Light Commercial Vehicle power steering Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, By Mechanism (Electronic power steering (EPS), Hydraulic power steering (HPS) and Electro-Hydraulic Power Steering), By Component (Hydraulic Pump, Sensors, Electric Motor and other components), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.66 Billion
CAGR (2026-2031)	6.84%
Fastest Growing Segment	Hydraulic power steering (HPS)
Largest Market	Asia Pacific
Market Size (2031)	USD 6.93 Billion

Market Overview

The Global Light Commercial Vehicle power steering Market will grow from USD 4.66 Billion in 2025 to USD 6.93 Billion by 2031 at a 6.84% CAGR. Light commercial vehicle power steering consists of hydraulic or electric mechanisms designed to assist drivers by reducing the physical effort required to maneuver vans and pickup trucks. The market is primarily driven by the robust expansion of the e-commerce and logistics sectors, which creates consistent demand for efficient delivery fleets optimized for urban navigation. This operational necessity ensures a steady requirement for reliable steering components in new vehicle production. According to the European Automobile Manufacturers’ Association (ACEA), in 2024, new van sales in the European Union increased by 8.3%, totaling 1,586,688 units, reflecting strong industrial demand for these vehicles.

One significant challenge impeding market expansion is the high production and integration cost associated with advanced electric power steering systems. Although these units are necessary for modern safety features and fuel economy, their price premium compared to traditional hydraulic alternatives often limits their adoption in cost-sensitive developing regions. This financial barrier can deter manufacturers in price-competitive markets from upgrading their platforms, thereby restraining the total global market revenue potential.

Key Market Drivers

The increasing electrification of light commercial vehicle fleets is reshaping the power steering market, necessitating a shift from hydraulic systems to electric power steering (EPS) units. Unlike internal combustion engines, electric vans lack the mechanical power source required for hydraulic pumps, making EPS an essential component for platform compatibility and energy efficiency. This transition is further accelerated by the need to integrate advanced driver assistance systems (ADAS), which rely heavily on the electronic control capabilities of EPS to function effectively. According to the Society of Motor Manufacturers and Traders (SMMT), December 2025, registrations of new battery electric vans in the UK grew by 25.3% in November 2025 compared to the previous year, highlighting the rapid operational shift toward electrified platforms that utilize these modern steering mechanisms.

The surge in e-commerce and last-mile delivery services is driving the volume and sophistication of steering components required for urban logistics fleets. Delivery vehicles operating in dense metropolitan environments demand steering systems that minimize driver fatigue during frequent maneuvering and ensure precise handling in tight spaces. This sector's expansion directly correlates with increased vehicle production and the adoption of driver-centric technologies. According to Rivian, February 2025, Amazon has integrated more than 20,000 electric delivery vans into its fleet and delivered over one billion packages in 2024 alone, underscoring the scale of logistics-led demand. Furthermore, the broader commercial segment continues to show resilience; according to the China Association of Automobile Manufacturers (CAAM), in September 2025, commercial vehicle sales in China reached 2.744 million units from January to August, reflecting sustained global industrial activity supporting market growth.

Download Free Sample Report

Key Market Challenges

The high production and integration costs associated with advanced electric power steering (EPS) systems present a substantial barrier to the growth of the Global Light Commercial Vehicle power steering Market. While these systems are essential for enabling modern fuel efficiency and driver-assistance features, their elevated price point compared to traditional hydraulic units creates a difficult economic hurdle. This price premium forces original equipment manufacturers in developing, price-competitive regions to retain cheaper, legacy steering technologies to maintain vehicle affordability. Consequently, the shift toward higher-value electric steering components is slowed, effectively capping the revenue potential for suppliers in these high-volume territories.

This financial sensitivity is particularly evident in emerging markets where commercial fleet operators operate on thin margins and demand is highly responsive to vehicle acquisition costs. For instance, according to the Federation of Automobile Dealers Associations (FADA), in 2024, retail sales of light commercial vehicles in India decreased by 0.72%, dropping to 5,58,207 units. This contraction in a major developing market illustrates the limited capacity for manufacturers to pass on additional costs to buyers. As a result, the integration of expensive steering upgrades remains financially unviable for many producers, directly hampering the global market's ability to transition to advanced technology standards.

Key Market Trends

The adoption of Steer-by-Wire (SbW) technology is revolutionizing cabin design and maneuverability in the light commercial vehicle sector by eliminating the mechanical linkage between the steering wheel and road wheels. This digital architecture allows for retractable controls in delivery vans, optimizing interior workspace, and enables extreme wheel angles to significantly reduce turning radii in congested urban environments. The industrial validation of this technology is accelerating rapidly within the automotive supply chain. According to ZF Friedrichshafen AG, July 2025, the company announced a strategic contract to supply Steer-by-Wire technology to Mercedes-Benz for series production commencing in 2026, confirming the commercial scalability of these digital steering solutions for modern vehicle platforms.

