Automotive Electro-hydraulic Power Steering System Market
By Vehicle;
Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Buses & Coaches and Off-Highway & Specialty VehiclesBy Component;
Steering Motors, Hydraulic Pumps, Sensors & Torque Modules, ECU & Controllers, Reservoirs and Hoses & OthersBy Propulsion;
Internal-Combustion Engine (ICE), Hybrid Electric Vehicle (HEV), Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicles and Fuel-Cell Electric Vehicle (FCEV)By Sales Channel;
Original Equipment Manufacturer (OEM) and AftermarketBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Automotive Electro-hydraulic Power Steering System Market Overview
Automotive Electro-hydraulic Power Steering System Market (USD Million)
Automotive Electro-hydraulic Power Steering System Market was valued at USD 16143.45 million in the year 2024. The size of this market is expected to increase to USD 25922.86 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.0%.
Automotive Electro-hydraulic Power Steering System Market
*Market size in USD million
CAGR 7.0 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 7.0 % |
| Market Size (2024) | USD 16143.45 Million |
| Market Size (2031) | USD 25922.86 Million |
| Market Concentration | Medium |
| Report Pages | 307 |
Major Players
- Bosch
- ZF Friedrichshafen AG
- Nexteer Automotive
- JTEKT Corporation
- NSK Ltd.
- ThyssenKrupp
- Delphi Technologies
- Hyundai Mobis
- Showa Corporation
- Mando Corporation
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Automotive Electro-hydraulic Power Steering System Market
Fragmented - Highly competitive market without dominant players
The Automotive Electro-hydraulic Power Steering (EHPS) System Market is experiencing steady expansion as automakers focus on enhancing driving comfort while improving efficiency. By combining hydraulic strength with electric control, EHPS offers smoother steering and reduces energy use. Around 60% of mid-segment vehicles are already equipped with EHPS, making it a vital solution in the transition toward fully electric steering systems.
Innovation and Smart Integration
Ongoing advancements in electronic control units, smart sensors, and efficient pumps are pushing the adoption of EHPS. Features like variable steering assistance and improved low-speed handling are helping automakers deliver greater safety and convenience. Nearly 40% of new vehicle designs are integrating EHPS with intelligent controls, reflecting its growing role in next-generation steering technologies.
Efficiency and Driving Advantages
EHPS delivers significant performance benefits by cutting energy consumption by nearly 20% compared with conventional hydraulic steering. This is particularly important as automakers face tight emission and efficiency targets. The system provides precise steering responses, improved stability at higher speeds, and reduced fatigue in urban traffic, making it highly attractive for both manufacturers and drivers.
Strong Presence in Hybrid Vehicles
Hybrid vehicles are playing a central role in EHPS market expansion, with nearly 35% of systems installed in hybrid models. EHPS offers an effective balance by enhancing fuel economy while maintaining dependable steering performance. Its adaptability allows manufacturers to deliver cost-efficient electrification solutions, which are gaining demand across different vehicle ranges.
Automotive Electro-hydraulic Power Steering System Market Key Takeaways
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Increasing emphasis on fuel efficiency and reduced CO₂ emissions is driving the adoption of electro-hydraulic power steering (EHPS) systems in modern vehicles.
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EHPS combines the benefits of hydraulic steering feel with electric control, offering improved maneuverability, safety, and driver comfort.
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Asia-Pacific is emerging as the fastest-growing market due to expanding automotive production, urbanization, and increasing demand for passenger and commercial vehicles.
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Integration with advanced driver-assistance systems (ADAS) and steer-by-wire technologies is becoming a key differentiator for manufacturers.
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Challenges include high system costs and complexity in integration with vehicle electronics, which may hinder adoption in entry-level vehicles.
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Opportunities exist in hybrid and electric vehicle segments, where EHPS systems contribute to energy efficiency while maintaining steering performance.
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Strategic collaborations between OEMs, Tier-1 suppliers, and technology providers are driving innovations, product differentiation, and expansion of EHPS adoption globally.
Automotive Electro-hydraulic Power Steering System Market Recent Developments
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In December 2023, Nidec Corporation acquired a firm specializing in Electro-Hydraulic Power Steering (EHPS) systems, broadening its product portfolio and reinforcing its market position in the automotive sector.
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In April 2024, Nexteer Automotive launched an advanced EHPS system integrated with driver assistance technologies, aimed at improving vehicle safety, driving comfort, and overall performance.
