United States Electric Power Steering Market, By Type (C-EPS, P-EPS, R-EPS), By Component Type (Steering Column, Steering Wheel, Sensors, Electronic Control Unit, Electric Motor and Bearings), By Vehicle Type (Passenger Cars, Medium & Heavy Commercial Vehicles, Light Commercial Vehicles and Off-the-Road Vehicles), By Mechanism Type (Collapsible EPS, Rigid EPS), By Region, Competition, Forecast & Opportunities, 2021-2031F

Key Insights	Details
Forecast Period	2027-2031
Market Size (2025)	USD 381.81 Million
CAGR (2026-2031)	5.81%
Fastest Growing Segment	Light Commercial Vehicles
Largest Market	West
Market Size (2031)	USD 535.81 Million

Market Overview

The United States Electric Power Steering Market will grow from USD 381.81 Million in 2025 to USD 535.81 Million by 2031 at a 5.81% CAGR. Electric Power Steering (EPS) is an automotive system employing an electric motor to provide driver assistance, replacing conventional hydraulic mechanisms. This technology uses sensors and an electronic control unit to deliver precise steering support, enhancing driving comfort and vehicle control. The United States market's growth is primarily driven by the increasing emphasis on fuel efficiency and reduced emissions, as EPS systems are inherently more energy-efficient. Additionally, the widespread integration with advanced driver assistance systems (ADAS) for improved safety and the rising adoption of electric and hybrid vehicles significantly bolster demand. For instance, according to the Alliance for Automotive Innovation, in 2025, electric vehicles constituted 9.6 percent of new U.S. light-duty vehicle sales, directly correlating with EPS system proliferation.

A notable impediment to market expansion remains the substantial development and integration costs associated with advanced EPS technologies. These systems necessitate sophisticated sensors, electronic control units, and electric motors, leading to higher manufacturing expenses. This cost factor can limit adoption, particularly within price-sensitive vehicle segments, presenting a persistent challenge for manufacturers in the sector. Ensuring reliability under harsh conditions also remains a critical consideration for OEMs.

Key Market Drivers

Electrification Drives US EPS Market Growth
The increasing adoption of electric and hybrid vehicles significantly propels the United States Electric Power Steering Market. EPS systems offer considerable advantages for these powertrains, including enhanced energy efficiency, crucial for maximizing range and reducing the load on electric batteries or hybrid systems. Their compact design also aids in packaging within often space-constrained electrified vehicle architectures, while providing precise and responsive steering control. According to The Washington Post, in June 2026, hybrid vehicles constituted a record high of 14.1 percent of new vehicle sales in the first quarter of 2026, highlighting a growing segment that directly benefits from EPS technology. This shift towards electrification correlates with increasing demand for advanced steering solutions.

ADAS Integration Drives EPS Growth
The integration with Advanced Driver Assistance Systems (ADAS) represents another primary growth catalyst. EPS is fundamental for many ADAS functionalities, such as lane-keeping assist, adaptive cruise control, and automated parking, by enabling precise steering adjustments without direct driver input. These systems rely on the exact control and communication capabilities that EPS provides, allowing for sophisticated vehicle interventions. According to research by the Insurance Institute for Highway Safety, in January 2026, nearly 60 percent of new vehicles sold in the United States incorporated advanced driver assistance technologies, demonstrating widespread implementation of features leveraging EPS. Concurrently, the overall United States market for light vehicles, as reported by Car Sales Statistics in April 2026, contracted by 7.5 percent in the first quarter of 2026, selling just over 3.65 million units.

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Key Market Challenges

High development and integration costs constrain EPS adoption
A notable challenge for the United States Electric Power Steering Market is the substantial development and integration costs associated with advanced EPS technologies. These systems require sophisticated sensors, electronic control units, and electric motors, directly leading to elevated manufacturing expenses for automotive suppliers and original equipment manufacturers. This cost factor significantly impacts pricing strategies, which in turn limits broader market adoption, particularly within more price-sensitive vehicle segments.

Tariffs driving cost volatility in EPS manufacturing
This challenge is further exacerbated by external economic factors impacting manufacturing costs. For instance, according to a report prepared jointly with MEMA Original Equipment Suppliers in November 2025, new tariff policies introduced a 25 percent duty on imported auto parts, including electrical components essential for EPS systems. These tariffs increased cost volatility for United States manufacturers, directly contributing to higher production outlays. Such increased expenditures present a persistent impediment for manufacturers, who must balance the need for technological advancement with market affordability, thereby hampering the overall growth potential within the United States Electric Power Steering Market.

Key Market Trends

Steer-by-Wire as a Major Architectural Shift in the US EPS Market
Advancing Steer-by-Wire Implementation is a significant architectural shift influencing the United States Electric Power Steering market by demanding more sophisticated electronic control units, robust sensors, and high-reliability actuators. This technology replaces traditional mechanical steering linkages with fully electronic systems, allowing for enhanced design flexibility within the vehicle cabin and enabling advanced steering functionalities. It is crucial for higher levels of autonomous driving, offering adaptable steering ratios and faster response times. For instance, according to a press release from ZF on July 10, 2025, ZF will supply Mercedes-Benz with Steer-by-Wire technology starting in 2026, highlighting a major OEM commitment to this transformative steering solution that will influence global vehicle platforms, including those destined for the US market.

