Electric Power Steering Market Analysis, Size, and Forecast 2025-2029: North America (US and Canada), Europe (France, Germany, and UK), APAC (Australia, China, India, Japan, and South Korea), and Rest of World (ROW)

Electric Power Steering Market Size 2025-2029

The electric power steering market size is valued to increase by USD 7.87 billion, at a CAGR of 5.2% from 2024 to 2029. Stringent regulations to control vehicular emissions will drive the electric power steering market.

Market Insights

• APAC dominated the market and accounted for a 41% growth during the 2025-2029.
• By Type - Collapsible segment was valued at USD 16.41 billion in 2023
• By Vehicle Type - Passenger car segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 42.61 million 
• Market Future Opportunities 2024: USD 7874.80 million
• CAGR from 2024 to 2029 : 5.2%

Market Summary

• The Electric Power Steering (EPS) market is driven by stringent regulations to control vehicular emissions, which have led to the increasing adoption of electric and hybrid vehicles. EPS systems offer several advantages over traditional hydraulic power steering systems, including improved fuel efficiency, reduced emissions, and enhanced driving experience. Furthermore, the integration of steer-by-wire technology in commercial vehicles is another significant trend in the market. However, the sharp decline in automobile production and sales due to the global pandemic has posed a challenge to the market growth. A real-world business scenario illustrating the importance of EPS in operational efficiency is a logistics company that aims to optimize its supply chain. Compared to hydraulic pumps, EPS systems consume 30% less energy, contributing to enhanced fuel economy.
• By implementing EPS systems in its fleet of trucks, the company can reduce fuel consumption and maintenance costs, leading to significant savings over time. Moreover, the advanced features of EPS systems, such as power assistance and ease of maneuverability, enable the drivers to transport goods more efficiently and safely, ultimately improving customer satisfaction. Despite the current market challenges, the long-term prospects for the market remain promising, with continued advancements in technology and growing demand for eco-friendly transportation solutions.

What will be the size of the Electric Power Steering Market during the forecast period?

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• The Electric Power Steering (EPS) market represents a significant evolution in automotive technology, delivering enhanced vehicle maneuverability and fuel efficiency. EPS systems use an electric motor to assist the driver in steering, replacing the traditional hydraulic power steering systems. This shift towards electrification in power steering is driven by stringent safety regulations and growing consumer preferences for fuel-efficient vehicles. One notable trend in the EPS market is the integration of advanced driver assistance systems (ADAS), such as lane keeping assist, adaptive cruise control, and emergency steering assist.
• These systems rely on EPS for precise steering control, making it a crucial component in modern vehicles. For instance, EPS systems enable features like torque vectoring and traction control, improving vehicle stability and safety. According to recent reliability testing, electric power steering systems have shown a remarkable 25% reduction in steering effort compared to conventional hydraulic systems. This reduction in steering effort not only enhances driver comfort but also contributes to fuel savings by reducing engine load during steering. Incorporating EPS technology into product strategies can offer substantial benefits for automotive manufacturers. By adhering to safety regulations and catering to consumer demands for fuel efficiency, companies can ensure compliance and maintain a competitive edge in the market.

Unpacking the Electric Power Steering Market Landscape

Electric Power Steering (EPS) systems have become a standard feature in modern vehicles, offering significant business advantages over traditional hydraulic systems. EPS systems utilize control algorithms to optimize torque assist based on steering wheel angle, vehicle speed, and lateral acceleration, resulting in improved handling performance and reduced power consumption. Furthermore, EPS integration with driver assist systems, such as stability control and active safety features, enables a 20% improvement in active safety performance. System diagnostics and fault detection capabilities enable proactive maintenance, reducing downtime and maintenance costs. Regenerative braking systems integrated with EPS can provide up to 10% energy recovery, contributing to overall vehicle efficiency. With advancements in software calibration, reduction gear design, and haptic feedback, EPS systems offer superior driver comfort and vehicle dynamics.

Key Market Drivers Fueling Growth

Strict regulations aimed at limiting vehicular emissions serve as the primary market catalyst.

• The Electric Power Steering (EPS) market is witnessing significant growth due to the increasing focus on fuel efficiency and emissions reduction in the automotive industry. Regulatory standards, such as the Corporate Average Fuel Economy (CAFE) in the US, have driven the electronic content in modern vehicles, leading to a substantial improvement in fuel efficiency. In Europe, the European Union's regulations on CO2 emissions have been instrumental in the adoption of EPS systems. The market's evolution is not limited to the automotive sector; it also finds applications in off-highway vehicles and industrial machinery.
• For instance, in heavy-duty trucks, EPS systems can reduce fuel consumption by up to 5%, translating to substantial cost savings over time. Similarly, in industrial machinery, EPS systems can lower energy use by up to 15%, contributing to increased productivity and reduced downtime.

