The global electronic power steering market size reached USD 27,926.6 million in 2024. Worldwide demand for electronic power steering recorded Y-o-Y growth of 4.7% in 2024, and thus, the market is expected to reach USD 29,378.8 million in 2025. Over the projection period (2025 to 2035), global electronic power steering sales are predicted to rise swiftly at 5.2% CAGR and climb to a market size of USD 48,774.3 million by 2035-end.
EPS has emerged as a revolutionary technology in modern automobiles, offering enhanced control, precision, and fuel efficiency compared to traditional hydraulic systems.
Instead of the hydraulic pump, EPS uses an electric motor that reduces the energy use by the steering mechanism; thus, it is the favorite of both passenger and commercial vehicles. It is among the key technologies that help streamline automotive manufacturing into global goals on sustainability, ensuring a reduction in carbon emissions while offering improved performance for the vehicle.
The electronic power steering market is projected to grow at an impressive rate throughout the forecast period of 2025 to 2035 with the growing concerns over comfort and safety. Furthermore, the intensified competition to create electronic, driverless, or autopilot-compatible cars is poised to boost the global power steering market.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 29,378.8 million |
| Projected Size, 2035 | USD 48,774.3 million |
| Value-based CAGR (2025 to 2035) | 5.2% |
There is a growing awareness of technologically sophisticated automotive systems and the increasing acceptance of luxury vehicles with ADAS, thereby boosting the growth of the electronic power steering market and offering tremendous opportunities for the industry participants to expand their product portfolio and client base.
In the past couple of decades, the automotive sector has gone through different stages of design, power, and efficiency advances. The selection of a proper steering design provides vehicle with steadiness and maneuverability in any landscape. Therefore, the market is still expanding rapidly and is expected to continue at a rate of 5.2% during the projection period.
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The table below presents the annual growth rates of the global Electronic Power Steering market from 2025 to 2035. With a base of 2024 and extended to the current year 2025, the report studied how the industry growth trajectory moves from the first half of the year-that is, January to June, (H1)-to the second half comprising July to December, (H2).
This is an absolute comparison to offering the stakeholder's idea of how the sector has performed over time, with hints on developments that may possibly emerge.
These figures indicate the growth of the sector in each half-year, between the years 2024 and 2025. The market is expected to grow at a CAGR of 4.7% in H1-2024. In H2, the growth rate increases.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 4.7% (2024 to 2034) |
| H2 2024 | 4.9% (2024 to 2034) |
| H1 2025 | 5.1% (2025 to 2035) |
| H2 2025 | 5.2% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is projected to slightly decrease to 5.1% in the first half and relatively increase to 5.2% in the second half. In the first half (H1), the sector saw an increase of 30BPS while in the second half (H2), there was a slight increase of 30 BPS.
Rising Demand for Fuel-Efficient Vehicles
The demand for fuel-efficient vehicle has gone up, with increased focus by people and governments to save fuel and decrease carbon emissions. This has made EPS a popular choice for automakers.
Unlike the traditional Hydraulic Power Steering, which uses a hydraulic pump powered by the engine, EPS uses an electric motor, hence reducing the load on the engine. This directly converts to less fuel consumption as load on the engine is reduced.
In some cases, EPS systems can reduce up to 3-4 kg (6.6-8.8 lbs) in vehicle weight compared to hydraulic systems. It further helps the cause of overall vehicle efficiency and performance.
Most governments around the world are making fuel efficiency standards stricter. For example, the CO2 emission targets by the European Union have aimed at ensuring a car's emission is cut by 37.5% in 2030 from that in 2021, compelling automakers to use such technologies to fulfill such requirements.
EPS also doesn’t require the use of power-steering fluid, making it more environmentally friendly. As more people look for ways to lower fuel costs and reduce their carbon footprint, EPS helps automakers meet both consumer demand and stricter government regulations on vehicle emissions. With its improved efficiency and reduced environmental impact, EPS is becoming a key feature in the production of modern, eco-friendly cars.
The Role of EPS in Supporting Electric Vehicle Growth
One of the main factors contributing to the adoption of Electronic Power Steering is the growing popularity of electric vehicles. Since electric vehicles are designed to be as lightweight as possible to maximize their driving range and energy efficiency, every chance to reduce their weight is highly critical.
Given that EVs already have heavy battery packs aboard, EPS provides a means to minimize weight by avoiding the heavy hydraulic components of traditional power steering systems.
For instance, EPS could reduce 3-4 kg in vehicle weight compared to hydraulic ones. This reduces the weight burden directly, resulting in an improvement in the reach of electric vehicles by traveling farther distances with a single charge.
Since EPS is independent of the engine work, especially in the case of an electric vehicle where internal combustion does not occur, EPS was exactly the one required by electric vehicles. While more than 10 million electric vehicles are being sold around the globe in 2023, several automakers continue their tendency towards using EPS with respect to contemporary electric cars' requirements.
