Abstract
Research Overview
Advanced Steering Systems Gain Ground in Japan
With Japan being a pioneer of sophisticated, next-generation technology, it is
hardly surprising that the Japanese market for advanced steering systems is
one of the fastest growing in the world. The number of vehicles fitted with
electric power steering systems (EPS) is expected to increase from 3.4 million
in 2004 to 4.9 million in 2007, which itself is a strong indication of the
immense scope for advanced electronic components in this country. Although
hydraulic power steering systems (HPS) currently lead the market with a share
of around 54 per cent in 2004, EPS systems appear set to overtake them in the
short term due to their fuel economy characteristics and high integration
potential. By 2012, EPS systems could account for a staggering 65 per cent of
the total advanced steering systems market in Japan.
Fuel Efficiency a Key Driver for EPS Systems
Fuel efficiency is a key factor driving the uptake of EPS systems and giving
them a distinct edge over conventional HPS. "EPS draws power on demand,
achieving 85 per cent higher efficiency level in converting electrical to
mechanical energy," notes the analyst of this research service. "This leads to
high energy savings as compared to conventional hydraulic systems." Given that
Japanese original equipment manufacturers (OEMs) are displaying increasing
interest in reducing energy consumption, this is a significant motivating
force for them to implement EPS systems that offer fuel savings as high as 0.2
to 0.3 litres per 100 kilometres.
Fuel efficiency combined with a lower front axle weight will see EPS systems
dominating the mini, small and lower medium segments in the medium to long
term. Eventually, EPS systems' reach is set to extend to the medium and upper
medium segments as well, where HPS is currently the major application. The
bulk of vehicles in these segments are expected to shift from HPS to rack
electric power steering (REPS) systems over the medium to long term.
REPS and Active Steering (AS -- variable gear ratio) Systems on the Fast Track
While rack EPS is providing stiff competition to HPS in the higher vehicle
segments and is expected to challenge its domination in the medium to long
term, the demand for AS systems is on the rise in the sports and luxury
vehicle segments. Suppliers are trying to promote these systems -- which have
been developed on a rack EPS solution -- to OEMs in keeping with the growing
demand for active safety measures.
"The premium and heavy vehicles in Japan are expected to adopt rack EPS and AS
in the long term, with the premium models expected to accommodate the high
costs of AS," says the analyst. "Rack EPS systems are deemed the favourite for
popular heavy vehicles and they have significant revenue growth potential from
the end of the forecast period (2013) in to the next decade."
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