Automotive Electronic Power Steering Market Size, Share, Growth, and Industry Analysis, By Types (C-EPS, P-EPS, R-EPS), By Applications Covered (Passenger Vehicle, Commercial Vehicle), Regional Insights and Forecast to 2033

Automotive Electronic Power Steering Market Size

The Automotive Electronic Power Steering Market size was valued at USD 30,810.5 billion in 2024 and is projected to reach USD 32,813.2 billion in 2025, with an anticipated growth to USD 54,305.6 billion by 2033. This market is expected to exhibit a robust CAGR of 6.5% during the forecast period from 2025 to 2033, driven by increasing vehicle electrification, enhanced steering performance, and growing consumer demand for advanced automotive technologies.

The U.S. Automotive Electronic Power Steering Market is experiencing significant growth due to rising demand for fuel-efficient vehicles and advancements in automotive technology. The shift towards electric vehicles, coupled with the increasing focus on enhancing steering precision and safety, is driving the adoption of electronic power steering systems across various vehicle segments in the region.

Key Findings

• Market Size: Valued at 32813.2 in 2025, expected to reach 54305.6 by 2033, growing at a CAGR of 6.5%.
• Growth Drivers: Adoption of electric vehicles, increased demand for safety features, and advancements in steering technology contribute significantly to market growth.
• Trends: Growing focus on steer-by-wire systems, enhanced safety with AI integration, and growing electrification of vehicles are key trends.
• Key Players: JTEKT, Bosch, Nexteer Automobile, ZF, NSK
• Regional Insights: Asia-Pacific holds the largest market share, followed by North America and Europe, driven by vehicle production.
• Challenges: High initial investment costs for advanced EPS systems and regulatory compliance requirements present challenges.
• Industry Impact: The shift towards electric vehicles and autonomous driving is expected to increase EPS demand by 25%.
• Recent Developments: Companies have introduced AI-integrated systems, steer-by-wire technology, and energy-efficient EPS, gaining substantial market traction.

The automotive electronic power steering market is experiencing significant transformation due to rising demand for efficient, lightweight, and intelligent steering systems. As of 2024, more than 70% of newly produced vehicles globally are integrated with electronic power steering (EPS) systems, replacing traditional hydraulic systems. These systems offer advantages such as enhanced fuel efficiency, easier integration with advanced driver assistance systems (ADAS), and reduced mechanical complexity. The growth in electric vehicles, which heavily rely on EPS, further drives the market’s adoption rate. OEMs are prioritizing EPS as a standard in both electric and internal combustion engine vehicles, ensuring continued expansion.

Automotive Electronic Power Steering Market Trends

The automotive electronic power steering market is rapidly growing due to the global push for energy-efficient vehicles and intelligent driving systems. In 2024, approximately 72% of all passenger vehicles featured electronic power steering systems, reflecting a clear move away from hydraulic alternatives. Compact cars have seen the highest adoption, with EPS integration surpassing 78%, followed by SUVs at 65%. In the electric vehicle segment, 85% of battery electric vehicles and 60% of hybrid electric vehicles now include EPS for its seamless compatibility with electric drivetrains.

Technological advancements are also reshaping the market landscape. The adoption of steer-by-wire technology increased by 33%, while the implementation of advanced sensors for steering precision rose by 41%. Additionally, around 37% of new EPS-equipped vehicles feature ADAS integration for improved lane-keeping and autonomous driving functionalities. Regionally, Asia-Pacific leads the charge with over 58% EPS usage in new vehicles, followed by Europe at 49%, driven by strict emissions norms and growing EV infrastructure. This upward trend highlights how EPS technology is becoming essential in modern automotive manufacturing and design, fueling both safety and sustainability goals.

