Electric Power Steering Market Size  (2025-2030)

The Electric Power Steering Market was valued at USD 24 billion in 2024. Over the forecast period of 2025-2030, it is projected to reach USD 35.62 billion by 2030, growing at a CAGR of 6.8%.

An electric motor plays a crucial role in automotive electric power steering systems, providing support to the driver. It enhances both the driving experience and fuel efficiency. Over time, the steering’s reliability has improved, enabling it to be featured in nearly all vehicle types. The motor, which is either integrated into the steering column or connected to the steering gear, generates assistive torque once the automotive electric power sensors detect the steering column's position and torque.

In recent years, original equipment manufacturers (OEMs) have shifted from hydraulic to electric power steering (EPS) systems, driven by the need to simplify mechanisms and improve overall efficiency. EPS systems deliver steering assistance by using an electric motor in place of a hydraulic pump, which contributes to reducing the overall weight of the vehicle. Electronic sensors measure the force applied by the driver to the steering, and the electric motor amplifies this force, making steering more manageable.

Key Market Insights:

• The increasing prevalence of autonomous vehicles is accelerating the adoption of electric power steering systems, positioning them as a contemporary alternative to conventional steering mechanisms like hydraulic and electro-hydraulic systems.
• This transition is significantly driving the global demand for electric power steering (EPS) systems. Vehicles equipped with EPS systems experience reduced weight, which in turn improves fuel efficiency.

Electric Power Steering Market Drivers:

The growing emphasis on vehicle safety and performance is a key factor propelling market growth.

The growing emphasis on vehicle safety and performance is a major driver of market growth, as both consumers and manufacturers prioritize enhancing safety features and improving the driving experience. Electric power steering (EPS) plays a pivotal role in supporting advanced driver-assistance systems (ADAS) that are essential to modern vehicles. Beyond improving safety, EPS is responsible for critical functionalities such as lane-keeping assistance, automatic emergency steering, and adaptive cruise control. This heightened focus on vehicle performance aligns with consumer demands for better handling, greater responsiveness, and reduced driver fatigue, while also meeting regulatory requirements and adapting to evolving driver needs.

An industry report highlights that the U.S. leads ADAS adoption, capturing nearly 75% of the market share due to the presence of major automotive manufacturers and technological advancements. This trend is closely linked to the increasing focus on safety and performance, which is further fueling the demand for electric power steering (EPS) systems. As manufacturers work to meet stringent safety standards and address rising consumer expectations, the need for EPS systems has seen significant growth.

Electric Power Steering Market Restraints and Challenges:

Lack of Steering Feedback restrains market growth.

Although electric power steering provides exceptional comfort and convenience, it does not offer the same road feedback as traditional systems. This limitation can lead to a reduced sense of connection and awareness of the vehicle's grip on the road, particularly in high-performance vehicles. As a result, the lack of steering feedback is anticipated to constrain the future demand for electric power steering systems.

Electric Power Steering Market Opportunities:

Steer-by-Wire Technology creates opportunities in the market.

Electric power steering companies should consider broadening their business scope by investing in the emerging steer-by-wire technology. This system operates entirely through electronic controls, offering greater flexibility and the ability to customize steering responses. Steer-by-wire is expected to enhance vehicle design, reduce weight, and improve driving dynamics, particularly for autonomous and electric vehicles. As this technology continues to evolve, it presents a valuable opportunity for companies to stay at the forefront of innovation in the automotive industry.

ELECTRIC POWER STEERING MARKET REPORT COVERAGE:

Electric Power Steering Market Segmentation:

Electric Power Steering market segmentaion By Component:

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

Sensors are driving the growth of the market segment due to their essential role in enhancing performance accuracy and safety for electric power steering systems. Torque, position, and speed sensors provide real-time data, enabling precise steering and vehicle stability control, which are vital for both electric and autonomous vehicles. Moreover, sensor technologies contribute to improved power efficiency in steering, helping to reduce fuel consumption. Additionally, they enhance reliability while lowering costs. These factors have collectively fueled the widespread adoption of sensor technologies across various vehicle segments worldwide.

