The Electronic Power Steering (EPS) market is entering a transformative decade driven by electrification, automation, and regulatory shifts. Valued at USD 27,926.6 million in 2024, the market is projected to expand from USD 29,378.8 million in 2025 to USD 48,774.3 million by 2035, advancing at a steady CAGR of 5.2%. EPS technology is rapidly replacing traditional hydraulic steering systems due to its fuel efficiency, reduced weight, and seamless integration with electric vehicles (EVs) and advanced driver-assistance systems (ADAS).
Recent developments, such as Nexteer Automotive’s expansion of its Modular Pinion Assist EPS platform and ZF-Rane Group’s localized EPS systems in India, highlight the market’s strategic momentum. As automakers align with sustainability goals, EPS is poised to remain a cornerstone of next-generation mobility.
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Driving Forces Behind Market Growth
- Fuel Efficiency & Environmental Benefits: Unlike hydraulic systems, EPS reduces parasitic energy losses and eliminates the need for steering fluid. This directly contributes to lower fuel consumption and CO₂ emissions, aligning with global regulatory mandates.
- Support for Electric Vehicles: With more than 10 million EVs sold globally in 2023, EPS is critical for optimizing vehicle weight and range. The system removes bulky hydraulic components and enhances efficiency in battery-powered architectures.
- ADAS & Autonomous Integration: EPS enables precision steering essential for lane-keeping, stability control, and autonomous driving. Its real-time electronic response ensures safety and adaptability across varied driving conditions.
- Lightweight & Performance Advantages: EPS reduces vehicle weight by 3–4 kg, enhancing performance in both consumer and motorsport applications. New programmable EPS kits, such as those introduced by Wisefab for drift cars, showcase its versatility.
Market Challenges & Strategic Responses
Despite rapid adoption, the EPS market faces challenges in reliability under extreme climates and rugged terrains. Cold weather can hinder electrical efficiency, while high heat and off-road conditions may cause wear. Manufacturers are addressing these concerns through:
- Advanced Materials & Thermal Management: Suppliers are investing in improved actuator efficiency and durability.
- Localization Strategies: Companies like Rane NSK Steering Systems and ZF Group are localizing production to reduce integration costs and tailor systems for regional driving conditions.
- Scalable Modular Solutions: Platforms like Nexteer’s mP-EPS allow OEMs to adapt EPS across compact cars, SUVs, and light trucks while maintaining consistent steering performance.
Regional Market Outlook
The EPS market is globally diversified, with East Asia, North America, and Europe spearheading adoption.
- Asia-Pacific dominates due to China’s vast EV production and India’s fast-growing automotive sector.
- North America shows strong penetration of EPS in passenger cars, supported by ADAS adoption.
- Europe continues to lead in regulatory-driven innovation, especially with emissions targets pushing OEMs toward electrification.
Country-wise Insights
- China (CAGR 7.2%): The largest producer of EPS systems, fueled by its booming EV market and large-scale vehicle manufacturing. Leading suppliers like Bosch China and Nexteer Automotive maintain extensive production bases.
- India (CAGR 6.9%): Rising demand for fuel-efficient vehicles and EVs, supported by Make-in-India initiatives. Localized production by Rane-ZF is strengthening domestic EPS supply chains.
- USA (CAGR 5.3%): High EPS adoption in passenger vehicles, with continued demand from EV startups and legacy automakers.
- Germany (CAGR 4.9%): Innovation hub for EPS technology, home to premium automakers (BMW, Volkswagen, Mercedes-Benz) and suppliers (Bosch, ZF Friedrichshafen).
- Japan (CAGR 4.5%): Consistent growth, led by domestic automakers and Tier-1 suppliers such as NSK Ltd. and JTEKT Corporation.
Leading Suppliers of Electronic Power Steering (EPS)
- Bosch
- JTEKT Corporation
- Mitsubishi Electric Corporation
- SHOWA Corporation
- Nexteer Automotive
- NSK Ltd
- Hyundai Mobis
- ZF Friedrichshafen AG
- Mando Corporation
- Zhuzhou Elite Electro-Mechanical Co. Ltd.
Key Segments of Electronic Power Steering (EPS) Market
By Component Type:
In terms of Component Type, the industry is divided into Steering Column, Steering Motor, Electronic Control Unit (ECU)
By Vehicle Type:
In terms of Vehicle, the industry is divided into Passenger Cars, Commercial Vehicles, Electric Vehicles (EVs)
By EPS Type:
In terms of EPS Type, the industry is divided into Column Assist EPS (C-EPS), Pinion Assist EPS (P-EPS), Rack Assist EPS (R-EPS)
By Region:
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA), have been covered in the report.
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