The global Electronic Power Steering (EPS) market is set for sustained growth, with its valuation projected to increase from USD 29,378.8 million in 2025 to USD 48,774.3 million by 2035, expanding at a CAGR of 5.2%. This growth trajectory is fueled by rising demand for fuel-efficient vehicles, the electrification of mobility, and the integration of advanced driver-assistance systems (ADAS).

The transition from hydraulic to electric steering has become a cornerstone in achieving global emission reduction targets and enabling autonomous driving capabilities. The market outlook is also being shaped by technology localization and performance-oriented innovations. In India, manufacturers are launching domestically produced EPS solutions under government-backed initiatives, while companies like Nexteer Automotive are scaling modular platforms to reduce integration costs across vehicle categories.

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Market Trends Highlighted

• Shift from Hydraulic to Electric Systems: EPS systems are increasingly replacing traditional hydraulic steering due to their ability to reduce engine load, improve fuel efficiency, and cut vehicle weight by up to 4 kg.
• EV Integration and Range Optimization: With more than 10 million EVs sold globally in 2023, EPS has become indispensable, offering lightweight architecture and higher efficiency that directly extend driving range.
• Steer-by-Wire and Autonomous Driving Support: EPS enables real-time electronic control, essential for lane-keeping, adaptive steering, and autonomous vehicle trials conducted by over 50 companies worldwide.
• Regional Innovations and Localization: In India, Rane NSK and ZF Group have localized EPS production under the Make-in-India initiative, while Nexteer Automotive has scaled its Modular Pinion Assist EPS platform for global vehicle categories.
• Performance Segment Expansion: Motorsport and high-performance vehicle applications are adopting programmable EPS kits, such as Wisefab’s advanced steering solutions for drift racing.
• Sustainability and Regulatory Push: Governments worldwide, including the EU’s 37.5% CO₂ emission reduction mandate by 2030, are reinforcing EPS adoption across passenger cars and SUVs.

Key Takeaways of the Report

• Market Size & Growth: The global EPS market will grow from USD 29.3 billion (2025) to USD 48.7 billion (2035), registering a 5.2% CAGR.
• Passenger Cars Lead Adoption: Passenger cars represented 64% of market share in 2025, driven by global standardization of EPS across compact and mid-size vehicles.
• Rack-Assist EPS Rising: Rack Assist EPS (R-EPS) accounted for 38% of demand in 2025, with high adoption in SUVs and mid-sized vehicles requiring higher torque and integration with ADAS.
• Semi-Annual Growth Rates: EPS recorded a CAGR of 4.7% in H1 2024 and 4.9% in H2 2024. Projections for H1 2025 (5.1%) and H2 2025 (5.2%) suggest sustained upward momentum.
• Regional Leaders: China, India, the U.S., Germany, and Japan are the top five markets, collectively driving the global EPS industry through EV demand, regulatory compliance, and localized manufacturing.

Regional Market Outlook

• China: Expected to register the highest CAGR of 7.2% (2025–2035), driven by its EV leadership and large-scale automotive production, supported by domestic and international OEMs.
• India: Projected CAGR of 6.9%, supported by government-backed initiatives, rising EV adoption, and localized production partnerships, making it a fast-emerging EPS hub.
• North America & Europe: The U.S. (5.3% CAGR) and Germany (4.9% CAGR) remain vital markets, with Germany leading in premium EPS adoption through OEMs like BMW, Mercedes-Benz, and Volkswagen.

Leading Suppliers of Electronic Power Steering (EPS)

• Bosch
• JTEKT Corporation
• Mitsubishi Electric Corporation
• SHOWA Corporation
• Nexteer Automotive
• NSK Ltd
• Hyundai Mobis
• ZF Friedrichshafen AG
• Mando Corporation
• Zhuzhou Elite Electro-Mechanical Co. Ltd.

Key Segments of Electronic Power Steering (EPS) Market

By Component Type:

In terms of Component Type, the industry is divided into Steering Column, Steering Motor, Electronic Control Unit (ECU)

By Vehicle Type:

In terms of Vehicle, the industry is divided into Passenger Cars, Commercial Vehicles, Electric Vehicles (EVs)

By EPS Type:

In terms of EPS Type, the industry is divided into Column Assist EPS (C-EPS), Pinion Assist EPS (P-EPS), Rack Assist EPS (R-EPS)

By Region:

Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA), have been covered in the report.

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