Japan Automotive EPS Market Expected to Reach USD 2.7 Billion by 2033 - IMARC Group

Japan Automotive EPS Market Statistics, Outlook and Regional Analysis 2025-2033

The Japan automotive EPS market size was valued at USD 1.7 Billion in 2024, and it is expected to reach USD 2.7 Billion by 2033, exhibiting a growth rate (CAGR) of 5.1% from 2025 to 2033.

The elevating adoption of electric vehicles is extensively boosting the automotive EPS market growth in Japan. In 2023, Japan sold more than 11 million EVs. Sales of these automobiles in the nation have been steadily increasing. Unlike traditional hydraulic steering, EPS systems are more energy-efficient and seamlessly integrate with EVs, which rely entirely on electric drivetrains. As Japan continues to lead in EV innovation and adoption, automakers are turning to EPS technology to enhance vehicle performance, reduce energy consumption, meet the growing demand for eco-friendly transportation, etc. Additionally, the push for sustainable mobility, combined with government incentives for EVs, is driving the widespread use of EPS, making it a cornerstone of modern automotive advancements in Japan.

Additionally, technological advancements are a major force behind the growth of the automotive EPS market. Advances like steer-by-wire systems, advanced driver-assistance system (ADAS) integration, and improved software are making EPS smarter and more efficient. These innovations enhance steering accuracy, lower energy usage, and support features like automated parking and lane-keeping assist. With Japan's automotive industry focused on cutting-edge solutions, the demand for high-performing EPS systems is on the rise. This emphasis on innovation not only boosts safety and driving performance but also supports the country’s move toward smarter and more sustainable transportation. In April 2024, Toyota Motor Corporation introduced the "250" series as a new addition to its Land Cruiser range with EPS in Japan. Alongside this, the company launched two special edition models. These exclusive models are limited to a production run of just 8,000 units, highlighting their premium and distinctive nature. The "250" series, which uses the same durable GA-F platform as the "300" series, has strived for great off-road performance.

Japan Automotive EPS Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include Kanto region, Kansai/Kinki region, Central/ Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region. Consumers' increasing preference for better driving experiences is having a positive impact on the regional market. 

Kanto Region Automotive EPS Market Trends:

The increasing popularity of electric vehicles across the Kanto region is boosting the use of EPS systems. Various automotive manufacturers across the area, like Nissan in Yokohama, are developing EVs integrated with EPS technologies to enhance energy efficiency. Besides this, the government incentives for the development of charging infrastructures are also supporting the growth of the market. 

Kansai/Kinki Region Automotive EPS Market Trends:

The growing penetration of integrating the ADAS system with EPS technology is one of the significant factors propelling the market growth in the Kansai/Kinki region. Various companies are focusing on developing optimal autonomous vehicles. Besides this, Toyota's R&D activities in the region to improve safety features like lane-keeping assist are acting as growth-inducing factors.

Central/Chubu Region Automotive EPS Market Trends:

The Central/Chubu region is the manufacturing powerhouse of Japan. There has been a significant demand for integrating EPS with hybrid and electric vehicles. The strong supply chain network in Chubu, involving companies like Aisin, accelerates innovation and large-scale production, thereby making the region pivotal in shaping EPS technologies.

Kyushu-Okinawa Region Automotive EPS Market Trends:

Kyushu and Okinawa, located in southern Japan, emphasize export-oriented EPS production. Kyushu's strategic location and proximity to Asian markets make it ideal for exporting automotive components. Major manufacturing hubs like Fukuoka host plants for companies like Toyota. These units specialize in producing compact EPS units for small vehicles, which are in high demand across the APAC.

Tohoku Region Automotive EPS Market Trends:

There is an escalating demand for optimal materials in the market across the Tohoku region. Various key companies like Sendai are focusing on developing lightweight EPS components. Moreover, regional industries collaborate with universities like Tohoku University to manufacture high-strength materials, which is further escalating the market growth.

Chugoku Region Automotive EPS Market Trends:

The increasing demand for EPS technologies in the commercial sector is escalating the growth of the market across the Chugoku region. Mazda, based in Hiroshima, is advancing EPS systems to handle the higher weight and durability requirements of heavy vehicles like trucks. Also, manufacturers in Okayama are producing customized components for luxury cars, which is further contributing to the growth of the market.

Hokkaido Region Automotive EPS Market Trends:

Hokkaido focuses on developing EPS systems that perform reliably in cold climates. Automotive testing facilities in regions like Asahikawa evaluate EPS performance under extreme conditions, such as icy roads and sub-zero temperatures. Besides this, various companies collaborate with Hokkaido's universities to improve the durability of electronic components and anti-corrosion materials.

Shikoku Region Automotive EPS Market Trends:

Shikoku, a smaller and more rural region, prioritizes small-scale innovation in the automotive EPS market. Various companies in Ehime focus on developing compact, lightweight EPS systems suited for kei cars and micro-mobility solutions. Moreover, manufacturers across the region benefit from close collaboration with regional tech clusters and government initiatives aimed at promoting sustainability.

Top Companies Leading in the Japan Automotive EPS Industry

The market research study also includes a detailed analysis of the competitive landscape. Additionally, full details of all important corporations have been provided. Some of the key players are JTEKT Corporation, Mitsubishi Electric Corporation, and NSK Ltd. In November 2024, Mitsubishi Electric Corporation planned to allocate around ¥ 10 Billion to build a center dedicated to power semiconductor modules in Fukuoka Prefecture, Japan.

Japan Automotive EPS Market Segmentation Coverage

• On the basis of the product type, the market has been bifurcated into rack assist type (REPS), colum assist type (CEPS), and pinion assist type (PEPS). In the rack assist type, the motor is connected to the steering gear. While, in CEPS, the motor is connected to the steering column. Moreover, the pinion-assist type is linked to the pinion shaft.
• Based on the vehicle type, the market has been bifurcated into passenger vehicle and commercial vehicle. The demand for EPS systems is expanding in both commercial and passenger vehicles, driven by the requirement for enhanced driver comfort and the shift toward electrification.
• On the basis of the demand category, the market has been bifurcated into OEM and replacement. EPS systems in the OEM segment are specifically designed to fit new vehicles produced by automakers. They are integrated during the vehicle’s assembly process. Moreover, the replacement segment caters to vehicles requiring EPS repairs or upgrades after the original system fails or wears out.

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