Active Safety Features Drive Electric Power Steering in North American Vehicles

Three in four cars will incorporate the technology by 2021 with rack EPS seeing maximum demand

MOUNTAIN VIEW, CA -- Jan. 22, 2015: Despite a slow start, electric power steering (EPS) is making waves in the North American automotive market. Original equipment manufacturers (OEMs) are shifting from electro-hydraulic power steering (EHPS) and hydraulic power steering (HPS) systems to EPS in a bid to meet consumer demand for enhanced fuel economy, safety and comfort.

New analysis from Frost & Sullivan's Strategic Insight into the Electric Power Steering Market in North America finds the market earned revenue of $2.55 billion in 2013 and estimates this to reach $3.44 billion in 2021 at a compound annual growth rate of 3.8 percent. EPS volumes are estimated to cross 13 million units in the North American market by 2021. The sports utility vehicle/pickup and multi-purpose vehicle/van segment will lead the way with an expected fitment rate of more than 60 percent and 70 percent respectively during this period.

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"The need for active safety features such as lane keeping assist and lane departure warning as well as the emphasis on reducing carbon dioxide emissions is pushing OEMs to replace older HPS and EHPS technologies with EPS," said Frost & Sullivan Automotive and Transportation Research Analyst Manish M. Menon. "The advantage of chassis and advanced driver assistance systems integration provided by EPS further strengthens adoption."

However, HPS and EHPS still rank high in North America since the region is predominantly a large-vehicle market, and traditional EPS systems with rack loads limited to 15 kilonewton (kN) are inadequate for large vehicles. Nevertheless, pickup trucks such as Ford F150 and Ram 1500 have successfully incorporated EPS, thus paving the way for heavier vehicles to deploy EPS technologies.

"Improved functionality in terms of add-on features and higher rack-load capacity will see more EPS systems, especially rack EPS, crossing the 15 kN front axle load limit," noted Menon. "Rack EPS is likely to remain the preferred choice, despite the shift towards dual pinion EPS among B- and certain entry level C-segment vehicles."

By the turn of the decade, mergers and acquisitions in the steering value chain will change market dynamics and quicken the journey towards automated driving.

Strategic Insight into the Electric Power Steering Market in North America is part of the Automotive & Transportation (Frost Automotive) Growth Partnership Service program. The study researches, analyzes, and forecasts the EPS strategies of key OEMs across North America and their impact on the growth and performance of the technology in that region. The study also provides competitive factors, competitor product portfolio, and capabilities as well as a look at future advancements and add-ons for EPS applications.