Global Power Steering Market Segmented By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Off the Road Vehicles), 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 Regional, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 32.13 Billion
CAGR (2026-2031)	6.78%
Fastest Growing Segment	Sensors
Largest Market	Europe
Market Size (2031)	USD 47.63 Billion

Market Overview

The Global Power Steering Market will grow from USD 32.13 Billion in 2025 to USD 47.63 Billion by 2031 at a 6.78% CAGR. Power steering systems are automotive mechanisms designed to reduce the physical effort required to maneuver a vehicle by augmenting the driver's steering torque through hydraulic, electric, or electro-hydraulic actuation. The primary drivers supporting market growth include the steady recovery in global automotive manufacturing volumes and the enforcement of stringent fuel efficiency regulations which necessitate the adoption of energy-saving Electric Power Steering (EPS) units. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2024, global motor vehicle production reached approximately 92.5 million units, creating a substantial and direct demand for steering assemblies across passenger and commercial segments.

Despite this expansion, a significant challenge impeding market progression is the vulnerability of the supply chain, particularly regarding the availability of high-grade semiconductors essential for modern electronic control units. This dependency on complex electronic components exposes manufacturers to potential production bottlenecks and cost fluctuations, which can disrupt the timely delivery of steering systems to original equipment manufacturers and hinder broader market scalability.

Key Market Drivers

The rapid expansion of the Electric Vehicle (EV) market is a primary force reshaping the global power steering landscape, fundamentally accelerating the transition from hydraulic to Electric Power Steering (EPS) systems. Unlike internal combustion engines, EVs lack the mechanical power source required for traditional hydraulic pumps, compelling manufacturers to standardize energy-efficient EPS units that optimize battery range and manage the heavier curb weight of battery-laden platforms. This electrification trend is generating substantial volume growth for steering suppliers as automakers scale production to meet environmental targets. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales neared 14 million in 2023, representing a 35% year-on-year increase. This surge in electric mobility directly correlates to increased procurement of high-voltage steering components essential for modern vehicle architectures.

Simultaneously, the rising integration of Advanced Driver Assistance Systems (ADAS) is driving demand for steering mechanisms capable of high electronic authority and redundancy. Technologies such as lane-keeping assist and automated parking require steering systems that can accept digital commands, thereby incentivizing the development of advanced steer-by-wire solutions. According to Nexteer Automotive Group Limited, March 2024, in the '2023 Annual Results Announcement', the company secured new business bookings totaling US$6.1 billion in 2023, largely driven by demand for software-defined steering aligned with megatrends like ADAS. Furthermore, a broader recovery in regional manufacturing underpins this technological shift; according to the European Automobile Manufacturers’ Association, in 2024, EU passenger car production increased by 11.3% in 2023 to reach 12.1 million units. This manufacturing upturn ensures a robust baseline demand for these technologically evolved steering assemblies.

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Key Market Challenges

The dependency on high-grade semiconductors for electronic control units presents a significant challenge to the Global Power Steering Market. Modern Electric Power Steering (EPS) systems require complex electronic components to function, meaning that any disruption in the semiconductor supply chain creates immediate production bottlenecks. This vulnerability exposes steering system manufacturers to severe operational risks, where a shortage of specific microchips prevents the completion of steering assemblies. Consequently, manufacturers cannot meet the delivery schedules of original equipment manufacturers (OEMs), leading to halted vehicle assembly lines and reduced market scalability.

These supply chain disruptions directly result in measurable contractions in manufacturing output, hampering the industry's recovery and growth. For instance, according to the Society of Motor Manufacturers and Traders (SMMT), UK car manufacturing output declined by 15.3% in October 2024 compared to the same month in the previous year, a downturn partly driven by supply chain pressures and fluctuating export volumes. This reduction in vehicle output demonstrates how the fragility of the component pipeline restricts the demand for steering systems, thereby stalling the broader expansion of the power steering sector.

Key Market Trends

Widespread adoption of Steer-by-Wire (SbW) technology is altering vehicle architecture by removing mechanical linkages between the steering wheel and road wheels. This digital decoupling enables variable steering ratios and stowable columns, facilitating the flexible cockpit designs required for future autonomous driving configurations. Manufacturers are commercializing these electronic systems to support software-defined capabilities where steering characteristics can be tuned remotely. According to Nexteer Automotive, March 2025, in the '2024 Annual Results', the company secured bookings totaling US$6.0 billion in 2024, including its first Steer-by-Wire award with a leading Chinese Original Equipment Manufacturer. This confirms the pivot toward electronic interfaces that optimize interior space and customizability.