Rising Demand for Autonomous Driving and EPS
As the number of autonomous and semi-autonomous vehicles on the road continues to rise, the need for greater precision in steering control will grow accordingly. This is where EPS will play a very important role.
Unlike conventional steering systems, EPS can interface with a vehicle's electronics and make changes in real-time based on driving conditions, thus providing the accuracy and responsiveness required for autonomous driving.
Steering in an autonomous vehicle needs to be fast and precise without human intervention. EPS can provide this level of control through electric motors that adjust the feel and response of the steering depending on vehicle speed, road conditions, and the driving environment. This is very important to ensure safety and smooth operation in self-driving cars.
As of 2023, over 50 companies worldwide are conducting autonomous vehicle trials, with EPS being a critical component for ensuring steering accuracy and safety.
As the automotive industry shifts toward fully autonomous vehicles, EPS is becoming indispensable. EPS's ability to integrate with advanced driver assistance systems and provide dynamic, reliable steering control makes it a key technology in the future of mobility.
Reliability Concerns in Extreme Conditions
The most important challenge facing EPS systems is the assurance of their reliable work in extreme weather conditions and on rugged terrain. EPS systems are designed to function smoothly under all kinds of conditions; however, extreme temperatures, heavy rainfall, or off-road conditions will put them to the test.
In very cold weather, for example, the system’s electric components may struggle to function efficiently. Similarly, in hot climates, overheating can affect the system’s response and performance. Rugged terrains, like rough or uneven roads, can also lead to increased wear on the steering system.
Overcoming these challenges requires further innovation and testing of EPS technology. The manufacturers are working on the durability of the components by using materials that will bear extreme temperatures and harsh environments.
Continued research is very necessary to ensure that EPS systems perform consistently in any kind of weather and terrain conditions for safe and reliable driving by all drivers.
The global electronic power steering (eps) industry recorded a CAGR of 4.8% during the historical period between 2020 and 2024. The growth of the Electronic Power Steering industry was positive as it reached a value of USD 27,926.6 million in 2024 from USD 22,975.4 million in 2020.
The global electronic power steering market registered a significant growth over the period 2020 and 2024. This growth has been led by an ever-increasing demand from a set of industries like the growth of manufacturing autonomous or semi-autonomous vehicles, electric vehicles, amongst others.
Some other technological advancements that have contributed extensively to the growth of the electronic power steering market include steer-by-wire, adaptive steering, and integration into autonomous systems.
Between 2020 and 2024, the market of EPS had just passed through a stable developing phase into an interesting future characterized by high development in technology and a rise in consumers.
Accordingly, with solid growth forecasts for the year 2035, this segment will mark an essential influence in modern automotive engineering evolution, with prime focuses on electrification and improved features on vehicle safety.
Tier 1 companies include industry leaders with annual revenues exceeding USD 2,000 - 5,000 million. These companies are currently capturing a significant share of 65-75% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. They provide a wide range of products to meet regulatory standards. Prominent companies within Tier 1 include: Bosch, JTEKT Corporation, Nexteer Automotive, and NSK Ltd., and others.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 1,000 - 2,000 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, while they may not always possess the latest cutting-edge technologies or maintain an extensive global reach. Noteworthy entities in Tier 2 include Hyundai Mobis, ZF Friedrichshafen AG, and Mando Corporation.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 500 - 1,000 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 ZF Friedrichshafen AG, Mando Corporation, Zhuzhou Elite Electro-Mechanical Co. Ltd. and others.
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The section below covers assessments of electronic power steering (eps) market sales across key countries. Countries from East Asia, and North America, are anticipated to exhibit promising double-digit growth over the forecast period. All the below-listed countries are collectively set to reflect a CAGR of around 5.2% through the forecast period.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| China | 7.2% |
| India | 6.9% |
| USA | 5.3% |
| Germany | 4.9% |
| Japan | 4.5% |
China is the global leader in Electronic Power Steering (EPS) production due to its booming automotive industry and strong focus on electric vehicles (EVs). The country produces millions of cars every year, many of which are equipped with EPS systems. In 2023, China produced over 27 million vehicles, making it the world’s largest car manufacturer.
Several factors contribute to China’s dominance in EPS production. First, China is currently the largest market for electric vehicles in the world. EPS finds its application in the EV because of its efficiency and lightweight, thereby helping extend the range for electric cars. China is also home to some of the world's big names in automobiles, both domestic and international, which employ the EPS system in their models.
Large production facilities in China from leading EPS suppliers like Bosch (China) and Nexteer Automotive ensure that there is continued high-quality supplies of EPS systems. With China pacing the mobility shift toward electric globally, its production quantity for EPS will further grow, placing China as an important epicenter in automotive steering technologies.
Germany is not only one of the leading countries in the manufacture of EPS globally but also a major consumer. Being the home for some of the world's most famous auto brands, such as Volkswagen, BMW, and Mercedes-Benz, highly dependent on EPS technology, especially because such technologies are fuel-efficient, lightweight, and enhance driving performance, Germany holds the largest share in both production and use.
