Electric Power Steering System (EPS) Sales Market Outlook

The global Electric Power Steering System (EPS) market is anticipated to reach approximately USD 25 billion by 2035, growing at a compound annual growth rate (CAGR) of around 6% from 2025 to 2035. This growth can be attributed to various factors, including the increasing demand for fuel-efficient vehicles, stringent government regulations regarding vehicle emissions, and a growing consumer preference for advanced driver-assistance systems (ADAS). Furthermore, the rise in electric vehicles (EVs) is expected to drive the EPS market, as these vehicles often incorporate sophisticated steering technologies to enhance driving experience and safety. As the automotive industry shifts towards electrification and automation, the integration of EPS systems is becoming increasingly critical, providing manufacturers with an opportunity to innovate and meet evolving consumer expectations.

Growth Factor of the Market

The Electric Power Steering System (EPS) market is primarily driven by the increasing integration of advanced steering technologies across various vehicle segments. One major growth factor is the global shift towards electric and hybrid vehicles, which necessitates the implementation of electric steering systems that provide better energy efficiency and control. Additionally, the rising consumer awareness regarding safety features in vehicles has prompted manufacturers to adopt EPS systems that enhance driving stability and reduce the risk of accidents. The demand for automation in vehicles is another significant factor, as EPS systems can easily integrate with autonomous driving technologies, paving the way for safer and more efficient driving experiences. Furthermore, government regulations targeting fuel efficiency and emissions reduction are pushing automakers to adopt EPS solutions that contribute to lower fuel consumption. Lastly, the growing trend of lightweight vehicle design encourages the use of EPS systems to reduce overall vehicle weight without compromising performance.

Key Highlights of the Market

• The EPS market is projected to grow at a CAGR of 6% from 2025 to 2035.
• Significant opportunities exist due to the shift towards electric and hybrid vehicles.
• Integration with advanced driver-assistance systems (ADAS) is becoming more prevalent.
• Government regulations are driving the adoption of fuel-efficient technologies.
• Increasing consumer demand for safety features is boosting EPS popularity.

By Component

Electric Motors:

Electric motors are crucial components of the Electric Power Steering System, as they provide the necessary force to assist the driver in steering the vehicle. These motors are designed to deliver optimal torque and responsiveness, ensuring a seamless driving experience. With advancements in motor technology, manufacturers are developing lighter and more efficient electric motors that enhance the overall performance of EPS systems. The increasing focus on energy efficiency and vehicle weight reduction is driving the demand for compact yet powerful electric motors. Furthermore, innovations in motor control algorithms are enabling better steering feel and precision, contributing to the growing adoption of electric motors in EPS applications.

Sensors:

Sensors play an essential role in the functionality of Electric Power Steering Systems by continuously monitoring various parameters, including vehicle speed, steering angle, and driver input. These sensors provide critical data to the electronic control unit (ECU), enabling real-time adjustments to the steering assistance level. The development of advanced sensor technologies, such as MEMS (Micro-Electro-Mechanical Systems) and high-resolution position sensors, is enhancing the accuracy and reliability of EPS systems. As vehicles become more automated, the demand for sophisticated sensor integration is expected to rise, further driving the growth of the EPS market. Additionally, the need for improved safety features is propelling the adoption of sensors that enable better feedback to the driver and enhance overall vehicle control.

Electronic Control Unit:

The Electronic Control Unit (ECU) serves as the brain of the Electric Power Steering System, processing the inputs from various sensors and controlling the motor's output to provide the required steering assistance. As the complexity of automotive systems increases, the ECU's role in managing the EPS system is becoming increasingly critical. Advanced ECU designs leverage sophisticated algorithms and real-time data processing to optimize steering performance and adapt to various driving conditions. The trend towards greater vehicle connectivity and integration with advanced driver-assistance technologies is further driving the development of more powerful and capable ECUs. Manufacturers are focusing on improving the ECU's reliability and efficiency to enhance the overall performance of EPS systems.

Steering Gear:

The steering gear is a vital component of the Electric Power Steering System, translating the rotational motion of the steering wheel into the lateral motion of the vehicle's wheels. There are several types of steering gears used in EPS systems, including rack-and-pinion and recirculating ball systems. The choice of steering gear impacts the overall driving experience, including feedback, precision, and response time. Innovations in steering gear design, such as the integration of electric actuators and advanced materials, are enhancing performance characteristics and improving vehicle dynamics. As automakers strive for more efficient and responsive steering solutions, the demand for advanced steering gears in EPS applications is expected to grow significantly.

Others:

This category includes various ancillary components that contribute to the functionality of Electric Power Steering Systems, such as power distribution units, wiring harnesses, and connectors. While these components may not always receive the same level of attention as motors, sensors, and ECUs, they are essential for ensuring the reliable operation of EPS systems. The ongoing trends towards vehicle electrification and lightweight design are encouraging manufacturers to innovate in this segment, seeking ways to optimize energy consumption and reduce weight without compromising performance. Moreover, as the automotive industry increasingly emphasizes sustainability and recyclability, the development of eco-friendly materials for these components is gaining traction, thereby contributing to the overall growth of the EPS market.