Electric Power Steering market segmentaion By Mechanism:

• Rigid EPS
• Collapsible EPS

Collapsible electric power steering (EPS) systems are leading the market due to their superior safety features and greater adaptability across various vehicle types. Designed to collapse during an accident with minimal impact on the driver, this EPS system is favored by major automotive manufacturers for their vehicle lines. Compared to traditional hydraulic systems, collapsible EPS is also lighter in weight. Its flexibility in mounting and integration into compact car designs makes it particularly appealing in regions where small and medium-sized vehicles are in high demand. Additionally, the growing adoption of electric and hybrid vehicles is further boosting the demand for collapsible EPS, reinforcing its market leadership.

Electric Power Steering market segmentaion By Type:

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

The column assist type electric power steering (CEPS) is the leading segment, primarily due to its widespread use in small and mid-sized passenger vehicles. CEPS is highly space-efficient in design, making it easy to integrate into various vehicle architectures. Additionally, its low-cost nature makes it ideal for lightweight cars. The system enhances vehicle efficiency by reducing fuel consumption, particularly through the elimination of the hydraulic pump. Its ability to provide improved steering control and support safety features such as lane-keeping assistance and parking assistance has made it increasingly popular among automobile manufacturers focusing on advanced driver-assistance systems (ADAS).

Electric Power Steering market segmentation By Vehicle Type:

• Passenger Car
• Commercial Vehicle

Passenger cars dominate the market, driven by the growing demand for fuel efficiency and technology-driven vehicles. As more individuals adopt electric and hybrid cars globally, the electric power steering (EPS) system has garnered significant attention from automotive developers aiming to enhance fuel efficiency and reduce emissions. These systems contribute to improved vehicle performance by offering better grip and reduced steering torque, meeting consumer preferences for smoother driving experiences. The increasing adoption of EPS is also influenced by government regulations aimed at minimizing carbon emissions. Additionally, with the incorporation of safety features such as lane-keeping assistance and automated driving, the demand for electric power steering systems in passenger cars continues to rise.

Electric Power Steering Market Segmentation- by region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

The Asia Pacific market holds the largest revenue share, primarily driven by the growing demand from emerging economies such as India and China. Rising income levels among middle-class consumers are fueling the demand for vehicles, particularly in the budget and sports segments. Original Equipment Manufacturers (OEMs) are increasingly focusing on cost-effective electric power steering (EPS) systems, which has led to their widespread adoption in passenger and light commercial vehicles.

In China, the electric power steering market is expected to experience substantial growth over the forecast period. The country’s large and growing population is a key driver, with China's population reaching 1.42 billion in 2023, according to the WHO, making it the second-most populous country in the world.

South Korea's electric power steering market is projected to register the fastest compound annual growth rate (CAGR) during the forecast period. The country's advanced automotive industry, along with the global shift towards energy-efficient and environmentally friendly automotive technologies, is accelerating the adoption of EPS systems. South Korea, home to major automotive companies like Hyundai Motor Company and Kia Corporation, is a leader in integrating EPS systems into vehicles.

In North America, the EPS market is expected to grow significantly due to increased vehicle production and sales, where EPS systems are predominantly used. Strict regulatory standards imposed by the U.S. and Canadian governments, aimed at improving fuel efficiency and reducing emissions, are further driving the adoption of EPS systems in the region.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic negatively impacted the electric power steering systems market, as it caused a significant downturn in the global economy. This disruption led to challenges in production, supply chains, and vehicle demand, hindering the introduction of new technologies and products and slowing market growth.

However, post-pandemic recovery efforts, along with government stimulus packages aimed at revitalizing economies, including the automotive sector, helped alleviate some of these negative effects. These measures, such as incentives for vehicle purchases, contributed to increased demand for vehicles equipped with electric power steering systems. As economies began to recover and automotive industry operations resumed, the market for automotive electric power steering systems saw positive growth.

Latest Trends/ Developments:

In August 2024, Nexteer Automotive, a prominent supplier of power steering systems based in the United States, unveiled its new modular electric power steering system. The Modular Pinion-Assist Electric Power Steering (mPEPS) system is designed to offer cost-effective steering solutions for automotive companies, while also allowing for component reuse.

In November 2023, Tesla, a leading electric vehicle manufacturer from the United States, introduced its much-anticipated Cybertruck. The new electric vehicle features a futuristic all-metal design and is equipped with a steer-by-wire system, providing a smooth and comfortable driving experience.

In September 2023, Titan, a UK-based steering system provider for electric vehicles, launched a new steer-by-wire system. This innovative system utilizes a 48V electronic system and features a newly developed in-house manufactured electric motor.