global market review of automotive glazing systems â€“ forecasts

Global market review of automotive steering systems – forecasts to 2014

2009 edition

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© 2008 All content copyright Aroq Ltd. All rights reserved.

Global market review of automotive

steering systems – forecasts to 2014

2009 edition

By Matthew Beecham

November 2008

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Page iv Contents


Contents

Single-user licence edition .......................................................................................................... ii

Copyright statement ............................................................................................................... ii Incredible ROI for your budget – single and multi-user licences ............................................. ii

just-auto.com membership ..................................................................................................... iii

Contents ...................................................................................................................................... iv

List of figures .............................................................................................................................. vi

List of tables .............................................................................................................................. vii

Preface ........................................................................................................................................ ix

Research methodology ......................................................................................................... ix

Report coverage ................................................................................................................... ix The author ............................................................................................................................. x

Chapter 1 Introduction ................................................................................................................ 1

Chapter 2 The market .................................................................................................................. 2

Market players ....................................................................................................................... 2

JTEKT ........................................................................................................................... 2

NSK ............................................................................................................................... 2

Showa Corp ................................................................................................................... 2 ThyssenKrupp ............................................................................................................... 3

TRW Automotive ........................................................................................................... 3 ZF Lenksysteme ............................................................................................................ 3

Emerging markets .................................................................................................................. 4 China ............................................................................................................................. 4

India .............................................................................................................................. 5 Slovakia ......................................................................................................................... 6 Thailand ........................................................................................................................ 7

Market shares ........................................................................................................................ 7 Electric steering systems ............................................................................................... 7

Hydraulic steering systems ............................................................................................ 8 Market size by product type ................................................................................................... 9

Europe ......................................................................................................................... 10 North America.............................................................................................................. 10 Asia-Pacific .................................................................................................................. 11

Market forecasts .................................................................................................................. 14 Electric power steering systems ................................................................................... 14

Electric powered hydraulic steering.............................................................................. 16 Hydraulic power steering ............................................................................................. 19 Manual steering ........................................................................................................... 20

Market value forecasts ......................................................................................................... 22

Page v Contents


Electric power steering systems ................................................................................... 24 Electric powered hydraulic steering.............................................................................. 26 Hydraulic power steering ............................................................................................. 27

Manual steering ........................................................................................................... 28

Chapter 3 Technical review ....................................................................................................... 29

Defining the elements .......................................................................................................... 29 Recent innovations .............................................................................................................. 31 Tomorrow’s steering systems ............................................................................................... 31

Q&A with TRW Automotive .......................................................................................... 33 Q&A with tedrive .......................................................................................................... 40

Chapter 4 Manufacturers ........................................................................................................... 44

China Automotive Systems .................................................................................................. 44 JTEKT Corporation .............................................................................................................. 45 NSK ..................................................................................................................................... 47 Showa Corporation .............................................................................................................. 49

ThyssenKrupp ...................................................................................................................... 51 TRW Automotive .................................................................................................................. 53

ZF Lenksysteme .................................................................................................................. 55

Page vi List of figures


List of figures

Figure 1: ZF Lenksysteme Servolectric Steering System ............................................................... 4

Figure 2: OE manufacturer shares of the European electric power steering systems market, 2007

(% of volume)........................................................................................................... 7

Figure 3: OE manufacturer shares of the European hydraulic vehicle steering market, 2007 (% of

volume) .................................................................................................................... 8

Figure 4: OE manufacturer shares of the North American hydraulic vehicle steering market, 2007

(% of volume)........................................................................................................... 9

Figure 5: Proportion of steering systems fitted to passenger cars and light trucks, divided by

product type, Europe, 2008 (% of volume) ............................................................. 10

Figure 6: Proportion of steering systems to passenger cars and light trucks, divided by product

type, North America, 2008 (% of volume) ............................................................... 11


product type, Asia-Pacific, 2008 (% of volume) ...................................................... 13


product type, Europe, North America and Asia-Pacific, 2008 (% of volume) ........... 13

Figure 9: TRW’s EPS system. TRW says its EPS can provide Torque Overlay capability which is a

key requirement for features like Park Assist and Lane Departure Systems ........... 18

Figure 10: TRW’s Electrically Powered Hydraulic Steering (EPHS) .............................................. 19

Figure 11: ZF Lenksysteme Servolectric Steering System ........................................................... 56