Automotive Electro-hydraulic Power Steering System Market Segment Analysis
In this report, the Automotive Electro-hydraulic Power Steering System Market has been segmented by Vehicle, Component, Propulsion, Sales Channel and Geography.
Automotive Electro-hydraulic Power Steering System Market, Segmentation by Vehicle
The Vehicle segmentation links platform-level requirements to steering torque demand, packaging constraints, and lifecycle cost targets across global nameplates. Suppliers tailor assist curves, calibration logic, and hydraulic-electrical interfaces to meet OEM ride-and-handling strategies. Growth is supported by platform consolidation, regional regulations, and continuous technology upgrades.
Passenger Cars
Passenger cars prioritize precise steering feel, compact packaging, and quiet operation for comfort-oriented trims and performance variants. EHPS enables variable assist without excessive parasitic losses while preserving familiar hydraulic feedback. OEMs value robust diagnostics, OTA-ready controls, and supplier-led NVH refinement.
Light Commercial Vehicles
Light commercial vehicles require durable systems, higher torque capacity, and predictable maneuverability for urban delivery cycles. Solutions emphasize reinforced pumps, efficient motors, and thermally stable reservoirs. Fleet buyers monitor uptime, straightforward serviceability, and consistent steering performance under partial loads.
Heavy Commercial Vehicles
Heavy commercial vehicles demand elevated assist for axle loads, extended duty cycles, and high reliability in harsh conditions. EHPS enables energy-optimized pump control and fault-tolerant redundancy. Procurement focuses on long-life components, accessible spares, and validated thermal performance.
Buses & Coaches
Buses & coaches emphasize smooth low-speed maneuvering, operator comfort, and quiet operation for passenger environments. Systems integrate with auxiliary power and smart cooling to support urban stop-start routes. Municipal buyers assess TCO, training-friendly maintenance, and proven durability.
Off-Highway & Specialty Vehicles
Off-highway & specialty vehicles require ruggedized architectures, high torque output, and contamination-tolerant hydraulics. Configurations support wide duty profiles and auxiliary actuation needs across construction and agriculture. Decision factors include service access, configurable HMI, and component interchangeability.
Automotive Electro-hydraulic Power Steering System Market, Segmentation by Component
The Component lens addresses critical building blocks that define efficiency, steering feel, and electronic control sophistication. Integration quality across motors, pumps, sensors, and controllers determines response and long-term reliability. Suppliers differentiate via software robustness, thermal design, and field-proven materials.
Steering Motors
Steering motors deliver precise assist with compact footprints and optimized efficiency over wide duty cycles. Designs favor high torque density, resilient windings, and accurate control for smooth transitions. OEMs evaluate noise signatures, EMC immunity, and lifecycle durability.
Hydraulic Pumps
Hydraulic pumps remain central to pressure generation, with electronically modulated flow that reduces energy waste. Emphasis is on leak-minimizing seals, robust bearing systems, and compact mounting options. Validation covers temperature extremes, vibration resistance, and long service intervals.
Sensors & Torque Modules
Sensors & torque modules provide real-time feedback for assist mapping, stability interfaces, and safety diagnostics. High-resolution torque, angle, and pressure inputs enable nuanced steering feel. Automakers prioritize redundancy, signal integrity, and cybersecurity-aware design.
ECU & Controllers
ECU & controllers orchestrate algorithms, power management, and networked communications with ADAS domains. Advanced software supports fail-operational modes and precise calibration across models. Key criteria include ASIL compliance, robust thermal paths, and OTA-ready firmware.
Reservoirs
Reservoirs secure fluid head, manage aeration, and stabilize temperature for consistent assist. Packaging favors service-friendly access, improved filtration, and durable polymers compatible with modern fluids. Longevity relies on clean return paths and validated seals.
Hoses & Others
Hoses & others encompass pressure lines, fittings, and ancillary hardware that ensure leak-free operation. Specifications address pressure spikes, abrasion resistance, and engine-bay thermal loads. OEMs assess supplier control of tolerances and consistent assembly quality.
Automotive Electro-hydraulic Power Steering System Market, Segmentation by Propulsion
The Propulsion segmentation reflects how powertrain architectures influence steering energy strategies, packaging layouts, and software integration. Transition pathways from ICE to electrified vehicles favor controllable assist and diagnostic-rich electronics. EHPS acts as a bridge technology where efficiency, feel, and legacy compatibility must coexist.
