Light Commercial Vehicle power steering Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 By Mechanism (Electronic power steering (EPS), Hydraulic power steering (HPS) and Electro-Hydraulic Power Steering), By Component (Hydraulic Pump, Sensors, Electric Motor and other components), By Region, By Competition
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2018-2028 |
| Market Size (2022) | USD 4 billion |
| CAGR (2023-2028) | 6.8% |
| Fastest Growing Segment | Hydraulic Power Steering |
| Largest Market | Asia Pacific |
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Market Overview
Light Commercial Vehicle power steering Market has valued at USD 4 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.8%.
Key Market Drivers
Growth in E-Commerce and Last-Mile Delivery
One of the strongest market drivers driving the LCV power steering market is the rapid expansion of e-commerce and the ensuing increase in last-mile delivery services. As consumers become more inclined towards online purchases, the need for quick and timely delivery of products has never been greater. As a result, there has been a significant rise in the use of LCVs for last-mile deliveries. These cars, usually charged with driving through crowded city streets and narrow lanes, need power steering systems to augment drivers' control and maneuverability. Power steering minimizes the force required to steer, so it is a must-have for drivers engaged in the last-mile delivery business. As the e-commerce industry keeps growing, the LCV power steering market is looking forward to sustained growth to keep up with the ever-growing needs of the business.
Urbanization and Congestion
Global trends in urbanization have resulted in the growth of cities and metropolitan centers, which, subsequently, have spawned more traffic congestion. In densely populated urban areas, LCVs become key to enabling the transportation of goods and services. Power steering mechanisms are part and parcel of their functioning, as they go a long way in reducing the physical effort that is needed in steering, allowing drivers to maneuver through crowded streets and narrow parking lots easily. The smooth maneuverability that is supplied through power steering is not only useful but, in many cases, necessary for urban delivery and transportation. As urbanization keeps moving forward, increasing traffic congestion further, the need for LCVs with advanced power steering systems will continue to be high.
Safety Regulations and Driver Assistance Systems
Strict safety regulations and the increasing focus on vehicle safety are some of the key drivers influencing the LCV power steering market. Vehicle manufacturers are forced to fit LCVs with advanced safety features to comply with these regulations and improve overall safety. Power steering systems are crucial in this context with respect to delivering accurate control and stability, particularly during driving under difficult conditions or maneuvers involving heavy loads. In addition, power steering is also a key technology in the implementation of driver assistance systems (ADAS) like lane-keeping assist and adaptive cruise control. These ADAS functionalities take advantage of the accuracy and responsiveness of power steering to maintain safety and convenience in driving. As a result, the need for LCVs with sophisticated power steering systems is increasing in sync with the increasing focus on safety standards and the adoption of ADAS technologies.
Multi-Application Across Industries
The multi-purpose nature of LCVs makes them essential in many industries such as construction, agriculture, logistics, and passenger transport. LCVs serve various purposes ranging from carrying heavy machinery to moving perishable commodities. Power steering systems are the universal link between such applications because they provide better control of the vehicle and improved comfort for the operator, regardless of the activity being performed. Be it a building worker navigating a pickup truck down a rough building site or a courier operating on busy urban roads, power steering is an indispensable component for delivering efficient and accurate vehicle control. As businesses continue to depend on LCVs for their various uses, the LCV power steering market continues to be strong, fueled by the versatility and dependability of these systems in different industries.
Technological Developments in Power Steering
The continuous technological developments in power steering systems are a major force behind the development of the LCV power steering market. Power steering technology has evolved a great distance from the old hydraulic systems to the advanced electric power steering (EPS) systems. EPS systems have become increasingly popular because they are efficient, flexible, and compatible with today's vehicles. In contrast to hydraulic systems, EPS systems utilize electric motors to help steer, which results in improved fuel economy and responsiveness. As the automotive sector seeks to reduce emissions and enhance fuel efficiency, the use of EPS systems in light commercial vehicles is increasing. The innovation of steer-by-wire technology, which does away with the mechanical link between the steering wheel and the wheels, is also creating new opportunities for power steering innovation. These developments not only enhance the performance of LCVs but also their overall reliability and durability, fueling increased demand for such systems in the market.