Advancements in rear-wheel steering are increasingly vital for enhancing the agility of long-wheelbase electric vehicles. As battery requirements necessitate longer platforms to accommodate energy storage, active rear steering effectively counterbalances reduced maneuverability by shrinking the turning radius at low speeds and improving stability during high-speed lane changes. These mechatronic solutions are transitioning from niche performance features to essential components for mainstream electric models to ensure urban navigability. According to Schaeffler AG, July 2025, in the press release 'Rear-wheel steering: Successful production launch', the company commenced volume production of its system for seven vehicle programs across Europe, China, and North America. This underscores the growing demand for advanced chassis technologies to manage the dynamics of heavy electric architectures.

Segmental Insights

The Sensors segment is anticipated to register the fastest growth within the Global Power Steering Market due to the increasing integration of Electric Power Steering systems and Advanced Driver Assistance Systems. This expansion is primarily driven by stringent safety mandates from organizations such as the National Highway Traffic Safety Administration, which encourage the adoption of automated features like lane-keeping assist and automated parking. These technologies necessitate high-precision torque and steering angle sensors to ensure accurate vehicle control and driver safety. Consequently, the automotive industry focus on electrification and autonomous capabilities is fueling the rapid demand for these critical components.

Regional Insights

Europe holds a dominant position in the global power steering market, driven primarily by stringent environmental regulations enforced by the European Commission. These mandates compel automotive manufacturers to transition from traditional hydraulic systems to electric power steering units, which significantly improve fuel efficiency and reduce carbon emissions. Additionally, the region houses a dense concentration of established vehicle producers in Germany, France, and the United Kingdom who prioritize the integration of compliant technologies. This combination of regulatory pressure and a robust manufacturing base ensures the widespread adoption of modern steering solutions, securing Europe's market leadership.

Recent Developments

• In April 2025, Nexteer Automotive launched a new high-output column-assist electric power steering system designed to handle heavier vehicle loads. The product was engineered to provide increased torque capacity, making it suitable for electric vehicles with heavy battery packs and light commercial vehicles. This addition to the company's portfolio offered original equipment manufacturers greater flexibility in packaging and cost optimization across various vehicle platforms. The firm stated that the new system addressed the specific technical requirements of modern electrified transportation, ensuring reliable steering assistance for heavier curb weights.
• In February 2025, ZF Friedrichshafen announced that it had begun supplying its steer-by-wire system for the ET9, a new electric flagship sedan from the Chinese automaker NIO. The German technology group provided the complete system, including the steering wheel actuator, the redundant steering gear actuator, and the controlling software. This launch marked the series production debut of the company’s purely electronic steering solution, which operates without any mechanical connection. The supplier emphasized that this technology offered adjustable steering feel and enhanced safety features, supporting the industry's shift towards electrified and automated driving platforms.
• In September 2024, Bosch demonstrated its latest steer-by-wire technologies during its Mobility Experience event held in Michigan. The company displayed steering systems that eliminate the mechanical link between the steering wheel and the road wheels, replacing it with redundant electronic controls. This development was presented as a solution to enable new cockpit designs and support increasing levels of vehicle automation. The firm highlighted that the integration of its software and hardware allowed for precise vehicle control and safety, positioning the technology as a central component for future software-defined vehicle architectures.
• In February 2024, HL Mando Corporation established a new joint venture with China's Tianrun Industrial Technology to manufacture electric power steering systems for commercial vehicles. The collaboration, named Tianrun Mando, was formed to produce ball-nut type electric power steering units specifically designed for trucks and buses. The Chinese partner invested CNY 60 million for a majority stake, while the South Korean company contributed CNY 40 million alongside its product and manufacturing expertise. This strategic partnership aimed to construct a new production facility in Shandong province by 2026 to serve the growing demand in the global commercial vehicle market.

Key Market Players

• JTEKT Corporation
• Robert Bosch GmbH
• Nexteer Automotive
• ZF Friedrichshafen AG
• NSK Ltd.
• Hyundai Mobis
• Mando Corporation
• Hitachi Astemo
• Thyssenkrupp
• China Automotive Systems, Inc.

By Vehicle Type	By Mechanism	By Component	By Region
Passenger Cars Light Commercial Vehicles Medium & Heavy Commercial Vehicles Off the Road Vehicles	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 Power Steering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power Steering Market, By Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Medium & Heavy Commercial Vehicles
• Off the Road Vehicles

• Power Steering Market, By Mechanism:

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

• Power Steering Market, By Component:

• Hydraulic Pump
• Sensors
• Electric Motor and Other Components

• 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