A global market review of automotive steering systems - Just-Auto.com
A global market review of automotive steering systems - Just-Auto.com
A global market review of automotive steering systems - Just-Auto.com
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
A <strong>global</strong> <strong>market</strong> <strong>review</strong> <strong>of</strong><br />
<strong>automotive</strong> <strong>steering</strong><br />
<strong>systems</strong>: trends,<br />
<strong>com</strong>panies and forecasts to<br />
2010 - 2nd edition<br />
2004 edition
Page i<br />
A <strong>global</strong> <strong>market</strong> <strong>review</strong> <strong>of</strong><br />
<strong>automotive</strong> <strong>steering</strong> <strong>systems</strong>:<br />
trends, <strong>com</strong>panies and forecasts to<br />
2010 - 2nd edition - SAMPLE<br />
by Matthew Beecham<br />
July 2004<br />
Published by<br />
Aroq Limited<br />
Seneca House<br />
Buntsford Park Road<br />
Bromsgrove<br />
Worcestershire<br />
B60 3DX<br />
United Kingdom<br />
Tel: +44 (0)1527 573 600<br />
Fax: +44 (0)1527 577 423<br />
Web: www.just-auto.<strong>com</strong><br />
Registered in England no: 4307068<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page ii<br />
Single-user licence edition<br />
This report is provided for individual use only. If you would like to share this<br />
report with your colleagues, please order additional copies or sign up for a<br />
multi-user licence by contacting:<br />
Oliver Wilkinson<br />
Sales and <strong>market</strong>ing manager, just-auto.<strong>com</strong><br />
Tel: +44 (0)1527 573 609<br />
Fax: +44 (0)1527 577 423<br />
Email: oliver@just-auto.<strong>com</strong><br />
Copyright statement<br />
© 2004 All content copyright Aroq Limited. All rights reserved.<br />
This publication, nor any part <strong>of</strong> it, may be copied, reproduced, stored in a<br />
retrieval system, or be transmitted in any form by any means electronic,<br />
mechanical, photocopying, recording or otherwise without the prior permission<br />
<strong>of</strong> Aroq Limited.<br />
This report is the product <strong>of</strong> extensive research work. It is protected by<br />
copyright under the Copyright, Designs and Patents Act 1988.<br />
Aroq Limited <strong>of</strong>fers a reward <strong>of</strong> £1,000 for information leading to the<br />
successful prosecution for illegal copying <strong>of</strong> this document.<br />
The authors <strong>of</strong> Aroq Limited research reports are drawn from a wide range <strong>of</strong><br />
pr<strong>of</strong>essional and academic disciplines. The facts within this report are believed<br />
to be correct at the time <strong>of</strong> publication but cannot be guaranteed. All<br />
information within this study has been reasonably verified to the author’s and<br />
publisher’s ability, but neither accept responsibility for loss arising from<br />
decisions based on this report.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page iii<br />
Table <strong>of</strong> contents<br />
Single-user licence edition............................................................................................................. ii<br />
Copyright statement.................................................................................................................. ii<br />
Table <strong>of</strong> contents ........................................................................................................................... iii<br />
List <strong>of</strong> tables .................................................................................................................................... v<br />
List <strong>of</strong> figures ................................................................................................................................. vi<br />
Acknowledgements ...................................................................................................................... vii<br />
just-auto.<strong>com</strong>’s research portfolio .............................................................................................viii<br />
Incredible ROI for your budget – single and multi-user licences.............................................viii<br />
just-auto.<strong>com</strong> membership ........................................................................................................... ix<br />
Glossary <strong>of</strong> terms............................................................................................................................ 1<br />
Chapter 1 Introduction.................................................................................................................... 2<br />
Heading in the right direction .................................................................................................... 2<br />
Report coverage........................................................................................................................ 3<br />
Chapter 2 The <strong>market</strong> ..................................................................................................................... 5<br />
Market trends ............................................................................................................................ 5<br />