Demand for Customization and Comfort
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Key Market Challenges
Cost Pressure and Pricing Issues
Perhaps the most enduring issue in the LCV power steering industry is the pressure to cost-effectively deliver high-quality systems. LCVs are typically chosen because they are cost-effective and efficient, so price sensitivity is a key element for vehicle manufacturers and purchasers. Power steering systems, especially advanced electric power steering (EPS) solutions, are expensive to develop, produce, and integrate into vehicles. The cost burden is due to the requirement for precision engineering, high-end materials, and complex control electronics. LCV producers need to walk a tightrope between delivering reliable, feature-laden power steering systems and competitive pricing. Pricing is also driven by market competition because manufacturers compete to gain market share and to be able to bring value to their customers. Other factors that have an impact on manufacturing costs include the complexity of power steering systems, such as the inclusion of electronic components and sensors.
Reliability and Durability
The reliability and durability of the systems are top in the LCV power steering industry because these systems are critical when it comes to vehicle safety and performance. LCVs typically experience hard and varied use conditions, such as rugged ground surfaces, large payloads, and frequent usage, that can load up power steering elements over their life. Failure of power steering units can cause safety risks, driving interruptions, and expensive fixes. Therefore, ensuring the longevity and reliability of power steering systems is an ongoing issue. Companies should spend money on solid engineering, serious testing, and quality processes to tackle this issue properly. Additionally, operators of LCVs tend to use their cars for business operations, so lost time due to power steering troubles can be costly and inconvenient. Consequently, the challenge of increasing the reliability and durability of power steering systems remains, forcing producers to design components that can endure intense operation and maintain continuous functionality for the life of the vehicle.
Technological Sophistication and Maintenance Needs
The changing nature of technology in the automobile sector has resulted in more advanced power steering systems. Newer power steering systems such as electric power steering (EPS) and steer-by-wire technology utilize complex electronic components, sensors, and software controls. Although the advances improve performance and functionality, they add complexity that can create maintenance issues. Technological complexity may generate more sophisticated diagnostics and repair procedures, often necessitating specialized training and equipment. Maintenance and repair staff must remain current with the newest developments in power steering technology, presenting a challenge for manufacturers and service providers. In addition, reliance on electronic components in power steering systems raises the risk of system failure due to software errors or sensor faults. This requires high levels of monitoring and diagnostic functionality to identify and correct problems before they cause downtime or compromise safety.
Environmental Regulations and Efficiency Requirements
Environmental regulations and the need for better fuel efficiency significantly influence the LCV power steering market. Industry initiatives and government regulations encourage vehicle makers to cut down on emissions and improve fuel efficiency. In turn, manufacturers try to maximize power steering systems in order to support these objectives. Electric power steering (EPS) systems are more efficient by nature compared to hydraulic systems because they use power only when required, resulting in fuel savings. The problem is how to make these systems more efficient without sacrificing performance and responsiveness. Manufacturers have to keep investing in research and development to come up with power steering systems that achieve the optimal balance between energy efficiency and accurate control. This involves controlling algorithm optimization, power loss minimization, and lightweight component design to minimize vehicle overall weight. Tackling the changing reality of environmental requirements and efficiency standards with customer expectation of performance and comfort poses a daunting and ever-present challenge to the LCV power steering industry.
Market Competition and Innovation
The LCV power steering industry is competitive in nature with a variety of players competing for market share. Competition breeds innovation and compels companies to continuously enhance their products and services to remain competitive. Although innovation is a good thing, it is not without its challenges. Not only do manufacturers need to innovate according to market needs, they also have to safeguard their intellectual property and ensure that their products' integrity remains intact. The challenge is getting the balance right between being open to innovation and protecting proprietary technology. In addition, the fast evolution of technology and the launch of new functionalities and features in power steering systems necessitate the manufacturers' quick adaptation. Remaining ahead of the competition and fulfilling changing customer demands is an ongoing endeavor, demanding significant investments in research and development.
