LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global electric power steering system market and the market is poised to experience spend growth of more than USD 9 billion between 2017-2022 at a CAGR of over 6% during the forecast period. Request Free Sample Pages.
Read the 103-page research report with TOC and LOE on "The Global Electric Power Steering System Market, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
The growing popularity of self-driving vehicles is driving demand growth in the electric power steering system market across the globe. Vehicles that are fitted with electric power steering tend to have a reduced overall weight and a subsequent minimization of fuel consumption. Stringent government regulations especially in North America and Europe, to reduce automotive emissions, are compelling automotive manufacturers to opt for high-quality engine electronics. This is contributing to the spend momentum in the electric power steering system market.
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Insights into market price trends:
- Suppliers are tackling a substantial hike in their manufacturing expenses owing to the increase in the prices of raw materials such as steel, iron, aluminum, copper, and crude oil derivatives. This, in turn, is exerting an inflationary impact on the electric power steering market price.
- Suppliers are consistently investing in marketing and promotional activities to remain competitive in the market. This is incurring them extra operational costs, a significant portion of which in passed on to buyers. This is increasing the market price during the forecast period.
What are the strategies that buyers must adopt to optimize procurement spend in this market?
Strategic partnerships with suppliers will play vital roles in unlocking avenues to save costs for buyers during the contract period. Insights into some of the strategies that buyers must follow while negotiating and during the contract period with suppliers are given below:
Engage with suppliers who assist in forecasting demand and prices in this market
Usually, buyers are observed to hire consultants to forecast the market prices with respect to the procurement of electric power steering systems. This increases buyer's managemental efforts and procurement cost in the electric power steering system market. Buyers are advised to engage with suppliers who adopt strategies to forecast the demand and prices of key input raw materials. The demand and prices of raw materials can be identified by implementing effective predictive analytical tools. Such activities can help suppliers to procure raw materials at low prices to manufacture electric power steering systems. This, in turn, helps buyers to procure at a low price as well as mitigate ad hoc spend in the electric power steering system market.
Execute a risk assessment study
Prior to finalizing a contract with suppliers, it is a crucial task for buyers to perform a risk assessment study to evaluate and analyze potential risks such as regulatory risk, supply chain risk, and operational risk involved during the procurement of an electric power steering system. A risk assessment study helps buyers to develop proactive mitigation strategies against possible risks to avoid supply chain disruptions. Supply assurance is a highly critical parameter to consider in the procurement of electric power steering systems. Disruptions or variations in quantity/quality of an electric power steering system supplied may critically affect buyers' end-product sales.
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Some of the key topics covered in this report are:
- Electric power steering system market spend segmentation by region
- Total cost of ownership analysis in the electric power steering system market
- Regional spend opportunity for electric power steering system suppliers
- Electric power steering system suppliers cost structure
- Electric power steering system pricing models analysis
- Electric power steering system procurement best practices
- Category management objectives
- Cost saving opportunities in the electric power steering system market
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