By Type

Column Assist Electric Power Steering:

Column assist electric power steering systems are designed to provide steering assistance directly at the steering column, making them compact and suitable for various vehicle types. This type of EPS system is particularly advantageous in smaller vehicles, where space is a premium. Column assist systems offer a direct response to driver input, ensuring a smooth and consistent steering feel. Furthermore, these systems can be easily integrated with other vehicle technologies, such as lane-keeping assist and adaptive cruise control. As consumer preferences shift towards more compact and efficient vehicles, the demand for column assist electric power steering systems is expected to rise significantly in the coming years.

Pinion Assist Electric Power Steering:

Pinion assist electric power steering systems are characterized by their integration into the steering gear assembly, providing assistance directly at the pinion. This configuration enhances the system's responsiveness and allows for improved steering feedback. Pinion assist EPS systems are widely used in mid-sized and larger vehicles, where enhanced steering precision is essential. The ability of pinion assist systems to adapt to varying driving conditions enables manufacturers to offer a more tailored driving experience. As the market for larger vehicles continues to grow, the demand for pinion assist electric power steering systems is projected to increase accordingly.

Rack Assist Electric Power Steering:

Rack assist electric power steering systems are designed to deliver steering assistance at the rack and pinion level, providing a direct connection between the steering wheel and the wheels. This type of EPS system offers excellent feedback and control, making it a preferred choice for performance-oriented vehicles. Rack assist systems are known for their ability to provide a more engaging driving experience while still offering the benefits of reduced weight and improved fuel efficiency. As automotive manufacturers increasingly focus on performance and driver engagement, the adoption of rack assist electric power steering systems is expected to see significant growth.

By Vehicle Type

Passenger Cars:

The passenger car segment represents a significant portion of the Electric Power Steering System market, driven primarily by consumer demand for enhanced safety, comfort, and fuel efficiency. EPS systems are increasingly being adopted in passenger vehicles due to their lightweight design and ability to improve vehicle dynamics. As automakers strive to meet stringent emissions standards and improve fuel economy, the transition from hydraulic to electric steering systems is becoming more prevalent. Furthermore, the growing trend towards connectivity and smart features in passenger cars is promoting the integration of advanced EPS systems that offer enhanced driving experiences. The continuous evolution of automotive technologies is expected to further boost the adoption of EPS in the passenger car segment.

Commercial Vehicles:

Commercial vehicles, including trucks and buses, are also witnessing a growing adoption of Electric Power Steering Systems due to their numerous benefits. EPS systems in commercial vehicles can reduce driver fatigue by providing lighter steering, especially during maneuvering and parking. In addition, the precision and control offered by EPS systems contribute to improved safety, which is crucial for commercial operations. As the industry increasingly emphasizes fuel efficiency and operational cost reduction, the transition from traditional hydraulic systems to electric power steering is becoming inevitable. The demand for more efficient and reliable steering solutions in commercial vehicles is expected to drive market growth in this segment significantly.

Electric Vehicles:

Electric vehicles (EVs) are at the forefront of the Electric Power Steering System market, as these vehicles inherently require efficient and responsive steering solutions to complement their electric drivetrains. EPS systems are particularly well-suited for EVs due to their lightweight nature, which contributes to overall vehicle efficiency. Moreover, the integration of EPS systems with advanced driver-assistance technologies enhances the driving experience, making EVs more appealing to consumers. As the global market for electric vehicles continues to expand, driven by government incentives and the push for sustainable transportation, the demand for electric power steering systems is set to increase significantly. The evolution of EV technology and consumer preferences will further accelerate this growth.

By Sales Channel

OEM:

The OEM (Original Equipment Manufacturer) segment is a significant contributor to the Electric Power Steering System market, as major automotive manufacturers incorporate EPS solutions into their new vehicle models. The increasing focus on fuel efficiency and safety features is driving OEMs to adopt electric steering technologies, which facilitate the production of lighter and more responsive vehicles. Additionally, the trend towards electrification in the automotive industry is further pushing OEMs to integrate EPS systems as standard equipment. As vehicle production continues to rise globally, the OEM sales channel is expected to experience substantial growth in the coming years.

Aftermarket:

The aftermarket segment for Electric Power Steering Systems is also gaining traction, driven by the need for replacements and upgrades in existing vehicles. As vehicles age, the demand for reliable and efficient steering solutions becomes paramount for ensuring safe driving experiences. The growth of the aftermarket segment is supported by the increasing awareness among consumers regarding the benefits of EPS systems, including improved steering feel and reduced fuel consumption. Furthermore, as more consumers opt for enhancements or retrofitting older vehicles with modern technologies, the aftermarket for EPS systems is expected to witness considerable expansion. This trend underscores the importance of EPS systems in the overall automotive market.

By Region

The Electric Power Steering System market is experiencing robust growth across various regions, with North America leading the charge. The North American EPS market is projected to capture a significant share due to the region's well-established automotive industry and the increasing adoption of electric vehicles. The growing push for advanced safety features and fuel-efficient technologies is driving the demand for EPS systems in this region. Furthermore, the presence of major automotive manufacturers and suppliers is facilitating innovations in EPS technology. The North American EPS market is expected to grow at a CAGR of 6% during the forecast period, reflecting the overall positive outlook for the region.