Key Market Trends
Transition to Electric Power Steering (EPS)
One of the most significant trends in the LCV power steering market is the transition from traditional hydraulic power steering systems to more advanced electric power steering (EPS) systems. EPS has gained prominence due to its efficiency, adaptability, and compatibility with modern vehicle architectures. Unlike hydraulic systems that rely on a hydraulic pump driven by the engine, EPS uses electric motors to provide power assistance to the steering mechanism. This results in better fuel efficiency, as the electric motor only consumes power when steering assistance is required, unlike hydraulic pumps that continuously draw power from the engine. Moreover, EPS offers enhanced precision and control, making it ideal for various driving conditions, including urban navigation, highway cruising, and off-road maneuvering. This trend is further fueled by environmental considerations, as automakers and customers increasingly prioritize vehicles with reduced emissions and improved fuel economy. As a result, many LCV manufacturers are adopting EPS technology to meet these demands, making it a dominant trend in the market.
Integration of Advanced Driver Assistance Systems (ADAS)
The integration of advanced driver assistance systems (ADAS) is another noteworthy trend in the LCV power steering market. ADAS features such as lane-keeping assist, adaptive cruise control, and automatic emergency braking rely heavily on the precision and responsiveness of power steering systems. These systems enhance vehicle safety by assisting drivers in various ways, including maintaining lane discipline, managing vehicle speed, and avoiding collisions. As safety regulations become more stringent worldwide and consumers increasingly demand safer vehicles, LCV manufacturers are incorporating ADAS technologies into their vehicles. This integration necessitates power steering systems that can seamlessly interface with these advanced features. The trend is pushing manufacturers to develop power steering solutions with enhanced electronic control units (ECUs) and software algorithms that can support ADAS functionalities effectively. The synergy between power steering and ADAS technologies is poised to make LCVs safer and more appealing to buyers.
Electrification of LCVs
The ongoing shift towards vehicle electrification, including electric vans and hybrid LCVs, is a trend that significantly impacts the LCV power steering market. Electric and hybrid LCVs often require electric power steering systems, as they align with the overarching goal of reducing emissions and improving energy efficiency. Electric power steering is inherently more efficient in terms of power consumption compared to hydraulic systems, making it a suitable choice for electric and hybrid vehicles. Additionally, the integration of electric power steering aligns with the overall design philosophy of electric vehicles (EVs), which emphasizes energy efficiency and the reduction of mechanical components. As automakers invest in electrified LCVs to meet emissions standards and customer preferences, the demand for electric power steering solutions is expected to rise. This trend presents an opportunity for power steering manufacturers to cater to the specific needs of electrified LCVs and contribute to the broader electrification movement.
Steer-by-Wire Technology
Steer-by-wire technology is an emerging trend poised to revolutionize the LCV power steering market. This technology eliminates the mechanical connection between the steering wheel and the wheels, replacing it with electronic controls. Steer-by-wire systems rely on sensors and actuators to translate the driver's input into steering movements, offering greater design flexibility and potential for innovation. The adoption of steer-by-wire technology is driven by several factors. Firstly, it reduces the physical footprint of the steering system, creating more space in the cabin and enhancing vehicle design options. Secondly, it enables advanced features such as automated parking and customizable steering feel, allowing drivers to tailor their driving experience. Finally, steer-by-wire systems have the potential to enhance safety by offering redundancy in steering control, which is critical for autonomous vehicles and in the event of component failures. As this trend gains momentum, manufacturers are exploring the development of steer-by-wire systems tailored to the specific needs of LCVs. However, it also presents challenges in terms of safety, reliability, and regulatory approval, as such systems must meet stringent standards to ensure driver and passenger safety.