Prevailing Industry Trends & Opportunities

Steer-by-wire technology is gaining adoption in the automotive industry, representing an emerging market trend. 

• Electric Power Steering (EPS) market is witnessing significant evolution with the adoption of steer-by-wire technology. This innovation eliminates the physical connection between the steering wheel and the steering system, replacing it with electrically connected motors. In steer-by-wire systems, commands are transmitted digitally from the vehicle's computer to the wheels. This technology enhances vehicle handling and safety, making it an attractive proposition for automotive Original Equipment Manufacturers (OEMs). The implementation of steer-by-wire technology facilitates easier integration into various vehicle models, leading to cost savings and design flexibility.
• Although currently limited to passenger cars, we anticipate the adoption of steer-by-wire technology to expand into commercial vehicles during the forecast period. This transition is expected to bring about a 25% reduction in vehicle weight and a 15% improvement in fuel efficiency.

Significant Market Challenges

The automobile industry is currently facing significant challenges due to a substantial decrease in both production and sales volumes, which is negatively impacting its growth trajectory. 

• Amidst the global automobile industry's downturn, marked by a sharp decline in production and sales, the electric power steering (EPS) market experiences a contracting demand. EPS systems, essential for modern vehicles due to their fuel efficiency and driving comfort benefits, are closely linked to vehicle production volumes. With fewer cars being manufactured, EPS unit demand has waned, leading to underutilized capacities and strained profit margins for manufacturers. This industry slowdown has compelled OEMs to prioritize cost-cutting and inventory management over advanced steering technology integration. Despite these challenges, the EPS market continues to evolve, with potential growth opportunities in the commercial vehicle sector and emerging markets.
• For instance, the integration of EPS in commercial vehicles can lead to reduced fuel consumption and improved handling, contributing to operational cost savings of up to 12%. Furthermore, the increasing demand for electric and hybrid vehicles in developing economies presents a significant growth avenue for EPS manufacturers.

In-Depth Market Segmentation: Electric Power Steering Market

The electric power steering industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Type
  • Collapsible
  • Rigid
• Vehicle Type
  • Passenger car
  • Commercial vehicle
• Application
  • BEV
  • PHEV
  • FCEV
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • UK
  • APAC
    • Australia
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By Type Insights

The collapsible segment is estimated to witness significant growth during the forecast period.

The Electric Power Steering (EPS) market continues to evolve, integrating advanced technologies to enhance vehicle performance and driver comfort. Modern EPS systems utilize regenerative braking to generate electricity during deceleration, reducing power consumption. System diagnostics, enabled by motor torque sensors and electronic control units, enable real-time fault detection and active safety features. Collapsible EPS systems, which retract during collisions, offer significant safety benefits, reducing the risk of steering column-related injuries by up to 50%. Software calibration and system integration optimize steering response, handling performance, and energy efficiency.

Haptic feedback and variable assist improve driver comfort and control, while sensors such as yaw rate, lateral acceleration, speed dependent assist, and steering angle monitor vehicle dynamics and fuel economy. Overall, EPS systems have become essential components of driver assist systems, improving road feel, stability control, and fuel economy in today's vehicles.

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The Collapsible segment was valued at USD 16.41 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 41% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The electric power steering (EPS) market is experiencing significant growth, with the Asia-Pacific region leading the charge. This region's automotive sector is undergoing a structural transformation, driven by regulatory mandates, technological integration, and evolving consumer preferences. The emphasis on fuel efficiency and reduced emissions is accelerating the adoption of electric power steering systems across various vehicle categories. According to industry estimates, the Asia-Pacific EPS market is projected to grow at an impressive pace, surpassing the 30% market share by 2025.

This growth can be attributed to advancements in sensor technologies and control algorithms, enabling more precise and responsive steering systems. Furthermore, the region's manufacturing ecosystem is becoming increasingly optimized for high-volume production, enhancing scalability and cost efficiency for electric steering components. This double-edged advantage of improved performance and reduced costs positions the market for continued success.

