Passenger Cars 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 17.39 Billion
CAGR (2026-2031)	7.83%
Fastest Growing Segment	Hydraulic power steering (HPS)
Largest Market	Asia Pacific
Market Size (2031)	USD 27.33 Billion

Market Overview

The Global Passenger Cars Power Steering Market will grow from USD 17.39 Billion in 2025 to USD 27.33 Billion by 2031 at a 7.83% CAGR. The Global Passenger Cars Power Steering Market is defined as the sector dedicated to the engineering and distribution of systems that reduce the physical effort required to maneuver a vehicle through hydraulic or electric augmentation. The primary drivers fueling market growth include the steady increase in global vehicle production rates and the enforcement of rigorous government mandates regarding fuel economy and vehicle safety. These regulatory pressures compel manufacturers to adopt efficient steering technologies that reduce engine load, while rapid urbanization necessitates vehicles that are easier to navigate in congested environments.

However, a significant challenge hindering market expansion is the volatility of supply chains and the high cost associated with the semiconductor components essential for modern electric steering systems. This dependency creates production bottlenecks during periods of component scarcity. Illustrating the sheer volume demanding these components, according to the China Association of Automobile Manufacturers, in 2024, domestic passenger car sales reached 22.61 million units. Such high production figures highlight the immense pressure on supply chains to maintain consistent delivery of steering assemblies.

Key Market Drivers

Rapid Electrification of the Passenger Vehicle Fleet is a primary engine of growth for the steering market, fundamentally altering the technological landscape by mandating the shift from hydraulic to Electric Power Steering (EPS). Unlike internal combustion engines, electric vehicles lack the pulley-driven pumps required for hydraulic systems, making EPS an essential component for the entire EV powertrain architecture. This transition is further accelerated by the compatibility of EPS with energy-efficient designs that extend vehicle range. Highlighting this shift, according to the European Automobile Manufacturers’ Association (ACEA), March 2025, in the 'Economic and Market Report: Full year 2024', battery-electric cars achieved a 13.6% market share of new registrations within the European Union in 2024. This substantial penetration of electric drivetrains directly correlates to increased procurement of advanced electric steering assemblies.

Rising Global Production and Sales of Passenger Cars also serves as a critical driver, creating sustained volume demand for steering components across all vehicle segments. As manufacturers ramp up output to meet post-pandemic recovery and emerging market needs, the baseline requirement for steering units expands proportionally. According to ACEA, September 2025, in the 'Economic and Market Report: First half of 2025', global car production grew by 3.5% to reach 37.7 million units during the first six months of 2025. This production upswing places immense pressure on suppliers to deliver consistent volumes. Illustrating the broader market scale, according to the Faist Group, in 2025, global new car registrations reached 74.6 million units in the preceding year, underscoring the massive annual requirement for steering systems.

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Key Market Challenges

The primary impediment hindering the growth of the Global Passenger Cars Power Steering Market is the instability of supply chains combined with the escalating costs of semiconductor components. As the automotive industry increasingly transitions toward electric power steering (EPS) systems, these assemblies become heavily dependent on advanced microchips to function. Consequently, any fluctuation in semiconductor availability creates immediate production bottlenecks, preventing manufacturers from completing steering units on schedule. This dependency not only delays vehicle assembly but also inflates manufacturing costs, thereby compressing profit margins and restricting the ability of suppliers to scale operations efficiently.

The impact of these supply chain constraints is magnified by the substantial volume of global vehicle demand competing for these scarce electronic components. For instance, according to the European Automobile Manufacturers’ Association (ACEA), in 2024, new car registrations in the European Union reached approximately 10.6 million units. This high level of output places immense strain on fragile logistics networks. When essential chips are unavailable, the delivery of steering systems for these millions of vehicles is disrupted, directly stalling revenue realization and slowing the overall market expansion.

Key Market Trends

Commercialization of Steer-by-Wire Technology
The commercialization of Steer-by-Wire (SbW) technology is fundamentally reshaping the market by eliminating the mechanical linkage between the steering wheel and the steering gear, replacing it with electronic actuators and digital algorithms. This decoupling allows for infinitely customizable steering ratios and the integration of retractable columns, which are critical for flexible cockpit designs in next-generation electric vehicles. Manufacturers are now rapidly transitioning this technology from research concepts to volume production to differentiate their software-defined platforms. Illustrating this market entry, according to Nexteer Automotive, March 2025, in the '2024 Year End Results', the company reported securing $6.0 billion in total bookings for the 2024 fiscal year, which prominently featured its first-ever volume production contract for a Steer-by-Wire system with a major Chinese Original Equipment Manufacturer.