Market players........................................................................................................................... 6<br />
Market shares ........................................................................................................................... 7<br />
Electric <strong>steering</strong> <strong>systems</strong> .......................................................................................................... 7<br />
Hydraulic <strong>steering</strong> <strong>systems</strong> .....................................................................................................10<br />
Market by product type............................................................................................................ 12<br />
Worldwide ............................................................................................................................... 13<br />
North America ......................................................................................................................... 13<br />
Europe..................................................................................................................................... 15<br />
Asia-Pacific ............................................................................................................................. 15<br />
Market forecast ....................................................................................................................... 16<br />
Electric power <strong>steering</strong>............................................................................................................ 16<br />
Electrically powered hydraulic <strong>steering</strong>................................................................................... 19<br />
Hydraulic powered <strong>steering</strong> .................................................................................................... 19<br />
Manual <strong>steering</strong>....................................................................................................................... 20<br />
Rack and Pinion...................................................................................................................... 20<br />
Recirculating ball system ........................................................................................................ 20<br />
Steering system <strong>market</strong> values............................................................................................... 21<br />
Chapter 3 Technical <strong>review</strong>.......................................................................................................... 23<br />
Four types <strong>of</strong> EPS................................................................................................................... 23<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page iv<br />
Front <strong>steering</strong> innovations....................................................................................................... 24<br />
Rear <strong>steering</strong> innovations .......................................................................................................26<br />
Steering column innovations................................................................................................... 29<br />
Steer-by-wire........................................................................................................................... 30<br />
Chapter 4 Manufacturers.............................................................................................................. 33<br />
Delphi...................................................................................................................................... 33<br />
Koyo Seiko.............................................................................................................................. 35<br />
NSK......................................................................................................................................... 37<br />
ThyssenKrupp......................................................................................................................... 37<br />
Toyoda Machine Works .......................................................................................................... 39<br />
TRW ........................................................................................................................................ 40<br />
Visteon .................................................................................................................................... 43<br />
ZF Lenksysteme...................................................................................................................... 44<br />
Others - Aisin Seiki.................................................................................................................. 48<br />
CIE <strong>Auto</strong>motive ....................................................................................................................... 48<br />
Dana........................................................................................................................................ 48<br />
Mitsubishi Electric ................................................................................................................... 49<br />
Online sources <strong>of</strong> information ..................................................................................................... 50<br />
Free email newsletters............................................................................................................ 50<br />
Other research reports............................................................................................................ 50<br />
Global news and feature articles............................................................................................. 50<br />
Search the web ....................................................................................................................... 50<br />
Your feedback ............................................................................................................................... 51<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page v<br />
List <strong>of</strong> tables<br />
Table 1: Major <strong>steering</strong> system and column manufacturers’ business activities............................... 6<br />
Table 2: Steering system by type fitted to vehicles in Western Europe, divided by RD EPS, PD<br />
EPS and CD EPS, 2000 - 2010 (‘000 units).............................................................18<br />
Table 3: Steering system by type fitted to vehicles in North America, divided by RD EPS, PD EPS<br />
and CD EPS, 2000 - 2001 (‘000 units) .....................................................................18<br />
Table 4: Steering system by type fitted to vehicles in Asia-Pacific, divided by RD EPS, PD EPS<br />
and CD EPS, 2000 - 2001 (‘000 units) .....................................................................18<br />
Table 5: Total <strong>steering</strong> system by type fitted to vehicles in Western Europe, North America and<br />
Asia-Pacific, divided by RD EPS, PD EPS and CD EPS, 2000 - 2001 (‘000 units)..18<br />
Table 6: Electrically Powered Hydraulic Steering system fitted to vehicles in Western Europe,<br />
North America, Asia Pacific and worldwide, 2000 - 2010 (‘000 units)......................19<br />
Table 7: Hydraulic Powered Steering <strong>systems</strong> fitted to vehicles in Western Europe, North America,<br />
Asia Pacific and worldwide, 2000 - 2001 (‘000 units)...............................................20<br />
Table 8: Manual rack and pinion <strong>steering</strong> <strong>systems</strong> fitted to vehicles in Europe, North America, Asia<br />
Pacific and worldwide, 2000 - 2001 (‘000 units).......................................................20<br />
Table 9: Recirculating ball steeing <strong>systems</strong> fitted to vehicles in Western Europe, North America,<br />
Asia Pacific and worldwide, 2000 - 2001 (‘000 units)...............................................20<br />
Table 10: Western Europe: Steering system <strong>market</strong> value by type fitted to vehicles, divided by RD<br />
EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2000 - 2010 (€ millions).21<br />
Table 11: North America: Steering system <strong>market</strong> value by type fitted to vehicles, divided by RD<br />
EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2000 - 2010 (€ millions).21<br />
Table 12: Asia-Pacific: Steering system <strong>market</strong> value by type fitted to vehicles, divided by RD EPS,<br />
PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2000 - 2010 (€ millions)..........22<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page vi<br />
List <strong>of</strong> figures<br />
Figure 1: European <strong>market</strong> shares <strong>of</strong> the electrically powered <strong>steering</strong> <strong>systems</strong>, 2003 (% <strong>of</strong><br />
volume)....................................................................................................................... 8<br />
Figure 2: European <strong>market</strong> shares <strong>of</strong> the hydraulic vehicle <strong>steering</strong> <strong>market</strong>, 2003 (% <strong>of</strong> volume). 11<br />
Figure 3: North American <strong>market</strong> shares <strong>of</strong> the hydraulic vehicle <strong>steering</strong> <strong>market</strong>, 2003 (% <strong>of</strong><br />
volume)..................................................................................................................... 12<br />
Figure 4: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks worldwide, divided by<br />
RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong> volume). 13<br />
Figure 5: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks in North America,<br />
divided by RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong><br />
volume)..................................................................................................................... 14<br />
Figure 6: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks in Europe, divided by<br />
RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong> volume). 15<br />
Figure 7: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks in Asia Pacific, divided<br />
by RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong> volume)<br />
.................................................................................................................................. 16<br />
Figure 8: Delphi’s Active Front Steering (1 <strong>of</strong> 2) ............................................................................. 25<br />
Figure 9: Delphi’s Active Front Steering (2 <strong>of</strong> 2) ............................................................................. 25<br />
Figure 10: Delphi’s Quadrasteer system.........................................................................................28<br />
Figure 11: Components and signal flow in ZF Lenksysteme’s Active Steering system .................. 32<br />
Figure 12: Delphi’s E*Steer system ................................................................................................ 34<br />
Figure 13: Visteon’s <strong>steering</strong> gear machinery, Wuelfrath Chassis facility, Wuelfrath, Germany .... 44<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page vii<br />
Acknowledgements<br />
The publishers would like to especially thank the following for their assistance<br />
in <strong>com</strong>piling this report:<br />
○<br />
○<br />
○<br />
Delphi;<br />
TRW; and<br />
Mitsubishi Electric.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page viii<br />
just-auto.<strong>com</strong>’s research portfolio<br />
just-auto.<strong>com</strong> has been providing timely auto industry intelligence to the<br />
<strong>automotive</strong> industry <strong>global</strong>ly since 1999. We use only experienced and<br />
respected authors to publish our portfolio <strong>of</strong> <strong>automotive</strong> <strong>com</strong>ponent sector<br />
reports. Our approach is to cover niche technology sectors - <strong>of</strong>ten at a module<br />
level, such as ro<strong>of</strong> <strong>systems</strong> or fuel injection <strong>systems</strong>, to provide you with the<br />
best available analysis at a good-value price point.<br />
All <strong>of</strong> the reports in our growing portfolio, many in their 2nd or 3rd editions, give<br />
you an essential overview <strong>of</strong> a sector. Each study pr<strong>of</strong>iles the key players,<br />
assesses which technologies are being developed, and gives you other<br />
essential intelligence including <strong>market</strong> share data, forecasts and exclusive<br />
interviews with relevant senior executives.<br />
A full list <strong>of</strong> available reports is online at http://www.just-auto.<strong>com</strong>/store/<br />
Incredible ROI for your budget – single and multi-user licences<br />
We understand the pressure your research budget is under and price our<br />
reports realistically. You won't find our reports with four, or even five-figure<br />
price tags, but you will find that they make some <strong>of</strong> the <strong>com</strong>petition look<br />
expensive.<br />
Each title is available to you on a single-user basis, supplied on the strict<br />
understanding that each title is not to be copied or shared. Alternatively, titles<br />
can be shared within departments or entire corporations via a cost-effective<br />
multi-user licence. Multi-user licences can also save you money by avoiding<br />
unnecessary order duplication. To further add value, all multi-user copies are<br />
hosted on a password protected extranet for your department or <strong>com</strong>pany -<br />
saving you time, resources and effort when sharing research with your<br />
colleagues. To find out more about multi-user pricing please contact:<br />
Oliver Wilkinson, sales and <strong>market</strong>ing manager, just-auto.<strong>com</strong><br />
Tel: +44 (0)1527 573 609 Fax: +44 (0)1527 577 423<br />
Email: oliver@just-auto.<strong>com</strong><br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page ix<br />
just-auto.<strong>com</strong> membership<br />
As a 'consumer' <strong>of</strong> <strong>automotive</strong> research, just-auto site membership will be<br />
especially valuable to you. For just £125 / $195 / €175* a year you will gain<br />
access to a growing portfolio <strong>of</strong> exclusive management briefing reports, and<br />
also receive 12 new reports for each year you are a member.<br />
These reports are between 5,000 and 10,000 words and give you fresh insight<br />
into diverse sectors such as retailing, transmissions, x-by-wire, after<strong>market</strong><br />
issues and emerging <strong>market</strong>s.<br />
As well as this impressive list <strong>of</strong> members' only reports, you also gain one<br />
year’s access to a constantly updated stream <strong>of</strong> news, feature articles and<br />
analysis at www.just-auto.<strong>com</strong>. Established in 1999, just-auto.<strong>com</strong> has<br />
rapidly evolved into the premier source <strong>of</strong> <strong>global</strong> <strong>automotive</strong> news, analysis<br />
and data for busy senior executives.<br />
In addition, membership gives you full access to four years <strong>of</strong> news and<br />
feature archives, key news headlines from around the web and your own email<br />
alerting tool - AMANDA. In short, a one-stop shop for <strong>global</strong> <strong>automotive</strong><br />
intelligence.<br />
For further details <strong>of</strong> this month’s special joining <strong>of</strong>fer visit:<br />
www.just-auto.<strong>com</strong>/<strong>of</strong>fer/<br />
* Prices correct at time <strong>of</strong> publication.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Glossary <strong>of</strong> terms Page 1<br />
Glossary <strong>of</strong> terms<br />
○<br />
○<br />
○<br />
○<br />
○<br />
○<br />
○<br />
RD EPS<br />
Rack Drive Electric Power Steering.<br />
PD EPS<br />
Pinion Drive Electric Power Steering.<br />
CD EPS<br />
Column Drive Electric Power Steering.<br />
EPHS<br />
Electrically Powered Hydraulic Steering.<br />
PR&P<br />
Power Rack & Pinion.<br />
MR&P<br />
Manual Rack & Pinion.<br />
RCB<br />
Recirculating Ball Systems.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 1 Introduction Page 2<br />
Chapter 1 Introduction<br />
Heading in the right direction<br />
During the last 15 years, there has been a slow evolution in power <strong>steering</strong> but<br />
recent engine-independent electro-hydraulic power <strong>steering</strong> (EHPS) and<br />
electric power <strong>steering</strong> <strong>systems</strong> (EPS) have marked a major change in the<br />
technology. For many years, power <strong>steering</strong> technology was focused on<br />
hydraulic <strong>systems</strong> but demand is now favouring electric power <strong>steering</strong> mainly<br />
due to reduced fuel consumption and logistical benefits.<br />
Although estimates <strong>of</strong> future penetration levels by region and worldwide vary,<br />
there is <strong>com</strong>plete agreement that the trend is upwards. The only<br />
disagreements concern the slope <strong>of</strong> the trend and at what level it might<br />
plateau. Delphi anticipates that worldwide adoption rates <strong>of</strong> EPS will reach<br />
xx% <strong>of</strong> the light vehicle <strong>market</strong> by 2007. European penetration during that<br />
timeframe could reach as high as xx%, says Delphi. Koyo Seiko also anticipate<br />
exponential growth for EPS; predicting that it will be fitted to more than xx% <strong>of</strong><br />
new cars built worldwide in 2005, equivalent to xx million vehicles. Looking<br />
further ahead, TRW forecast that by 2010, xx% <strong>of</strong> cars produced worldwide<br />
will incorporate some form <strong>of</strong> electrical assistance integrated into the <strong>steering</strong><br />
system.<br />
The main reasons for strong growth in electric <strong>steering</strong>, as opposed to<br />
hydraulic, is that electric <strong>systems</strong> are more economical to run, lighter,<br />
recyclable and easier to package and install. Electric and electro-hydraulic<br />
power <strong>steering</strong> <strong>systems</strong> are typically lighter and more <strong>com</strong>pact than<br />
conventional hydraulic <strong>systems</strong>. TRW’s electrically assisted <strong>steering</strong> (EAS), for<br />
example, is a power-assist system that eliminates the connection between the<br />
engine and <strong>steering</strong> system. Its migratory product, EPHS (Electrically Powered<br />
Hydraulic Steering) replaces the customary belts and pulleys with a brushless<br />
motor that drives a hydraulic power <strong>steering</strong> pump in a conventional rack and<br />
pinion <strong>steering</strong> system. EPS takes EAS technology a step further, eliminating<br />
hydraulic fluid and the ac<strong>com</strong>panying hardware <strong>com</strong>pletely. An EPS module<br />
includes the motor, torque sensor, electronic control unit (ECU) and<br />
control/diagnostic s<strong>of</strong>tware. Although EPHS was initially considered a<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 1 Introduction Page 3<br />
‘transitionary’ technology - preceding the arrival <strong>of</strong> full EPS <strong>systems</strong> -<br />
manufacturers now predict a strong growth path.<br />
While EPS and EPHS have made significant inroads in Europe and Japan, US<br />
vehicle makers have been reluctant to replace their proven hydraulic <strong>systems</strong><br />
with the more costly electric ones because they claim the benefits are largely<br />
unnoticeable and the added cost unjustifiable to customers. The key benefit <strong>of</strong><br />
EPS is in the increased fuel efficiency obtained by freeing the engine from<br />
powering the <strong>steering</strong> <strong>com</strong>pressor, and demand would probably be far higher if<br />
fuel prices in the US and Japan were as high as they are in the UK and<br />
Germany, for example, where the fuel savings <strong>of</strong> EPS have sufficient impact to<br />
<strong>of</strong>fset the added cost <strong>of</strong> the system. As environmental concerns have gained in<br />
importance over recent years, energy-efficient electric power <strong>steering</strong><br />
mechanisms have be<strong>com</strong>e more popular. So far, the <strong>systems</strong> have been<br />
limited to use on mini-vehicles, but further development could mean they will<br />
soon be found on larger vehicles.<br />
