Automotive Electric Power Steering Market Size, Share, and Growth Analysis, By Type, By Component, By Vehicle Type, By Mechanism, By Sales Channel, By Region - Industry Forecast 2026-2033

Automotive Electric Power Steering Market size was valued at USD 22.47 Billion in 2024 and is poised to grow from USD 23.89 Billion in 2025 to USD 38.94 Billion by 2033, growing at a CAGR of 6.3% during the forecast period (2026-2033).

The Automotive Electric Power Steering (EPS) market is experiencing significant growth, driven by several key factors reshaping the automotive industry. Increasing consumer demand for fuel-efficient and eco-friendly vehicles is fostering a transition from traditional hydraulic systems to electric steering solutions. Additionally, global regulations regarding emissions are accelerating the adoption of electrically assisted steering technologies. The advantages of EPS, such as improved energy efficiency, enhanced maneuverability, and compatibility with advanced driver-assistance systems (ADAS), are further bolstering market expansion. As manufacturers focus on enhancing driving experiences and fuel economy, the Automotive EPS sector is likely to see continuous growth and innovative advancements, positioning it as a crucial component in the future of vehicle design and performance.

Top-down and bottom-up approaches were used to estimate and validate the size of the Automotive Electric Power Steering market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Automotive Electric Power Steering Market Segments Analysis

Global Automotive Electric Power Steering Market is segmented by type, component, vehicle type, mechanism, sales channel and region. Based on type, the market is segmented into column assist EPS (C-EPS), pinion assist EPS (P-EPS), rack assist EPS (R-EPS) and direct drive EPS (D-EPS). Based on component, the market is segmented into steering column, steering motor, sensors (torque sensors, position sensors), electronic control unit (ECU) and others (power steering pump, power steering fluid). Based on vehicle type, the market is segmented into passenger cars (compact cars, mid-size cars, SUVs, luxury cars) and commercial vehicles (light commercial vehicles (LCVs), heavy commercial vehicles (HCVs)). Based on mechanism, the market is segmented into conventional EPS and advanced EPS (steer-by-wire, active steering). Based on sales channel, the market is segmented into OEM (original equipment manufacturer) and aftermarket. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Driver of the Automotive Electric Power Steering Market

The rising demand for enhanced driving experiences and improved fuel efficiency in vehicles has significantly driven the shift towards electric power steering systems, moving away from conventional hydraulic options. Electric power steering (EPS) offers superior energy efficiency and precise handling, making it an attractive choice for modern vehicles. This transition not only aligns with the automotive industry's focus on sustainability but also reflects the ongoing technological advancements in automotive design. As consumers increasingly prioritize both performance and eco-friendliness in their vehicles, the adoption of EPS is likely to continue growing, reinforcing its importance within the automotive sector.

Restraints in the Automotive Electric Power Steering Market

A significant challenge facing the Automotive Electric Power Steering market is the high upfront cost associated with implementing electric power steering systems, which can deter consumers in developing markets or those with older vehicles. Moreover, the complexity of these systems and the requirement for regular maintenance may hinder original equipment manufacturers (OEMs) from fully embracing this technology. Furthermore, the heavy dependence on electronic components increases the vulnerability of vehicles to potential cybersecurity threats, raising additional concerns among manufacturers and consumers alike. This combination of financial, technical, and security obstacles can impede the widespread adoption of electric power steering solutions in the automotive industry.

Market Trends of the Automotive Electric Power Steering Market

The Automotive Electric Power Steering market is witnessing a significant trend towards the integration of advanced sensor technologies, enhancing steering systems with steer-by-wire capabilities that eliminate the need for physical connections between the steering wheel and the wheels. This development not only increases design flexibility but also facilitates the implementation of advanced driver-assistance systems (ADAS). Furthermore, there is a growing emphasis on software-based enhancements, allowing for customizable steering experiences and improved responsiveness. Complementing this evolution is the incorporation of Artificial Intelligence (AI) and machine learning algorithms, which optimize steering control and adapt to a variety of driving conditions, thus elevating overall vehicle performance and safety.