Electric Power Steering (EPS) System Market - Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

Market Overview

The Electric Power Steering (EPS) System Market is projected to grow from USD 27,029 million in 2024 to USD 39,934.14 million by 2032, reflecting a compound annual growth rate (CAGR) of 5%.

The growth of the EPS system market is driven by the increasing demand for fuel-efficient vehicles and the growing adoption of electric and hybrid vehicles. EPS systems significantly reduce energy consumption compared to traditional hydraulic power steering systems, making them ideal for eco-friendly vehicle designs. Additionally, stringent government regulations aimed at lowering emissions and improving vehicle safety further contribute to market growth. Technological advancements, particularly in vehicle automation and driver assistance systems (ADAS), are increasing demand for EPS systems, which offer precise control and enhanced safety features. Furthermore, the shift toward vehicle electrification and the integration of AI-based technologies in steering systems are propelling the market forward. Original equipment manufacturers (OEMs) are focusing on developing lighter, more efficient steering solutions to meet the evolving needs of modern electric, hybrid, and autonomous vehicles. These factors are expected to drive substantial growth in the EPS system market in the coming years.

Market Drivers

Rising Popularity of Electric and Hybrid Vehicles

The rapid growth of the electric and hybrid vehicle markets is a major driver for the increasing demand for EPS systems. Electric power steering is ideal for EVs and hybrid vehicles due to its lightweight design and the ability to operate independently of the engine’s power. For example, Nexteer Automotive offers EPS systems optimized for EVs, providing advanced functionality and lighter designs to improve overall vehicle performance. With global governments pushing for cleaner transportation options and offering incentives for EV adoption, automakers are investing heavily in EPS technology to improve the performance and efficiency of electric vehicles. As the market for EVs continues to grow, so does the demand for high-performance, energy-efficient EPS systems.

Market Challenges Analysis

High Development and Manufacturing Costs

A significant challenge facing the Electric Power Steering (EPS) system market is the high cost associated with development and manufacturing. EPS systems rely on advanced electronics, sensors, and software, making their production more complex and expensive compared to traditional hydraulic power steering systems. Developing reliable, durable EPS systems requires substantial investment in research and development (R&D) to ensure they meet strict safety, regulatory, and performance standards. These increased costs can be a barrier for smaller automotive manufacturers or in regions where cost competitiveness is crucial. Furthermore, scaling the production of EPS systems to meet the growing global demand requires significant capital expenditure on infrastructure, placing a financial strain on companies. The integration of new materials and manufacturing techniques also adds additional financial pressure, especially for both established and emerging industry players.

Market Segmentation

By Type:

Column Assist Type (C-EPS)

Pinion Assist Type (P-EPS)

Rack Assist Type (R-EPS)

By Component:

Steering Gear

Electric Motor

Electronic Control Unit (ECU)

Sensors

Steering Column

By Vehicle Type:

Passenger Vehicles

Light Commercial Vehicles

Heavy Commercial Vehicles

Off-Road Vehicles

Sport Utility Vehicles

By Geography:

North America

U.S.

Canada

Mexico

Europe

Germany

France

U.K.

Italy

Spain

Rest of Europe

Asia Pacific

China

Japan

India

South Korea

Southeast Asia

Rest of Asia Pacific

Latin America

Brazil

Argentina

Rest of Latin America

Middle East & Africa

GCC Countries

South Africa

Rest of the Middle East and Africa

Key Player Analysis

ZF Friedrichshafen Group

Nexteer Automotive

SHOWA Corporation

Mitsubishi Electric Corporation

Robert Bosch Automotive Steering GmbH

NSK Global

Mando Corporation

Hyundai Mobis

JTEKT Corporation

Thyssenkrupp Presta AG

Zhuzhou Elite Electro-Mechanical Co. Ltd.