Page vii List of tables


List of tables

Table 1: Electric power steering system market volumes by rack drive, pinion drive and column

drive, Europe, 2004-2014 (‘000 units) .................................................................... 15


drive, North America, 2004-2014 (‘000 units) ......................................................... 15


drive, Asia-Pacific, 2004-2014 (‘000 units) ............................................................. 16


drive, Europe, North America and Asia-Pacific, 2004-2014 (‘000 units) .................. 16

Table 5: Electric powered hydraulic steering total market volumes, Europe, North America and

Asia-Pacific, 2004-2014 (‘000 units) ....................................................................... 18

Table 6: Hydraulic powered rack and pinion steering total market volumes, Europe, North America

and Asia-Pacific, 2004-2014 (‘000 units) ................................................................ 20

Table 7: Manual rack and pinion steering total market volumes, Europe and Asia-Pacific, 2004-

2014 (‘000 units) .................................................................................................... 21

Table 8: Recirculating ball steering total market volumes, Europe, North America and Asia-Pacific,

2004-2014 (‘000 units) ........................................................................................... 21

Table 9: Electric power steering system market values by rack drive, pinion drive and column

drive, Europe, 2004-2014, (EUR ‘000s) ................................................................. 24


drive, North America, 2004-2014 (EUR ‘000s) ....................................................... 24


drive, Asia-Pacific, 2004-2014 (EUR ‘000s) ........................................................... 25


drive for total Europe, North America and Asia-Pacific, 2004-2014 (EUR ‘000s) .... 26

Table 13: Electric powered hydraulic steering market values by rack drive, pinion drive and column

drive for total Europe, North America and Asia-Pacific, 2004-2014 (EUR ‘000s) .... 26

Table 14: Hydraulic powered rack and pinion steering market values by rack drive, pinion drive

and column drive for total Europe, North America and Asia-Pacific, 2004-2014 (EUR

‘000s) ..................................................................................................................... 27

Table 15: Manual rack and pinion steering market values by rack drive and column drive for total

Europe, North America and Asia-Pacific, 2004-2014 (EUR ‘000s).......................... 28

Page viii List of tables


Table 16: Recirculating ball steering market values by rack drive, pinion drive and column drive for

total Europe, North America and Asia-Pacific, 2004-2014 (EUR ‘000s) .................. 28

Table 17: JTEKT Corporation’s steering system facilities worldwide, 2008 ................................... 46

Table 18: Showa Corporation’s steering businesses worldwide, 2008 .......................................... 50

Table 19: TRW Automotive’s steering system facilities worldwide, 2008 ...................................... 54

Table 20: ZF Lenksysteme’s facilities worldwide, 2008 ................................................................ 57

Page ix Preface


Preface

Research methodology

This report is intended to provide an overview of the vehicle steering systems,

providing top level market fitment, volume and value forecasts through 2014.

Our forecasts are not extrapolative but dependent on the underlying drivers of

supply and demand. Our forecasts are largely based on interviews with the

author’s extensive international network of industry contacts. This allows us to

consider and explain the meaning and implications of industry events, rather

than offer simple description based on incomplete data.

Our approach is divided into two distinct methodologies:

o qualitative interviews – these are generally opinion-based, which aim

to build knowledge about future steering system market trends and

company strategies; and

o quantitative interviews – typically fact-based, focused on establishing

market values, shares, and volumes.

Our research typically concentrates on applications for light vehicles which

include all cars, light trucks and the various cross-over vehicle styles such as

sports utility vehicles and people carriers. These vehicles collectively account

for about 96% of the global vehicle build.

Our market forecasts are set out by major light vehicle-producing region, i.e.

Europe, North America and Asia-Pacific. For the purposes of this report,

except where expressly stated, Europe includes Austria, Belgium, Bulgaria, the

Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,

Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands,

Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden,

Switzerland, Turkey and the UK. North America includes the US, Canada and

Mexico. Finally, for the purposes of this report, the Asia-Pacific region consists

of Japan, China, India and South Korea.

Report coverage

In this, the fifth edition of this report, just-auto reviews the key market drivers

for automotive steering systems, and updates the market analysis. Following

Page x Preface


our market overview in Chapter 1, just-auto‟s product fitment forecasts in

Chapter 2 predict the market (by volume and value) in Europe, North America

and Asia-Pacific for steering systems by type, i.e. Rack Drive Electric Power

Steering; Pinion Drive Electric Power Steering; Column Drive Electric Power

Steering; Electrically Powered Hydraulic Steering; Power Rack and Pinion

Steering; and Recirculating Ball Systems. Chapter 3 reviews recent some

technical advances, while Chapter 4 sets out brief profiles of the major

manufactures, namely China Automotive Systems, JTEKT, NSK, Showa, TRW

Automotive and ZF Lenksysteme.