In Europe, the Electric Power Steering System market is also on an upward trajectory, fueled by the stringent EU regulations concerning emissions and fuel efficiency. The European market is characterized by a strong focus on sustainability and the transition to electric and hybrid vehicles. This trend is driving the adoption of EPS systems, as they play a crucial role in enhancing vehicle performance while meeting environmental standards. Furthermore, the presence of leading automotive manufacturers in Europe is fostering advancements in EPS technology. Although the European EPS market is slightly smaller than that of North America, it remains a vital segment with significant growth potential.

Opportunities

The Electric Power Steering System market presents numerous opportunities for growth, especially as the automotive industry shifts towards electrification. One valuable opportunity lies in the increasing demand for electric and hybrid vehicles, which necessitates advanced steering solutions that enhance performance and energy efficiency. Manufacturers that can innovate and offer cost-effective EPS systems tailored to the evolving needs of electric vehicles will likely gain a competitive edge in the market. Moreover, the integration of advanced driver-assistance systems (ADAS) is becoming prevalent, creating significant opportunities for EPS systems that can seamlessly interact with various vehicle technologies. The growing trend towards connectivity and smart cars also opens doors for EPS manufacturers to develop systems that provide enhanced driver feedback and safety features, aligning with consumer demands for modern vehicle functionalities.

Furthermore, the increasing consumer awareness regarding the benefits of EPS systems, such as improved fuel efficiency and better driving experiences, presents a favorable market environment for growth. As automotive manufacturers prioritize the development of lightweight vehicles to meet regulatory requirements, the demand for electric power steering systems is expected to surge. There is also potential for expansion into emerging markets, where rapid urbanization and rising disposable incomes are driving the demand for personal vehicles. By strategically positioning themselves in these markets, EPS manufacturers can capitalize on the growing need for advanced steering solutions and cater to the diverse preferences of consumers worldwide.

Threats

Despite the promising outlook for the Electric Power Steering System market, there are several threats that could hinder growth and profitability. One of the primary concerns is the intense competition among manufacturers, which can lead to price wars and reduced profit margins. As more players enter the market, established companies may find it difficult to maintain their market share, resulting in increased pressure to innovate and differentiate their products. Additionally, advancements in alternative steering technologies, such as steer-by-wire systems, could pose challenges to traditional EPS solutions, as these newer systems offer even greater potential for customization and performance enhancements.

Moreover, fluctuations in raw material prices and supply chain disruptions can impact the cost of production for EPS manufacturers. As the global economy becomes increasingly interconnected, any instability in material supply chains can lead to delays and increased operational costs. This, in turn, could affect the pricing and availability of electric power steering systems in the market, potentially limiting growth opportunities. Additionally, regulatory changes and evolving consumer preferences may necessitate further investments in research and development, placing added pressure on manufacturers to keep pace with industry trends.

Competitor Outlook

• Bosch
• JTEKT Corporation
• Thyssenkrupp AG
• ZF Friedrichshafen AG
• Continental AG
• Delphi Technologies
• Mando Corporation
• United Automotive Electronic Systems Co. Ltd.
• Aisin Seiki Co., Ltd.
• Gentex Corporation
• Hitachi Automotive Systems
• Valeo SA
• NSK Ltd.
• TRW Automotive
• Infineon Technologies AG

The competitive landscape of the Electric Power Steering System market is characterized by the presence of several key players, each vying for market share through innovation, strategic partnerships, and geographic expansion. Leading companies such as Bosch and ZF Friedrichshafen AG are at the forefront of EPS technology development, consistently investing in research and development to enhance their product offerings. These companies are leveraging their extensive experience in the automotive sector to stay ahead of the competition by introducing advanced EPS solutions that cater to the evolving needs of consumers and automakers alike. Furthermore, collaborations with automotive manufacturers enable these companies to streamline production processes and improve overall efficiency.

Another significant player, JTEKT Corporation, has made notable contributions to the EPS market by focusing on the integration of smart technologies within their steering systems. This focus on technological advancement positions JTEKT as a strong competitor in the market, allowing them to meet the growing demand for advanced driver-assistance and autonomous driving features. Similarly, Continental AG is leveraging its expertise in electronics and software development to create innovative EPS systems that enhance vehicle control and driving experience. As the automotive industry increasingly emphasizes connectivity and automation, companies that successfully integrate these aspects into their EPS solutions will likely gain a competitive advantage.

In addition to established players, the market also features emerging companies that are focused on developing niche products and solutions. For instance, Mando Corporation and Aisin Seiki Co., Ltd. are investing in next-generation EPS technologies that cater to the unique requirements of electric and hybrid vehicles. These companies are actively exploring partnerships and collaborations to enhance their technological capabilities and expand their market reach. Overall, the competitive landscape of the Electric Power Steering System market is dynamic, with companies continuously striving to innovate and adapt to the changing automotive environment.