Electric Power Steering Market Report 2025

The electric power steering market size has grown strongly in recent years. It will grow from $28.84 billion in 2024 to $30.75 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. 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 comfortable driving experience, reduction in manufacturing costs.

The electric power steering market size is expected to see strong growth in the next few years. It will grow to $41.01 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to integration with autonomous driving systems, rise in electric and hybrid vehicle production, advancements in EPS, consumer demand for enhanced driving experience, environmental regulations and fuel efficiency. Major trends in the forecast period include demand for noiseless and smooth steering, enhanced connectivity and data integration, focus on energy efficiency, development of dual pinion EPS, adoption of steer-by-wire technology.

The rising global demand for electric vehicles is anticipated to drive the growth of the electric power steering market in the coming years. Electric vehicles are powered by motors that utilize electricity stored in batteries. Additionally, due to the need for protection against COVID-19 and the goal of achieving net-zero emissions, there has been a sudden surge in the adoption of EVs and hybrid vehicles. As electric power steering is a crucial component in electric vehicles, the increase in their production leads to higher demand for electric power steering systems. For example, in July 2023, the International Energy Agency, a France-based intergovernmental organization, reported that electric vehicle sales reached 10 million in 2022, with projections indicating an increase to 14 million in 2023. Thus, the growing demand for electric vehicles is fueling the expansion 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.

Major players in the electric power steering market are concentrating on developing advanced products like the Modular Pinion-Assist Electric Power Steering (EPS) System. This sophisticated steering solution aims to improve vehicle performance and manufacturing efficiency. For example, in August 2024, Nexteer Automotive, a US-based motion control technology firm, launched the Modular Pinion-Assist Electric Power Steering (EPS) System. This innovative system is designed to be compatible with various vehicle platforms, offering manufacturers enhanced flexibility in design and implementation. It improves steering responsiveness, leading to a better driving experience. Additionally, the modular design helps lower manufacturing costs and facilitates easier integration into different vehicle models.

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 are 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 2024 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.

Electric power steering is a mechanical system that utilizes an electric motor to draw energy from the vehicle's electrical system to assist with steering. It offers steering support to the driver, enhancing maneuverability and control, especially at low speeds. Additionally, this technology improves fuel efficiency by decreasing the energy needed for steering compared to conventional hydraulic systems.

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.

The electric power steering market research report is one of a series of new reports that 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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