 2027.

The Mexico Automotive EPS Market is growing at a CAGR of 5.8% over the next 5 years.

The Mexico Automotive EPS Market is valued at 1 Billion USD in 2018.

The Mexico Automotive EPS Market is valued at 1 Billion USD in 2027.

ATS Automation Tooling Systems Inc. , Delphi Automotive Systems , GKN PLC , Hitachi Automotive Systems , Hyundai Mobis Co. Ltd are the major companies operating in Mexico Automotive EPS Market.

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