UAE Electric Power Steering Market – Industry Size, Share, Trends, Opportunity, and Forecast, By Type (C-EPS, P-EPS and R-EPS), By Component (Steering Column, Steering Wheel, Sensors, Electronic Control Unit, Electric Motor and Bearings), By Vehicle (Passenger Cars, Medium & Heavy Commercial Vehicles, Light Commercial Vehicles and Off-the-Road Vehicles), By Region, By Competition, 2020-2030F

Market Overview

The UAE Electric Power Steering Market was valued at USD 140.77 million in 2024 and is expected to reach USD 172.54 million by 2030 with a CAGR of 3.45% during the forecast period.

The UAE Electric Power Steering market is poised for stable growth as automotive manufacturing embraces electrification and lightweight components. Rising fuel efficiency targets and stricter emission norms are leading manufacturers to adopt EPS over hydraulic systems to reduce engine load and enhance fuel economy. According to the International Energy Agency, electric car sales surpassed 14 million globally in 2023, influencing regional component markets like EPS as electric vehicles depend heavily on electronic steering systems. Advances in automotive electronics are also spurring EPS demand as vehicles integrate steer-by-wire systems and automated driving functions that require precise steering control.

OEMs are focusing on reducing steering system weight and integrating advanced sensors, with the European Automobile Manufacturers’ Association reporting that automotive electronics represent nearly 35% of a modern vehicle’s cost structure. The EPS market in the UAE also benefits indirectly from regional EV infrastructure initiatives, as Gulf countries invest billions in charging stations, signaling a broader shift toward electric mobility and technology-intensive vehicles. A World Bank report highlighted that the UAE has invested over USD 17 billion in transport infrastructure between 2016 and 2023, creating fertile ground for new automotive technologies. However, fluctuating raw material prices and potential chip shortages remain key constraints for EPS suppliers.

Technological complexity in advanced EPS systems brings cost pressures and design challenges. There’s also growing cybersecurity concern as connected EPS systems become targets for digital threats. Yet with smart city initiatives progressing and UAE’s ambition to boost electric vehicle adoption, opportunities abound for EPS adoption in passenger cars and light commercial vehicles. Higher disposable incomes and a luxury vehicle preference also support the market’s premium EPS segments.

Market Drivers

Adoption of Electric Vehicles

Electric vehicles require efficient, precise steering solutions compatible with battery-powered platforms. Electric Power Steering systems consume less power than hydraulic alternatives, making them suitable for EVs striving to maximize range. As per the International Energy Agency, global EV stock rose to over 40 million vehicles by 2023, pushing suppliers to innovate EPS solutions that integrate seamlessly into EV architectures. This rising EV fleet in the UAE spurs local demand for advanced steering systems, benefiting from government policies promoting clean transportation and automotive electrification. EPS adoption aligns with broader efforts to decarbonize mobility and reduce fossil fuel reliance.

Demand for Fuel Efficiency

Stringent fuel economy standards and rising fuel costs drive automakers to reduce engine load wherever possible. Electric Power Steering eliminates the hydraulic pump, reducing parasitic losses and contributing to better fuel economy. Data from the US Department of Energy suggests EPS can improve fuel efficiency by around 2–4%, translating to significant savings over a vehicle’s lifetime. In the UAE, where consumers often favor large vehicles, even modest gains in fuel efficiency can yield considerable cost benefits. These advantages position EPS as a critical technology for manufacturers aiming to meet evolving environmental regulations.

Integration with Advanced Driver Assistance Systems (ADAS)

Modern vehicles rely on EPS as a core enabler for advanced driver assistance features like lane-keeping, park assist, and semi-autonomous driving. EPS offers the precise electronic control needed for automated maneuvers, which hydraulic systems cannot deliver as effectively. SAE reports that ADAS installations are increasing annually, with new vehicles often including multiple assistance features as standard. In the UAE’s market, luxury vehicles and high-tech models drive adoption of such systems, elevating EPS from a basic steering mechanism to a sophisticated electronic control platform integrated into broader vehicle safety and automation strategies.

Preference for Lightweight Components

Manufacturers seek lighter vehicles to improve fuel efficiency and reduce emissions, and EPS contributes by being substantially lighter than hydraulic alternatives. The European Automobile Manufacturers’ Association indicates weight savings in steering systems alone can range from 5 to 7 kilograms. These reductions directly enhance a vehicle’s performance, handling, and economy. For UAE’s market, which has a strong appetite for both performance and luxury cars, weight optimization is crucial. EPS systems allow automakers to meet engineering targets without compromising steering feel or precision, supporting broader goals in vehicle design.

