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Electric Power Steering Market CAGR Analysis And Future Market Development
Recent years have seen substantial growth in the electric power steering market size. It is projected to expand from $30.33 billion in 2025 to $32.37 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 6.7%. This historical expansion can be linked to fuel efficiency regulations, passenger vehicle production growth, the adoption of power-assisted steering, the reduction of hydraulic systems, and the desire for enhanced maneuverability.
The electric power steering market is projected to experience substantial expansion in the coming years, with its size forecast to reach $42.29 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.9%. Factors contributing to this growth during the projection period include steer-by-wire development, the increasing adoption of electric vehicles, the integration of autonomous driving technologies, a rising demand for energy-efficient components, and the emergence of software-defined steering systems. Key trends anticipated for this forecast timeframe encompass a transition from hydraulic to electric steering, the incorporation of advanced steering sensors, a move towards brushless motors, a preference for lightweight steering systems, and their expanding application in compact vehicles.
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Electric Power Steering Market Growth Drivers: What Factors Are Accelerating Expansion?
The global rise in electric vehicle demand is set to drive the growth of the electric power steering market moving forward. Electric vehicles are defined as those with a motor powered by electricity stored in batteries. Additionally, in response to COVID-19 and the ambition to achieve net-zero emissions, electric and hybrid vehicles have seen a sudden adoption. Since electric power steering is a key component in electric vehicles, an increase in EV numbers directly translates to a greater need for electric power steering, thereby boosting its market demand. For instance, in July 2023, the International Energy Agency, a France-based intergovernmental organization, indicated that electric vehicle sales totaled 10 million in 2022, with an expected rise to 14 million sales in 2023. This escalating demand for electric vehicles is consequently propelling the expansion of the electric power steering market.
Electric Power Steering Market Categorization By Product Type And Application
The electric power steering market covered in this report is segmented –
1) By Type: R-EPS, P-EPS, C-EPS
2) By Component: Steering Column, Sensors, Steering Gear, Mechanical Rack And Pinion, Electronic Control Unit, Electric Motor
3) By Electric Motor: Brush Motor, Brushless Motor
4) By Application: Passenger Cars (PC), Commercial Vehicles (CV)
Subsegments:
1) By R-EPS (Rack Electric Power Steering): Integrated R-EPS Systems, Standalone R-EPS Systems
2) By P-EPS (Column Electric Power Steering): Electric Column Assist Systems, Electric Power-Assisted Column Systems
3) By C-EPS (Combo Electric Power Steering): Hybrid Systems, Advanced Control Systems
Electric Power Steering Market Trends: What Is Shaping Future Industry Growth?
Major companies within the electric power steering market are concentrating on developing innovative electric power steering motor power pack (EPS-PP) products, such as the Column-Type EPS-PP, with the goal of reaching broader customer bases and increasing revenue. A Column-Type Electric Power Steering Motor Power Pack (EPS-PP) represents an advanced system specifically designed to address the steering demands of electric power steering units, ensuring smooth steering operation while prioritizing cost efficiency and reducing both friction and torque ripple, especially relevant for Advanced Driver Assistance Systems (ADAS). For instance, Nidec Corporation, a Japan-based automotive product manufacturing company, launched column-type EPS units in June 2023, engineered to deliver smooth steering comparable to rack-type units while simultaneously meeting market expectations for cost reduction. Nidec’s EPS-PP is capable of real-time detection and correction of motor and EPS unit friction and torque ripple, effectively resolving issues related to artificial steering sensations. This innovation allows Nidec to optimize cost-efficiency in addressing these problems and lower expenses while sustaining the power pack’s high performance. Additionally, the new product facilitates savings on motor material costs through the use of lower-grade alternatives, such as substituting traditional electromagnetic steel sheets to mitigate friction-induced loss torque.
Electric Power Steering Market Company Landscape And Strategic Competition
Major companies operating in the electric power steering market report include Robert Bosch GmbH, JTEKT Corporation, Nexteer Automotive Group Limited, ZF Friedrichshafen AG, NSK Steering Systems Pvt. Ltd., Mando Corporation, Hyundai Mobis Co Ltd., Showa Corporation, Hitachi Astemo Ltd., Denso Corporation, China Automotive System, KYB Corporation, Thyssenkrupp AG, Delphi Technologies, Tenneco Inc., GKN Driveline Service GmbH, Zhejiang Shibao Company Limited, Jilin Dongfeng Power Co. Ltd., Chongqing Jianshe Automobile Electric Co. Ltd., Hella GmbH & Co. KGaA, Valeo Group, Magna International Inc., Huayu Automotive Systems Co. Ltd., Jiangsu Dajiang Automotive Electric Motor Co. Ltd.
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Electric Power Steering Market Largest Region By Revenue And Market Share
Asia-Pacific was the largest region in the electric power steering market share in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the electric 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.