According to a new report from Intel Market Research, the global Automotive Electric Power Steering (EPS) Systems market was valued at USD 30.83 billion in 2024 and is projected to reach USD 56.28 billion by 2032, growing at a robust CAGR of 9.2% during the forecast period (2025–2032). This significant expansion is driven by stringent global fuel efficiency and emission regulations, the accelerated transition to electric vehicles (EVs), and the increasing integration of advanced driver-assistance systems (ADAS) in modern automotive architectures.
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What are Automotive Electric Power Steering Systems?
Automotive Electric Power Steering (EPS) systems are advanced steering mechanisms that replace traditional hydraulic components with an electric motor to provide steering assistance. These systems enhance driver control and vehicle efficiency by consuming energy only when steering assistance is needed, unlike hydraulic systems that operate continuously. This functionality makes EPS a cornerstone technology, contributing to up to 5% fuel savings in conventional vehicles, a critical factor in meeting stringent global environmental standards. The technology’s electronic nature also enables seamless integration with sophisticated vehicle control systems, including autonomous driving functionalities
Key Market Drivers
1. Global Push for Enhanced Fuel Efficiency and Emission Reduction
Global regulations, such as the Corporate Average Fuel Economy (CAFE) standards in the United States and the Euro 7 norms in Europe, are compelling automotive manufacturers to adopt fuel-saving technologies aggressively. Electric Power Steering systems, which consume power only when the driver turns the wheel, contribute to a 3-5% improvement in fuel economy compared to traditional hydraulic power steering. This direct and quantifiable impact on reducing fuel consumption and CO2 emissions makes EPS a non-negotiable technology for automakers striving to comply with increasingly strict environmental mandates.
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2. Accelerated Adoption of Electric Vehicles
The automotive industry’s rapid transition to electrification is a powerful catalyst for the EPS market. Unlike hydraulic systems that rely on an engine-driven pump, EPS systems are electrically powered, making them inherently compatible with the architectures of Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs). This synergy is crucial, as the global EV market is projected to account for over 30% of all new car sales by 2030, creating a parallel and sustained growth trajectory for EPS systems. Furthermore, EPS is essential for preserving the battery range in EVs, a key purchasing criterion for consumers.
Market Challenges
- Higher System Cost and Complexity – The initial manufacturing cost of EPS systems is notably higher than that of conventional hydraulic systems. The need for sophisticated electronic control units (ECUs), high-precision sensors, and robust electric motors adds layers of complexity and expense, posing a significant challenge, particularly in cost-sensitive emerging markets and entry-level vehicle segments.
- Technical and Reliability Concerns – The high level of electronic integration in EPS systems introduces vulnerabilities to electromagnetic interference (EMI) and demands extremely reliable software with robust fail-safe mechanisms. Ensuring the absolute reliability required for safety-critical functions like automated steering necessitates rigorous testing and high-quality components, which prolongs development cycles and increases costs.
Emerging Opportunities
The global automotive landscape is creating fertile ground for advanced steering technologies. The rise of software-defined vehicles, supportive government policies for vehicle safety, and strategic collaborations between technology suppliers and OEMs are accelerating market expansion, particularly in high-growth regions like Asia-Pacific, Latin America, and the Middle East & Africa. Key opportunity areas include:
- The development of next-generation steer-by-wire technology, which eliminates the mechanical connection for greater design freedom.
- Monetization of software-enabled features like customizable steering modes delivered via over-the-air (OTA) updates.
- Expansion into emerging economies where vehicle electrification and feature penetration are rapidly increasing.
Collectively, these trends are expected to unlock new revenue streams, stimulate continuous innovation, and drive deeper penetration of advanced EPS systems across diverse vehicle segments and geographies.
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Regional Market Insights
- Asia-Pacific: This region dominates the global EPS market, fueled by its massive automotive manufacturing base, rapid EV adoption, and stringent local fuel economy regulations in countries like China and India. The presence of major global suppliers and a robust local component ecosystem further solidifies its leadership.
- North America: A mature market characterized by high demand for light trucks and SUVs, which extensively utilize robust EPS systems. Strict regulatory standards and being a hub for autonomous driving R&D continue to drive technological adoption and replacement of older hydraulic systems.
- Europe: A technologically advanced market where stringent EU emissions regulations are a primary driver. The region’s strong emphasis on vehicle safety and high penetration of premium vehicles fuel demand for sophisticated EPS technologies that integrate seamlessly with advanced ADAS.
Market Segmentation
By Component
- Steering Column
- Steering Motor
- Electronic Control Unit (ECU)
- Mechanical Steering Gear
- Others
By Vehicle Type
- Passenger Vehicles
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
By System Type
- Column-Assisted EPS (C-EPS)
- Pinion-Assisted EPS (P-EPS)
- Rack-Assisted EPS (R-EPS)
By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
📘 Get Full Report Here: Automotive Electric Power Steering Systems Market – View Detailed Research Report
Competitive Landscape
The global Automotive Electric Power Steering Systems market is characterized by a high degree of consolidation. The top five manufacturers—JTEKT, Bosch, NSK, Nexteer, and ZF—collectively command a dominant market share of approximately 83%. This concentration underscores the significant barriers to entry, including the need for massive R&D investment, advanced manufacturing capabilities, and entrenched, long-term relationships with global automotive OEMs. While these giants compete fiercely on technological innovation, reliability, and system integration, a number of significant regional players like Hyundai Mobis and Mando Corporation also hold important positions, particularly in the Asian market.
The report provides in-depth competitive profiling of more than 14 key players, including:
- JTEKT Corporation
- Robert Bosch GmbH
- NSK Ltd.
- Nexteer Automotive
- ZF Friedrichshafen AG
- Hyundai Mobis
- Mando Corporation
- Other prominent global and regional suppliers
Report Deliverables
- Global and regional market forecasts from 2025 to 2032
- Strategic insights into technological developments, product launches, and regulatory trends
- Market share analysis and detailed SWOT assessments for key players
- Pricing trend analysis and supply chain dynamics
- Comprehensive segmentation by component, vehicle type, system type, and geography
📘 Get Full Report Here: Automotive Electric Power Steering Systems Market – View Detailed Research Report
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About Intel Market Research
Intel Market Research is a leading provider of strategic intelligence, offering actionable insights in automotive technologies, advanced manufacturing, and transportation infrastructure. Our research capabilities include:
- Real-time competitive benchmarking
- Global technology and regulatory pipeline monitoring
- Country-specific market and policy analysis
- Over 500+ industry reports annually
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