Simultaneously, the development of High-Output Electric Power Steering (EPS) is unlocking the electrification of heavy-duty light commercial vehicles that previously relied on hydraulic mechanisms. Standard EPS units often lack the torque required to steer fully laden 3.5-tonne vans, forcing OEMs to retain inefficient hydraulic circuits that reduce overall fleet energy efficiency. New high-torque systems resolve this bottleneck by providing the necessary force electronically, thereby enabling extended range and advanced safety features on heavier chassis. For instance, according to Nexteer Automotive, April 2025, the company launched a High-Output Column-Assist Electric Power Steering system delivering up to 110 Nm of torque, specifically engineered to support the electrification of heavier commercial vehicle platforms without compromising payload capacity.

Segmental Insights

Based on recent market intelligence, the Hydraulic Power Steering (HPS) segment is identified as the fastest growing category within the Global Light Commercial Vehicle power steering Market. This trajectory is primarily driven by the expanding logistics and transportation sectors in emerging economies, particularly across the Asia Pacific region. Fleet operators in these cost sensitive markets increasingly favor HPS systems for their superior durability and ability to handle heavier payloads compared to electric alternatives. Furthermore, the robustness of hydraulic units in absorbing road shocks makes them the preferred choice for commercial vehicles operating in diverse and rugged infrastructure conditions.

Regional Insights

Asia Pacific dominates the Global Light Commercial Vehicle power steering Market, primarily driven by extensive automotive manufacturing volumes in key hubs like China and India. The region's rapid urbanization and booming e-commerce sector have necessitated robust logistics networks, escalating the demand for light commercial vehicles equipped with advanced steering mechanisms. Furthermore, the industry is transitioning toward electric power steering systems to comply with stringent fuel efficiency and emission mandates enforced by regulatory bodies such as China’s Ministry of Industry and Information Technology. This convergence of high industrial output and strict regulatory compliance solidifies the region’s market leadership.

Recent Developments

• In August 2024, Nexteer Automotive expanded its steering portfolio with the launch of the Modular Pinion-Assist Electric Power Steering (mPEPS) system. This new offering leverages the company's existing scalable building blocks to provide a cost-effective steering solution for a wide range of vehicles, including light commercial vehicles. The modular design allows original equipment manufacturers to reduce development times and component costs while maintaining high performance and safety standards. The system is compatible with various propulsion types, including electric and internal combustion engines, addressing the growing global demand for flexible steering architectures.
• In April 2024, Hitachi Astemo showcased its advanced steer-by-wire technology during a winter testing event in Sweden, demonstrating the system's capabilities in extreme conditions. The company highlighted that this next-generation steering solution eliminates the mechanical link between the steering wheel and the tires, enabling greater flexibility in cabin design and supporting the evolution of autonomous driving. The technology, which includes a fail-safe function and integrated vehicle control, is being developed to enhance safety and comfort in future mobility applications, positioning it as a key innovation for the evolving light commercial and passenger vehicle markets.
• In February 2024, Schaeffler officially commenced the production of steering ball screws at its manufacturing facility in Xiangtan, China. As a core mechanical component of electric power steering systems, these ball screws are critical for ensuring precise and efficient steering control in vehicles, including light commercial models. This production milestone strengthens the company's local manufacturing footprint and supply chain capabilities, allowing it to better meet the increasing demand for electrified steering solutions in the world's largest automotive market.
• In January 2024, ZF Friedrichshafen AG announced the launch of its new "Eco Line" electric power steering system designed specifically for commercial vehicles. This innovative system was developed to improve fuel efficiency and reduce carbon emissions, offering a sustainable alternative to traditional hydraulic steering setups. By integrating this electrically assisted technology, the company aims to support the commercial vehicle sector's transition towards greener operations while enhancing driver comfort and vehicle handling. The launch underscores the supplier's commitment to delivering efficient steering solutions that align with stringent environmental regulations.

Key Market Players

• Robert Bosch GmbH
• ZF Friedrichshafen AG
• Nexteer Automotive
• JTEKT Corporation
• NSK Ltd.
• Mando Corporation
• Showa Corporation
• Astemo Ltd.
• Thyssenkrupp AG
• Sona Koyo Steering Systems Ltd.

By Mechanism	By Component	By Region
Electronic power steering (EPS) Hydraulic power steering (HPS) and Electro-Hydraulic Power Steering	Hydraulic Pump Sensors Electric Motor and other components	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Light Commercial Vehicle power steering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Light Commercial Vehicle power steering Market, By Mechanism:

• Electronic power steering (EPS)
• Hydraulic power steering (HPS) and Electro-Hydraulic Power Steering

• Light Commercial Vehicle power steering Market, By Component:

• Hydraulic Pump
• Sensors
• Electric Motor and other components

• Light Commercial Vehicle power steering Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE