Automotive Electric Power Steering Systems Sales Market Outlook

The global automotive electric power steering systems market is projected to reach approximately USD 30 billion by 2035, with a compound annual growth rate (CAGR) of around 8% during the forecast period from 2025 to 2035. This growth can be attributed to several factors including the increasing demand for fuel-efficient vehicles, the rising production of electric and hybrid vehicles, as well as stringent regulations regarding vehicle emissions and safety standards. As consumers become more environmentally conscious, automotive manufacturers are progressively integrating electric power steering systems to improve vehicle performance and reduce energy consumption. Additionally, advancements in automotive technologies such as autonomous driving and connectivity are anticipated to further boost the market, driving innovations and upgrades in electric power steering systems that cater to modern vehicle demands.

Growth Factor of the Market

The automotive electric power steering systems market is experiencing significant growth driven by several key factors. Firstly, the shift towards electric and hybrid vehicles is fostering an increased adoption of electric power steering systems due to their efficiency and adaptability. Secondly, technological advancements are enhancing the capabilities of electric power steering systems, providing improved steering feel and precision, which consumers favor. Furthermore, the rising awareness of road safety and the implementation of stringent regulations regarding vehicle safety are pushing manufacturers to incorporate advanced steering systems in their designs. The growing trend of vehicle automation also plays a crucial role, as electric power steering systems are integral to the operation of autonomous vehicles. Lastly, the increasing disposable income of consumers in emerging economies is leading to higher vehicle ownership rates, thus positively impacting the demand for modern steering technologies.

Key Highlights of the Market

• The market is projected to reach USD 30 billion by 2035.
• CAGR of approximately 8% is expected during the 2025-2035 period.
• Significant growth is driven by the rise of electric and hybrid vehicles.
• Technological advancements improve the efficiency and user experience of steering systems.
• Increased consumer awareness of safety features is fueling market demand.

By Product Type

Rack-assist Type:

The rack-assist type of electric power steering system is one of the most prevalent designs in the market, offering a balance of performance and efficiency. This type utilizes an electric motor mounted on the steering rack, which assists in the driverÔÇÖs steering efforts by providing additional torque as needed. The rack-assist system's ability to disengage the electric motor at high speeds helps conserve energy, making it particularly favorable for fuel efficiency. Moreover, this system is known for its robustness and reliability, providing a consistent driving experience across various conditions. As the automotive industry increasingly leans towards lightweight designs, the rack-assist type is gaining traction due to its compact size and ease of integration into modern vehicles.

Column-assist Type:

The column-assist type of electric power steering system is designed for compact applications, primarily used in smaller vehicles. In this system, the electric motor is integrated into the steering column, which allows for a more straightforward installation process. This design is particularly advantageous in maximizing cabin space while maintaining functionality. Its lightweight nature also contributes to overall vehicle efficiency, making it a popular choice among manufacturers of compact cars. One of the key benefits of the column-assist type is its ability to provide precise steering inputs, enhancing the overall driving experience. With the growing trend towards urban mobility solutions, this type is expected to see increased adoption in city cars and smaller vehicles aimed at short-distance travel.

Pinion-assist Type:

The pinion-assist type system employs a unique mechanism where the electric motor is directly linked to the pinion gear of the steering column. This type is known for its responsive steering capabilities, providing drivers with a seamless driving experience. The pinion-assist mechanism allows for quick adjustments to steering effort depending on the vehicle's speed, enhancing control and maneuverability. This system is particularly beneficial in high-performance vehicles that require precise handling and feedback. As manufacturers aim to enhance vehicle dynamics and driving pleasure, the pinion-assist type is gaining traction, especially in the luxury and sports car segments where performance is paramount.

Direct-drive Type:

The direct-drive type of electric power steering system represents a more advanced technology where the electric motor directly drives the steering wheel without the use of traditional gear mechanisms. This design eliminates mechanical linkages, resulting in a more direct and responsive steering feel. Direct-drive systems are highly regarded for their ability to provide instantaneous feedback to the driver, greatly improving handling characteristics. As the automotive industry explores innovations for enhanced driving experiences, direct-drive electric power steering systems are increasingly being integrated into mid to high-end vehicles. Their potential for customization in steering response also makes them appealing to manufacturers looking to differentiate their offerings in a competitive market.

Dual-pinion Type:

The dual-pinion type of electric power steering system employs two pinions, allowing for enhanced steering precision and responsiveness. This system is particularly advantageous for larger vehicles, such as SUVs and trucks, where steering effort can be significant. By using two pinions, this design distributes the load more evenly, reducing wear and tear on the components while providing the driver with better control. The dual-pinion system's architecture also facilitates the integration of advanced driver-assistance systems (ADAS), as it can accommodate various sensors and feedback mechanisms necessary for autonomous driving technologies. As manufacturers continue to prioritize enhanced performance and safety features, the dual-pinion type is expected to see increased demand across various vehicle categories.

By Application

Passenger Cars:

The passenger car segment represents a significant portion of the automotive electric power steering systems market, driven by a growing consumer preference for comfort and safety features. Electric power steering systems in passenger vehicles enhance maneuverability and provide superior handling compared to traditional hydraulic systems. The increasing adoption of fuel-efficient technologies also bolsters the demand for electric steering systems, as they contribute to reduced fuel consumption. Moreover, advancements in electric vehicle technology are fueling the growth of this segment, as many manufacturers are now incorporating electric power steering as a standard feature in their new models to comply with evolving regulations and consumer expectations regarding energy efficiency and sustainability.

Commercial Vehicles:

The commercial vehicles segment is witnessing an uptick in the adoption of electric power steering systems, spurred by the need for enhanced operational efficiency and driver comfort. Electric steering systems provide numerous benefits in heavy-duty applications, including improved steering response and reduced driver fatigue over long distances. As regulations surrounding emissions become stricter, commercial vehicle manufacturers are increasingly looking for ways to decrease fuel consumption and CO2 emissions. Electric power steering systems help achieve these goals by reducing the overall weight of the steering system and enhancing fuel efficiency. Furthermore, the integration of electric power steering in commercial vehicles aligns well with the trend of automating logistics and transport operations, thereby fostering the segment's growth.

Electric Vehicles:

The rise of electric vehicles (EVs) is one of the most significant driving forces behind the automotive electric power steering systems market. Electric power steering is an ideal match for EVs due to its compatibility with the overall electric architecture of these vehicles. The absence of hydraulic systems not only reduces mechanical complexity but also leads to lower energy consumption, which is crucial for extending the driving range of electric cars. As the global push towards sustainable transportation increases, many automakers are converting their lineups to include electric models, thus propelling the demand for electric power steering systems. EV manufacturers are also focusing heavily on enhancing the driving experience, and advanced electric steering technologies play a vital role in achieving this goal.

Autonomous Vehicles:

The autonomous vehicles segment is emerging as a crucial application area for electric power steering systems, as these vehicles heavily rely on sophisticated steering technologies to navigate without human intervention. Electric power steering systems provide the necessary precision required for the complex maneuvering required in autonomous driving. Advanced features like lane-keeping assistance and adaptive cruise control depend significantly on the effectiveness of electric steering systems. As car manufacturers invest in the development of self-driving technologies, electric power steering systems will evolve to incorporate more advanced functionalities, making them indispensable for the future of transportation. This segment is anticipated to exhibit robust growth as the automotive industry moves closer to achieving fully autonomous vehicles.

Others:

The 'Others' category encompasses various niche markets where electric power steering systems are applied, including specialty vehicles and recreational vehicles. These applications may not be as mainstream but hold significant potential for growth as they cater to specific consumer needs. For instance, off-road vehicles and sports cars benefit from the agility provided by electric steering systems, thus enhancing performance in challenging terrains or high-speed conditions. Additionally, vehicles designed for specific industries, such as emergency services or agricultural applications, are increasingly adopting electric power steering to improve operational efficiency and ease of use. As manufacturers continue to diversify their offerings, the 'Others' segment is expected to expand, driven by innovations and customized solutions in the electric power steering domain.

By Sales Channel

OEMs:

The OEM (Original Equipment Manufacturer) channel dominates the automotive electric power steering systems market, as it involves the direct integration of steering systems into new vehicles during manufacturing. This channel is critical for establishing industry standards and driving innovation, as OEMs invest in advanced technologies to enhance vehicle performance and safety. The shift towards electric vehicles and the growing demand for features such as enhanced driving dynamics and fuel efficiency are propelling OEMs to prioritize electric power steering systems in their vehicle designs. Furthermore, OEM partnerships with technology companies are leading to the development of more sophisticated steering systems capable of supporting new automotive trends, including connected and autonomous driving technologies, thereby solidifying the OEM channel's significance in the market.

Aftermarket:

The aftermarket channel is gaining traction in the automotive electric power steering systems market, as consumers and fleet operators seek to upgrade or replace existing systems in their vehicles. This channel presents a substantial opportunity for manufacturers to cater to the growing demand for enhanced vehicle performance and safety features post-purchase. Aftermarket solutions often focus on improvements in comfort and responsiveness, which appeal to consumers looking to enhance their driving experience. Additionally, the increasing longevity of vehicles on the road creates a market for retrofitting older models with modern electric power steering systems, which can provide significant performance benefits. As consumers become more knowledgeable about the advantages of electric power steering, the aftermarket segment is poised for growth, driven by both consumer demand and advancements in technology.

By Component Type

Electronic Control Unit:

The electronic control unit (ECU) is a critical component of electric power steering systems, responsible for processing inputs from the driver and adjusting the assistance provided by the electric motor accordingly. The ECU ensures that the steering system responds accurately to driver commands, enhancing the overall driving experience. As vehicle manufacturers continue to integrate advanced driver-assistance systems (ADAS) and autonomous technologies, the role of the ECU becomes even more vital. Innovations in ECU technology are leading to more powerful and efficient processing capabilities, enabling the development of smarter steering systems that can adapt to various driving conditions. With the increasing complexity of vehicle electronics, the demand for advanced ECUs in electric power steering systems is expected to rise significantly.

Electric Motor:

The electric motor serves as the driving force behind electric power steering systems, providing the necessary torque to assist the driver in steering the vehicle. The efficiency and performance of the electric motor directly affect the overall effectiveness of the steering system. As the automotive industry focuses on improving energy efficiency and reducing vehicle weight, manufacturers are investing in advanced electric motor technologies that offer higher power density and lower energy consumption. Furthermore, the trend toward electrification in vehicles necessitates the development of electric motors with enhanced capabilities capable of supporting various driving scenarios. Given the pivotal role electric motors play in steering systems, the demand for this component is expected to grow significantly as vehicle technologies continue to evolve.

Steering Column:

The steering column is a fundamental component of electric power steering systems, connecting the steering wheel to the steering mechanism. It houses critical elements, including the steering shaft and any necessary electronics, making it essential for smooth steering operation. The design and integration of the steering column have evolved to accommodate the specific needs of electric power steering, resulting in lightweight and durable constructions that enhance performance. Innovations in steering column design that incorporate safety features, such as collapsible columns for crash protection, are further driving the demand in this sector. As automotive designs continue to advance, the steering column's role in electric power steering systems will remain crucial for maintaining vehicle control and driver safety.

Sensors:

Sensors are integral components of electric power steering systems, providing real-time data on various parameters such as vehicle speed, steering angle, and driver input. This information is critical for the electronic control unit to adjust the power assistance accordingly, ensuring a responsive and intuitive driving experience. The development of advanced sensor technologies, including position and torque sensors, is enhancing the accuracy and effectiveness of electric steering systems. As the demand for connected vehicles and advanced driver-assistance systems increases, the need for precise and reliable sensor data becomes ever more critical. Consequently, the sensors segment within electric power steering systems is anticipated to see robust growth as manufacturers continue to innovate and integrate new technologies into their offerings.

Others:

The 'Others' category comprises various additional components that contribute to the functionality of electric power steering systems, such as wiring harnesses and control interfaces. These components, although not as prominently highlighted as the main elements, are essential for the overall system's performance and reliability. As vehicle manufacturers increasingly prioritize modular design and integration, the significance of these additional components cannot be overlooked. Furthermore, advancements in material technology are enabling the development of lighter and more durable components, which is crucial for improving the overall efficiency of electric power steering systems. As the market continues to evolve, the demand for these supporting components will also grow, reflecting the comprehensive nature of modern electric steering systems.

By Region

The North American region is witnessing robust growth in the automotive electric power steering systems market, driven by a significant demand for fuel-efficient vehicles and advancements in vehicle technologies. The region is home to several leading automotive manufacturers who are actively integrating electric power steering systems into their new models. The increasing trend toward electric and hybrid vehicles is expected to further bolster market growth, with major automakers committing to electrification strategies in response to changing consumer preferences and stringent regulatory requirements. The North American automotive electric power steering systems market is projected to grow at a CAGR of 7.5% during the forecast period, reflecting the region's commitment to innovation and efficiency.

In Europe, the automotive electric power steering systems market is also poised for growth, driven by advancements in automotive technology and rising environmental concerns. European manufacturers are increasingly adopting electric power steering systems in response to the European Union's stringent regulations regarding emissions and fuel efficiency. The push for sustainable transportation options is leading to a surge in electric and hybrid vehicle production, which in turn fuels the demand for electric power steering systems. The European market is expected to grow steadily, with a projected CAGR of 8% over the forecast period. With a strong emphasis on vehicle safety and performance, the region is expected to remain a key player in the automotive electric power steering systems market.