Internal-Combustion Engine (ICE)
ICE platforms leverage EHPS to reduce parasitic losses versus belt-driven units while retaining hydraulic feedback. Calibrations coordinate with engine idle profiles and accessory loads to improve economy. Adoption focuses on cost-conscious nameplates and mid-cycle refreshes.
Hybrid Electric Vehicle (HEV)
HEV applications require seamless assist during engine off/on transitions, favoring responsive motor control and buffered pressure. Systems must integrate with regenerative braking and stability logic. OEMs emphasize NVH refinement and battery-aware energy management.
Battery Electric Vehicle (BEV)
BEV programs prioritize efficient electrical architecture, compact packaging, and precise software control. EHPS serves legacy layouts or specialty applications requiring hydraulic feel while enabling smart power budgeting. Buyers evaluate range impact, thermal robustness, and ADAS-ready interfaces.
Plug-In Hybrid Electric Vehicles
Plug-in hybrid electric vehicles need consistent steering behavior across EV-only and hybrid modes. Controllers handle variable loads, cabin auxiliaries, and power-source switching without driver-perceived lag. Reliability of pumps and motors under mixed duty cycles is paramount.
Fuel-Cell Electric Vehicle (FCEV)
FCEV platforms integrate EHPS with high-voltage buses, humidity-sensitive environments, and space-constrained stacks. Emphasis is on low power draw, robust electronics, and freeze-start durability. Early deployments prioritize proven safety strategies and modular service paths.
Automotive Electro-hydraulic Power Steering System Market, Segmentation by Sales Channel
The Sales Channel dimension differentiates OEM fitment from lifecycle aftermarket replacement and upgrade opportunities. Success hinges on validated quality, reliable logistics, and technical support spanning diagnosis to calibration. Partnerships with dealer networks and independent distributors sustain service coverage.
Original Equipment Manufacturer (OEM)
OEM programs demand platform-wide standardization, rigorous PPAP processes, and robust traceability. Suppliers deliver calibrated software, aligned harnessing, and validated mounting schemes to accelerate launches. Award criteria include cost competitiveness, consistent quality, and global support.
Aftermarket
The aftermarket segment serves service replacement, refurbish, and niche retrofit needs with OE-equivalent performance. Priorities include accurate cataloging, installer-friendly instructions, and dependable warranty backing. Distributors value stable availability, packaging protection, and responsive technical hotlines.
Automotive Electro-hydraulic Power Steering System Market, Segmentation by Geography
In this report, the Automotive Electro-hydraulic Power Steering System Market has been segmented by Geography into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
North America
North America demand benefits from truck-centric mix, tightening efficiency expectations, and robust R&D ecosystems. OEMs prioritize supplier collaboration, field-proven reliability, and analytics-enabled quality control. The outlook favors ongoing modernization of steering across new and refreshed platforms.
Europe
Europe emphasizes precision steering feel, stringent regulatory norms, and rapid electrification across segments. Procurement leans toward high-integration electronics, advanced software, and energy-aware hydraulics. Cross-border partnerships and engineering depth support complex vehicle architectures.
Asia Pacific
Asia Pacific anchors scale manufacturing with diverse vehicle portfolios and competitive cost structures. Investments focus on flexible assembly, resilient supply chains, and localized calibration for regional road conditions. Growth is supported by rising LCV penetration and expanding export programs.
Middle East & Africa
Middle East & Africa opportunities align with fleet renewal, infrastructure expansion, and climate-ready systems capable of high-temperature operation. Buyers emphasize durable mechanicals, accessible service networks, and dependable parts supply. Public–private partnerships encourage capability building.
Latin America
Latin America growth reflects recovery in production, targeted modernization of steering in volume segments, and strengthening aftermarket ecosystems. Priorities include predictable lead times, robust warranty support, and adaptable pricing models. Regional localization and supplier training reinforce long-term resilience.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Automotive Electro-hydraulic Power Steering System Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers
- Performance Enhancement
- Fuel Efficiency
- Safety and Stability
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Adaptability to Hybrid and Electric Vehicles: One of the primary drivers propelling the Global Automotive Electro-hydraulic Power Steering System Market is its adaptability to hybrid and electric vehicles (EVs). As the automotive industry undergoes a profound shift towards electrification, with hybrid and electric vehicles gaining traction, the demand for efficient and responsive steering systems compatible with these powertrains has surged. Electro-hydraulic power steering systems offer a compelling solution for hybrid and electric vehicles, providing the benefits of hydraulic assistance while incorporating electronic controls for enhanced efficiency and adaptability. This adaptability is crucial for optimizing energy usage in hybrid and electric vehicles, contributing to extended driving range and improved overall performance.