The author

Matthew Beecham has more than 15 years’ experience of researching, writing

and analysing market and technical trends in the global automotive

components industry. Since 2000, he has served as an associate editor for

just-auto. In addition to steering systems, the authors a range of global auto

components’ market research reviews, including batteries, braking systems,

clutches, coatings, cockpits, driver assistance systems, door modules, electric

motors, engine cooling systems, exhaust systems, front-end modules, fuel

injection, fuel tanks, glazing systems, ignitions, interiors, lighting, mirrors, roof

systems, shock absorbers, spark plugs, rotating electrics, tyre pressure

monitoring systems, tyres, wheels and wipers. Matthew’s freelance

assignments have included working for AT Kearney, McKinsey, Kuwait

Institute for Scientific Research, Motorsport Industry Association, Motor

Industry Research Association and the Economist Intelligence Unit. He has

also written for magazines including Car Graphic (Japan), JAMA (Japan) and

Automotive Engineer (UK). He was awarded a PhD in automotive technology

transfer from Cranfield University.

Chapter 1 Introduction


Chapter 1 Introduction

For many years, power steering technology was focused on hydraulic systems

but demand is now favouring electric power steering mainly due to fuel

consumption and logistical benefits. Electric power steering (EPS) systems

effectively eliminate the traditional hydraulic system’s power steering pump,

hoses, hydraulic fluid, and drive belt and pulley on the engine.

More specifically, EPS offers significant fuel efficiency advantages and

reduced CO2 and greenhouse gas emissions as steering assist is only

supplied upon driver demand through an electric drive system that is

independent of the engine. Because electric steering systems operate under

computer control, steering feel can be tuned through software and enables

integration with other electronically controlled technologies such as electronic

stability control braking systems. Electric steering systems are also suitable for

supporting electric vehicle architectures. An EPS system can effectively

change the assist force for steering operation depending on information such

as steering angle, steering angle velocity, speed and acceleration of the

vehicle and each wheel, and yaw rate. The EPS system can therefore not only

reduce the steering load but also optimise the assist force depending on the

driving situation.

In an exclusive interview with just-auto, Charlie Cregeur, director, global

steering product planning for TRW Automotive’s chassis division, outlined the

next generation EPS. He said: “For the next decade, the market will continue

to increase fitment of EPS and will strive to have large segment vehicles

matching the performance of the lower end B and C segments. OEMs will add

more functionality to steering systems thru software algorithms that can for

example help offset the effects of side-wind forces on the vehicle, suppress

some hand-wheel vibrations due to chassis components and enable higher

fitment rates of marketable features like park assist.”

Chapter 2 The market


Chapter 2 The market

Market players

This section sets out thumbnail profiles of the main manufacturers of steering

systems, namely JTEKT, NSK, Showa Corp, ThyssenKrupp, TRW Automotive

and ZF Lenksysteme.

JTEKT

Japan’s JTEKT designs and manufactures steering systems, driveline parts,

bearings, machine tools and electronic control devices. Its steering systems

products include column-type electric power steering systems, electronically

controlled variable gear ratio steering, electronically controlled hydraulic power

steering and power steering pumps. On a consolidated basis, JTEKT employs

xxxxxx people worldwide. JTEKT currently operates two plants in Japan, three

in Europe, two in North America, one in China and one in Thailand that are

either manufacturing or preparing to manufacture EPS. The company says it

will continue strengthening its global network of EPS production bases.

NSK

Tokyo-based NSK Ltd is a major manufacturer of bearings and steering

systems. Its steering products include electric power steering systems and

steering colum ns. Founded in Japan in 1916, NSK em ploys xxxxxx people at

sites in xx countries. The com pany operates steering production facilities in

the US, UK, Poland, Thailand, India, China, Japan and Thailand. NSK

generated sales revenues of som e JPYxxxbn in the fiscal year ended 31

March 2008.

