Automotive Electric Power Steering Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Column Type, Pinion Type, and Dual Pinion Type), By Component Type (Steering Rack/Column, Sensor, Steering Motor, and Other), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Region, Competition, 2020-2030F

Market Overview

The Global Automotive Electric Power Steering Market, valued at USD 25.60 Billion in 2024, is projected to experience a CAGR of 7.29% to reach USD 39.05 Billion by 2030. Electric Power Steering (EPS) systems are electromechanical assemblies replacing traditional hydraulic power steering by using an electric motor to assist driver input, enhancing fuel efficiency and steering precision. Key market drivers include stringent global emissions regulations for improved vehicle fuel economy, increasing demand for advanced driver assistance systems requiring precise electronic control, and the rapid electrification of vehicles. According to CLEPA, global motor vehicle production increased by 22% between 2021 and 2023, directly impacting EPS market demand.

A significant challenge impeding market expansion is the substantial initial investment required for the research, development, and integration of these complex electronic systems into vehicle architectures.

Key Market Drivers

The increasing production and adoption of electric and hybrid vehicles represents a substantial catalyst for the global automotive electric power steering market. Electric power steering systems are intrinsically more compatible with electric and hybrid powertrains compared to traditional hydraulic systems, as they eliminate the need for an engine-driven hydraulic pump, thereby reducing energy consumption and enabling more efficient energy regeneration. This inherent efficiency directly contributes to extended range for electric vehicles and improved fuel economy for hybrids, aligning with overarching industry goals for electrification. According to the IEA Global EV Outlook 2025, 17.3 million electric cars were produced worldwide in 2024, representing approximately a one-quarter increase from 2023. This growth trajectory for electrified vehicles underscores a foundational shift in automotive manufacturing that directly elevates the demand for electric power steering solutions.

Another critical driver is the seamless integration of electric power steering with Advanced Driver-Assistance Systems. EPS technology provides the precise electronic control necessary for ADAS functions such as lane keeping assist, automated parking, and evasive steering assist, which require rapid and accurate steering adjustments independent of driver input. The electronic nature of EPS allows for sophisticated communication with other vehicle sensors and control units, forming the backbone for progressively autonomous driving capabilities. According to the PARTS study 'Market Penetration of Advanced Driver Assistance Systems (ADAS)', in model year 2023, Forward Collision Warning penetration reached 94% in the studied models, indicating widespread ADAS adoption and the corresponding demand for compatible steering systems. This technological convergence is further evidenced by key industry players; according to Nexteer Automotive's annual results for the fiscal year ended December 31, 2023, the company achieved a record US$4.2 billion in revenue, marking a 9.6% increase compared with 2022, reflecting the robust performance of suppliers offering advanced steering solutions.

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Key Market Challenges

A significant challenge impeding the expansion of the Global Automotive Electric Power Steering market is the substantial initial investment required for the research, development, and integration of these complex electronic systems into vehicle architectures. This considerable financial outlay directly hampers market growth by imposing a heavy burden on automotive manufacturers and component suppliers. The extensive capital expenditure needed for advanced R&D, sophisticated testing protocols, and the retooling of production lines for these intricate electronic systems often restricts the capacity for rapid market penetration, particularly for smaller enterprises.

The automotive industry consistently directs significant resources towards innovation. For instance, according to the European Automobile Manufacturers' Association (ACEA), the European automotive sector invested €73 billion in research and development in 2023, marking a €14 billion increase from 2022. This scale of investment, while indicative of industry commitment to technological advancement, highlights the barrier to entry and expansion for EPS systems. Such substantial initial investments can slow down the adoption of new EPS technologies, as companies must carefully evaluate the return on investment over extended periods, thereby moderating the overall pace of market development.

Key Market Trends

Steer-by-Wire Technology Evolution fundamentally shifts to fully electronic steering, offering enhanced design flexibility and improved vehicle dynamics. These are crucial for advanced driver assistance and autonomous driving. According to the German Association of the Automotive Industry (VDA), German automotive companies invested €58.4 billion in research and development worldwide in 2023, reflecting commitment to innovation, including by-wire. Volvo Cars, in August 2024, highlighted redundancy and centralized electrical/electronic architecture for its steer-by-wire systems, enhancing functionality and steering maneuvers. This evolution, replacing physical linkages, facilitates features like variable steering ratios and active damping, aiding performance and safety.

