Electric Power Steering Market Size, Share, Forecast, & Trends Analysis by Type (Rack-assist EPS, Column-assist EPS, Pinion-assist EPS), Application (Internal Combustion Engine Vehicle, Electric Vehicles), and Geography - Global Forecast to 2031

Electric Power Steering Market Size & Forecast

The Electric Power Steering Market is expected to reach $37.1 billion by 2031, at a CAGR of 5.3% from 2024 to 2031. The growth of the electric power steering market is driven by the increasing adoption of EPS to enhance driving experience and the growing use of EPS to reduce the complexity and weight of vehicles. Furthermore, the surging use of steer-by-wire technology and the growing adoption of electric vehicles are expected to generate growth opportunities for the players operating in this market.

Electric Power Steering Market Growth Drivers

Increasing Adoption of EPS to Enhance Driving Experience

Electric power steering (EPS) has become increasingly popular in modern vehicles due to its advantages over traditional hydraulic power steering systems. This technology significantly enhances the driving experience in several ways, such as by improving fuel efficiency, enhanced steering precision and control, and variable steering assistance. Additionally, EPS systems have increasingly been integrated with ADAS, which provides features like lane-keeping assistance, adaptive cruise control, and automatic parking.

Moreover, the adoption of EPS systems reduces the physical efforts required to steer, which is especially beneficial in city driving and parking situations. The increasing adoption of EPS over hydraulic power steering is because EPS systems are generally more lightweight compared to hydraulic systems. This helps to reduce mechanical complexity and leads to lower maintenance requirements. Thus, the increasing adoption of EPS systems to enhance the driving experience helps to increase the demand for EPS during the forecast period.

Growing Use of EPS to Reduce Complexity and Weight of Vehicles

Electric power steering (EPS) reduces complexity and weight in vehicles by simplifying the steering system's design and eliminating the need for certain components used in traditional hydraulic power steering. An EPS system uses an electric motor to provide power steering assistance, which is directly mounted on the steering column or rack. Thus, this integration allows for a more straightforward design compared to the complex arrangement of hydraulic systems, which requires circulation and pressure management.

Moreover, EPS systems use lightweight materials in their construction, helping to reduce the weight of vehicles. Components such as electric motors, sensors, bearings, and electronic control units are designed to be compact and efficient, further minimizing the weight of vehicles. Thus, EPS helps reduce complexity and weight in vehicles by simplifying the steering system's design, eliminating hydraulic components, reducing maintenance requirements, and allowing for more flexible placement of parts.

Electric Power Steering Market Opportunity

Surging Use of Steer-by-Wire Technology

Steer-by-wire technology represents a significant evolution in electronic power steering (EPS). Steer-by-wire technology removes the physical connection between the steering wheel and the wheels, relying entirely on electronic signals to control steering. This technology uses sensors, electric actuators, and electronic control units (ECUs) to convey steering inputs. The adoption of steer-by-wire technology is used to reduce the weight and complexity of steering systems. Steer-by-wire systems automatically adjust steering response based on vehicle dynamics and safety requirements.

Moreover, the steer-by-wire technology is beneficial to advanced driver-assistance systems (ADAS) and autonomous driving features. It can enable lane-keeping assist, adaptive cruise control, and automated parking without the constraints of mechanical linkages. With the increasing adoption of this technology, several steering systems providers are launching EPS systems with steer-by-wire technology to offer benefits such as flexibility, weight reduction, integration with ADAS, and customization. For instance, in September 2023, Titan Motorsport & Automotive LIMITED (U.K.), a U.K.-based developer and manufacturer of electric vehicle steering systems, launched a new steer-by-wire system. The system can be used by a wide range of low-volume vehicles, from light commercial vehicles and trucks to supercars.

Electric Power Steering Analysis: Key Findings

By Type: In 2024, the Rack-assist Electric Power Steering Segment to Dominate the Electric Power Steering Market

Based on type, the electric power steering market is segmented into rack-assist electric power steering, column-assist electric power steering, and pinion-assist electric power steering. In 2024, the rack-assist electric power steering segment is expected to account for the largest share of above 40.0% of the electric power steering market. The segment's large market share is attributed to the increasing adoption of rack-assist EPS to enhance steering precision; the increasing need to adjust the level of steering assistance based on vehicle speed and driving condition; and the rack-assist EPS to enhance fuel efficiency, steering response, and maintenance.

Additionally, with the growing adoption of rack-assist EPS, several providers are increasingly launching (mREPS) systems to efficiently meet OEMs’ wide-ranging requirements for advanced steering systems. For instance, in April 2023, Nexteer Automotive Corporation (U.S.) launched the Modular Rack-Assist Electric Power Steering (mREPS) system and expanded the company’s cost-effective, modular EPS offerings. Nexteer’s mREPS provides flexibility to efficiently meet OEMs’ wide-ranging requirements for advanced steering systems of heavier vehicles, EVs, and light commercial vehicles.

However, the column-assist electric power steering segment is expected to register the highest CAGR during the forecast period. This segment's growth is attributed to the increasing adoption of column-assist EPS due to its compact design, the rising use of column-assist EPS to reduce vibration transmitted to the steering wheel, and the integration of column-assist EPS with advanced driver-assistance systems such as lane-keeping assist and adaptive cruise control.

By Application: In 2024, the Internal Combustion Engine Vehicle Segment to Dominate the Electric Power Steering Market

Based on application, the electric power steering market is segmented into internal combustion engine vehicles and electric vehicles. In 2024, the internal combustion engine vehicle segment is expected to account for the larger share of above 68.0% of the electric power steering market. The segment's large market share is attributed to the increasing adoption of EPS to enhance the driving experience in ICE vehicles; the rising use of EPS in ICE vehicles due to it being more energy-efficient compared to traditional hydraulic power steering systems; and the rising integration of EPS with various vehicle control systems such as stability control, lane-keeping assist, automatic parking.

However, the electric vehicles segment is expected to register the highest CAGR during the forecast period. This segment's growth is attributed to the increasing adoption of EPS in EVs to improve safety and redundancy, the rising use of EPS in electric vehicles for energy efficiency and to reduce vehicle complexity and weight, and the EPS's ability to provide variable steering assistance, enabling lighter steering at low speed and stronger steering at high speed.

Geographical Analysis

In 2024, Asia-Pacific Region to Dominate the Electric Power Steering Market

In 2024, Asia-Pacific is expected to account for the largest share of above 36.0% of the electric power steering market. Asia-Pacific’s significant market share can be attributed to the growing penetration of EPS systems in major countries such as India, China, and Japan; the increasing production of electric vehicles; the growing use of EPS to reduce the complexity and weight of vehicles; new technological advancements such as steer-by-wire technology in EPS systems; and the increasing need of EPS systems in commercial vehicles due to heavier steering loads.

Also, this market is expected to register the highest CAGR of above 7.0% during the forecast period.

Electric Power Steering Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the electric power steering market JTEKT Corporation (Japan), Robert Bosch GmbH (Germany), ZF Friedrichshafen AG (Germany), Nidec Corporation (Japan), Magna International Inc. (Canada), ContiTech Deutschland GmbH (Germany), HYCET Technology Co., Ltd (China), HL Mando Corporation (South Korea), Mitsubishi Electric Mobility Corporation (Japan), Nexteer Automotive Corporation (U.S.), NSK Ltd. (Japan), thyssenkrupp AG (Germany), Hitachi Astemo Americas, Inc. (A Subsidiary of Hitachi America Ltd) (U.S), and MAHLE GmbH (A Subsidiary of Mahle Stiftung GmbH) (Germany).

Electric Power Steering Industry Overview: Latest Developments from Key Industry Players

• In June 2023, Nidec Corporation (Japan) launched an electric power steering motor power pack (EPS-PP). Nidec’s newly developed EPS-PP detects and corrects the motor’s and the EPS unit’s friction and torque ripple as they are generated to successfully solve the lingering issue of artificial steering feeling.
• In December 2022, China Automotive Systems, Inc. (China) launched a new series of electric power steering systems for BYD Company Limited (China), a Chinese EV producer.

Electric Power Steering Market Research Summary

Key questions answered in the electric power steering market report: