Electric Power Steering Market

Electric Power Steering Market Size:

The global electric power steering market size reached USD 29.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 45.3 Billion by 2033, exhibiting a growth rate (CAGR) of 4.59% during 2025-2033. The rising demand for fuel-efficient vehicles, the growing adoption of electric and hybrid cars, the increasing implementation of government regulations promoting eco-friendly transportation, advancements in electric power steering technology, and the introduction of torque sensor systems represent some of the key factors driving the market.

Electric Power Steering Market Analysis:

• Major Market Drivers: Some of the key market drivers are the rising demand for fuel-efficient and lightweight vehicles, increased adoption of electric and hybrid vehicles, stringent government regulations promoting emission control, and advancements in steering technologies such as autonomous driving systems.
• Key Market Trends: Some of the leading trends in the market include the integration of advanced driver-assistance systems (ADAS), the rise of steer-by-wire technology, and the increasing demand for electric power steering in commercial vehicles.
• Geographical Trends: Asia Pacific is leading the electric power steering market growth due to the presence of major automotive manufacturers, rapid industrialization, growing consumer demand for electric vehicles, and the implementation of favorable government incentives supporting eco-friendly transportation.
• Competitive Landscape: Some of the key market players include HELLA GmbH & Co. KGaA (Faurecia SE), Hycet Technology Co. Ltd (Great Wall Motor Company Limited), JTEKT Corporation, Mitsubishi Electric Corporation, Nexteer Automotive, NSK LTD, NXP Semiconductors N.V., Robert Bosch GmbH, ThyssenKrupp AG, TT Electronics plc, and ZF Friedrichshafen AG, among others.
• Challenges and Opportunities: Some of the challenges in the market include high costs associated with the implementation of electric power steering systems and technical complexities. However, opportunities lie in the development of autonomous vehicles and further advancements in steering system technologies.
   

Electric Power Steering Market Trends:

Rising adoption of electric and hybrid vehicles

The rising adoption of electric and hybrid vehicles is another major driver of the EPS market, as automakers shift toward more energy-efficient technologies to meet environmental and regulatory demands. As the consumer preference towards sustainable transportation continue to grow, an increasing demand for electric and hybrid vehicles is likely to be accompanied by greater EPS system demand. EPS systems also enhance the overall performance of vehicles, which are expected to provide not only efficiency and sustainability but also advanced features such as automatic parking and lane-keeping capabilities, making them increasingly desirable in the production of electric and hybrid vehicles. As such, this will continue and expand the EPS market outlook in the global aspects.

Rising focus on vehicle safety and performance

The increasing focus on vehicle safety and performance is a primary growth driver for the market due to consumers and manufacturers focusing more on enhancing safety features, along with better driving experiences. EPS plays a crucial role in supporting various advanced driver-assistance systems that are integral to modern vehicles. In addition to enhancing vehicle safety, EPS governs essential features such as lane-keeping assistance, automatic emergency steering, and adaptive cruise control in contemporary vehicles. This increased emphasis on vehicle performance is further aligned with consumer preferences for improved handling responsiveness and reduced driver fatigue, which fulfills regulatory demands and addresses the changing needs of drivers. As manufacturers strive to comply with increasingly stringent safety regulations and meet growing consumer expectations, the demand for EPS systems has risen significantly.

Growing adoption of EPS to improve driving experience

The adoption of electric power steering (EPS) systems is increasing in modern vehicles, given their numerous advantages over conventional hydraulic power steering systems. EPS not only enhances fuel efficiency by reducing energy consumption but also offers superior control and precision, contributing to a more refined and responsive driving experience. It also provides varying levels of steering assistance. Moreover, EPS is more commonly used than hydraulic power steering due to the fact that EPS systems are typically lighter than hydraulic systems. This aids in decreasing mechanical intricacy and results in reduced maintenance needs. As manufacturers increasingly prioritize efficiency and performance in vehicle design, there is a rising demand for EPS systems, which is contributing to the growth of the market.

Electric Power Steering Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, mechanism, type, and vehicle type.

Breakup by Component:

• Steering Column
• Sensors
• Steering Gear
• Mechanical Rack and Pinion
• Electronic Control Unit
• Electric Motor
• Others
   

Sensors dominate the market

The report has provided a detailed breakup and analysis of the market based on the component. This includes steering column, sensors, steering gear, mechanical rack and pinion, electronic control unit, electric motor, and others. According to the report, sensors represented the largest segment.

Sensors are leading the market segment due to their critical role in developing high-performance accuracy and safety for power-steering electric systems. Torque, position, and speed sensors allow for real-time data that could be feasible only in producing precision steering and vehicle stability control, crucial for both electric and autonomous vehicles. In addition, sensor technologies can also improve the power use of steering to help reduce the consumption of fuel. Besides, sensor technologies are augmenting reliability while reducing cost. All of these reasons have contributed positively to their growth in adoption worldwide over vehicle segments.

Breakup by Mechanism:

• Rigid EPS
• Collapsible EPS
   

Collapsible EPS holds the largest share in the market

A detailed breakup and analysis of the market based on the mechanism have also been provided in the report. This includes rigid EPS and collapsible EPS. According to the report, collapsible EPS accounted for the largest market share.

Collapsible EPS holds the largest market share due to its superior safety capabilities and increased adaptability in different vehicle types. The EPS system is so designed to collapse in the event of an accident with minimum impact on the driver that most auto majors are inclined toward using this EPS for their vehicle lines. The collapsible EPS is also less heavy compared to the traditional hydraulic system. The flexibility related to mounting and being an integral part of compact car designs has made it more attractive in many regions where small and medium-sized vehicles are highly in demand. The increasing adoption of electric and hybrid vehicles is creating further demand for collapsible EPS, which in turn is enhancing market leadership for this type.