Enhanced Comfort and Customization
Segmental Insights
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By Mechanism Analysis
Electric Light Commercial Vehicle power steering Segment to Dominate-Rising Usage by Automakers will favor growth.
The automobile steering system market is further subdivided into Electric power steering (EPS), hydraulic Light Commercial Vehicle power steering (HPS), and electro-hydraulic Light Commercial Vehicle power steering (EHPS). The electric power steering category is expected to dominate the market throughout the projected period, owing to manufacturers' increased deployment of electric power steering in all vehicle types. Advances in electric power steering to steer-by-wire technology are also expected to promote market expansion in this area. Because of its widespread use in commercial vehicles, the hydraulic power steering category is predicted to rise rapidly in the market throughout the projection period. Because of its restricted load-bearing capability, electronic Light Commercial Vehicle power steering does not function in commercial vehicles. Furthermore, hydraulic Light Commercial Vehicle power steering is capable of absorbing road shocks. Because of its leaking, less durability, and vibration features, the manual steering category is predicted to rise steadily in the market. Steering the vehicle involves significant human effort. The electro-hydraulic Light Commercial Vehicle power steering category is predicted to increase significantly in the automotive steering market over the forecast period. When compared to conventional hydraulic power steering, it delivers smoother and more responsive handling.
Regional Insights
During the projected period, Asia Pacific is estimated to lead the automobile steering system market. The growing sales and production of automakers from emerging nations are likely to drive the growth of the automotive steering system market in this area. Demand for high-end luxury vehicles and rising disposable income in developing nations are also expected to drive market expansion in this area.
Europe is estimated to be the second-largest market stakeholder and to exhibit significant growth in the market throughout the projection period. Government fuel economy standards in this region have resulted in an increase in the use of fuel-efficient automobiles with an effective steering system. The global market for electric vehicles is quickly expanding. In Europe, for example, 2021 was a record year for electric car sales. European manufacturers were reluctant to enter the EV industry but rapidly established themselves as significant participants. Furthermore, some governments throughout the world have developed regulations, incentives, and initiatives to encourage the use of electric vehicles.
By 2024, electric vehicles are predicted to account for approximately 4% of new car sales and 7% of the global car fleet. With the increasing sales of electric vehicles, the deployment rate of Light Commercial Vehicle power steering systems (such as Light Commercial Vehicle power steering (EPS)) is predicted to increase throughout the projection period.
Over the projected period, North America is also predicted to see strong growth in the automobile steering system market. It is the second-largest market for hydraulic Light Commercial Vehicle power steering systems, with a few big automakers operating in both Canada and the United States. This aspect is projected to drive the market expansion of this area.
Recent Developments
- Melexis launched the new MLX90376, anabsolute magnetic position sensor IC capable of handling 360° rotatingautomotive applications while demonstrating strong stray field immunity, inDecember 2022. The gadget delivers cutting-edge sensing for steering and valveapplications and facilitates system integration up to ASIL D-level functionalsafety.
- DAF introduces an electronic hydraulicsteering (EHS) system on a 6x2 tractor and rigid trucks with a steered pusheraxle in December 2022. The new technology is available for the whole NewGeneration DAF truck range, including the XF, XG, XD, and XG+.
- The FAW Hongqi R&D Centre stated inNovember 2022 that the Hongqi steering team of the FAW New Energy DevelopmentCenter's chassis development division created the Hands On/Off Detection (HOD)steering wheel technology, which debuted in China.
- ZF expects to invest around USD 100million in November 2022 to enhance the existing product range and chassiscomponent production capability at the Zhangjiagang facility. The chassiscomponent facility will produce control arms, steering knuckles, steering tierods and stabilizer links, effectively covering the whole chassis componentproduct line.
Key Market Players
- Showa Corporation
- Nexteer Automotive Corporation
- NSK Ltd
- JTEKT Corporation
- Robert Bosch GmbH
- Mando Corporation
- Sona Corporation
- ZF Friedrichshafen AG
- Hitachi Automotive Systems Limited.
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