System Lightweighting and Miniaturization remains a critical trend, driven by improved fuel efficiency and extended electric vehicle range. This involves adopting advanced materials and innovative manufacturing processes for steering components. According to the International Organization of Motor Vehicle Manufacturers (OICA), global passenger car output for 2023 reached 67,133,570 units, demonstrating how cumulative weight reductions contribute to efficiency gains. In April 2024, Toray Industries Inc. partnered with Hyundai Motor Company to develop lightweight, high-strength materials, indicating ongoing material innovation. Miniaturization optimizes packaging, crucial for complex vehicle architectures, meeting environmental regulations and enhancing performance.

Segmental Insights

The Column Type segment is a key driver of expansion within the Global Automotive Electric Power Steering Market, largely due to its cost-effectiveness and compact design, which facilitates easy integration into various vehicle platforms, especially small and mid-sized models. Its adoption is further propelled by the demand for enhanced fuel efficiency and lower emissions, aligning with stringent environmental regulations. Moreover, Column Type Electric Power Steering seamlessly supports advanced driver-assistance systems and features for autonomous driving, contributing to improved vehicle safety and performance. While some analyses indicate other electric power steering configurations are exhibiting the highest growth rates, the Column Type segment maintains a dominant market share due to these compelling benefits and widespread application.

Regional Insights

Asia Pacific stands as the leading region in the Global Automotive Electric Power Steering Market, primarily driven by its robust automotive manufacturing base, especially across major economies such as China and India. This regional prominence is significantly fueled by stringent government regulations promoting enhanced fuel efficiency and reduced emissions, which obligate automakers to incorporate Electric Power Steering systems into their vehicle production. Furthermore, the growing consumer preference for fuel-efficient and environmentally friendly vehicles, alongside proactive government initiatives, including schemes like India's FAME, to support electric vehicle adoption and infrastructure, collectively propel market expansion. The ongoing integration of EPS technology with advanced driver-assistance systems further solidifies its widespread implementation.

Recent Developments

• In August 2025, the international automotive supplier FORVIA HELLA commenced series production of its latest generation of steering sensor technology for a prominent Chinese automotive manufacturer. This technology is a critical component for fully electric steer-by-wire systems, representing a breakthrough in the global automotive electric power steering market. Earlier in the year, FORVIA HELLA had successfully initiated two other series projects for these advanced steer-by-wire steering sensors with premium manufacturers in Germany and China. The development and series production activities were conducted within FORVIA HELLA's electronics production network across both Germany and China.

• In January 2025, Rane Group and ZF Group announced an expanded partnership focused on introducing advanced steering technologies to the Indian market. Their joint venture, ZF Rane Automotive India Private Limited, committed to launching Rack Drive Electric Power Steering System technologies. Additionally, Rane Steering Systems Private Limited secured an exclusive license agreement with ZF for Column Drive Electric Power Steering System technology. This collaboration aimed to meet the increasing demand for innovative automotive solutions in the region by enhancing vehicle safety, comfort, and performance, thus positioning the companies at the forefront of modern mobility solutions in India.

• In August 2024, Nexteer Automotive introduced its new Modular Pinion-Assist Electric Power Steering (mPEPS) system, significantly expanding its cost-effective, modular electric power steering offerings. This launch included both Single-Pinion and Dual-Pinion configurations, building upon Nexteer's established EPS system components. The mPEPS system was designed to provide scalability, delivering efficiency benefits to original equipment manufacturers (OEMs) through shorter development cycles and increased component reuse across vehicle platforms. This advancement in electric power steering technology aimed to offer enhanced safety and performance for drivers, while also supporting various vehicle propulsion types and global market requirements.

• In April 2024, Toyota Motor Corporation launched its all-new Land Cruiser "250" series in Japan, marking a significant development for the global automotive electric power steering market. This model represented the first in the Land Cruiser lineup to integrate electric power steering (EPS). The inclusion of EPS aimed to enhance the vehicle's handling characteristics by reducing steering kickback, particularly during off-road driving. This innovation ensured improved maneuverability at lower speeds and a more responsive steering feel, thereby contributing to increased ease of handling both on and off-road for this robust vehicle series.

Key Market Players

• JTEKT
• NSK
• Bosch
• ZF
• Nexteer
• Mitsubishi Electric
• Thyssenkrupp
• Mando
• Hyundai Mobis
• Showa

Report Scope:

In this report, the Global Automotive Electric Power Steering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Electric Power Steering Market, By Type:

o   Column Type

o   Pinion Type

o   Dual Pinion Type

• Automotive Electric Power Steering Market, By Component Type:

o   Steering Rack/Column

o   Sensor

o   Steering Motor

o   Other

• Automotive Electric Power Steering Market, By Vehicle Type:

o   Passenger Cars

o   Commercial Vehicles

• Automotive Electric Power Steering Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Automotive Electric Power Steering Market.

Available Customizations:

Global Automotive Electric Power Steering Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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