Market Overview:

According to IMARC Group's latest research publication, "Electric Power Steering Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global electric power steering market size reached USD 29.62 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 45.30 Billion by 2033, exhibiting a growth rate (CAGR) of 4.59% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How AI is Reshaping the Future of Electric Power Steering Market

• AI integration in EPS systems enables real-time adaptation to road conditions, vehicle speed, and driver behavior through advanced machine learning algorithms and neural networks.
• Automotive manufacturers including Toyota, General Motors, and Ford are heavily investing in AI-powered steering systems to support autonomous driving capabilities from Level 3 to Level 5 automation.
• AI enables predictive maintenance in EPS systems, identifying potential failures early and reducing unexpected breakdowns, enhancing overall vehicle safety and reliability.
• Steer-by-wire technology adoption reached 30% of new models in 2024, with AI-driven steering control expected in 25% of new models by 2025 for improved safety and adaptability.
• Leading suppliers like Bosch, Continental, JTEKT, and Nexteer are developing AI-integrated steering solutions that enhance torque feedback, lane centering control, and automated parking capabilities.

Download a sample PDF of this report: https://www.imarcgroup.com/electric-power-steering-market/requestsample

Key Trends in the Electric Power Steering Market

• Rapid Shift Toward Steer-By-Wire Technology: The automotive industry is witnessing accelerated adoption of steer-by-wire systems that eliminate mechanical connections between the steering wheel and wheels. ZF commenced series production of steer-by-wire systems for NIO's ET9 vehicle in February 2025, marking one of the first commercial applications of fully electronic steering architecture in production vehicles.
• Integration with Advanced Driver Assistance Systems (ADAS): EPS systems are becoming essential components for ADAS features including lane-keeping assistance, automatic emergency steering, and adaptive cruise control. The U.S. captures close to 75% ADAS market share, with EPS providing the high-precision steering capabilities required for these safety systems.
• Growing Adoption in Electric and Hybrid Vehicles: Global EV demand increased 35% in 2023, reaching 14.2 million units with 16.7% market share. EPS systems are crucial for EVs due to their energy efficiency and seamless integration with electric drivetrains, eliminating hydraulic pumps and reducing parasitic losses.
• Development of Modular and Scalable EPS Platforms: Nexteer Automotive expanded its Modular Pinion-Assist EPS (mP-EPS) platform in April 2024, offering cost-effective, scalable steering solutions adaptable across compact cars, SUVs, and light-duty trucks while maintaining consistent steering feel and safety standards.
• Sensor Technology Advancement: Sensors lead the market segment due to their critical role in developing high-performance accuracy and safety. Torque, position, and speed sensors enable real-time data collection for precision steering, vehicle stability control, and optimized power consumption.

Growth Factors in the Electric Power Steering Market

• Rising Fuel Efficiency Regulations: Stringent government regulations globally are pushing automakers to adopt energy-efficient technologies. EPS systems eliminate belt-driven hydraulic pumps, reducing energy consumption and improving fuel efficiency by 6-8% when combined with vehicle weight reduction strategies.
• Increasing Production of Electric Vehicles: With 16% of U.S. light-duty new vehicle sales being EVs or HEVs in 2023, and global EV sales projected to reach 16.6 million units in 2024, EPS systems are becoming standard equipment due to their superior energy efficiency and integration capabilities with electric powertrains.
• Government Incentives and Funding Support: Major investments are driving EPS adoption, including Bosch's USD 117 million expansion of electric steering production in Hungary in December 2024, supported by USD 27 million in state funding, reflecting strong government backing for advanced automotive technologies.
• Enhanced Vehicle Safety Requirements: The European Union's General Safety Regulation II, effective July 2024, mandates advanced safety technologies that integrate seamlessly with EPS systems. These regulatory requirements create synergies that accelerate EPS adoption as foundational vehicle technology.
• Technological Innovations in Steering Systems: Companies are introducing dual-pinion EPS designs and torque sensor systems that provide precision steering experiences, reduce sensitivity to steering load variations, and improve responsiveness. Additionally, haptic feedback systems enhance driver situational awareness and reduce fatigue.

We explore the factors driving the growth of the market, including technological advancements, consumer behaviors, and regulatory changes, along with emerging electric power steering market trends.

Leading Companies Operating in the Global Electric Power Steering Industry:

• HELLA GmbH & Co. KGaA (Faurecia SE)
• Hycet Technology Co. Ltd (Great Wall Motor Company Limited)
• JTEKT Corporation
• Mitsubishi Electric Corporation
• Nexteer Automotive
• NSK LTD
• NXP Semiconductors N.V.
• Robert Bosch GmbH
• ThyssenKrupp AG
• TT Electronics plc
• ZF Friedrichshafen AG

Electric Power Steering Market Report Segmentation:

Breakup By Component:

• Steering Column
• Sensors
• Steering Gear
• Mechanical Rack and Pinion
• Electronic Control Unit
• Electric Motor
• Others

Sensors account for the majority of shares due to their critical role in ensuring precise steering and vehicle stability control.

Breakup By Mechanism:

• Rigid EPS
• Collapsible EPS

Collapsible EPS dominates the market with around 56.7% market share in 2024 due to its superior safety capabilities and adaptability across various vehicle types.

Breakup By Type:

• Rack Assist Type (REPS)
• Column Assist Type (CEPS)
• Pinion Assist Type (PEPS)

Column Assist Type (CEPS) accounts for the largest segment with around 36.8% market share in 2024, driven by its space-efficient design and widespread adoption in small and mid-sized passenger vehicles.

Breakup By Vehicle Type:

• Passenger Car
• Commercial Vehicle

Passenger car dominates the market with around 68.6% market share in 2024, attributed to rising demand for fuel efficiency and technology-advanced vehicles.

Breakup By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific enjoys the leading position with over 50.5% market share in 2024, driven by augmenting demand for energy-efficient vehicles and government regulations promoting cleaner transportation solutions.

Recent News and Developments in Electric Power Steering Market

• February 2025: ZF Friedrichshafen AG commenced series production of steer-by-wire steering systems for Chinese manufacturer NIO's ET9 vehicle, marking a significant milestone in fully electronic steering architecture.
• January 2025: ZF and Rane Group launched advanced EPS technology in India, catering to the increasing demand for enhanced steering systems in both passenger and commercial vehicle markets.
• December 2024: Bosch initiated electric steering systems production in Hungary with a USD 117 million investment, expanding manufacturing capacity to meet growing European market demand.
• August 2024: JTEKT India Limited announced development of a next-generation Column-Assist Electric Power Steering (CEPS) system to enhance vehicle performance and efficiency.
• August 2024: Nexteer Automotive introduced its Modular Pinion-Assist Electric Power Steering (mPEPS) system, expanding cost-effective and modular EPS solutions to include both Single-Pinion and Dual-Pinion systems.

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