PUBLISHER: The Business Research Company | PRODUCT CODE: 1999541
PUBLISHER: The Business Research Company | PRODUCT CODE: 1999541
Active power steering is an advanced vehicle steering system that dynamically adjusts the steering effort based on driving conditions such as speed, load, and road surface. It improves driver control and comfort by utilizing sensors and electronic controls to optimize steering response in real time.
The primary types of active power steering include electric power steering systems, hydraulic power steering systems, and electro-hydraulic power steering systems. An electric power steering (EPS) system uses an electric motor instead of a traditional hydraulic pump to assist the driver in turning the steering wheel. These systems are used in both passenger cars and commercial vehicles and are distributed through original equipment manufacturers (OEMs) as well as the aftermarket.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the active power steering market by increasing the cost of imported electronic control units, torque sensors, electric motors, and precision steering components. Automotive OEMs in North America and Europe are most affected due to dependence on imported steering electronics, while Asia-Pacific suppliers face export competitiveness challenges. These tariffs are raising system costs and affecting vehicle pricing. However, they are also encouraging localized manufacturing of steering systems and innovation in integrated and software-centric steering technologies.
The active power steering market research report is one of a series of new reports from The Business Research Company that provides active power steering market statistics, including active power steering industry global market size, regional shares, competitors with a active power steering market share, detailed active power steering market segments, market trends and opportunities, and any further data you may need to thrive in the active power steering industry. This active power steering market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The active power steering market size has grown rapidly in recent years. It will grow from $11.14 billion in 2025 to $12.6 billion in 2026 at a compound annual growth rate (CAGR) of 13.1%. The growth in the historic period can be attributed to vehicle safety regulations, shift from hydraulic steering, passenger comfort demand, automotive electronics growth, fuel efficiency requirements.
The active power steering market size is expected to see rapid growth in the next few years. It will grow to $20.39 billion in 2030 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to autonomous driving development, steer-by-wire adoption, electric vehicle production growth, software-driven vehicle architectures, advanced sensor integration. Major trends in the forecast period include increasing adoption of electric power steering, integration with adas systems, demand for enhanced driving comfort, growth in autonomous vehicle platforms, software-defined steering.
The rising demand for electric vehicles is expected to drive the growth of the active power steering market in the coming years. Electric vehicles (EVs) are cars powered fully or partially by electricity, utilizing electric motors and rechargeable batteries instead of conventional internal combustion engines. The surge in EV adoption is attributed to advances in battery technology that have greatly extended driving ranges and shortened charging times. Active power steering improves electric vehicles by optimizing steering response and boosting energy efficiency. This results in better vehicle handling, increased battery range, reduced driver fatigue, and seamless integration with advanced driver assistance systems (ADAS), providing a safer and more comfortable driving experience. For example, according to the International Energy Agency, a France-based intergovernmental organization, global electric car sales increased from 14 million in 2023 to 17 million in 2024, showing strong year-over-year growth. Therefore, the expanding demand for electric vehicles is propelling the active power steering market forward.
Leading companies in the active power steering market are focused on developing innovative products such as electric and hydraulic power steering systems to enhance vehicle handling, improve fuel efficiency, and meet the rising demand for advanced driver-assistance technologies. Electric and hydraulic power steering systems are technologies designed to assist drivers by reducing the effort needed to steer vehicles. For instance, in April 2025, Nexteer Automotive, a US-based automotive company, introduced a high-output column-assist electric power steering (HO CEPS) system. This system delivers enhanced steering support specifically for larger and heavier vehicles while improving energy efficiency and overall vehicle handling. The HO CEPS system is engineered to provide higher torque output, making it ideal for trucks and SUVs. By combining advanced control algorithms with powerful electric motors, the system increases steering precision, reduces driver effort, and enhances vehicle control. It also supports fuel efficiency and compatibility with electric vehicles by minimizing parasitic power loss compared to traditional hydraulic systems.
In March 2024, ZF Friedrichshafen AG, a Germany-based automotive component supplier, acquired a majority stake in Rane Steering Systems Private Limited for an undisclosed amount. Through this acquisition, ZF plans to expand its passenger car and commercial vehicle business within India. The move will enhance cooperation with the Rane Group to introduce new technologies faster and localize operations as part of ZF's Refresh India strategy. Rane Steering Systems Private Limited, headquartered in India, manufactures active power steering systems, including both manual and electric power steering (EPS) columns.
Major companies operating in the active power steering market report include Volkswagen AG, Toyota Motor Corporation, Mercedes-Benz Group AG, Ford Motor Company, General Motors, Bayerische Motoren Werke AG (BMW), Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Audi AG, Kia Corporation, BYD Company Limited, Nikola Corporation, Renault Group, AB Volvo, Porsche AG, Jaguar Land Rover Automotive PLC, Geely Automobile Holdings Limited, NIO Inc., XPeng Inc., Rivian Automotive LLC, Lucid Group Inc., Proterra Inc., Energica Motor Company S.p.A., Bollinger Motors, Workhorse Group Inc., Fisker Inc.
North America was the largest region in the active power steering market in 2025. The regions covered in the active power steering market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the active power steering market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The active power steering market consists of sales of rack and pinion gear sets, steering actuators and electric motors, steering angle sensors, and steering control modules. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Active Power Steering Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses active power steering market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for active power steering ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The active power steering market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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