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The electric power steering market size is forecast to increase by USD 7.33 billion at a CAGR of 5.05% between 2023 and 2028. The electric power steering (EPS) market is witnessing significant growth due to stringent regulations aimed at controlling vehicular emissions. Governments worldwide are imposing stricter norms on automobile manufacturers to reduce carbon emissions, leading to the widespread adoption of EPS systems. Another trend influencing the market is the increasing use of steer-by-wire technology in commercial vehicles. This technology offers enhanced safety features and improved fuel efficiency, making it a preferred choice for CV manufacturers. However, the market is facing challenges due to the sharp decline in automobile production and sales, especially in the wake of the COVID-19 pandemic. This downturn in demand has led to reduced production and sales of EPS systems, negatively impacting market growth. Despite these challenges, the long-term outlook for the EPS market remains positive, driven by the increasing demand for fuel-efficient and eco-friendly vehicles.
Electric Power Steering (EPS) is a crucial component in modern automotive systems, providing enhanced steering feel and ease of use in various types of vehicles. EPS systems come in different configurations, including Column EPS, Rack EPS, and Pinion EPS, catering to diverse automotive applications. The commercial vehicle segment, particularly heavy-duty trucks and buses, is witnessing significant growth in EPS adoption due to improved fuel efficiency and easier maneuverability. Battery Electric Vehicles (BEVs) and Hybrid Vehicles are also adopting EPS systems to meet stricter emission norms and enhance vehicle performance. The automotive vehicle production industry, including OEMs, is integrating advanced sensors and electronic input systems into EPS to improve control module functionality and power supply efficiency.
Further, passenger cars and self-driving vehicles are also embracing EPS technology to provide a more responsive and precise driving experience. The wiring and connectors used in EPS systems must be strong and reliable to ensure seamless power transfer and communication between components. The automotive steering system market is expected to grow significantly due to the increasing demand for electric and autonomous vehicles, offering numerous opportunities for innovation and growth.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The collapsible segment is estimated to witness significant growth during the forecast period. Electric Power Steering (EPS) systems have gained significant traction in the automotive industry, particularly in commercial vehicles and passenger cars, including self-driving and electric vehicles. The advanced technology of EPS offers an enhanced steering feel through Column EPS, Rack EPS, and Pinion EPS systems. In the context of Battery Electric Vehicles (BEVs), EPS plays a crucial role in meeting emission norms and fuel economy rules by improving fuel efficiency and reducing CO2 emissions. The integration of sensors in the automotive steering system facilitates better control and communication between the electric motor, pump, and steering wheel. Collapsible EPS systems, a modern innovation, prioritize safety by minimizing the potential impact force transmitted to the driver during road accidents.
These systems allow the steering column to retract, reducing the risk of chest and head injuries for vulnerable road users. The collapsible design offers additional benefits, such as better space utilization and flexibility during vehicle production, assembly, and transportation. The control module, wiring, connectors, power supply, and electronic input system work together seamlessly to ensure optimal performance. Hybrid vehicles also benefit from the integration of EPS, contributing to overall vehicle electrification and enhancing the driving experience. Sensor manufacturers play a pivotal role in the development and implementation of advanced steering sensors to improve vehicle safety and performance.
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The collapsible segment was valued at USD 15.48 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In the rapidly evolving automotive industry, electric power steering (EPS) technology is gaining significant traction, particularly in trucks and buses, as well as in passenger cars. Traditional power steering systems, which rely on hydraulic fluid and heavy components, can negatively impact vehicle handling, maneuverability, and performance, especially in tight spaces and when precise control is required. EPS systems, on the other hand, offer quieter and vibration-free operations, reducing driver fatigue and improving the driving experience. Moreover, EPS systems contribute to fuel efficiency and reduced greenhouse gas emissions by minimizing the steering load and enhancing accuracy and responsiveness. Advanced automotive technologies, such as haptic feedback systems and tactile cues, further improve the feel and responsiveness of EPS systems, making them an attractive option for vehicle manufacturers.
Further, the increasing demand for commercial vehicles in fast-paced economies like China, India, Indonesia, and South Korea, driven by infrastructure development and industrial growth, is expected to boost the adoption of EPS systems. The adoption of electric drivetrain architecture in vehicles is also expected to increase the demand for EPS systems, as they offer advantages such as reduced maintenance costs, improved safety, and reduced adverse environmental impact compared to hydraulic power steering systems. Despite these benefits, the higher initial investment cost of EPS systems may be a barrier to adoption for some vehicle manufacturers and consumers. However, the long-term cost savings and performance advantages are expected to outweigh the initial investment. In summary, the increasing demand for advanced automotive technologies, the shift towards electric drivetrains, and the growth of the commercial vehicle market are key factors driving the growth of the market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Stringent regulations to control vehicular emissions is the key driver of the market. Electric Power Steering (EPS) systems have gained significant traction in the automotive industry due to their ability to enhance steering feel and improve fuel efficiency in both commercial vehicles and passenger cars. The market for EPS systems includes various types such as Column EPS, Rack EPS, and Pinion EPS. With the increasing focus on reducing emissions and improving fuel economy, governments worldwide have introduced stringent regulations, including emission norms and fuel economy rules, compelling Original Equipment Manufacturers (OEMs) to incorporate more electronic content in vehicles. This shift has led to the widespread adoption of EPS systems in electric vehicles (BEVs), self-driving vehicles, hybrid vehicles, and even in traditional automotive vehicles.
Moreover, the integration of sensors, electric motors, pumps, control modules, wiring, connectors, and power supply systems in EPS has resulted in enhanced safety features, including improved steering sensors, and fuel savings. Furthermore, the growing trend of vehicle electrification and the increasing demand for safety standards, such as those related to road accidents prevention and vulnerable road user protection, are expected to drive the growth of the EPS market. Sensor manufacturers are also expected to benefit from this trend due to the increasing demand for advanced steering systems.
Steer-by-wire technology gaining adoption in CVs is the upcoming trend in the market. Electric Power Steering (EPS) technology, which utilizes electrically connected motors to provide steering assistance, is revolutionizing the automotive industry. This technology, also known as steer-by-wire, eliminates the physical connection between the steering wheel and the steering system. In this setup, the vehicle's computer receives electronic input from a connected device and sends commands to the wheels. The advantages of EPS technology include enhanced steering feel, improved safety, and easier implementation across various vehicle models. Although currently limited to passenger cars and some hybrid vehicles, we anticipate the adoption of EPS technology to expand in Commercial Vehicles (CVs) and even Self-driving vehicles during the forecast period.
However, this technology contributes to better fuel efficiency, reduced CO2 emissions, and improved safety standards by minimizing road accidents involving vulnerable road users. The implementation of EPS technology reduces vehicle production costs and enables Original Equipment Manufacturers (OEMs) to explore diverse designs. The technology's components, such as sensors, electric motors, pumps, control modules, wiring, and connectors, are essential to its power supply and electronic input system. The integration of EPS technology in Battery Electric Vehicles (BEVs) and Fuel Economy rules further highlights the importance of vehicle electrification and fleet level requirements. Sensor manufacturers play a crucial role in the development and production of EPS technology, ensuring the accuracy and reliability of steering sensors.
The sharp decline in automobile production and sales is a key challenge affecting the market growth. The electric power steering (EPS) market is witnessing significant growth due to the increasing adoption of EPS in both passenger cars and commercial vehicles. Steering feel, a crucial factor in ensuring vehicle handling and safety, is improved with the use of EPS systems. The market for EPS is closely linked to the overall production and sales of automobiles, as the penetration of EPS in the automotive steering system market is high. Commercial vehicles, including buses and trucks, are increasingly adopting EPS systems to meet emission norms and improve fuel efficiency and CO2 savings. Moreover, the growing trend of vehicle electrification, including battery electric vehicles (BEVs) and hybrid vehicles, is driving the demand for EPS systems.
Further, the decline in automotive vehicle production since 2018, due to various economic factors, has led to a decrease in demand for automotive components, including EPS. However, the focus on safety standards, fuel savings, and vehicle pollution reduction through fuel economy rules and fleet level requirements is expected to boost the market for EPS in the long term. The market for EPS is characterized by the use of various types of systems, including column EPS, rack EPS, and pinion EPS, and involves the use of sensors, electric motors, pumps, control modules, wiring, connectors, power supply, and electronic input systems. The market for EPS is also influenced by the production of self-driving vehicles, which require advanced steering systems. Sensor manufacturers play a crucial role in the EPS market by providing sensors for steering angle, vehicle speed, and other parameters.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
DENSO Corp. - The company offers electric power steering motor control unit with two drive circuits which is designed for creating a safe and secure automobile society.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The electric Power Steering (EPS) market is witnessing significant growth due to the increasing demand for enhanced steering feel and fuel efficiency in both commercial vehicles and passenger cars. The market includes various types of EPS systems, such as Column EPS, Rack EPS, and Pinion EPS. The adoption of EPS in Battery Electric Vehicles (BEVs) and Hybrid Vehicles is also increasing due to the need to meet emission norms and fuel economy rules. Automotive OEMs are integrating sensors in EPS systems to ensure safety standards, including self-driving vehicles' safety. The integration of EPS in vehicles results in improved fuel savings reduced CO2 emissions, and vehicle pollution.
Further, EPS systems consist of an electric motor, pump, steering wheel, control module, wiring, connectors, power supply, and electronic input system. The market is expected to grow further with the increasing vehicle production, vehicle electrification, and fleet level requirements. The sensor manufacturers are also focusing on developing advanced sensors for EPS systems to ensure safety and improve steering performance.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.05% |
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Market Growth 2024-2028 |
USD 7.33 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.73 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 43% |
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Key countries |
US, China, Japan, South Korea, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
DENSO Corp., GKN Sinter Metals Engineering GmbH, HELLA GmbH and Co. KGaA, Hitachi Ltd., Infineon Technologies AG, JTEKT Corp., Knorr Bremse AG, Mando Aftermarket North America, Mitsubishi Electric Corp., Nexteer Automotive Group Ltd., Nissan Motor Co. Ltd., NSK Ltd., NXP Semiconductors NV, Robert Bosch GmbH, STMicroelectronics International N.V., TT Electronics Plc, Valeo SA, Zapi Group, and ZF Friedrichshafen AG |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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