Electric Power Steering Global Market Report 2024

The global electric power steering market has grown strongly in recent years. It will grow from $27.26 billion in 2023 to $29.25 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to fuel efficiency and emissions reduction, enhanced vehicle safety and control, regulatory standards and norms, consumer preference for a comfortable driving experience, and reduction in manufacturing costs.

The global electric power steering market is expected to see strong growth in the next few years. It will grow to $38.47 billion in 2028 at a compound annual growth rate (CAGR) of 7.1%. The anticipated growth in the forecast period can be attributed to the integration of steering systems with autonomous driving technologies, an increase in the production of electric and hybrid vehicles, advancements in Electric Power Steering (EPS), consumer demand for an enhanced driving experience, and the influence of environmental regulations and a focus on fuel efficiency. Major trends expected in this period include a growing demand for noiseless and smooth steering, an emphasis on enhanced connectivity and data integration in steering systems, a focus on energy efficiency, the development of dual pinion EPS systems, and an increased adoption of steer-by-wire technology.

The electric power steering market is poised for significant growth, driven by the increasing global demand for electric vehicles (EVs). Electric vehicles, powered by electricity stored in batteries, have witnessed a surge in adoption worldwide. This growth is attributed to various factors, including the ongoing defense against the COVID-19 pandemic and the pursuit of net-zero emissions. With electric power steering being a critical component in EVs, the escalating demand for electric vehicles directly correlates with an increased need for electric power steering systems. Data from the Global EV Outlook 2022 report underscores this trend, revealing a doubling of EV sales in 2021 to reach a record high of 6.6 million units. The sales of electric car vehicles globally are projected to have reached 6,600,000 units in 2021, up from 2,980,000 units in the previous year. Consequently, the surging demand for electric vehicles is a key driver propelling the growth of the electric power steering market.

The electric power steering market is set to experience robust growth due to the increasing adoption of driver assistance systems (ADAS). Driver assistance systems encompass a range of electronic technologies designed to assist drivers in various driving and parking functions. The integration of Electric Power Steering (EPS) with ADAS enhances steering precision and control, enabling features such as lane-keeping assistance and automated lane centering. Notably, a report from the Insurance Institute for Highway Safety and Highway Loss Data Institute highlights the anticipated significant growth in the adoption of adaptive cruise control with lane centering, a specific type of driver assistance system. The projection indicates an increase from 7% in 2021 to an expected 15% by 2026. Furthermore, the deployment of rear parking sensors is expected to exceed 60% fleet penetration by 2026, marking a substantial increase from the 41% recorded in 2021. The escalating adoption of driver assistance systems is a pivotal factor driving the growth of the electric power steering market.

Technological innovations emerge as a key trend shaping the electric power steering market. Major companies operating in this market are actively pursuing new technological solutions to reinforce their market position. A notable example is Nexteer Automotive, a US-based motion control technology company, which introduced a modular column-assist EPS system in October 2021. This innovative system features high-performance torque and angle sensors, providing a heightened level of steering accuracy for drivers. The system's unique design prioritizes cost efficiency, scalability, and flexibility, catering to various load capacities. Such technological advancements contribute to enhancing the steering experience, offering drivers a more accurate and responsive control interface. The focus on innovation is indicative of the industry's commitment to staying at the forefront of technological advancements and meeting evolving consumer expectations.

Major players in the electric power steering market are directing their efforts towards developing innovative products, such as electric power steering motor power packs (EPS-PP). Specifically, companies are introducing advanced EPS-PP products like the Column-Type EPS-PP to cater to diverse customer bases and bolster revenue. Nidec Corporation, a Japan-based automotive product manufacturing company, launched column-type EPS units in June 2023. These units aim to deliver smooth steering comparable to rack-type units while addressing market demands for cost reduction. Nidec's EPS-PP stands out for its real-time detection and correction capabilities, effectively mitigating concerns related to motor and EPS unit friction and torque ripple. By optimizing cost efficiency and incorporating lower-grade materials, Nidec aims to achieve superior steering performance while ensuring cost savings. The introduction of such innovative EPS-PP products reflects the industry's commitment to addressing challenges and advancing the capabilities of electric power steering systems.

In January 2022, Faurecia S.E., a leading automotive technology company based in France, successfully acquired Hella GmbH & Co. KGaA for an undisclosed amount. This strategic acquisition positions Faurecia to unite with Hella and establish itself as a global technology leader in the automotive sector. The collaboration spans a wide range of areas, including electric mobility, automated driving, future cockpit technologies, and lifecycle value management, which encompasses aftermarket and special applications. Hella GmbH & Co. KGaA, a Germany-based automotive technology company, contributes its expertise in electronic control units for electrical power steering to this innovative partnership.

Major companies operating in the electric power steering market report are Robert Bosch GmbH, JTEKT Corporation, Nexteer Automotive Group Limited, ZF Friedrichshafen AG, NSK Steering Systems Pvt. Ltd., Mando Corporation, Guest, Keen and Nettlefolds Ltd., Federal-Mogul Corporation, Hyundai Mobis Co Ltd., Showa Corporation, Hitachi Astemo Ltd., Mitsubishi Motors Corporation, Denso Corporation, Renesas Electronics Corp., China Automotive System, KYB Corporation, Thyssenkrupp AG, Delphi Technologies, Tenneco Inc., Thompson Ramo Wooldridge Inc., GKN Driveline Service GmbH, Zhejiang Shibao Company Limited, Jilin Dongfeng Power Co. Ltd., Chongqing Jianshe Automobile Electric Co. Ltd., Hella GmbH & Co. KGaA, Valeo Group, Magna International Inc., Huayu Automotive Systems Co. Ltd., Sichuan Tianyi Timing Chain Co. Ltd., Jiangsu Dajiang Automotive Electric Motor Co. Ltd., Zhejiang Jiuli Hi-Tech Metals Co. Ltd.

Asia-Pacific was the largest region in the electric power steering market share in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the electric power steering market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric power steering market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric power steering market comprises various types, namely R-EPS, P-EPS, and C-EPS. R-EPS, a supported unit linked to the steering rack, is proficient in steering mid-sized to full-size trucks, designed for resilience in challenging environmental conditions. Key components include the steering column, sensors, steering gear, mechanical rack and pinion, electronic control unit, electric motor (brush motor or brushless motor), and bearing. These mechanisms, offering both rigidity and collapsibility, find applications across passenger cars and commercial vehicles.

This report provides electric power steering market statistics, including the electric power steering industry global market size, regional shares, competitors with electric power steering market share, detailed electric power steering market segments, market trends and opportunities, and any further data you may need to thrive in the electric power steering industry. This electric power steering market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric power steering market consists of sales of hydroelectric steering, electric steering, and steer-by-wire steering. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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