Automotive Electric Power Steering (EPS) Market

• Market Size & Growth The global automotive electric power steering (EPS) market was valued at approximately USD 29.13 billion in 2025 and is projected to reach USD 37.36 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.10% during the forecast period.

• Regional Dynamics Asia-Pacific held the largest market share in 2024, accounting for 46.8% of the global revenue. The region is expected to continue its dominance due to increasing vehicle production and adoption of advanced steering technologies.

• Vehicle Segment Growth Passenger cars represented 73.2% of the EPS market share in 2024. However, commercial vehicles are anticipated to experience the fastest growth, with a projected CAGR of 9.7% through 2030, driven by the need for enhanced fuel efficiency and reduced maintenance costs.

• Technological Advancements The market is witnessing a shift towards steer-by-wire systems, which eliminate the mechanical link between the steering wheel and the wheels, offering greater design flexibility and enabling autonomous driving capabilities.

• Component Trends Steering rack/column components accounted for 42.61% of the EPS market size in 2024. Sensor components are expected to exhibit the highest CAGR of 10.20% through 2030, driven by the integration of advanced driver assistance systems (ADAS) and the need for precise steering control.

• Propulsion System Shift Internal combustion engine vehicles held 61.5% of the EPS market share in 2024. However, battery electric vehicles are projected to grow at the fastest rate, with a CAGR of 16.5%, as the automotive industry increasingly adopts electric mobility solutions.

• Key Players Prominent companies in the EPS market include JTEKT Corporation, Robert Bosch GmbH, ZF Friedrichshafen AG, Nexteer Automotive, NSK Ltd., and Hitachi Astemo Ltd., focusing on innovations in steering technologies and expanding their market presence.

In this report, the Automotive Electric Power Steering (EPS) Market has been segmented by Type, Component Type, Vehicle Type, Propulsion Type and Geography.

Automotive Electric Power Steering (EPS) Market, Segmentation by Type

The Type segmentation in the Automotive EPS Market plays a key role in defining the technology choice and performance characteristics of steering systems across various vehicle classes. With rising adoption of electrification and lightweight steering systems, OEMs are focusing on optimizing the balance between steering response and energy efficiency. Increasing integration of advanced sensors and motor control units further enhances driving comfort and safety, leading to substantial growth opportunities across all EPS types.

Column Type

The Column Type EPS is widely used in compact and mid-sized passenger cars due to its cost-effectiveness and compact design. It allows easy integration with existing vehicle structures and provides precise steering assistance. Manufacturers are increasingly employing high-torque motors and refined sensor systems to enhance performance while reducing vibration and steering noise, contributing to higher consumer acceptance in urban mobility applications.

Pinion Type

The Pinion Type EPS delivers high steering precision and efficiency, making it suitable for sport utility vehicles (SUVs) and performance-oriented models. This system directly applies steering torque to the rack via a motor on the pinion shaft, ensuring faster response and better control at high speeds. Continuous improvements in motor calibration and torque-sensing algorithms are expected to boost adoption in the next generation of intelligent steering architectures.

Dual Pinion Type

The Dual Pinion Type EPS provides enhanced control and redundancy, suitable for autonomous and semi-autonomous vehicles. This design offers superior fail-safe capability and smoother steering feedback, making it an emerging choice among premium automotive manufacturers. With an increasing focus on driver assistance systems, this segment is projected to experience rapid growth as OEMs transition toward higher safety and automation standards.

Automotive Electric Power Steering (EPS) Market, Segmentation by Component Type

The market segmentation by Component Type highlights the key elements that drive functionality and efficiency of electric power steering systems. Each component contributes to system performance, cost optimization, and ease of integration with advanced driver-assistance systems (ADAS). Innovations in sensor technology and motor design have led to significant enhancements in response time and energy consumption, improving the overall driving experience.

Steering Rack/Column

The Steering Rack/Column serves as the central link between driver input and wheel response. Its design determines steering feel, rigidity, and noise levels. Increasing demand for precision-engineered rack assemblies and lightweight materials like aluminum and composites has driven manufacturers to invest in R&D to enhance both performance and fuel efficiency.

Sensor

Sensors form the intelligence core of EPS systems, detecting torque, angle, and steering rate with high accuracy. The growth in ADAS integration has increased the need for advanced Hall-effect and magnetic sensors capable of real-time feedback and self-calibration. This segment continues to expand as automotive systems demand more data-driven steering assistance and predictive functionality.

Steering Motor

The Steering Motor segment holds a critical role, converting electrical signals into mechanical assistance. Adoption of brushless DC motors and high-efficiency drives is enhancing torque control and response precision. As electrification spreads across all vehicle types, manufacturers are developing more compact and thermally efficient motors to reduce energy losses and improve overall steering reliability.

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The Other Components category includes controllers, ECU modules, and connectors that ensure seamless operation between mechanical and electronic systems. These components are increasingly designed for cybersecurity compliance and software upgradability, supporting connected vehicle platforms and over-the-air system enhancements.

