Electric Power Steering Market Report 2026

The electric power steering market size has grown strongly in recent years. It will grow from $30.33 billion in 2025 to $32.37 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to fuel efficiency regulations, passenger vehicle production growth, adoption of power-assisted steering, reduction of hydraulic systems, demand for better maneuverability.

The electric power steering market size is expected to see strong growth in the next few years. It will grow to $42.29 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to steer-by-wire development, electric vehicle adoption, autonomous driving integration, demand for energy-efficient components, software-defined steering systems. Major trends in the forecast period include shift from hydraulic to electric steering, integration of advanced steering sensors, adoption of brushless motors, demand for lightweight steering systems, increased use in compact vehicles.

The increasing demand for electric vehicles worldwide is expected to propel the growth of the electric power steering market going forward. Electric vehicles (EVs) are powered by motors that draw energy from batteries. Additionally, with heightened focus on post-COVID-19 recovery and global net-zero emission targets, adoption of EVs and hybrid vehicles has accelerated. As electric power steering (EPS) is a key component in EVs, the rise in EV adoption directly increases the demand for EPS systems. For instance, in July 2023, according to the International Energy Agency (IEA), a France-based intergovernmental organization, electric vehicle sales reached 10 million in 2022 and are projected to rise to 14 million in 2023. Therefore, the increasing demand for electric vehicles is driving growth in the electric power steering market.

Major companies in the electric power steering market are focused on developing innovative EPS motor power pack (EPS-PP) products, such as the Column-Type EPS-PP, to serve larger customer bases and increase revenue. A Column-Type EPS-PP is an advanced system designed to optimize steering performance, reduce friction and torque ripple, and support Advanced Driver Assistance Systems (ADAS), all while maintaining cost efficiency. For instance, in June 2023, Nidec Corporation, a Japan-based automotive manufacturer, launched column-type EPS units that deliver smooth steering comparable to rack-type units. Nidec’s EPS-PP technology detects and corrects motor and EPS unit friction and torque ripple in real-time, resolving issues related to artificial steering feel. The product also achieves cost savings by using lower-grade materials, such as substituting traditional electromagnetic steel sheets to reduce friction-induced torque losses, while maintaining high performance.

In March 2024, ZF Friedrichshafen AG, a Germany-based automotive company, acquired a majority stake in Rane Steering Systems Private Limited for an undisclosed amount. This acquisition allows ZF to expand its passenger-car and commercial-vehicle electric steering and chassis business in India, accelerate the introduction and localization of advanced steering technologies, and strengthen its presence in a high-growth market. Rane Steering Systems Private Limited is an India-based manufacturer of steering systems, including electric power steering columns and other steering gear components.

Major companies operating in the electric power steering market report include Robert Bosch GmbH, JTEKT Corporation, Nexteer Automotive Group Limited, ZF Friedrichshafen AG, NSK Steering Systems Pvt. Ltd., Mando Corporation, Hyundai Mobis Co Ltd., Showa Corporation, Hitachi Astemo Ltd., Denso Corporation, China Automotive System, KYB Corporation, Thyssenkrupp AG, Delphi Technologies, Tenneco 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., Jiangsu Dajiang Automotive Electric Motor Co. Ltd.

Asia-Pacific was the largest region in the electric power steering market share in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the electric power steering market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric power steering market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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