Integration of Steering Systems with ADAS
Simultaneously, the integration of steering systems with Advanced Driver Assistance Systems (ADAS) is transforming steering units into intelligent, active safety nodes capable of executing complex automated maneuvers. To support functions such as lane centering, traffic jam assist, and emergency evasion, modern steering architectures must now incorporate redundant electronic control units and fail-operational designs that ensure control is maintained even during system faults. This requirement is driving significant contract activity for high-level automation capabilities. For instance, according to ZF Friedrichshafen AG, January 2025, in a corporate press release regarding chassis solutions, the company finalized a major supply agreement for advanced steering systems specifically engineered to enable Level 2+ automated driving features for a global vehicle manufacturer.

Segmental Insights

Based on recent data from trusted market research, the Hydraulic Power Steering (HPS) segment is identified as the fastest-growing category within the global passenger cars market, primarily driven by the rising adoption of Electrically Assisted Hydraulic Power Steering (EHPS). This growth is fueled by the increasing global demand for heavy passenger vehicles, such as SUVs and crossovers, which require the high load-bearing capacity inherent to hydraulic systems. Manufacturers are prioritizing these advanced hydraulic solutions because they combine robust steering power with the energy efficiency of electric control, enabling compliance with stringent international emission regulations while ensuring optimal vehicle performance.

Regional Insights

Asia Pacific maintains a dominant position in the global passenger cars power steering market, primarily driven by extensive vehicle production volumes in China, Japan, and India. The region benefits from a robust automotive supply chain and rising consumer demand for personal mobility. Furthermore, the industry is increasingly adopting electric power steering systems to align with stringent fuel efficiency regulations and emission targets. This transition is supported by continuous investments in manufacturing infrastructure. Consequently, the combination of high production output and technological integration establishes Asia Pacific as the primary driver of market growth.

Recent Developments

• In February 2025, a renowned technology group commenced the series production of its advanced steer-by-wire system for a flagship electric vehicle model manufactured by a major Chinese automaker. This milestone marked a significant commercial application of the company's fully electronic steering technology, which eliminated the mechanical connection between the steering wheel and the road wheels. The system featured a redundant actuator design to ensure safety and provided precise road feedback through software algorithms. This development represented a breakthrough in the Global Passenger Cars Power Steering Market, paving the way for enhanced vehicle maneuverability and future autonomous driving integrations.
• In December 2024, a major tier-one automotive supplier announced a significant investment of $117 million to expand its manufacturing capabilities in Hungary. The project focused on increasing the production of electric steering gears at its Maklár facility to meet the rising demand from European automakers. Supported by a state government grant, this expansion aimed to strengthen the company's position in the Global Passenger Cars Power Steering Market by enhancing its capacity to supply advanced steering systems for electric and automated vehicles. The initiative underscored the region's growing importance as a strategic hub for next-generation automotive component manufacturing.
• In August 2024, a global motion control technology company launched its new Modular Pinion-Assist Electric Power Steering (mPEPS) system to expand its product portfolio. This strategic release allowed the firm to offer cost-effective and flexible steering solutions suitable for a wide range of vehicle types, including electric, internal combustion, and mixed propulsion platforms. By leveraging existing electronic power steering building blocks, the system enabled original equipment manufacturers to reduce development times and maximize component reuse. This launch addressed the growing demand for scalable steering technologies in the Global Passenger Cars Power Steering Market, particularly for the evolving needs of electric vehicle architectures.
• In May 2024, a leading motion technology company demonstrated its next-generation steer-by-wire technology at an automotive engineering exhibition in Yokohama. The company showcased a handwheel actuator featuring integrated force-feedback, designed to eliminate the mechanical steering column in passenger vehicles. This innovation aimed to enhance cabin design flexibility and support autonomous driving functions by allowing the steering wheel to retract into the dashboard. The demonstration highlighted the system's potential to improve safety and comfort in the Global Passenger Cars Power Steering Market, positioning the firm as a key player in the transition toward software-defined vehicles and electrified chassis solutions.

Key Market Players

• JTEKT Corporation
• Nexteer Automotive
• Robert Bosch GmbH
• ZF Friedrichshafen AG
• NSK Ltd.
• Mando Corporation
• Hyundai Mobis
• Thyssenkrupp Presta
• Hitachi Astemo Ltd.
• Sona Corporation

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 Passenger Cars Power Steering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Passenger Cars Power Steering Market, By Mechanism:

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

• Passenger Cars Power Steering Market, By Component:

• Hydraulic Pump
• Sensors
• Electric Motor and other components

• Passenger Cars 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