Automotive Electric Power Steering (EPS) Market, Segmentation by Vehicle Type

Segmentation by Vehicle Type reflects the diverse application of EPS technologies across passenger and commercial vehicles. The increasing emphasis on fuel efficiency and vehicle automation drives adoption in both categories, supported by favorable regulations for reducing CO₂ emissions and improving road safety through electronically assisted systems.

Passenger Cars

Passenger Cars dominate the EPS market due to rising demand for lightweight steering systems that enhance maneuverability and reduce driver fatigue. Manufacturers are integrating EPS with lane-keeping assist and collision-avoidance features to cater to the growing preference for premium driving comfort. The segment continues to expand with rapid electrification and increasing production of compact and mid-size models.

Commercial Vehicles

The Commercial Vehicles segment is gaining traction as fleet operators prioritize driver comfort and energy efficiency. EPS systems in light and medium-duty trucks enable better control, especially in congested traffic and urban logistics environments. Increasing integration of predictive steering systems and telematics connectivity is transforming this segment toward smarter and safer vehicle operation.

Automotive Electric Power Steering (EPS) Market, Segmentation by Propulsion Type

The Propulsion Type segmentation underlines the adaptability of EPS technologies to various powertrain configurations. As the global automotive industry transitions toward electrification, manufacturers are redesigning EPS units for compatibility with hybrid and battery electric vehicles while maintaining efficiency in traditional internal combustion systems.

Internal Combustion Engine Vehicles

Internal Combustion Engine (ICE) Vehicles continue to employ EPS systems to improve fuel economy and reduce mechanical load compared to hydraulic steering. These systems contribute to a reduction of up to 3–5% in fuel consumption while delivering smoother handling and reduced maintenance requirements. Continuous enhancements in ECU algorithms have made EPS a standard feature even in entry-level ICE models.

Battery Electric Vehicles

Battery Electric Vehicles (BEVs) represent one of the fastest-growing segments for EPS adoption. The system’s ability to operate efficiently on electric power aligns with the demand for energy-efficient components and lightweight architectures. Integration with autonomous driving systems and wire-by-wire steering innovations is further propelling EPS adoption across leading BEV platforms.

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The Other Propulsion Types category includes hybrid and fuel cell vehicles that combine electric and conventional drive systems. EPS plays a vital role in managing steering response across variable torque conditions, offering seamless transitions and improving energy recovery performance in regenerative braking scenarios.

Automotive Electric Power Steering (EPS) Market, Segmentation by Geography

In this report, the Automotive Electric Power Steering (EPS) Market has been segmented by Geography into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

North America

North America dominates the EPS market due to early adoption of advanced steering technologies and strong presence of major OEMs. Growing integration of ADAS-enabled EPS systems and regulatory incentives for fuel efficiency are key drivers. The U.S. leads the region’s growth, supported by continuous investments in electric and autonomous vehicle production.

Europe

Europe remains a major hub for EPS innovation with stringent CO₂ emission regulations accelerating the shift from hydraulic to electric steering systems. OEMs across Germany, France, and Italy are leveraging EPS for next-generation autonomous mobility platforms. Continuous collaborations among Tier 1 suppliers and research institutions enhance the region’s technological leadership.

Asia Pacific

Asia Pacific represents the largest and fastest-growing EPS market, driven by rising vehicle production in China, Japan, and India. Increasing adoption of electric and compact cars and government initiatives promoting automotive electrification are propelling demand. Local manufacturers are focusing on low-cost EPS production and integration with connected vehicle ecosystems.

Middle East and Africa

The Middle East and Africa market is emerging gradually, with increasing sales of light commercial vehicles and imports of advanced passenger models. The region is witnessing adoption of EPS in new vehicle launches, particularly in GCC nations, as consumers shift toward comfort and safety-oriented vehicles. OEMs are entering partnerships to expand aftermarket support and service availability.

Latin America

Latin America shows steady growth in EPS adoption led by Brazil and Mexico. Expansion of vehicle assembly plants and increasing local production of small and mid-sized cars are driving market penetration. Government support for vehicle electrification and safety compliance is expected to sustain demand through the forecast period.

This report provides an in depth analysis of various factors that impact the dynamics of Global Automotive Electric Power Steering (Eps) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Increasing Demand for Fuel-efficient Vehicles
• Growing Emphasis on Vehicle Safety and Enhanced Driving Experience

• Integration with Advanced Driver Assistance Systems (ADAS) - ADAS technologies, such as lane-keeping assist, adaptive cruise control, and autonomous emergency braking, rely heavily on accurate and responsive steering control. EPS systems play a crucial role in enabling seamless integration and operation of these advanced features by providing precise steering assistance based on real-time data from sensors and cameras. As automotive OEMs increasingly prioritize safety and autonomy, the demand for EPS systems that can seamlessly integrate with ADAS technologies is expected to surge, driving growth in the global market.