Despite its promise, EPS is really the stepping stone to tomorrow’s full steerby-wire<br />
(SBW) directional control. The theoretical benefits <strong>of</strong> SBW are<br />
<strong>com</strong>pelling. SBW will dispense with all mechanical linkages between the wheel<br />
and the <strong>steering</strong>, freeing-up even more space in the engine <strong>com</strong>partment.<br />
Although all the major <strong>steering</strong> system manufacturers have been developing<br />
SBW <strong>systems</strong> for use in cars, some report on scaling back their development<br />
activities until 42-volt emerges. “There is still a lot <strong>of</strong> work to be done in terms<br />
<strong>of</strong> getting acceptance from the OE,” said an auto executive. “I’m sure the<br />
<strong>market</strong> will <strong>com</strong>e but with some sort <strong>of</strong> back-up system rather than full bywire.”<br />
The recent recall <strong>of</strong> 680,000 Mercedes-Benz and Maybach models fitted<br />
with electro-hydraulic brakes has raised alarm bells over SBW across the auto<br />
industry.<br />
Report coverage<br />
In this second edition <strong>review</strong>ing the key <strong>market</strong> drivers for passenger car and<br />
light vehicle <strong>steering</strong> <strong>systems</strong>, we broaden the analysis, providing forecasts <strong>of</strong><br />
the six types <strong>of</strong> <strong>steering</strong> system:<br />
○<br />
○<br />
Rack Drive Electric Power Steering;<br />
Pinion Drive Electric Power Steering;<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 1 Introduction Page 4<br />
○<br />
○<br />
○<br />
○<br />
Column Drive Electric Power Steering;<br />
Electrically Powered Hydraulic Steering;<br />
Power Rack & Pinion Steering; and<br />
Recirculating Ball Systems.<br />
Although power rack and pinion <strong>steering</strong> <strong>systems</strong> look set to dominate the<br />
<strong>global</strong> vehicle <strong>market</strong> for some years to <strong>com</strong>e - currently accounting for xx% <strong>of</strong><br />
the <strong>global</strong> <strong>market</strong> - demand is gradually switching to electric power <strong>steering</strong><br />
mainly due to fuel consumption and logistical benefits. Consequently, the main<br />
focus <strong>of</strong> this forward-looking report is on the current <strong>market</strong> and outlook for<br />
electrically-assisted <strong>steering</strong> <strong>systems</strong>.<br />
Chapter two sets out our forecast for product trends, fitment levels and <strong>market</strong><br />
wholesale values for all six types <strong>of</strong> <strong>steering</strong> in Western Europe, North<br />
America, Asia-Pacific and worldwide through 2008. It also identifies some<br />
<strong>market</strong> shares for both electrically assisted <strong>steering</strong> and conventional hydraulic<br />
<strong>steering</strong> <strong>systems</strong> in Europe and North America. All in all, this report provides<br />
no less than 50 <strong>market</strong> volume and value forecasts by region and technology<br />
through 2008.<br />
Chapter three sets out some recent innovations and the forces driving those<br />
technical advances.<br />
The likelihood <strong>of</strong> a future dominated by electric <strong>steering</strong> <strong>systems</strong> is prompting<br />
some <strong>market</strong> participants to strengthen their presence in the <strong>market</strong>, investing<br />
in new plant and equipment and forming new joint ventures. For example,<br />
ThyssenKrupp recently acquired a xx% stake in the Mercedes-Benz<br />
Lenkungen <strong>steering</strong> system subsidiary from DaimlerChrysler, adding €xxx<br />
million a year in sales to its growing Presta <strong>steering</strong> system business. In 20xx,<br />
Toyota and three <strong>of</strong> its partners have formed a new joint-venture, called<br />
Favess, to develop, manufacture and sell drive-by-wire electric power <strong>steering</strong><br />
<strong>systems</strong>.<br />
Chapter four provides pr<strong>of</strong>iles <strong>of</strong> the major <strong>steering</strong> system manufacturers,<br />
including Delphi, NSK, ThyssenKrupp, Toyoda Machine Works, TRW, Visteon,<br />
and ZF Lenksysteme.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 The <strong>market</strong> Page 5<br />
Chapter 2 The <strong>market</strong><br />
Market trends<br />
During the last decade or so there has been a slow evolution in power <strong>steering</strong><br />
but recent engine-independent EHPS and EPS have marked a major change<br />
in the technology. While EPS and EHPS have made inroads in Europe and<br />
Japan, American vehicle makers have been reluctant to replace their proven<br />
hydraulic <strong>systems</strong> with the more costly electric ones because they claim the<br />
benefits are largely unnoticeable and the added cost unjustifiable to<br />
customers. EPS <strong>systems</strong> began to appear in the late 1980s, initially in mini<br />
cars. The key benefit <strong>of</strong> EPS is in the increased fuel efficiency obtained by<br />
freeing the engine from powering the <strong>steering</strong> <strong>com</strong>pressor, and demand would<br />
