PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1993823
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1993823
Automotive Electric Power Steering Market size was valued at US$28,410.76 Million in 2024, expanding at a CAGR of 4.50% from 2025 to 2032.
Automotive Electric Power Steering (EPS) refers to an advanced steering technology that uses an electric motor to assist vehicle steering, enhancing control and driving efficiency. Unlike traditional hydraulic systems, EPS relies on electronic sensors and control units to provide precise steering support based on driving conditions and vehicle speed. It enables improved maneuverability, reduced steering effort, and enhanced vehicle stability. EPS systems help optimize fuel efficiency by eliminating the need for hydraulic pumps, thereby reducing energy consumption and emissions. They also support integration with advanced driver-assistance systems (ADAS), enabling features such as lane-keeping assist and automated parking. By enhancing steering accuracy and responsiveness, EPS contributes to improved safety, comfort, and overall vehicle performance. Additionally, automotive electric power steering supports the transition toward electric and software-defined vehicles, strengthening the development of intelligent and electronically controlled mobility solutions.
Automotive Electric Power Steering Market- Market Dynamics
Increasing Production Of Electric And Hybrid Vehicles
Increasing production of electric and hybrid vehicles refers to the rising manufacturing volume of electrified vehicles driven by stricter emission regulations, sustainability goals, and growing consumer adoption of low-emission mobility solutions. In electric and hybrid vehicles, EPS enables optimized energy consumption by operating only when steering assistance is required, thereby supporting overall vehicle efficiency and extended battery range. It also facilitates seamless integration with advanced driver-assistance systems (ADAS) and electronic vehicle control units, enhancing steering precision and vehicle safety. Rising production of electric and hybrid vehicles is accelerating the adoption of EPS technology, driving demand for lightweight, energy-efficient steering systems and supporting long-term growth in the automotive electric power steering market. For instance, in January 2026, according to the European Automobile Manufacturers' Association (ACEA), total new passenger car registrations in the European Union declined by 3.9% compared with January 2025, with 175,989 new vehicles registered in that month. Despite the overall market contraction, battery-electric vehicles (BEVs) achieved a 19.3% market share, up from 14.9% in January 2025, reflecting increasing adoption of electrified vehicles across the region. Meanwhile, traditional petrol vehicle registrations continued to decline, underscoring a shift toward lower-emission powertrains within the industry.
The Global Automotive Electric Power Steering Market is segmented on the basis of Vehicle Propulsion, Steering Architecture, Component, Vehicle Type, and Region.
The market is divided into three categories based on vehicle propulsion: Internal Combustion Engine (ICE), Hybrid Vehicles, and Battery Electric Vehicles (BEVs). The Battery Electric and Hybrid Vehicles segment accounts for a significant portion of the market due to the increasing shift toward electrification and energy-efficient vehicle technologies. Electrified propulsion systems refer to vehicle architectures powered partially or entirely by electric motors and battery systems, reducing reliance on traditional fuel-based engines. Electric Power Steering (EPS) plays a crucial role by consuming power only when steering assistance is needed, unlike hydraulic systems that draw continuous engine power. In automotive electric power steering systems, the growing adoption of hybrid and electric vehicles is driving demand for lightweight, electronically controlled, and highly responsive steering solutions. EPS enables seamless integration with advanced driver-assistance systems (ADAS) and supports improved vehicle control, efficiency, and sustainability, ensuring enhanced performance across evolving propulsion platforms. For instance, according to the U.S. Bureau of Transportation Statistics, combined sales of hybrid, plug-in hybrid, and electric vehicles in the United States reached approximately 18% of total new light-duty vehicle sales in the first half of 2024, up from around 16.9% in 2023, reflecting a steady year-on-year increase in electrified vehicle adoption. Sales data also indicate that hybrid electric vehicle sales grew substantially, with hybrid models alone increasing by 53% in 2023 to nearly 1.2 million units, evidencing rising consumer and manufacturer focus on electrified propulsion technologies. These expanding sales and market share figures demonstrate the growing production and demand for electric and hybrid vehicles across the U.S. automotive market, driven by improved vehicle offerings, policy incentives, and shifting consumer preferences toward more efficient and sustainable mobility solutions.
The market is divided into four categories based on steering architecture: Column-Assist EPS (CEPS), Pinion-Assist EPS (P-EPS), Rack-Assist EPS (R-EPS), and Steer-by-Wire (SbW). The Rack-Assist EPS segment accounts for a significant portion of the market due to its high efficiency, precise control, and compatibility with modern vehicle platforms. Efficiency and precise control refer to the capability of a steering system to deliver responsive handling, reduce energy consumption, and enhance driver comfort under varying driving conditions. In modern vehicles, advanced steering architectures support seamless integration with driver-assistance systems (ADAS) and improve overall vehicle maneuverability. For instance, in October 2024, according to the U.S. government, adoption and awareness of advanced driver-assistance systems (ADAS) among truck drivers and motor carrier executives have shown notable growth. Baseline survey results revealed that 64 % of drivers and 86 % of motor carrier executives held positive perceptions of blind spot warning systems. Average ADAS adoption rose sharply post-2022, with drivers increasing from 12.8 to 18.8 and executives from 23.7 to 26.6, led by road-facing cameras, forward collision, and lane departure systems. These figures underscore growing ADAS adoption, driving improved vehicle safety, driver comfort, and ride quality.