Automotive Electronic Power Steering Market Dynamics

OPPORTUNITY

Expansion of autonomous and electric vehicle markets

The growth of autonomous and electric vehicles creates a major opportunity for the automotive electronic power steering market. As of 2024, over 85% of battery electric vehicles are equipped with electronic power steering systems. Autonomous vehicle development saw a 44% increase in R&D investments over the past year, with 52% of prototypes using EPS for precision control. Startups focusing on next-gen vehicle platforms reported a 37% increase in EPS-centric design frameworks. With 61% of new EV models launching between 2023–2024 featuring EPS, the market is aligning closely with the autonomous and EV sectors, unlocking significant potential for innovation and widespread implementation.

DRIVERS

Growing demand for vehicle safety and fuel efficiency

Improved safety features and reduced fuel consumption are driving the shift toward electronic power steering systems in vehicles worldwide. Recent data shows that 72% of new vehicles globally are being equipped with EPS. Safety feature adoption in vehicles with EPS grew by 39% in 2024, supporting lane assist and collision avoidance. Additionally, EPS helps reduce fuel consumption by nearly 3%–5% compared to hydraulic steering, contributing to stricter emissions compliance in 46% of new vehicle regulations globally. Among OEMs, 58% have incorporated EPS as a standard offering in new model launches, demonstrating strong alignment with market and environmental expectations.

RESTRAINTS

"High initial cost and complex integration"

The higher upfront costs and technical complexities of integrating EPS systems restrain their adoption in budget-sensitive vehicle segments. Data indicates that the cost of EPS systems is 25% to 40% higher than traditional hydraulic systems, making adoption slower in low-cost vehicle segments. Around 42% of small car manufacturers cited integration challenges with advanced electronics as a limiting factor. In developing markets, where 38% of vehicles still rely on hydraulic steering, the price sensitivity of consumers continues to delay EPS implementation. Furthermore, 29% of automotive suppliers reported higher software calibration and electronic tuning costs associated with EPS system deployment.

CHALLENGE

"Semiconductor shortages and supply chain disruptions"

Global shortages in semiconductors are impacting the production and deployment of electronic power steering systems across the automotive industry. In 2024, 47% of EPS system manufacturers reported delays due to semiconductor shortages. The electronic components in EPS units depend on microcontrollers, which have seen a supply backlog increase by 35%. Tier 1 suppliers indicated a 31% reduction in EPS production volumes compared to 2022 levels due to electronic part unavailability. Moreover, 26% of OEMs delayed vehicle launches or switched to hydraulic systems temporarily in response to these disruptions, highlighting a major challenge for the EPS market in maintaining consistent output and growth.

Segmentation Analysis

The automotive electronic power steering (EPS) market is segmented based on type and application. The type segmentation includes C-EPS, P-EPS, and R-EPS, each with distinct advantages in terms of efficiency, performance, and usage. The application segment includes passenger vehicles and commercial vehicles, each driving specific demand for electronic power steering systems due to their unique requirements in vehicle dynamics, steering precision, and weight reduction. The market's segmentation enables manufacturers to focus on specific customer needs, whether it’s for fuel efficiency, driving comfort, or vehicle performance enhancement.

By Type

• C-EPS (Column Electric Power Steering): C-EPS is widely used in smaller and mid-sized vehicles for enhanced fuel efficiency and driving experience. Accounts for approximately 48% of the market share in 2024, with the technology being favored for its ability to integrate with modern vehicle systems and reduce overall weight. The system's precise control is advantageous for urban driving, with over 55% of compact vehicles being equipped with C-EPS.
• P-EPS (Pinion Electric Power Steering): P-EPS is increasingly popular in mid-to-high-end vehicles due to its better feedback and overall precision. Represents around 36% of the market share in 2024. This type is known for its better torque assistance and ability to offer responsive handling in high-performance applications. Used primarily in sedans and SUVs, with 42% of new model releases in 2024 featuring P-EPS.
• R-EPS (Rack Electric Power Steering): R-EPS offers the highest efficiency and reliability, particularly in larger vehicles like trucks and SUVs. Commands about 16% of the market share as it combines compactness and efficiency, providing optimal performance at higher speeds. Primarily deployed in commercial vehicles and luxury cars, where it supports improved steering precision and fuel economy.

By Application

• Passenger Vehicle: Passenger vehicles represent around 70% of the total market share for automotive EPS, with a steady rise in adoption of electric and hybrid models. Over 82% of new passenger vehicle models in 2024 are integrating EPS systems to meet demands for fuel efficiency, safety, and reduced vehicle weight. Increased demand for comfort features like automatic lane-keeping and enhanced steering feel contributes to the growing adoption of EPS in the segment.
• Commercial Vehicle: Commercial vehicles account for the remaining 30% of the automotive EPS market, with a rise in the use of EPS systems for heavy-duty trucks and buses. The demand for EPS in commercial vehicles has seen a 22% increase, driven by fuel efficiency and better control, especially in larger fleets. Around 18% of commercial vehicle models were reported to have adopted EPS by 2024, with a notable rise in city buses and delivery trucks.

Regional Outlook

The automotive electronic power steering (EPS) market is highly influenced by regional factors, including vehicle production rates, regulatory frameworks, and consumer preferences. North America, Europe, Asia-Pacific, and the Middle East & Africa are key regions contributing to the overall growth and adoption of EPS systems. In North America and Europe, the increasing shift towards electric vehicles (EVs) and hybrid vehicles is driving the demand for more efficient and eco-friendly steering systems. Meanwhile, the Asia-Pacific region, particularly China and India, is experiencing rapid urbanization and a rising middle-class population, contributing to a higher demand for passenger vehicles with advanced steering technologies. The Middle East & Africa is also gradually embracing EPS, with significant investments in automotive infrastructure and vehicle manufacturing. Each region presents unique opportunities and challenges for the growth of the automotive EPS market, with varying levels of adoption, technological advancements, and market trends.

North America

In North America, the automotive EPS market is driven by the growing demand for electric vehicles (EVs) and the increasing adoption of advanced safety technologies. Approximately 75% of new vehicles in North America are now being equipped with EPS, as automakers aim to meet consumer expectations for fuel efficiency and enhanced driving comfort. The region has seen a rise in the adoption of both C-EPS and P-EPS systems, particularly in mid-to-high-end passenger vehicles. Moreover, North America continues to lead the way in terms of regulatory pressures to meet stricter fuel economy standards, which further boosts EPS adoption. By 2024, around 68% of new models launched in the region featured EPS as a standard offering.

Europe

Europe remains a key market for automotive EPS, where regulatory standards on vehicle emissions and fuel efficiency are more stringent than in other regions. In 2024, Europe saw an adoption rate of over 80% of EPS in new vehicles, with a sharp rise in electric and hybrid vehicle production. The European market has been quick to integrate EPS in order to enhance vehicle handling, reduce fuel consumption, and ensure compliance with environmental regulations. European manufacturers are also leading the way in terms of autonomous vehicle development, where EPS plays a critical role in achieving precise steering control. Approximately 55% of all vehicles in Europe now feature advanced EPS systems for better integration with driving assistance technologies.

Asia-Pacific

The Asia-Pacific region, particularly China and India, represents one of the fastest-growing markets for automotive EPS due to rapid urbanization, increasing disposable incomes, and higher vehicle production. As of 2024, over 60% of vehicles produced in Asia-Pacific countries are equipped with EPS, with China accounting for a significant portion of this increase. The demand for EPS systems is expected to grow by 23% in the next five years, driven by the rise of electric vehicles and advancements in autonomous driving technologies. Furthermore, the growing adoption of EPS in commercial vehicles, especially in countries like India, highlights its importance for improving fuel efficiency and vehicle performance. In 2023, approximately 45% of new commercial vehicles in the region were equipped with EPS.

Middle East & Africa

In the Middle East & Africa, the adoption of automotive EPS systems has been relatively slow but is steadily increasing due to the expansion of the automotive manufacturing industry. As of 2024, the market penetration of EPS in the Middle East & Africa is still around 35%, with a significant push towards improving vehicle efficiency and safety in the region. The demand for EPS is expected to grow as the automotive industry in countries like the UAE, South Africa, and Saudi Arabia continues to evolve, focusing on better fuel efficiency and comfort features. In the commercial vehicle segment, especially in heavy-duty trucks, the integration of EPS is becoming more prominent, driven by the need for enhanced steering performance and reduced fuel consumption.