  The integration of EPS with ADAS not only enhances vehicle safety but also contributes to improved driving experience and comfort. By leveraging EPS technology, vehicles equipped with ADAS features can offer smoother and more precise steering control, reducing driver fatigue and enhancing overall vehicle stability. This integration enables vehicles to respond more effectively to dynamic driving conditions, such as sudden lane departures or obstacles on the road, thereby mitigating the risk of accidents and collisions. As consumer awareness of ADAS benefits grows and regulatory mandates for safety features become more stringent, the demand for EPS systems capable of supporting advanced driver assistance functionalities will continue to rise.

  The convergence of EPS and ADAS technologies opens up new opportunities for innovation and differentiation in the automotive industry. Manufacturers and suppliers are investing in research and development initiatives to enhance the performance, reliability, and scalability of EPS systems to meet the evolving requirements of ADAS-equipped vehicles. Furthermore, the integration of EPS with ADAS paves the way for the development of more sophisticated semi-autonomous and autonomous driving capabilities, driving further advancements in vehicle automation and connectivity. As automotive OEMs strive to stay ahead in the race toward autonomous mobility, EPS systems integrated with ADAS will play a pivotal role in shaping the future of automotive technology and mobility solutions.

Restraints:

• High Initial Investment Costs
• Compatibility Issues with Older Vehicle Models

• Limited Consumer Awareness and Education - Limited consumer awareness and education represent a significant restraint in the Global Automotive Electric Power Steering (EPS) Market. Despite the widespread adoption of EPS technology in modern vehicles, many consumers remain unaware of its benefits and functionality. The lack of awareness stems from various factors, including inadequate marketing efforts by automotive manufacturers and suppliers, as well as a general lack of education regarding automotive technologies among consumers. As a result, consumers may not fully appreciate the advantages of EPS systems, such as improved steering precision, reduced fuel consumption, and enhanced driving comfort, leading to subdued demand in some market segments.

  Addressing the issue of limited consumer awareness and education is essential for unlocking the full potential of the Automotive EPS Market. Manufacturers and suppliers need to invest in comprehensive marketing and educational campaigns to raise awareness about the benefits and features of EPS technology. This may include advertising initiatives, product demonstrations, and consumer outreach programs aimed at dispelling misconceptions and highlighting the advantages of EPS-equipped vehicles. Moreover, collaboration with dealerships and automotive service centers can facilitate the dissemination of information and ensure that consumers are adequately informed when making purchasing decisions.

  Improving consumer education and awareness can also create opportunities for market growth and differentiation. By educating consumers about the advantages of EPS technology, manufacturers and suppliers can stimulate demand and drive adoption rates, particularly in emerging markets and niche segments. Moreover, increased consumer awareness may lead to greater demand for advanced EPS features, such as integration with driver assistance systems and autonomous driving capabilities, further driving innovation and investment in the Automotive EPS Market. Therefore, addressing the issue of limited consumer awareness and education is crucial for unlocking new opportunities and driving sustained growth in the global market.

Opportunities:

• Customization and Differentiation Strategies
• Focus on Sustainability and Environmental Regulations

• Adoption of EPS in New Vehicle Segments - The adoption of Electric Power Steering (EPS) in new vehicle segments represents a significant opportunity within the Global Automotive EPS Market. Traditionally, EPS technology has been predominantly used in passenger cars, but there is a growing trend towards its adoption in new vehicle segments, including two-wheelers, off-road vehicles, and commercial trucks. As manufacturers seek to enhance vehicle performance, efficiency, and safety across diverse applications, the integration of EPS systems in these new segments presents promising opportunities for market expansion and innovation.

  Two-wheelers, including motorcycles and scooters, are increasingly incorporating EPS technology to improve maneuverability, stability, and rider comfort. By replacing traditional hydraulic steering systems with electrically assisted ones, two-wheelers can offer smoother and more precise handling, especially at low speeds and during cornering. Moreover, EPS systems in two-wheelers can enable the integration of advanced safety features, such as traction control and electronic stability control, enhancing overall rider safety and confidence on the road. As urbanization and congestion increase, particularly in emerging markets, the demand for two-wheelers equipped with EPS technology is expected to rise, driving growth in this segment of the Automotive EPS Market.

  Off-road vehicles and commercial trucks are embracing EPS technology to enhance their capabilities and performance in rugged and challenging environments. EPS systems offer advantages such as improved steering control, reduced steering effort, and enhanced vehicle stability, making them well-suited for off-road applications. In commercial trucks, EPS technology can improve driver comfort and reduce fatigue during long-haul journeys, while also contributing to fuel efficiency and operational cost savings. As manufacturers continue to innovate and optimize EPS systems for these new vehicle segments, the adoption of EPS technology is poised to expand, driving opportunities for market growth and diversification in the Global Automotive EPS Market.