Automotive Electric Power Steering Market- Geographical Insights
The Automotive Electric Power Steering market exhibits clear regional variation, shaped by differences in automotive production, technology adoption, and regulatory standards. North America shows consistent growth, supported by well-established automotive manufacturing infrastructure, increasing integration of EPS systems, and rising demand for energy-efficient and electronically controlled steering solutions. Europe demonstrates stable expansion, driven by investments in advanced vehicle technologies, supportive safety and emissions regulations, and growing adoption of EPS across passenger and commercial vehicles. Asia Pacific is seeing significant market development, fueled by rising vehicle production, increasing electrification, and government initiatives promoting automotive safety and innovation in countries such as China, India, Japan, and South Korea. In contrast, Latin America, the Middle East, and Africa are gradually strengthening their market presence, supported by expanding automotive manufacturing, improving vehicle safety standards, and growing awareness of electric power steering technologies.
United States Automotive Electric Power Steering Market - Country Insights
The United States Automotive Electric Power Steering market is experiencing steady growth, driven by a well-established automotive industry and rapid integration of advanced vehicle technologies. Automakers are increasingly adopting EPS systems to enhance steering efficiency, vehicle control, and driver comfort. Strong participation from leading automotive OEMs, along with supportive government policies promoting vehicle safety and technological innovation, continues to encourage market expansion. Additionally, growing emphasis on energy efficiency, performance, and enhanced driving experience is further accelerating adoption across passenger and commercial vehicles in the U.S. For instance, in February 2026, according to the U.S. Environmental Protection Agency, new vehicle fuel economy reached a record high of 27.1 mpg in model year 2023, while real-world greenhouse gas emissions from new vehicles declined to a record low of 319 grams per mile-reflecting increased use of fuel-saving and efficiency-enhancing technologies across the automotive industry. The report also notes that electrified and advanced efficient technologies captured a larger portion of the vehicle mix, with hybrid, plug-in hybrid, and battery electric vehicles making up 11.5 % of U.S. vehicle production in 2023, up from 6.7 % in 2022, indicating broader industry adoption of advanced vehicle systems to improve performance and efficiency. These figures highlight ongoing shifts in vehicle technology adoption and underscore the industry's focus on smarter, more efficient automotive solutions.
The Automotive Electric Power Steering Market is moderately concentrated, with several leading automotive component manufacturers driving competition. Key players include JTEKT Corporation, Robert Bosch GmbH, Nexteer Automotive, ZF Friedrichshafen AG, NSK Ltd., Showa Corporation, Thyssenkrupp AG, Mando Corporation, Hyundai Mobis, Mitsubishi Electric Corporation, Denso Corporation, Valeo SA, Continental AG, GKN Automotive, KYB Corporation, Magna International, ATS Automation Tooling Systems, Infineon Technologies AG, and Texas Instruments. These companies compete by developing advanced EPS solutions that enhance steering responsiveness, reduce energy consumption, and support integration with driver-assistance systems (ADAS) and electrified vehicle architectures. For example, in 2024, Robert Bosch GmbH upgraded its EPS platform with enhanced electronic control and lighter components, improving vehicle handling and driver comfort. The market is driven by increasing demand for energy-efficient, precise, and scalable steering solutions in passenger and commercial vehicles. Additionally, manufacturers are expanding their product portfolios to include column-assist, pinion-assist, rack-assist, and steer-by-wire systems to meet evolving vehicle performance standards and the growing preference for safer, more comfortable, and technologically advanced steering systems.
In September 2024, Nexteer Automotive announced a collaboration with a leading automotive technology firm to develop next-generation electric power steering systems aimed at enhancing vehicle handling, responsiveness, and driver comfort. This initiative demonstrates Nexteer Automotive's commitment to leveraging advanced technologies to improve steering performance, potentially establishing a new benchmark in the industry. The partnership is set to utilize cutting-edge electronic control and lightweight component innovations, positioning Nexteer Automotive as a leader in advanced steering solutions.
In January 2025, ZF Friedrichshafen AG unveiled a strategic collaboration with a key automotive software provider to advance its electric power steering platforms, focusing on seamless integration with ADAS and improved ride comfort. This move underscores ZF Friedrichshafen AG's dedication to technological innovation and enhanced vehicle dynamics, establishing it as a frontrunner in the development of precision steering systems for modern vehicles.