Electric Power Steering Market
The market for Electric Power Steering was estimated at $26.4 billion in 2024; it is anticipated to increase to $37.9 billion by 2030, with projections indicating growth to around $51.2 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Electric Power Steering Market Outlook
Revenue, 2024
$26.4B
Forecast, 2034
$48.2B
CAGR, 2025 - 2034
6.2%
The Electric Power Steering industry revenue is expected to be around $28.1 billion in 2025 and expected to showcase growth with 6.2% CAGR between 2025 and 2034. The industry has made strides over the years thanks to the wider acknowledgment of the numerous advantages of Electric Power Steering such as its energy efficiency and enhanced driving comfort experience Various factors are propelling the industry forward with notable advancements in automotive technology sustainability becoming a growing concern and the rising popularity of electric vehicles Manufacturers are increasingly leaning towards Electric Power Steering due to its ability to enhance fuel efficiency by doing away with the need, for an engine driven hydraulic pumpThe significant shift, towards self driving vehicles has highlighted the significance and value of this technology.
Electric Power Steering is well known for its accuracy and responsiveness and represents a significant advancement in steering assistance technologies for cars today. It plays a role in contemporary vehicles by providing excellent control and agility even in tough driving situations. Lately car manufacturers have begun incorporating Electric Power Steering into their vehicles to meet environmental standards and meet the growing consumer desire, for improved fuel efficiency and reduced CO2 emissions.
Market Key Insights
- The Electric Power Steering market is projected to grow from $26.4 billion in 2024 to $48.2 billion in 2034. This represents a CAGR of 6.2%, reflecting rising demand across Automotive Industry, Sport Utility Vehicles (SUVs) and Commercial Vehicles.
- JTEKT Corporation, Nexteer Automotive, ZF Friedrichshafen AG are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Electric Power Steering market and are expected to observe the growth CAGR of 4.0% to 6.0% between 2024 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 7.1% to 8.6%.
- Transition like Electrification of Vehicle Components has greater influence in United States and Germany market's value chain; and is expected to add $1 billion of additional value to Electric Power Steering industry revenue by 2030.
- The Electric Power Steering market is set to add $21.8 billion between 2024 and 2034, with manufacturer targeting Mid Sized Cars & Luxury Cars Vehicle Type projected to gain a larger market share.
- With Boom in the automotive sector, and Innovation in electric power steering technology, Electric Power Steering market to expand 82% between 2024 and 2034.
Opportunities in the Electric Power Steering
The automotive sector is also evolving with technologies leading to exciting applications of Electric Power Steering . A significant development in this field is the integration of EPS, in vehicles where its importance becomes increasingly vital as technology progresses further towards autonomy.
Growth Opportunities in North America and Europe
Electric Power Steering in North America is significantly influenced by the presence of major players in the automotive industry who are enthusiastic about adopting electric and hybrid vehicle technology. A growing preference for fuel environmentally friendly vehicles supported by regulations and consumer choices is driving the integration of Electric Power Steering in new car models. The regions market is seeing growth due to advancements by leading companies and intense competition, among them.
The Electric Power Steering industry in Europe benefits from the automotive manufacturing sector and technological progress in the region. The increased use of Electric Power Steering in luxury and high performance cars for control and driving comfort is significantly driving market growth. Europe's focus on reducing emissions aligns with the expansion of the market positioning it as a center, for Electric Power Steering technologies.
Market Dynamics and Supply Chain
01
Driver: Boom in the Automotive Sector, and Stringent Government Regulations
In the automotive sectors landscape today the increasing prevalence of electric power steering stands out as a noteworthy development. As drivers seek more fuel efficient rides the shift towards electric power steering over conventional hydraulic systems has also gained momentum. The surge in car production coupled with a focus on improving vehicle performance and fuel economy is also driving automobile manufacturers to embrace EPS. This positive trajectory in the automotive realm is also poised to make a significant impact, on the market expansion of electric power steering systems. Governments around the world are also enacting regulations to address the growing issue of pollution by focusing more attention towards creating eco friendly and energy efficient vehicles in response to this concern electric power steering is also becoming a popular choice in modern vehicles, for its environmental benefits and energy efficiency compared to other options.
Electric power steering technology has also seen advancements in the market as well. The creation of state of the art electric power steering systems has also opened up prospects across different industries. Moreover,. Companies are also heavily investing in research and development endeavors. Paving the way for improvements, in EPS technology. These ongoing technological advancements are also predicted to result in increased market reach and growth.
02
Restraint: High Integration Costs
The main obstacle to the use of Electric Power Steering systems is the expensive integration process involved with them. Even though Electric Power Steering is more advanced and effective from a standpoint it requires a substantial upfront investment for implementation. This cost factor often limits its availability as a technology that everyone can easily adopt. This in turn has an impact on market trends. The significant cost not only discourages individual consumers from embracing EPS but also hinders its incorporation into affordable vehicles in the low, to medium price range.