In addition to these automakers, Germany is also home to key EPS suppliers like Bosch and ZF Friedrichshafen, which are leading global producers of EPS systems. These suppliers play a critical role in providing high-quality steering solutions to both domestic and international car manufacturers.
The leading position of Germany in the EPS market is a fact that the strong automotive sector of the country, focused on innovation and superior manufacturing, creates demand for advanced steering technologies.
Besides, the drive for sustainability and fuel effectiveness in German vehicles accelerates the adoption of EPS systems, especially in electric and hybrid vehicles.
India’s automotive market has been growing rapidly, and with it, the demand for Electronic Power Steering (EPS) systems. As more people in India purchase vehicles, there is an increasing need for technology that can improve fuel efficiency and vehicle performance. EPS systems are helping meet these needs by offering a more efficient alternative to traditional power steering systems.
The adoption of EPS in India is mainly attributed to an increase in demand for electric vehicles. As EVs continue to gain acceptance worldwide, their integration of EPS becomes a necessity because it would reduce weight and energy consumption, which improves the driving range of such vehicles. Already, EVs contain heavy batteries, so each reduction of a few grams weighs in.
Also, the Indian government promotes the use of fuel-efficient and ecologically friendly technologies to make the implementation of EPS by various automakers urgent. With EPS, manufacturers may produce lighter weight, fuel-efficient vehicles that can finally meet such regulation standards.
With India’s automotive industry expanding and increasing interest in sustainable mobility, the demand for EPS systems is expected to keep growing in the coming years.
The section explains the Value Share of the leading segments in the industry. In terms of Component Type, the Steering Motor will likely dominate and generate a share of around 40-45% in 2024.
| Segment | Steering Motor (Component) |
|---|---|
| Value Share (2024) | 40-45% |
The Steering Motor plays a crucial role in the Electronic Power Steering (EPS) system, holding the largest share of the market. It provides the necessary torque to assist the driver in steering, making it essential for the overall functionality and performance of EPS. As the most critical component, the motor’s efficiency and precision directly affect the ease and safety of driving.
The market share could be in the range of 40 to 45%. This will be a result of electric motors highly effective, light, and, therefore, easily installable with other vehicle systems. They use less energy compared to hydraulic systems and thus are more into line with the modern fuel-efficient and electric vehicle requirements.
Also, efficient steering motors have witnessed a high demand with the increasing electric vehicles in the market. These vehicles require light-weightier components to maximize their battery life.
For instance, in electric cars, the steering motor helps reduce the overall vehicle weight and energy consumption, contributing to improved driving range. These factors make the steering motor the most valuable component in EPS systems.
| Segment | Passenger Cars (Vehicle Type) |
|---|---|
| Value Share (2024) | 60-70% |
Passenger cars hold the largest share in the Electronic Power Steering (EPS) market, making up around 60-70% of the total market. This dominance is due to the high volume of passenger vehicles on the road and their widespread adoption of EPS systems. As of 2023, more than 95% of new passenger cars globally are equipped with EPS, replacing traditional hydraulic systems in most models.
The growing demand for fuel-efficient and lightweight vehicles is a major factor driving this shift. EPS helps reduce the weight of vehicles by eliminating the heavy hydraulic components, which contributes to better fuel efficiency and lower emissions. For example, EPS can reduce vehicle weight by 5-10 kg.
Also, the increasing popularity of electric and hybrid cars is further accelerating the adoption of EPS. These vehicles require lighter and more energy-efficient steering systems to improve driving range, making EPS an ideal choice. With stricter environmental regulations and a focus on eco-friendly technologies, the demand for EPS in passenger cars continues to rise.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the industry.
The Electronic Power Steering market is poised for substantial growth as the automotive industry embraces electrification, sustainability, and automation. With continuous advancements in sensor technology and the integration of artificial intelligence, EPS is set to play a pivotal role in shaping the future of mobility.
As automakers strive to meet evolving consumer expectations and regulatory standards, EPS will remain a cornerstone of innovation in vehicle steering systems.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2035, thereby making it more competitive.
Industry Updates
In terms of Component Type, the industry is divided into Steering Column, Steering Motor, Electronic Control Unit (ECU)
In terms of Vehicle, the industry is divided into Passenger Cars, Commercial Vehicles, Electric Vehicles (EVs)
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)
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.
The global market was valued at USD 27,926.6 million in 2024.
The global market is set to reach USD 29,378.8 million in 2025.
Global demand is anticipated to rise at 5.2% CAGR.
The industry is projected to reach USD 48,774.3 million by 2035.
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.. are prominent companies.
| Estimated Size, 2025 | USD 29,378.8 million |
|---|---|
| Projected Size, 2035 | USD 48,774.3 million |
| Value-based CAGR (2025 to 2035) | 5.2% |
| Market Share (2023) | USD 111,077.4 million |
|---|---|
| Market Share (2033) | USD 206,557.9 million |
| Market Share (2023 to 2033) | 6.4% |
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