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Active Power Steering Market Size Forecast: How Large Could The Market Become By 2030?
The active power steering market has seen rapid expansion in recent years. Its value is expected to increase from $11.14 billion in 2025 to $12.6 billion in 2026, achieving a compound annual growth rate (CAGR) of 13.1%. The historical growth of this market can be attributed to factors such as vehicle safety regulations, the shift from hydraulic steering, demand for enhanced passenger comfort, the advancement of automotive electronics, and requirements for fuel efficiency.
The active power steering market is poised for significant expansion over the coming years. Projections indicate it will reach a valuation of $20.39 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 12.8%. This anticipated growth during the forecast period is primarily driven by factors such as the advancement of autonomous driving, the increasing embrace of steer-by-wire technology, the rise in electric vehicle manufacturing, the emergence of software-driven vehicle architectures, and sophisticated sensor integration. Key trends shaping this period encompass the growing popularity of electric power steering, seamless integration with ADAS systems, a heightened demand for improved driving comfort, the expansion of autonomous vehicle platforms, and the evolution of software-defined steering.
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Active Power Steering Market Development Factors: Which Trends Are Supporting Demand?
The anticipated expansion of the active power steering market is linked to the growing need for electric vehicles in the future. EVs are defined as vehicles operating either fully or partially on electricity, utilizing electric motors and rechargeable battery systems rather than conventional internal combustion engines. The surge in electric vehicle adoption is attributed to progress in battery technology, leading to considerable enhancements in driving range and faster charging. Active power steering improves electric vehicles through optimized steering response and energy efficiency, which results in better vehicle handling, a longer battery range, less driver fatigue, and smooth compatibility with advanced driver assistance systems (ADAS) for enhanced safety and and comfort during driving. For example, the International Energy Agency, an intergovernmental body based in France, reported that worldwide electric car sales increased from 14 million in 2023 to 17 million in 2024, indicating substantial year-over-year expansion. Consequently, the heightened demand for electric vehicles is fueling the expansion of the active power steering market.
Active Power Steering Market Segment Landscape: Which Areas Lead Market Development?
The active power steering market covered in this report is segmented –
1) By Type: Electric Power Steering System, Hydraulic Power Steering System, Electro-Hydraulic Power Steering System
2) By Application: Passenger Car, Commercial Vehicle
3) By Distribution Channel: Original Equipment Manufacturer, Aftermarket
Subsegments:
1) By Electric Power Steering System: Column Type Electric Power Steering System, Pinion Type Electric Power Steering System, Rack Type Electric Power Steering System
2) By Hydraulic Power Steering System: Integral Hydraulic Power Steering, Linkage Hydraulic Power Steering
3) By Electro-Hydraulic Power Steering System: Belt-Driven Electro-Hydraulic Power Steering System, Electrically Assisted Hydraulic Steering
Active Power Steering Market Transformation Trends: Which Innovations Are Driving Change?
Major companies within the active power steering market are prioritizing the creation of innovative products, including electric and hydraulic power steering systems. These efforts aim to boost vehicle handling, optimize fuel efficiency, and address the increasing need for advanced driver-assistance technologies. Electric and hydraulic power steering systems are technologies designed to aid drivers by reducing the effort required for vehicle steering. For instance, in April 2025, Nexteer Automotive, a US-based automotive industry company, launched its high-output column-assist electric power steering (HO CEPS), crafted to provide enhanced steering support for larger and heavier vehicles while simultaneously enhancing energy efficiency and vehicle handling. This new system is specifically engineered for a greater torque output, rendering it particularly effective for larger and heavier vehicles such as trucks and SUVs. Through the incorporation of advanced control algorithms and robust electric motors, HO CEPS bolsters steering precision, minimizes driver effort, and optimizes overall vehicle handling. Furthermore, it contributes to fuel efficiency and electric vehicle compatibility through the reduction of parasitic power loss, in contrast to traditional hydraulic systems.
Active Power Steering Market Industry Leaders And Market Competition
Major companies operating in the active power steering market report include Volkswagen AG, Toyota Motor Corporation, Mercedes-Benz Group AG, Ford Motor Company, General Motors, Bayerische Motoren Werke AG (BMW), Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Audi AG, Kia Corporation, BYD Company Limited, Nikola Corporation, Renault Group, AB Volvo, Porsche AG, Jaguar Land Rover Automotive PLC, Geely Automobile Holdings Limited, NIO Inc., XPeng Inc., Rivian Automotive LLC, Lucid Group Inc., Proterra Inc., Energica Motor Company S.p.A., Bollinger Motors, Workhorse Group Inc., Fisker Inc.
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Active Power Steering Market Leading Geography: Which Region Generates The Most Revenue?
North America was the largest region in the active power steering market in 2025. The regions covered in the active power steering market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.