probably be far higher if fuel prices in the US and Japan were as high as they<br />
are in the UK and Germany, for example, where the fuel savings <strong>of</strong> EPS have<br />
sufficient impact to <strong>of</strong>fset the added cost <strong>of</strong> the system.<br />
With regard to power <strong>steering</strong>, there has been a transition from hydraulic to<br />
more environmentally-friendly electronic control <strong>systems</strong>, (hydraulic power<br />
<strong>steering</strong> involves excess pumping, whereas electric power <strong>steering</strong> uses less<br />
energy and is also lighter and more <strong>com</strong>pact). The diffusion <strong>of</strong> electric power<br />
<strong>steering</strong> is led by Europe, with its strict environmental regulations, as well as<br />
by Japan, where small cars are <strong>com</strong>mon.<br />
Electrically power-assisted <strong>steering</strong> <strong>systems</strong> are headed for the mass-<strong>market</strong><br />
worldwide, helped by their potential to save manufacturers money, reduce<br />
customers’ fuel bills, save designers valuable space, and possibly save lives<br />
as well. TRW believes switching to electric can save vehicle makers $5-10 per<br />
car, because the units are quicker to install, eliminate <strong>com</strong>plex set-up<br />
engineering and have fewer moving parts. TRW’s EPHS module is fully filled<br />
with hydraulic fluid and takes GM about 30 seconds to install and connect the<br />
module to the vehicle’s electrical system. Delphi estimates its own system cuts<br />
four minutes <strong>of</strong>f the assembly time <strong>of</strong> a vehicle and reduces <strong>com</strong>ponent parts<br />
stocked from 15 to only two. Delphi also believes that its system can deliver<br />
fuel savings <strong>of</strong> 0.21 to 0.41 kilometres per 100km, because it draws less power<br />
from the engine. Electric <strong>steering</strong> could also be safer, as it still works if the<br />
engine stalls, unlike hydraulic <strong>systems</strong>.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 The <strong>market</strong> Page 6<br />
Market players<br />
The main manufacturers <strong>of</strong> <strong>steering</strong> <strong>systems</strong> are Delphi, Koyo Seiko, NSK,<br />
ThyssenKrupp, Toyoda Machine Works, TRW <strong>Auto</strong>motive, Visteon and ZF<br />
Lenksysteme. Table 1 summarises the major players’ business activities.<br />
Table 1: Major <strong>steering</strong> system and column manufacturers’ business activities<br />
Manufacturer<br />
Business summary<br />
Delphi<br />
Koyo Seiko<br />
NSK<br />
ThyssenKrupp<br />
Toyoda Machine Works<br />
TRW <strong>Auto</strong>motive<br />
Visteon<br />
ZF Lenksysteme<br />
Source: just-auto.<strong>com</strong><br />
Market shares<br />
Electric <strong>steering</strong> <strong>systems</strong><br />
On the world stage, TRW is the world’s largest supplier <strong>of</strong> electrically assisted<br />
<strong>steering</strong> <strong>systems</strong>, closely followed by Koyo Seiko, NSK and Delphi. Koyo<br />
Seiko expects to produce about 10 million EPS units in 20xx, up from xx<br />
million in 20xx. NSK sold xx million EPS units in 20xx, xx million units in 2002<br />
and expect to sell some xx million units in 2006 and 6 million in 20xx, <strong>of</strong> which<br />
around xx% will be produced outside Japan. In 2001, NSK spun <strong>of</strong>f its EPS<br />
business into a separate <strong>com</strong>pany, NSK Steering Systems Co Ltd, in a bid to<br />
accelerate development and production.<br />
In Europe, the main EPS <strong>com</strong>petitors are TRW, Koyo Seiko, Delphi and NSK.<br />
TRW also leads the electro-hydraulic <strong>steering</strong> <strong>systems</strong> <strong>market</strong> in Europe. ZF<br />
Lenksysteme claims to lead the European <strong>steering</strong> <strong>systems</strong> <strong>market</strong> for<br />
<strong>com</strong>mercial vehicles (over 6-tonnes) with a xx% share. The German supplier<br />
claims a xx% share <strong>of</strong> the total European <strong>steering</strong> <strong>market</strong>. Koyo Seiko entered<br />
the European EPS <strong>market</strong> in 19xx, supplying under a joint venture with<br />
Renault. In 20xx, the <strong>com</strong>pany further strengthened its presence in Europe,<br />
setting up the joint venture, Electric Power Steering Components Europe sro,<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 The <strong>market</strong> Page 7<br />
with Mitsubishi Electric in Czech Republic to produce electronic control units<br />
for EPS units in 20xx.<br />
Figure 1: European <strong>market</strong> shares <strong>of</strong> the electrically powered <strong>steering</strong> <strong>systems</strong>, 2003 (% <strong>of</strong><br />
volume)<br />
%<br />
TRW<br />
Koyo<br />
NSK<br />
Delphi<br />
ZF Lenksysteme<br />
Others<br />
Sources: just-auto.<strong>com</strong>; industry estimates.<br />
Delphi, TRW and Koyo are the leading suppliers <strong>of</strong> electric power <strong>steering</strong><br />
<strong>systems</strong> in the North American <strong>market</strong>.<br />
In Japan, Koyo Seiko leads the <strong>market</strong> with a xx% share supplying <strong>steering</strong><br />
<strong>systems</strong> to all the vehicle makers. NSK is in second place with a xx% share<br />
followed by Toyoda Machine Works, Showa and Kayaba Industry. Then there<br />
are vehicle makers’ in-house manufacturing businesses and various joint<br />
ventures that also manufacture their own EPS units. Koyo Seiko has been<br />
manufacturing EPS in Japan since 19xx.<br />
TRW recently expanded its <strong>market</strong> position in the electrically-assisted <strong>steering</strong><br />
system <strong>market</strong>, unveiling its Electrically Powered Hydraulic Steering (EPHS) to<br />
support vehicle makers applying such <strong>systems</strong> to larger vehicles. The<br />
<strong>com</strong>pany has won contracts for the new generation system with two major<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 The <strong>market</strong> Page 8<br />
European vehicle makers, starting production in 20xx. “TRW has developed a<br />
product that delivers improved fuel efficiency, reduced emissions and greater<br />
power output <strong>com</strong>pared to standard EPHS, while retaining the cost benefits <strong>of</strong><br />
an hydraulic system,” said Dr Dieter Fehlings, engineering director <strong>of</strong> EPHS<br />
<strong>steering</strong> for TRW <strong>Auto</strong>motive. “In tests, the new generation <strong>of</strong> EPHS system<br />
delivers an xx% improvement in fuel economy <strong>com</strong>pared to standard hydraulic<br />
<strong>steering</strong> <strong>systems</strong>. This reduction in fuel consumption leads to a respective xx%<br />
improvement in CO2 emissions.”<br />
TRW <strong>Auto</strong>motive claims it is the dominant supplier in the European EPS<br />
arena, with more than a third <strong>of</strong> an estimated $xx billion <strong>market</strong>. The<br />
<strong>com</strong>pany’s column drive EPS <strong>systems</strong> are in production on Renault, Nissan<br />
and Fiat models, with a number <strong>of</strong> launches planned for 2004 model year. “We<br />
are in discussions with a number <strong>of</strong> customers regarding our rack drive<br />
technology that will deliver EPS for D segment vehicles and we are also<br />
working to develop enhanced power output for our column drive EPS system<br />
for upper C segment models,” said Ken Lowe, <strong>steering</strong> product manager for<br />
TRW.<br />
In total, in Europe, TRW <strong>Auto</strong>motive has EPS contracts with three vehicle<br />
makers for xx platforms. In Asia Pacific, the <strong>com</strong>pany has EPS contracts with<br />
two vehicle makers for three platforms. In 20xx, TRW doubled its sales for<br />
these products over the year. The <strong>com</strong>pany’s EPHS is fitted to vehicles in<br />
Europe, North America, Asia-Pacific and South America.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Online sources <strong>of</strong> information Page 9<br />
Online sources <strong>of</strong> information<br />
Free email newsletters<br />
Experience just-auto.<strong>com</strong> via our free newsletters:<br />
○<br />
○<br />
○<br />
Daily industry headlines<br />
The most important headlines direct to your inbox daily.<br />
Dave Leggett's 'Editors weekly highlights'<br />
Dave's unique take on the most important industry events each week.<br />
Oliver Wilkinson's 'Research Update'<br />
A monthly synopsis <strong>of</strong> new, important and reduced-price research.<br />
Sign up at http://www.just-auto.<strong>com</strong>/subscribe_large.asp<br />
Other research reports<br />
Search for related research reports from over 20 leading research suppliers in<br />
the just-auto.<strong>com</strong> store.<br />
Global news and feature articles<br />
Search for related news items and feature articles from just-auto’s news and<br />
feature archives, going back more than four years.<br />
Search the web<br />
Try http://www.google.<strong>com</strong> to search for related web sites and pages.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Your feedback Page 10<br />
Your feedback<br />
Your feedback is greatly valued. Please <strong>com</strong>plete the form below with your<br />
positive and negative <strong>com</strong>ments, along with any questions or queries, and fax<br />
it to us on +44 (0)1527 577 423. Thank you.<br />
Name ________________________ Job title ________________________<br />
Company ________________________ Phone ________________________<br />
Email<br />
________________________<br />
Study title _________________________________________________________________<br />
Things I liked about this study...<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
Things I disliked about this study...<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
My questions regarding the content...<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
I would like to see more information on...<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
Other subject areas <strong>of</strong> interest to me include...<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
_________________________________________________________________________<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.