According to a recent market intelligence report from
Dataintelo, the global Automotive Electric Power Steering Market was valued at USD
26.4 billion in 2023 and is projected to reach USD 44.6 billion by 2032,
growing at a CAGR of 6.0% during the forecast period.
The surge in demand for fuel-efficient, environmentally
friendly vehicles is accelerating the adoption of electric power steering (EPS)
systems. EPS technology, known for reducing engine load and enhancing fuel
economy, is becoming a preferred solution in both electric and conventional
vehicles.
Unlike traditional hydraulic systems, electric power
steering eliminates the need for a pump, thereby improving engine efficiency
and reducing emissions. These advantages, along with lighter weight and lower
maintenance, are influencing OEMs and aftermarket suppliers alike to embrace
EPS systems.
Moreover, stringent government regulations aimed at
improving vehicle safety and fuel efficiency are fueling this market’s
momentum. The shift towards autonomous and semi-autonomous driving is further
catalyzing the integration of advanced steering technologies.
Key Market Drivers:
- Stringent
Emission Norms Worldwide
Regulatory policies pushing for eco-friendly transportation are increasing
EPS adoption. - Electric
Vehicle Penetration
EPS systems are standard in EVs, making their market expansion pivotal to
EPS growth. - Improved
Vehicle Handling & Comfort
Advanced steering feedback and ease of use enhance overall driving
experience.
However, the high initial cost of EPS systems and the
complexity of integrating them into older vehicle architectures could restrain
market growth. In particular, budget-conscious manufacturers may hesitate to
make a full transition from hydraulic systems due to component pricing and
training costs.
Nonetheless, ongoing innovation in software-based steering,
coupled with lower component costs due to mass production, is expected to
mitigate these restraints in the coming years.
Market Opportunities Worth Watching:
- Integration
with ADAS and Self-Driving Tech
EPS is a critical enabler for lane assist and autonomous steering
functionalities. - Emerging
Markets in Asia-Pacific & Latin America
Growing automotive production in India, Brazil, and ASEAN countries
creates new avenues. - Rise
in Lightweight Vehicle Demand
EPS contributes to overall vehicle weight reduction strategies.
Regional Highlights:
- Asia-Pacific
Leads the Charge
With countries like China, Japan, and India investing heavily in
automotive technology and infrastructure, the region accounts for the
largest market share and fastest growth. - North
America & Europe Stay Dominant in Innovation
High adoption of EVs and autonomous vehicles in the U.S., Germany, and the
UK bolsters demand. - Middle
East & Africa Emerging Gradually
As infrastructure develops and EV initiatives begin, EPS adoption is
projected to rise steadily.
Attractive Market Segmentation:
By Type:
- Column
Assist EPS (C-EPS) - Pinion
Assist EPS (P-EPS) - Rack
Assist EPS (R-EPS)
By Component:
- Steering
Column - Sensors
- Electric
Motor - Electronic
Control Unit (ECU)
By Vehicle Type:
- Passenger
Cars - Light
Commercial Vehicles - Heavy
Commercial Vehicles
By End Use:
- OEM
- Aftermarket
Eye-Catching Trends in the EPS Market:
- ✔️
Increasing integration of EPS with AI for predictive maintenance - ✔️
EPS systems enabling hands-free driving features - ✔️
Growth of steer-by-wire systems in concept and luxury vehicles - ✔️
Push toward modular steering architecture for flexibility across models - ✔️
Use of EPS in off-road and specialized vehicles such as tractors and
forklifts
Competitive Outlook & Technological Advancements
The competitive landscape is evolving rapidly, driven by
investments in intelligent steering systems and IoT-enabled diagnostics.
Manufacturers are focused on developing EPS units that offer real-time
feedback, adjustable response levels, and compatibility with vehicle-to-vehicle
(V2V) communication networks.
Advancements in torque sensors, improved software
calibration, and integration with drive-assist modules are reshaping the future
of steering systems. The move toward fully electric mobility also ensures a
long-term trajectory for EPS solutions across segments.
Challenges Faced by the Market:
- ❌
High Cost of System Integration
Expense and technical complexity remain barriers for mid-tier automakers. - ❌
Cybersecurity Risks in Connected Vehicles
Electronic systems can be susceptible to hacking if not adequately
protected. - ❌
Need for Skilled Technicians
Maintenance and integration require specialized training and technical
knowledge. - ❌
Dependence on Semiconductor Supply
EPS systems rely heavily on chips and microcontrollers, making them
vulnerable to shortages.
Future Outlook:
With autonomous driving advancing rapidly and fuel
efficiency continuing to dominate policy agendas, the Automotive Electric
Power Steering Market is on a steady growth curve. Next-gen vehicles demand
adaptable, intelligent, and connected steering systems—making EPS an
indispensable technology in the global automotive transformation.