Breakup by Type:

• Rack Assist Type (REPS)
• Column Assist Type (CEPS)
• Pinion Assist Type (PEPS)
   

Column assist type (CEPS) holds the maximum share in the market

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes rack assist type (REPS), column assist type (CEPS), and pinion assist type (PEPS). According to the report, column assist type (CEPS) accounted for the largest market share.

According to the electric power steering market research report, column assist type (CEPS) is the leading market segment due to its widespread adoption in small and mid-sized passenger vehicles. CEPS, for example, is very space-efficient in design but easy to package into vehicle architectures. Furthermore, it is low-cost, hence very suitable for lightweight cars. The system itself helps in improving the efficiency of vehicles through the saving of fuel consumption on the use of the hydraulic pump. Its capability of providing greater steering control and other safety-enhancing functions like lane keeping and parking assistance makes it popular among automobile manufacturers who focus on driver-assistance systems.

Breakup by Vehicle Type:

• Passenger Car
• Commercial Vehicle
   

Passenger car holds the majority share in the market

A detailed breakup and analysis of the market based on the vehicle type have also been provided in the report. This includes passenger car and commercial vehicle. According to the report, passenger car accounted for the largest market share.

Passenger car is leading the market segment due to the rising demand for fuel efficiency and technology-savvy vehicles. With individuals increasingly adopting electric and hybrid cars worldwide, the EPS system in the passenger vehicle has been receiving the attention of automotive developers in order to enhance fuel efficiency and reduce emissions. The systems prove their competence by bolstering the performance of vehicles with better gripping and lesser steering torque, thereby satisfying the preferences of customers for smooth driving experiences. The increasing need for EPS is also due to government regulations in their attempt to minimize carbon emissions. Besides this, with safety features like lane-keeping assistance and automated driving, there's also rising consumption of electric power steering systems in passenger cars.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest electric power steering market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for electric power steering.

The Asia Pacific market is primarily driven by the increasing demand for energy-efficient vehicles, accelerated by the region's growing emphasis on reducing carbon emissions and enhancing fuel efficiency. Governments in countries like China, Japan, and India have implemented strict regulations promoting cleaner transportation solutions, thereby pushing automakers to adopt electric power steering (EPS) systems that contribute to overall vehicle efficiency. This, in turn, is creating a positive electric power steering market outlook. Additionally, rapid urbanization and rising disposable incomes have led to increased vehicle ownership, further bolstering demand for advanced automotive technologies. Technological innovations such as the integration of electric power steering in electric and hybrid vehicles, and the development of steer-by-wire systems, are also contributing to market growth. These systems not only reduce vehicle weight but also offer improved safety, handling, and steering performance, aligning with consumer preferences for enhanced driving experiences. Furthermore, growing investments in research and development by automakers to produce cost-effective and reliable EPS systems present new opportunities for market expansion and electric power steering market demand in the region.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include. 

• HELLA GmbH & Co. KGaA (Faurecia SE)
• Hycet Technology Co. Ltd (Great Wall Motor Company Limited)
• JTEKT Corporation
• Mitsubishi Electric Corporation
• Nexteer Automotive
• NSK LTD
• NXP Semiconductors N.V.
• Robert Bosch GmbH
• ThyssenKrupp AG
• TT Electronics plc
• ZF Friedrichshafen AG
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Key players in the market are driving the market growth through strategic innovations and collaborations aimed at enhancing product efficiency and meeting changing automotive demands. Several companies are heavily investing in research and development to improve steering technology, focusing on reducing system weight and energy consumption while enhancing overall performance. These players are also expanding their product portfolios by introducing advanced steering systems, such as dual-pinion and steer-by-wire technologies, to support the growing shift toward electric and autonomous vehicles. Partnerships and joint ventures with automotive manufacturers are further fueling the market expansion. Additionally, players are also leveraging their expertise to provide innovative solutions that meet stringent government regulations on fuel efficiency and emissions, aligning with future market demands. These factors significantly contribute to the positive electric power steering market forecast in the coming years.

Electric Power Steering Market News:

• August 30, 2024: JTEKT India Limited announced that it is working on the development of a next-generation Column-Assist Electric Power Steering (CEPS) system. This innovative technology is designed to enhance the performance of modern automobiles while offering improved efficiency.
• August 12, 2024: Nexteer Automotive introduced its Modular Pinion-Assist Electric Power Steering (mPEPS) system, expanding its cost-effective and modular EPS solutions to include both Single-Pinion and Dual-Pinion systems. This innovative mPEPS system is designed to be cost-efficient, flexible, and scalable. By utilizing Nexteer’s established EPS components, mPEPS allows for greater scalability, providing original equipment manufacturers (OEMs) with time and cost savings.

Electric Power Steering Market Report Scope:

Key Questions Answered in This Report:

• How has the global electric power steering market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global electric power steering market?
• What is the impact of each driver, restraint, and opportunity on the global electric power steering market?
• What are the key regional markets?
• Which countries represent the most attractive electric power steering market?
• What is the breakup of the market based on the component?
• Which is the most attractive component in the electric power steering market?
• What is the breakup of the market based on the mechanism?
• Which is the most attractive mechanism in the electric power steering market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the electric power steering market?
• What is the breakup of the market based on the vehicle type?
• Which is the most attractive vehicle type in the electric power steering market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global electric power steering market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the electric power steering market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global electric power steering market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the electric power steering industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.