03
Opportunity: Emerging Markets and Strategic Collaborations
The growth potential of Electric Power Steering is notable in emerging markets like India, China and Brazil. These nations are experiencing a surge in vehicle production as consumer demand rises leading to an increased need for steering technologies. Moreover the governments emphasis on eco technologies is favorable for the EPS market, in these areas.
At a level partnerships between companies that produce EPS and automotive manufacturers are expected to create new opportunities, for market growth. By working in these collaborations both parties have the chance to create advanced EPS systems that meet the changing demands of customers ultimately driving the expansion of the Electric Power Steering market.
04
Challenge: Stringent Regulatory Standards
The electric power steering sector is significantly impacted by emission and safety rules implemented globally. These stringent guidelines frequently require expensive testing processes for Electric Power Steering systems leading to an increase in the overall cost of the systems. The lack of a standard, for implementing EPS also limits its market reach. As a result these regulatory requirements can sometimes impede the progress of market expansion.
Supply Chain Landscape
1
Raw Material Sourcing
BoschNexteer Automotive
2
Component Fabrication
Denso CorporationJTEKT Corporation
3
Assembly & Integration
Hyundai MobisNSK Ltd
4
Product Distribution
ThyssenkruppZF Friedrichshafen AG
1
Raw Material Sourcing
BoschNexteer Automotive
2
Component Fabrication
Denso CorporationJTEKT Corporation
3
Assembly & Integration
Hyundai MobisNSK Ltd
4
Product Distribution
ThyssenkruppZF Friedrichshafen AG
Use Cases of Electric Power Steering in Automotive Industry & Sport Utility Vehicles (SUVs)
Automotive Industry : In the sector electric power steering systems are a frontrunner in innovation and technology adoption with the prevalent use of column assist steering systems being prominent. Key players such as Ford and Toyota utilize this technology to improve vehicle maneuverability and fuel economy. With their focus on technology integration these automakers maintain a leading edge, in the market landscape.
Commercial Vehicles : Electric power steering systems have gained popularity in the realm of vehicles due to the widespread use of pinon assist electric power steering known for its effective control and maneuverability in heavier commercial vehicles. Leading companies, like Mercedes Benz and Volvo have integrated this technology into their commercial vehicle lineup to deliver vehicles that boast accuracy extended longevity and heightened safety features.
Sport Utility Vehicles (SUVs) : Electric power steering systems are widely used in Sport Utility Vehicles especially the rack assist popular in Audi and BMW SUV models to enhance steering performance significantly Their leading market presence and the high praise for the quality and sophistication of their vehicles showcase their dominance, in this industry.
Recent Developments
The automotive sector is constantly changing due to Electric Power Steering which is having an impact on how vehicles are designed and the driving experience they offer to users worldwide as fuel efficiency requirements increase and the shift, towards electric cars gains momentum.
December 2024 : SteerSmart Solutions unveiled a sensor technology aimed at enhancing the performance of Electric Power Steering systems.
October 2024 : PowerSteer Inc partnered with VoltSpeed Motors to implement regenerative technology, in Electric Power Steering systems.
August 2024 : DirectPower Innovations has just introduced their lightweight Electric Power Steering system designed for heavy duty vehicles.
Impact of Industry Transitions on the Electric Power Steering Market
As a core segment of the Automotive & Mobility industry,
the Electric Power Steering market develops in line with broader industry shifts.
Over recent years, transitions such as Electrification of Vehicle Components and Growth of Autonomous Vehicles have redefined priorities
across the Automotive & Mobility sector,
influencing how the Electric Power Steering market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Electrification of Vehicle Components
The growing fascination with eco technology and energy conservation has led to a swift embrace of electric power steering over the older hydraulic setups in vehicles. This shift is mainly due to the weight of EPS systems compared to traditional ones and their capacity for reducing energy usage while enhancing overall vehicle performance. Additionally EPS systems provide improved accuracy and responsiveness that elevate the driving experience. Furthermore the incorporation of EPS, into vehicles contributes to the progression of self driving capabilities by seamlessly integrating with electronic controls.
02
Growth of Autonomous Vehicles
The emergence of self driving cars is driving industries to evolve and transform power steering systems are increasingly crucial in this new era due to their capability to seamlessly work with autonomous driving technologies An example of this is how EPS systems can coordinate with sensors in vehicles to make decisions related to steering operations Consequently the rise of autonomous vehicles is emphasizing the importance of electric power steering in the automotive sector overall leading companies to allocate more resources, towards advancing this technology.