Multiple Benefits Drive Electric Power Steering to Success

Electric power steering (EPS) stands poised to capture a sizeable chunk of the European market for steering systems within the next decade. Substantial savings accrued through fuel economy allied with an array of major value-chain benefits are expected to underline the rapid uptake of EPS by vehicle manufacturers (VMs).

For many VMs, a major attraction in deploying an EPS system is likely to be its proven credentials in attaining significant levels of fuel economy. This advantage translates into considerable savings - estimated at between €36 and €56 per year/per vehicle, varying according to the size and weight of the vehicle.

Important value-chain benefits such as streamlined production processes, reduced inventory costs and easier tunabilty will be reflected in the increased market penetration of EPS systems. When benchmarked against alternate technologies such as hydraulic power steering (HPS), EPS emerges as an attractive value proposition for VMs.

For instance, in comparison to HPS, the use of EPS is anticipated to present VMs with savings amounting to almost €40, 000 per part per year in terms of logistics, supplier and inventory management. Moreover, VMs are projected to derive savings of up to €15 per unit from the perspective of manufacturing costs. Another advantage is the potential that EPS has to reduce warranty costs by precluding the need for hydraulic oil, pipes, rubber hoses, belts and associated leakage problems.

Global Steering Demand (World), 2000-2012
Note: All figures are rounded. Source: Frost & Sullivan

As a result of these demonstrated benefits, the European market for EPS is forecast to witness a sharp increase in growth. EPS systems are poised to soar from a relatively negligible market penetration of 4 percent in 2000 to an astounding 60 percent in 2012. Growth will be primarily based on the penetration of EPS into the hydraulic steering market in vehicle segments A, B and C.

Global Steering Demand (World), 2000-2012
Note: All figures are rounded. Source: Frost & Sullivan

However, while EPS is expected to turn in strong performances in the A, B and C vehicle size segments (up to the Fiat Stilos and Meganes in the future), its popularity will be limited in the larger sized vehicles. The inability to support the higher axle loads of bigger vehicles and duplicate the steering feel and performance of hydraulic steerings will restrain implementation of EPS in the D and E categories over this decade. But this scenario is likely to change around 2008, with the more widespread application of 42-volt technology in vehicles.

Consequently, two types of EPS steerings are positioned to make a strong impact on the various vehicle segments. At present, column-mounted EPS systems are the leading EPS technology. In future, pinion-mounted systems are expected to grow in use as they replace some of the existing B segment EPS vehicles and penetrate the C segment. In contrast, rack systems, while favoured for the D and E segments, are unlikely to have much success until 2010.

The high prices of EPS steerings are also likely to have a dampening effect on growth. Currently, EPS systems command an astonishing premium of 20 to 100 percent over HPS systems. While a premium is forecast till 2010, prices are expected to be under pressure in the future.

Such hiccups notwithstanding, the growth prospects of EPS look exceedingly bright. EPS is establishing its bona fides in offering augmented functional benefits to vehicle users. In future, these will include adaptive steer effort (steering adjusts to driver usage patterns and/or operating conditions), automatic parking assistance (hands off parking), steering integrated with braking and stability control.

As EPS jockeys for a share of the overall market, enhanced demand from vehicle manufacturers looks assured.