Electro-hydraulic power steering systems play a vital role in enhancing the driving experience and safety of hybrid and electric vehicles. By seamlessly integrating hydraulic and electronic components, these systems offer precise and intuitive steering feedback, contributing to enhanced vehicle maneuverability and stability. Additionally, the adaptability of electro-hydraulic power steering systems enables automakers to fine-tune steering characteristics to suit the unique dynamics of hybrid and electric powertrains. As consumer preferences shift towards environmentally-friendly vehicles, the ability of electro-hydraulic power steering systems to complement the performance and efficiency of hybrid and electric vehicles positions them as indispensable components in the evolving automotive landscape.
Restraints
- Transition to Electric Power Steering (EPS)
- Cost Concerns
- Maintenance Complexity
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Weight and Packaging Constraints: Weight and packaging constraints pose significant challenges to the Global Automotive Electro-hydraulic Power Steering System Market. As automotive manufacturers strive to improve fuel efficiency and reduce vehicle emissions, the weight of vehicle components becomes a critical consideration. Electro-hydraulic power steering systems, although offering superior performance compared to traditional hydraulic systems, often require additional components such as electronic control units and sensors. These added components contribute to increased vehicle weight, which can counteract efforts to enhance fuel efficiency and overall vehicle performance. Moreover, the integration of these systems into existing vehicle architectures presents packaging challenges, especially in compact and electric vehicles where space is limited. Manufacturers must navigate the trade-off between system performance, weight considerations, and packaging constraints to ensure optimal balance and compatibility with diverse vehicle platforms.
Weight and packaging constraints can impact vehicle design, manufacturing costs, and overall user experience. The installation of bulky electro-hydraulic power steering components may necessitate design modifications or compromises in other areas, potentially affecting interior space, cargo capacity, and overall vehicle aesthetics. Additionally, the complexity of packaging these systems can lead to increased manufacturing complexity and assembly time, resulting in higher production costs. Moreover, the added weight from electro-hydraulic power steering systems can affect vehicle handling dynamics, potentially compromising driving comfort and agility. Addressing these restraints requires innovative engineering solutions focused on minimizing component size and weight while maintaining performance and reliability standards, thereby enabling seamless integration and optimal vehicle performance.
Opportunities
- Rising Demand for Electric Vehicles (EVs)
- Integration with Advanced Driver Assistance Systems (ADAS)
- Expansion in Emerging Markets
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Customization and Differentiation: Customization and differentiation present lucrative opportunities within the Global Automotive Electro-hydraulic Power Steering System Market, allowing manufacturers to tailor their offerings to meet specific customer requirements and stand out in a competitive landscape. As automakers seek ways to distinguish their vehicles in a crowded market, steering systems play a crucial role in shaping the driving experience and overall brand perception. Electro-hydraulic power steering systems offer flexibility in design and performance, enabling manufacturers to fine-tune steering characteristics such as responsiveness, feedback, and assistance levels. This customization capability allows automakers to cater to diverse consumer preferences, whether it be sporty handling for performance-oriented vehicles or relaxed steering for luxury models.
Differentiation through innovative features and technology integration presents another avenue for market growth. Electro-hydraulic power steering system suppliers can capitalize on emerging trends such as steer-by-wire technology, haptic feedback, and predictive steering assistance to offer unique value propositions to automakers and end consumers. By investing in research and development initiatives, manufacturers can pioneer advancements in steering system functionality, safety, and connectivity, thereby enhancing vehicle competitiveness and customer appeal. Additionally, the ability to integrate electro-hydraulic power steering systems seamlessly with other vehicle systems, such as advanced driver assistance systems (ADAS) and electric powertrains, further reinforces their role as a key differentiator in the automotive market.
Automotive Electro-hydraulic Power Steering System Market Competitive Landscape Analysis
Automotive Electro-hydraulic Power Steering System Market is witnessing intense competition driven by technological integration, regulatory compliance, and evolving consumer expectations. Nearly 63% of the market is led by global automotive suppliers employing advanced strategies to enhance efficiency and reliability. Strong partnerships, continuous innovation, and targeted expansion are fueling steady growth in both passenger and commercial vehicle segments.
Market Structure and Concentration
The structure shows moderate-to-high concentration, with nearly 58% of revenue generated by leading OEM-focused enterprises. Mid-sized companies represent around 27%, applying specialized strategies and regional collaboration to strengthen competitiveness. Smaller participants capture about 15%, leveraging affordability and localized expansion while pursuing niche opportunities within aftermarket solutions.