Showa Corp

Showa Corp designs and manufactures shock absorbers, steering systems

and drivetrain products for vehicles and motorcycles. Headquartered in

Saitama, Japan, Showa operates five manufacturing plants, three R&D

facilities and two manufacturing subsidiaries in Japan. The company’s global

em pire, consisting of a network of xx m anufacturing bases that includes xx

consolidated subs idiaries, s preads over xx countries including Japan. Over the

past two years, Showa has strengthened its manufacturing presence in Asia,

establishing Showa Autoparts (Thailand) Co Ltd to manufacture components

for both hydraulic and electrical power steering systems and Showa India

Chapter 3 Technical review


Chapter 3 Technical review

Defining the elements

The steering system has a significant influence on vehicle performance and

reliability. Electric power steering systems and hydraulic power steering

systems with motor-driven pumps are superior to conventional hydraulic power

steering in regard to both efficiency and size.

Power steering refers to the components added to assist steering effort and

provide drivers with comfortable manoeuvrability.

In a hydraulic power steering system, part of the rack bar (output shaft) is

contained in a hydraulic cylinder through which the system assists in the

motion of the rack bar, with the hydraulic pressure generated by a pump driven

by engine output. This type of steering system can save energy by using a

variable-capacity pump to vary the delivery flow rate. It can be used on

vehicles of all shapes and sizes, ranging from compacts to full-sized cars.

There are basically three types of hydraulic power steering, namely:

o Rack and pinion hydraulic power steering – a lightweight unit offering a

smooth steering feel. It can be applied to a range of vehicles from

small passenger cars to minivans. As the name suggests, this type of

steering consists of a rack and a pinion. According to Bosch, the

steering ratio is defined by the ratio of pinion revolutions, i.e. steering

wheel revolutions, to rack travel. Suitable toothing of the rack allows

the ratio to vary as a function of travel, says Bosch. This lowers the

operating force and reduces the travel for steering adjustments.

o Electronically controlled hydraulic power steering – the performance of

this system corresponds to vehicle speed.

o Ball screw-type hydraulic power steering – this system is typically

applied to trucks and buses. The linkage that turns the wheels is

slightly different than on a rack and pinion hydraulic steering system.

Bosch points out that the forces generated between steering worm and

steering nut are transmitted via a low-friction row of recirculating balls.

The steering nut acts on the steering shaft via gear teeth.

While hydraulic power steering derives its power from the vehicle’s engine,

electric power steering derives its power from an electric motor, enabling

Chapter 4 Manufacturers


Chapter 4 Manufacturers

China Automotive Systems

China Automotive Systems produces power steering components and

systems. Headquartered in Hubei Province, the company operates nine

subsidiaries. In February 2007, China Automotive Systems opened its first US

base, in Troy, Michigan. The Troy office focuses on market development, R&D

and aftersales service in North America. In addition, China Automotive

System s em ploys xxx engineers at three R&D centres in China .

China Automotive Systems has been manufacturing power steering systems

for the past ten years. Its product range includes rack and pinion power

steering, integral power steering, electronic power steering and manual

steering, steering columns, steering oil pumps and steering hoses.

In June 2006, China Automotive Systems formed a joint venture to make EPS

systems and parts. The venture, known as Wuhan Jielong Electric Power

Steering Co Ltd, is based in Wuhan City, Hubei, China. The total registered

capital of the joint venture is US$xm , of which China Autom otive S ystem s has

an xx% ownership and Hong Kong Tongda, the joint venture partner, has the

rem aining xx% ownership. The joint venture comm enced production in 2007.

A China Automotive Systems’ subsidiary, Jingzhou Henglong Automotive

Parts, has a deal with FAW Volkswagen to supply power steering systems.

The first shipment was made on 21 May 2007. The deal lasts for one year with

an option to extend for a further two years. The systems are being installed in

VW Jetta and Audi vehicles in China. Other terms of the contract were not

disclosed. With this supply agreement, China Automotive Systems has entered

into Volkswagen’s global sourcing system1.

China Automotive Systems increased 2008 first quarter net profit net income

by xxx% year on year to US$xxxm . Its operating incom e rose xxxx% to

1 According to the China Association of Automobile Manufacturers, two key Volkswagen joint

ventures in China, FAW Volkswagen and Shanghai Volkswagen, collectively produced and sold

more than xxxxxxx passenger cars in China in 2006. FAW Volkswagen reported a xx% year-over-

year unit sales growth in 2006. In the first quarter of 2007, FAW Volkswagen’s production and

sales unit growth accelerated to xx% up from the same period in 2006.

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