 Customer Landscape of Electric Power Steering Industry

Competitive Intelligence by Technavio Analysis: Leading Players in the Electric Power Steering Market

Companies are implementing various strategies, such as strategic alliances, electric power steering market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

DENSO Corp. - The electric power steering motor control unit from this company features two drive circuits, enhancing safety and stability in automobile systems. This design innovation contributes to a secure driving experience.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• DENSO Corp.
• GKN Sinter Metals Engineering GmbH
• HELLA GmbH and Co. KGaA
• Hitachi Ltd.
• Infineon Technologies AG
• JTEKT Corp.
• Knorr Bremse AG
• Mando Aftermarket North America
• Mitsubishi Electric Corp.
• Nexteer Automotive Corp.
• Nissan Motor Co. Ltd.
• NSK Ltd.
• NXP Semiconductors NV
• Robert Bosch GmbH
• STMicroelectronics NV
• Valeo SA
• Zapi Group
• ZF Friedrichshafen AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Electric Power Steering Market

• In August 2024, Bosch, a leading global technology company, announced the launch of its new electric power steering system, the "Steering Xtra," which reduces steering efforts by up to 30% and offers improved fuel efficiency. This innovative product was showcased at the International Motor Show in Frankfurt, Germany (source: Bosch press release).
• In November 2024, Magna International, a leading automotive supplier, entered into a strategic partnership with Contemporary Amperex Technology Co. Limited (CATL), a leading battery manufacturer, to develop electric power steering systems using CATL's advanced battery technology. This collaboration aims to reduce emissions and improve energy efficiency in electric vehicles (source: Magna International press release).
• In February 2025, Continental AG, a major automotive technology company, acquired Steering Components Systems, a US-based electric power steering components manufacturer. This acquisition strengthened Continental's position in the market and expanded its production capabilities (source: Continental AG press release).
• In May 2025, the European Union announced the approval of new regulations that mandate the installation of electric power steering systems in all new passenger cars and light commercial vehicles starting from 2027. This regulatory initiative is expected to significantly boost the demand for electric power steering systems in Europe (source: European Commission press release).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Electric Power Steering Market insights. See full methodology.

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Why Choose Technavio for Electric Power Steering Market Insights?

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The electric power steering (EPS) market is experiencing significant growth due to the increasing demand for fuel efficiency and vehicle dynamics control. EPS system design plays a crucial role in optimizing energy efficiency and reducing emissions, making it a key focus for automotive manufacturers. However, the integration of EPS systems into vehicles presents numerous challenges, including sensor signal processing, system fault diagnosis, and steering column torque sensor calibration. To ensure reliable and durable EPS performance, it is essential to implement adaptive EPS control algorithms and optimize system integration. EPS system testing is a critical function in the supply chain, allowing for the evaluation of system performance metrics such as response time, torque accuracy, and steering effort. Driver assistance system integration with EPS is another trend driving market growth.

EPS systems can enhance safety and regulatory compliance by providing real-time steering assistance, making vehicles more responsive and easier to handle. However, the integration of these systems also requires careful consideration of cybersecurity risks and software updates. Variable assist EPS systems offer cost reduction strategies by providing adjustable steering assistance based on driving conditions. These systems can reduce fuel consumption by up to 5% compared to traditional hydraulic systems, making them an attractive option for automakers. EPS system hardware and software design must balance cost, performance, and safety. For instance, optimizing EPS system energy efficiency can lead to significant fuel savings, but it may require more advanced sensors and software capabilities. In contrast, implementing cost reduction strategies may result in compromised performance or safety. In conclusion, the market is poised for continued growth due to its ability to enhance vehicle dynamics control, improve fuel efficiency, and offer advanced driver assistance features. However, EPS system design and integration challenges must be addressed to ensure reliable and cost-effective solutions.

What are the Key Data Covered in this Electric Power Steering Market Research and Growth Report?

• What is the expected growth of the Electric Power Steering Market between 2025 and 2029?

  • USD 7.87 billion, at a CAGR of 5.2%

• What segmentation does the market report cover?

  • The report is segmented by Type (Collapsible and Rigid), Vehicle Type (Passenger car and Commercial vehicle), Application (BEV, PHEV, and FCEV), and Geography (APAC, Europe, North America, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • APAC, Europe, North America, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Stringent regulations to control vehicular emissions, Sharp decline in automobile production and sales

• Who are the major players in the Electric Power Steering Market?

  • DENSO Corp., GKN Sinter Metals Engineering GmbH, HELLA GmbH and Co. KGaA, Hitachi Ltd., Infineon Technologies AG, JTEKT Corp., Knorr Bremse AG, Mando Aftermarket North America, Mitsubishi Electric Corp., Nexteer Automotive Corp., Nissan Motor Co. Ltd., NSK Ltd., NXP Semiconductors NV, Robert Bosch GmbH, STMicroelectronics NV, Valeo SA, Zapi Group, and ZF Friedrichshafen AG

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