The global automotive power steering gears market to grow at a CAGR of 3.94% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global automotive power steering gears market for 2017-2021. To calculate the market size, the report considers the new installations, shipments, and volume. The report also includes a discussion of the key vendors operating in this market.
The latest trend gaining momentum in the market is growing pursuit of electrohydraulic power steering in HCVS. As part of the electrification trend in the automotive industry, energy saving is one of the most important concerns for the development of new vehicles, especially for power steering systems. In a hydraulic power steering system, 70% of the fuel gets consumed by hydraulics, which can be avoided. Hence, the application of more advanced power steering systems such as electric power steering and electrohydraulic power steering can help achieve fuel economy.
According to the report, one of the major drivers for this market is growing penetration of utility vehicles in APAC. In China, SUV production will grow up to seven million by 2018 despite the weakening growth rate of the Chinese passenger car market, which slumped to about 4% in 2015 from 9% in 2014. The sales of SUVs would be the main driving factor for the passenger car market in China. SUVs occupied approximately 30% share of the passenger car market in China in 2015. The increasing preference for larger vehicles in China due to the perception of having a higher social status with the ownership of bigger cars is mainly driving the market for SUVs in China.
Further, the report states that one of the major factors hindering the growth of this market is steering gear replacement cost. The average cost of steering gearbox replacement is between $620 and $820. The labor costs are estimated to be between $149 and $189, while the component parts are priced approximately between $471 and $631. There is a high cost involved in replacing a steering gear.