Opportunities

The automotive electric power steering systems market presents numerous opportunities, particularly with the increasing focus on sustainability and innovation in vehicle technologies. As governments worldwide implement stricter emissions regulations, automakers are compelled to adopt more efficient technologies, including electric power steering systems, to meet these standards. This growing emphasis on sustainability creates a favorable environment for manufacturers to develop and market electric steering systems that align with these regulations. Furthermore, as consumers increasingly prioritize fuel economy and performance, the demand for electric power steering systems that enhance vehicle handling and reduce fuel consumption is expected to rise. Innovative technological advancements, such as enhanced driver-assistance features and connectivity options, will also present significant opportunities for growth in this market.

Additionally, the rapid advancement of autonomous vehicle technologies represents a substantial opportunity for the automotive electric power steering systems market. As the industry progresses towards full autonomy, electric power steering systems will play a critical role in providing the precision and responsiveness required for safe and effective autonomous driving. Manufacturers that position themselves at the forefront of this technological evolution will likely experience significant growth opportunities. Furthermore, the rising trend of vehicle electrification and the increasing popularity of electric vehicles will further drive demand for electric power steering systems. As automakers continue to innovate and adapt to changing consumer preferences, the market will continue to see healthy growth fueled by a host of new opportunities.

Threats

Despite the strong growth prospects, the automotive electric power steering systems market faces several threats that could impede progress. One major threat is the rapid pace of technological change, which requires manufacturers to continually invest in research and development to remain competitive. Companies that fail to keep up with technological advancements risk losing market share to competitors who are more agile and innovative. Additionally, the market is highly sensitive to fluctuations in raw material costs, which can impact production expenses and profit margins. Any significant increase in the prices of essential components, such as electric motors or electronic control units, could strain margins and lead to higher costs for consumers, potentially slowing demand.

Another concern for the market is the potential for increased competition from alternative steering technologies, such as hydraulic steering systems, which have a long-standing presence in the automotive industry. While electric power steering systems offer numerous advantages, some manufacturers may opt to stick with traditional systems due to their proven reliability and lower initial costs. Additionally, the economic impact of global events can also pose a threat to market growth, as economic downturns typically lead to decreased consumer spending on new vehicles. The overall demand for automotive vehicles may decline, directly affecting the sales of electric power steering systems.

Competitor Outlook

• Robert Bosch GmbH
• TRW Automotive Holdings Corp.
• Denso Corporation
• Continental AG
• JTEKT Corporation
• Delphi Technologies
• Hitachi Automotive Systems, Ltd.
• Aisin Seiki Co., Ltd.
• ZF Friedrichshafen AG
• Magna International Inc.
• Thyssenkrupp AG
• Valeo SA
• NSK Ltd.
• Infineon Technologies AG
• Kostal Group

The competitive landscape of the automotive electric power steering systems market is characterized by a diverse range of players, from large multinational corporations to specialized technology firms. Major companies such as Robert Bosch GmbH and TRW Automotive Holdings Corp. lead the industry due to their extensive product portfolios and established reputations for quality and reliability. These companies are heavily investing in research and development to advance electric steering technologies, focusing on improving efficiency and integration with emerging automotive innovations such as autonomous driving and smart vehicle features. Collaborative partnerships and strategic alliances are becoming increasingly common in the industry as companies seek to leverage complementary strengths to enhance their offerings and achieve market differentiation.

Furthermore, companies like Denso Corporation and Continental AG are leveraging their expertise in electronics and automotive systems integration to develop cutting-edge electric power steering solutions. These organizations are focusing on enhancing the user experience by incorporating features such as customizable steering responses and advanced driver-assistance capabilities. Additionally, international players like JTEKT Corporation and Delphi Technologies are expanding their reach into emerging markets to capitalize on the growing demand for electric power steering systems, particularly in regions witnessing rapid vehicle electrification and urbanization.

Smaller firms and specialized technology providers are also playing a significant role in the automotive electric power steering systems market. Companies such as Infineon Technologies AG and Kostal Group are providing innovative components and solutions that cater to the specific needs of modern steering systems. The emphasis on lightweight and energy-efficient designs is fostering a competitive environment in which these companies can position themselves favorably against larger competitors. As the market continues to evolve, it will be essential for all players to stay ahead of technological advancements while addressing consumer demand for improved safety, performance, and sustainability in electric power steering systems.