EPS Evolution in Software-Defined Vehicles and Centralized Computing
Another pivotal trend is the evolution of Electric Power Steering systems as a foundational component for software-defined vehicles. This involves integrating EPS into a centralized vehicle computing architecture, enabling over-the-air updates, personalized driving experiences, and continuous feature enhancements. The software-centric approach allows for dynamic adjustments to steering feel and response, improving both safety and driver comfort through advanced algorithms rather than mechanical changes. This shift significantly increases the demand for software development and validation expertise within EPS suppliers. The growing complexity is underscored by the fact that the average vehicle is expected to run on roughly 650 million lines of code in 2025, as reported by WardsAuto on May 29, 2026, indicating the extensive software integration required for modern vehicle systems.

Segmental Insights

Rapid Growth of EPS in US Light Commercial Vehicles Driven by Efficiency, Emissions Regulations, and Urban Delivery Demand
The Light Commercial Vehicles segment is emerging as the fastest-growing area within the United States Electric Power Steering Market. This rapid expansion is primarily driven by the increasing demand for fuel-efficient and environmentally compliant vehicles, as Electric Power Steering systems significantly reduce energy consumption and emissions compared to traditional hydraulic systems, aligning with mandates from bodies like the Environmental Protection Agency. Furthermore, the booming e-commerce sector and the associated need for last-mile delivery services are propelling LCV sales, where EPS enhances maneuverability and driver comfort in urban settings. The seamless integration of EPS with Advanced Driver Assistance Systems, critical for meeting stringent safety regulations set by the National Highway Traffic Safety Administration, further underscores its growing adoption in this segment.

Regional Insights

Western U.S. Leads EPS Market Through Regulation and Tech Ecosystem
The Western United States is the leading region in the Electric Power Steering market, driven significantly by California's stringent environmental regulations and a pronounced regional preference for sustainable automotive technologies. This dominance stems from the high prevalence of electric and hybrid vehicles in the West, as Electric Power Steering systems enhance fuel efficiency and reduce emissions, aligning with objectives set by regulatory bodies such as the Environmental Protection Agency. Furthermore, the region's robust technological ecosystem fosters the integration of advanced driver-assistance systems and autonomous driving functionalities, which are inherently compatible with modern electric power steering solutions.

Recent Developments

• In November 2025, ZF announced an expanded partnership with autonomous truck developer Kodiak AI, which included ZF supplying redundant steering systems to enhance the safety of Kodiak's driverless trucks. ZF had begun integrating these redundant steering components into Kodiak Driver-equipped trucks earlier in 2025. This collaboration highlights a critical development in the United States Electric Power Steering Market, as fail-safe steering systems are essential for the commercialization and safe operation of autonomous vehicles, demonstrating advancements in steering technology for heavy-duty applications.
• In April 2025, Nexteer Automotive announced the launch of its High-Output Column-Assist Electric Power Steering (HO CEPS) system, marking a significant addition to its steering portfolio. This innovation expanded steering assist capacity up to 110 Nm, enabling support for larger and heavier vehicles that traditionally required more complex steering systems. The HO CEPS solution offers original equipment manufacturers enhanced flexibility in optimizing performance, cost, and scalability across vehicle platforms. This product directly impacts the United States Electric Power Steering Market by broadening the applicability of column-assist systems to a wider range of vehicles.
• In March 2025, Ford announced the integration of a new electric power steering module into an upcoming Mustang Mach-E variant, produced at its facility in the United States. This supplier-integrated system was anticipated to deliver improved steering feedback, reduced energy consumption, and enhanced compatibility with advanced driver-assistance systems. This significant adoption by a prominent U.S. automotive manufacturer represents one of the initial launches of a next-generation power steering system within its passenger electric vehicle lineup, directly influencing the United States Electric Power Steering Market.
• In August 2024, Nexteer Automotive introduced its Modular Pinion-Assist Electric Power Steering (mPEPS) system, designed to broaden the company's offerings of affordable and modular electric power steering solutions. This new product supports both single- and dual-pinion configurations, providing original equipment manufacturers with flexible integration capabilities for diverse vehicle platforms. The mPEPS system was developed using Nexteer's established electric power steering components, which helps to optimize costs and reduce development timelines. This launch underscored Nexteer's commitment to advancing steering technology within the United States Electric Power Steering Market for various vehicle types.

Key Market Players

• Mitsubishi Electric Corporation
• Robert Bosch GmbH
• Denso Corporation
• JTEKT Corporation
• NSK Ltd.
• thyssenkrupp AG
• ZF Friedrichshafen AG
• Knorr-Bremse AG
• Dowlais Group Plc
• Nexteer Automotive Corporation

By Type	By Component Type	By Vehicle Type	By Mechanism Type	By Region
C-EPS P-EPS R-EPS	Steering Column Steering Wheel Sensors Electronic Control Unit Electric Motor and Bearings	Passenger Cars Medium & Heavy Commercial Vehicles Light Commercial Vehicles and Off-the-Road Vehicles	Collapsible EPS Rigid EPS	Northeast Midwest South West

Report Scope:

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

• United States Electric Power Steering Market, By Type:

• C-EPS
• P-EPS
• R-EPS

• United States Electric Power Steering Market, By Component Type:

• Steering Column
• Steering Wheel
• Sensors
• Electronic Control Unit
• Electric Motor and Bearings

• United States Electric Power Steering Market, By Vehicle Type:

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

• United States Electric Power Steering Market, By Mechanism Type:

• Collapsible EPS
• Rigid EPS

• United States Electric Power Steering Market, By Region:

• Northeast
• Midwest
• South
• West