Brand and Channel Strategies
Brand visibility is enhanced by diversified strategies, with nearly 54% of firms prioritizing OEM contracts and 32% leveraging aftermarket distribution. Strong partnerships with automakers improve credibility and integration into vehicle platforms. Companies emphasize quality assurance, service support, and innovation-driven differentiation to ensure consistent growth across multiple automotive segments.
Innovation Drivers and Technological Advancements
Close to 71% of competitive edge stems from innovation in electronic control units, sensors, and hybrid steering solutions. Companies are investing in technological advancements that enhance steering precision, fuel efficiency, and driver safety. Strategic collaboration with research institutions and automakers ensures sustainable growth while accelerating the shift toward semi-autonomous and electric vehicle platforms.
Regional Momentum and Expansion
North America contributes nearly 39% of share, while Europe accounts for 31% with strong regulatory and R&D frameworks. Asia-Pacific exceeds 26%, driven by rapid vehicle production and expansion of electric vehicle adoption. Companies adopt localized strategies and form partnerships with regional automakers, ensuring broader accessibility and competitiveness across diverse markets.
Future Outlook
The future outlook underscores increasing adoption of integrated steering systems aligned with autonomous driving. Nearly 69% of firms highlight innovation in energy-efficient systems and strategic merger activities to enhance portfolios. Sustained growth is expected through deeper collaboration with electric vehicle manufacturers and targeted expansion into emerging automotive markets.
Key players in Automotive Electro-hydraulic Power Steering System Market include:
- Robert Bosch GmbH
- ZF Friedrichshafen AG
- JTEKT Corporation
- Nexteer Automotive Corporation
- Mando Corporation
- NSK Ltd.
- Continental AG
- Thyssenkrupp Presta AG
- Hitachi Astemo
- Showa Corporation
- TRW Automotive
- Mitsubishi Electric
- Aisin Seiki
- Magna International
- Sona Koyo Steering
In this report, the profile of each market player provides following information:
- Market Share Analysis
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Vehicle
- Market Snapshot, By Component
- Market Snapshot, By Propulsion
- Market Snapshot, By Sales Channel
- Market Snapshot, By Region
- Automotive Electro-hydraulic Power Steering System Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Performance Enhancement
- Fuel Efficiency
- Safety and Stability
- Adaptability to Hybrid and Electric Vehicles
- Restraints
- Transition to Electric Power Steering (EPS)
- Cost Concerns
- Maintenance Complexity
- Weight and Packaging Constraints
- Opportunities
- Rising Demand for Electric Vehicles (EVs)
- Integration with Advanced Driver Assistance Systems (ADAS)
- Expansion in Emerging Markets
- Customization and Differentiation
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Automotive Electro-hydraulic Power Steering System Market, By Vehicle, 2021 - 2031 (USD Million)
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Buses & Coaches
- Off-Highway & Specialty Vehicles
- Automotive Electro-hydraulic Power Steering System Market, By Component, 2021 - 2031 (USD Million)
- Steering Motors
- Hydraulic Pumps
- Sensors & Torque Modules
- ECU & Controllers
- Reservoirs
- Hoses & Others
- Automotive Electro-hydraulic Power Steering System Market, By Propulsion, 2021 - 2031 (USD Million)
- Internal-Combustion Engine (ICE)
- Hybrid Electric Vehicle (HEV)
- Battery Electric Vehicle (BEV)
- Plug-In Hybrid Electric Vehicles
- Fuel-Cell Electric Vehicle (FCEV)
- Automotive Electro-hydraulic Power Steering System Market, By Sales Channel, 2021 - 2031 (USD Million)
- Original Equipment Manufacturer (OEM)
- Aftermarket
- Automotive Electro-hydraulic Power Steering System Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Automotive Electro-hydraulic Power Steering System Market, By Vehicle, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Robert Bosch GmbH
- ZF Friedrichshafen AG
- JTEKT Corporation
- Nexteer Automotive Corporation
- Mando Corporation
- NSK Ltd.
- Continental AG
- Thyssenkrupp Presta AG
- Hitachi Astemo
- Showa Corporation
- TRW Automotive
- Mitsubishi Electric
- Aisin Seiki
- Magna International
- Sona Koyo Steering
- Company Profiles
- Analyst Views
- Future Outlook of the Market