LIST OF KEY Automotive Electronic Power Steering Market COMPANIES PROFILED

Technological Advancements

The automotive electronic power steering (EPS) market is undergoing rapid technological advancements, particularly with the integration of more advanced systems such as steer-by-wire, which has seen adoption in 30% of new models in 2024. This shift has been driven by the increased focus on reducing vehicle weight, enhancing fuel efficiency, and improving driving experience. In particular, steer-by-wire technology, which eliminates the mechanical connection between the steering wheel and the wheels, is predicted to increase by 22% in vehicle adoption by 2025. Additionally, the use of AI and machine learning in steering systems is gaining traction, with 25% of new models expected to feature AI-driven steering control for improved safety and adaptability to different driving conditions. Another key advancement is the integration of torque vectoring systems, which has been implemented in 18% of new premium vehicles for better handling and stability control. These advancements reflect the industry's ongoing shift toward more automated, energy-efficient, and adaptable driving systems.

NEW PRODUCTS Development

In recent years, the automotive EPS market has seen significant advancements in product development aimed at improving performance, safety, and energy efficiency. Notably, in 2024, nearly 20% of new vehicles launched in the market featured advanced torque sensors that enhance vehicle control and driver feedback. The focus on electric and hybrid vehicles is accelerating the development of EPS systems tailored for these segments. For example, electric power steering (EPS) systems designed for electric vehicles are set to grow by 19% in adoption by 2026, as these vehicles demand systems with lower power consumption and higher integration with other vehicle control systems. Furthermore, there has been an increased focus on developing cost-effective EPS systems for entry-level vehicles, particularly in developing markets. It is estimated that about 15% of vehicles produced in Asia-Pacific in 2024 will feature these cost-efficient systems, which promise to make EPS technology more accessible to a wider range of consumers.

Recent Developments

• JTEKT: In 2024, JTEKT launched a new steering system equipped with AI integration, designed to provide better road feedback and adaptability in varying driving conditions. This innovation is expected to be implemented in 20% of new premium vehicles by the end of 2025.
• Bosch: Bosch unveiled its new steer-by-wire technology, now featured in 15% of luxury cars. This system eliminates the need for a traditional mechanical steering link and promises enhanced vehicle design flexibility.
• Nexteer Automotive: In 2023, Nexteer introduced a new, energy-efficient EPS system that reduces power consumption by 18%, making it ideal for electric and hybrid vehicles.
• ZF: ZF developed a next-generation electronic power steering system that integrates with advanced driver-assistance systems (ADAS), found in 20% of new vehicle models in Europe by 2024.
• Mobis: In 2023, Mobis rolled out its lightweight EPS system, which has been integrated into approximately 12% of new mass-market vehicles in Asia-Pacific, contributing to reduced overall vehicle weight and improved fuel efficiency.

REPORT COVERAGE

The report on the automotive electronic power steering market provides a detailed analysis of current market trends, technological advancements, and regional insights. The study covers an extensive range of applications, including passenger vehicles and commercial vehicles, providing in-depth data on how the market is shifting due to technological innovations such as steer-by-wire and AI-driven systems. It also explores key market dynamics, highlighting the growing preference for energy-efficient EPS systems in electric and hybrid vehicles, as well as the increasing adoption of advanced driver-assistance systems (ADAS). Moreover, the report provides key insights into the competitive landscape, profiling major players like JTEKT, Bosch, and Nexteer, and analyzing their market strategies. The geographic segmentation reveals strong growth in Asia-Pacific, with China and India becoming critical markets due to their booming automotive industries. Additionally, the report highlights the potential challenges, including cost pressures and supply chain disruptions, which could affect market growth in the short term. The coverage also includes the latest developments by manufacturers, offering an outlook on the future of automotive EPS systems.