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Active Power Steering Market Forecast: Value Set To Climb From $12.59 Billion To $20.39 Billion
The active power steering market size has grown rapidly in recent years. It will grow from $11.14 billion in 2025 to $12.6 billion in 2026 at a compound annual growth rate (CAGR) of 13.1%. The growth in the historic period can be attributed to vehicle safety regulations, shift from hydraulic steering, passenger comfort demand, automotive electronics growth, fuel efficiency requirements.
The active power steering market size is expected to see rapid growth in the next few years. It will grow to $20.39 billion in 2030 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to autonomous driving development, steer-by-wire adoption, electric vehicle production growth, software-driven vehicle architectures, advanced sensor integration. Major trends in the forecast period include increasing adoption of electric power steering, integration with adas systems, demand for enhanced driving comfort, growth in autonomous vehicle platforms, software-defined steering.
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Active Power Steering Market Growth Drivers: What’s Behind The Acceleration?
The increasing demand for electric vehicles is expected to propel the growth of the active power steering market going forward. Electric vehicles (EVs) refer to vehicles that are powered entirely or partially by electricity, using electric motors and rechargeable battery packs instead of traditional internal combustion engines. Electric vehicles are rising due to advancements in battery technology, which have significantly improved driving range and reduced charging time. Active power steering enhances electric vehicles by optimizing steering response and energy efficiency, thereby improving vehicle handling, extending battery range, reducing driver fatigue, and enabling seamless integration with advanced driver assistance systems (ADAS) for a safer and more comfortable driving experience. For instance, according to the International Energy Agency, a France-based intergovernmental organization, global electric car sales rose from 14 million in 2023 to 17 million in 2024, reflecting strong year-on-year growth. Therefore, the increasing demand for electric vehicles is driving the growth of the active power steering market.
Active Power Steering Market Segments: Where Is Growth Concentrated?
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 Trends: What’s Defining The Industry’s Next Phase?
Major companies operating in the active power steering market are focusing on developing innovative products, such as electric and hydraulic power steering systems, to enhance vehicle handling, improve fuel efficiency, and meet the growing demand for advanced driver-assistance technologies. Electric and hydraulic power steering systems refer to technologies used to assist drivers in steering vehicles with less effort. For instance, in April 2025, Nexteer Automotive, a US-based automotive industry company, introduced high-output column-assist electric power steering (HO CEPS), designed to deliver enhanced steering support for larger and heavier vehicles while improving energy efficiency and vehicle handling. This new system is uniquely engineered to deliver higher torque output, making it especially suitable for larger and heavier vehicles such as trucks and SUVs. By integrating advanced control algorithms and robust electric motors, HO CEPS enhances steering precision, reduces driver effort, and improves overall vehicle handling. It supports fuel efficiency and electric vehicle compatibility by reducing parasitic power loss compared to traditional hydraulic systems.
Active Power Steering Market Key Participants And Competitive Landscape
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 Geographic Analysis: Where Is Demand Rising Fastest?
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.