Growing Luxury Vehicle Market

UAE’s vehicle market skews toward premium and luxury segments, where consumers expect smooth, refined driving experiences. EPS provides quieter operation, improved steering feel, and customizable feedback settings, aligning with premium vehicle characteristics. Data from Gulf News suggests luxury car sales in the UAE grew by over 15% in 2023, signaling strong demand for vehicles equipped with advanced technologies. In luxury vehicles, EPS becomes a critical differentiator, offering adaptable steering modes and supporting semi-autonomous features. These consumer expectations drive manufacturers to integrate sophisticated EPS solutions as standard equipment in high-end models.

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Key Market Challenges

High System Costs

Electric Power Steering systems incorporate sensors, electronic control units, and precision electric motors, leading to higher production costs than simpler hydraulic systems. For budget vehicles, these costs can pose adoption barriers. The European Commission notes electronic content in vehicles has nearly doubled over the past decade, impacting overall manufacturing budgets. In the UAE, while premium segments drive EPS adoption, cost concerns remain significant in mid-tier or commercial vehicles. OEMs must balance technology benefits against pricing pressures in competitive markets, requiring innovative design approaches to reduce EPS costs without sacrificing performance or safety.

Dependency on Semiconductor Supply

EPS systems rely heavily on electronic components and microchips, leaving manufacturers vulnerable to global semiconductor supply constraints. The Semiconductor Industry Association highlighted that chip shortages disrupted automotive production in 2021 and continue to create ripple effects. In the UAE market, where vehicle imports and local assembly depend on stable global supply chains, semiconductor volatility threatens timely EPS availability. Automakers risk production delays and higher costs if electronic steering components remain scarce. This dependency forces companies to explore alternate sourcing strategies and increased inventory planning to mitigate potential disruptions.

Key Market Trends            

Shift Toward Steer-by-Wire

Automakers are moving toward steer-by-wire systems that eliminate physical connections between the steering wheel and wheels. EPS technology is essential for these systems, offering precise electronic control. Automotive World notes that steer-by-wire will become increasingly common in premium vehicles and EVs, enabling advanced features like customizable steering feel and automated driving. In the UAE, the market’s appetite for high-tech vehicles supports this trend. Steer-by-wire also improves vehicle interior design flexibility, allowing new cockpit layouts. This shift represents a transformative leap for the EPS market as software and electronics redefine traditional steering concepts.

Integration with Autonomous Driving

EPS systems play a critical role in autonomous vehicles, as they must execute precise steering inputs under computer control. The National Highway Traffic Safety Administration confirms that EPS is indispensable for Level 2+ and higher autonomous systems. In the UAE, where smart mobility initiatives are underway, autonomous vehicle testing boosts demand for EPS technology capable of interfacing with vehicle perception and decision-making systems. EPS integration ensures smooth, responsive steering corrections without human input, positioning it as a fundamental technology for future autonomous fleets across private, commercial, and shared mobility segments.

Advances in EPS Sensors

Sensor technology improvements enhance EPS performance, enabling precise torque sensing, road feel simulation, and integration with driver assistance systems. Bosch and other suppliers are developing sensors with higher resolution and faster response times, crucial for modern safety features. The European Automobile Manufacturers’ Association indicates growing reliance on such sensors as vehicles become increasingly autonomous. In the UAE, where consumer demand for innovative features is high, advanced sensors in EPS systems improve driving confidence and safety. This trend drives continuous investment in sensor research, influencing both component cost and EPS capabilities.

Segmental Insights

Component Insights

The UAE Electric Power Steering market features diverse components that collectively ensure precise and efficient steering performance in modern vehicles. The steering column serves as the physical connection between the steering wheel and the EPS mechanism, transmitting driver input into the electronic system, while modern designs integrate collapsible features for enhanced crash safety. The steering wheel itself has evolved into a sophisticated interface, often equipped with controls for infotainment and driving aids, reflecting consumers’ desire for multifunctionality. Sensors embedded throughout the EPS system measure torque, angle, and force, enabling accurate adjustments and seamless feedback tailored to various driving conditions.

The Electronic Control Unit acts as the system’s brain, processing signals from the sensors to modulate the electric motor’s assistance levels in real-time. This electric motor replaces traditional hydraulic pumps, delivering assistance only when required, improving energy efficiency and contributing to reduced fuel consumption. Bearings within the EPS architecture ensure smooth rotation and low friction in the steering mechanism, contributing to the system’s durability and refined driving feel. Together, these components support integration with advanced driver assistance systems, steering correction technologies, and steer-by-wire applications. The UAE’s vehicle market, influenced by preferences for luxury vehicles and modern driving features, demands high-performance EPS systems that combine these elements to deliver responsive handling, safety enhancements, and energy efficiency. The interconnected nature of these components underscores the complexity and importance of EPS solutions, as manufacturers aim to deliver advanced steering technologies while balancing cost, weight, and space constraints in contemporary vehicle designs.

