China Automotive EPS Market - Analysis of Growth, Trends, Forecast (2018 - 2023)
China Automotive Electric Power Steering (EPS) market is estimated to register a CAGR of 15.73% during the forecast period (2018 - 2023). The country is likely to see faster adoption of EPS in the vehicles in the coming five years, owing to the increasing electric vehicle sales as well as other major factors like immediate need for controlling emission levels and fuel efficient solutions in automotive industry.
Increasing Passenger Car Sales to Boost the Market
Passenger cars sales have been increasing in China at an average growth rate of 11% during 2014-2016. In 2016, China passenger car sales accounted for 24,376,902 units. China has the largest share for passenger vehicles, followed by the United States, Japan, Germany, South Korea and India. China alone contributed to 26.99% of the global sales. This improvement in sales in expected to encourage automakers to ramp up the production activities, driving the market for automotive EPS over the forecast period.
Technology Advancement in the EPS
NSK Ltd, a Japanese Company has designed the world’s lightest column type Electric Power Steering (EPS) which will contribute to increased fuel efficiency in automobiles. This EPS is 13% lighter than the current products in the market. The company has planned to launch this light weight system on a global scale for small to mid-sized cars which have a particular need for fuel efficiency. This steering system was developed keeping in mind, the various factors such as vital need to maintain safety, a compact and lightweight form that will contribute to fuel efficiency and also enhancing performance.
The simple EPS design compared to hydraulic steering systems, with advantages such as lesser weight, low maintenance, the better response at different speeds, highly durability, and lesser fuel consumption, has fuelled the adoption of EPS over hydraulic systems, in turn, driving the market for automotive electric power steering systems. Erratic fuel prices and safety features such as electronic stability control and ABS integrated with electronic steering systems are some other factors fuelling demand in this market.
Automakers and EPS manufactures noticed the high potential growth in the Chinese market and geared up with strategies to penetrate and invest into the market. Major Players: ATS ATOMATION, DENSO CORPORATION, MITSUBISHI ELECTRIC CORPORATION, ZF FRIEDRICHSHAFEN AG amongst others.
Key Developments in the Market
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