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Region Insights

In 2024, Dubai stands out as a central hub for the UAE’s Electric Power Steering market, driven by its significant automotive activity and a consumer base that values technological innovation and luxury vehicles. The city’s dynamic economy fuels steady demand for new passenger cars and commercial vehicles, creating opportunities for advanced automotive components like EPS. Dubai’s automotive market reflects preferences for vehicles equipped with sophisticated features, aligning well with EPS technology’s capabilities for precise control, energy savings, and integration with driver assistance systems. The city’s strategic location as a trade and logistics center also influences automotive supply chains, ensuring smooth import and distribution of steering components, which supports the EPS market’s development.

In Abu Dhabi, government initiatives supporting sustainable transportation and smart mobility projects boost demand for modern vehicle technologies in the region. Policies focused on emissions reduction and electric vehicle promotion encourage automakers and suppliers to equip vehicles with efficient systems like EPS, which complement broader environmental goals. Abu Dhabi’s infrastructure investments enhance the viability of advanced vehicles, as roads and urban layouts increasingly accommodate intelligent transportation systems and future autonomous vehicle deployments. Higher consumer incomes and a strong inclination toward premium vehicles mean that EPS systems featuring customizable steering feel, advanced safety integrations, and reduced energy consumption find significant traction in the market. The presence of diverse automotive retail networks and aftersales services also underpins the market’s steady growth, ensuring EPS technologies can be maintained and supported throughout the vehicle lifecycle. Dubai’s automotive landscape thus offers fertile ground for EPS adoption, reflecting both consumer trends and technological advancements.

Recent Developments

• In December 2024, Arabian Automobiles Company announced its expansion within Dubai Industrial City, aiming to enhance automotive operations and logistics capabilities. The move supports local manufacturing and distribution efficiency, reflecting the UAE’s growing focus on advanced automotive ecosystems. This expansion contributes to the availability of automotive components like EPS in regional markets, aligning with efforts to localize supply chains. The initiative highlights Dubai’s position as a hub for modern automotive businesses catering to evolving market demands.
• In May 2025, Omoda and Jaecoo collaborated with Maersk to enhance after-sales service networks across the UAE. The partnership focuses on logistics and supply chain efficiency, ensuring timely availability of spare parts and components like EPS systems. This alliance is expected to reduce lead times for servicing, supporting vehicle reliability and consumer satisfaction. Such strategic cooperation emphasizes the UAE’s commitment to high service standards in its evolving automotive market.
• In May 2025, W Motors revealed plans to expand operations through contract manufacturing services for international automotive brands. The initiative allows the company to produce components and vehicles for global markets, leveraging advanced technologies and manufacturing expertise. This expansion contributes to regional capabilities in producing high-value automotive systems, including EPS technologies. W Motors’ move underlines the UAE’s growing role in the global automotive supply chain and advanced manufacturing.
• In March 2025, the Abu Dhabi Investment Office introduced a new automotive programme to attract automotive manufacturing and technology investments to the emirate. The initiative offers financial incentives and infrastructure support for companies engaging in automotive innovation, including EPS technologies. This programme seeks to diversify Abu Dhabi’s economy and establish it as a hub for high-tech automotive production. The move reflects government efforts to foster sustainable industry growth and enhance local production capacity.
• In March 2025, FedEx launched its Surround platform in the UAE, offering smart logistics solutions to enhance shipment tracking and predictive analytics. The platform provides greater visibility into supply chain movements, benefiting industries like automotive manufacturing where timely delivery of EPS components is critical. This innovation supports efficient parts management and minimizes supply disruptions. The adoption of such technology aligns with the UAE’s vision for digital transformation across key economic sectors.

Key Market Players

• Hyundai Mobis
• JTEKT Corporation
• Mando Corporation
• Mitsubishi Corporation
• Nexteer
• NSK Ltd
• Robert Bosch GMBH
• Showa Corporation
• Sona Koyo Steering System
• Thyssenkrupp AG

Report Scope:

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

·         UAE Electric Power Steering Market, By Vehicle:

o    Passenger Car

o    Medium & Heavy Commercial Vehicles

o    Light Commercial Vehicles

o    Off-the-Road Vehicles

·         UAE Electric Power Steering Market, By Type:

o    C-EPS

o    P-EPS

o    R-EPS

·         UAE Electric Power Steering Market, By Component:

o    Steering Column

o    Steering Wheel

o    Sensors

o    Electronic Control Unit

o    Electric Motor

o    Bearings 

·         UAE Electric Power Steering Market, By Region:

o    Dubai

o    Abu Dhabi

o    Sharjah

o    Rest of UAE

Competitive Landscape

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

Available Customizations:

UAE Electric Power Steering Market report with the given market data, TechSci Research, offers customizations according to the 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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