The global Electric Power Steering (EPS) Motors Market is on a dynamic growth trajectory, projected to expand from USD 5.6 billion in 2025 to USD 12.8 billion by 2035, registering an impressive compound annual growth rate (CAGR) of 8.5%. This growth is being powered by the accelerating transition toward electric and hybrid vehicles, increased demand for energy-efficient steering systems, and continuous advancements in automotive technology.
Market Overview
The automotive industry is undergoing one of the most transformative phases in its history. The integration of electronics and digital systems into modern vehicles has led to the rapid adoption of electric power steering systems that replace traditional hydraulic setups. These motors not only enhance driver comfort and steering precision but also contribute to improved fuel efficiency and reduced emissions.
Electric power steering motors are central to this transition, serving as a critical component for both conventional and next-generation electric vehicles. By reducing engine load and offering enhanced directional control, EPS motors improve safety, performance, and overall vehicle efficiency.
Why the Market is Accelerating
The electric power steering motors market is thriving due to the convergence of several key trends:
- Rising Adoption of Electric Vehicles (EVs): As global automakers accelerate their EV production, EPS systems have become standard in nearly every model.
- Regulatory Push for Fuel Efficiency: Stringent emission norms are encouraging automakers to replace hydraulic steering with electric systems that optimize energy use.
- Consumer Demand for Comfort and Safety: Increasing consumer preference for smooth, responsive, and adaptive steering experiences has strengthened the adoption of EPS motors.
- Technological Innovations: Integration of EPS with Advanced Driver Assistance Systems (ADAS) is improving control, reducing driver fatigue, and enhancing road safety.
Investments in R&D are further propelling innovation, with manufacturers developing lightweight, high-torque, and intelligent motor systems. These advancements are enabling automakers to meet both regulatory demands and consumer expectations in an increasingly competitive landscape.
Key Market Insights and Segments
Market Quick Stats
- Market Value (2025): USD 5.6 Billion
- Forecast Value (2035): USD 12.8 Billion
- CAGR (2025–2035): 8.5%
- Leading Segment (2025): Passenger Cars – 45.0% Market Share
- Key Growth Regions: North America, Asia-Pacific, and Europe
By Vehicle Type
The Passenger Cars segment will dominate the market with 45% of total revenue in 2025. This growth is primarily driven by rising passenger car production, especially in developing economies such as China and India. Consumers’ demand for fuel-efficient, lightweight vehicles and superior handling performance has strengthened the segment’s leadership.
Meanwhile, Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs) are witnessing steady growth as fleet operators seek energy-efficient steering solutions to enhance productivity and reduce operational costs.
By Product Type
The AC Motors segment is expected to capture 55% of the market share in 2025, outpacing DC motors due to their durability, energy efficiency, and low maintenance. AC motors provide precise torque control and are highly compatible with advanced electric vehicle architectures, making them the preferred choice among automakers.
By Sales Channel
Original Equipment Manufacturers (OEMs) will continue to dominate the market, accounting for 60% of total revenue in 2025. The OEM channel’s strength lies in its integration during vehicle assembly, ensuring consistency, performance, and reliability. Automakers are increasingly collaborating with motor suppliers to co-develop advanced EPS solutions that align with their electrification strategies.
By Motor Power
EPS motors in the 300 – 600 Watts range are anticipated to witness strong demand, especially in compact and mid-size vehicles. However, the More Than 600 Watts category will see rising adoption in heavy-duty and high-performance applications as electric SUVs and trucks gain market traction.
Regional Outlook
The global electric power steering motors market presents varied growth patterns across regions:
- Asia-Pacific is projected to lead the global market, with China and India emerging as growth powerhouses. China’s market is forecast to grow at an impressive CAGR of 11.5%, driven by massive EV adoption and government incentives promoting vehicle electrification. India follows closely at 10.6% CAGR, supported by a thriving automotive manufacturing base.
- Europe remains a key region, with Germany, France, and the UK advancing EPS adoption through strong automotive innovation and regulatory initiatives. Germany alone is projected to grow at a CAGR of 9.8%, reflecting its focus on next-generation mobility technologies.
- North America continues to exhibit consistent growth, with the U.S. market maintaining steady momentum as manufacturers pivot toward electric and hybrid vehicle production.
- Japan and South Korea, while mature markets, continue to innovate in compact EV steering systems, reinforcing their reputation for engineering excellence.
Competitive Landscape: Established Leaders and Emerging Innovators
The electric power steering motors market is marked by a blend of established global leaders and innovative new entrants striving to capture emerging opportunities. Key players include:
Bosch, MITSUBA, FZB, Nidec, Johnson Electric, MAHLE Group, Toshiba, JTEKT, Hitachi, General Ricambi, and LG Innotek.
- Bosch continues to lead with advanced EPS systems integrated with AI-based steering controls, enhancing driver experience and safety.
- Nidec and Johnson Electric are focusing on lightweight, compact motor designs to support next-generation EV platforms.
- MAHLE Group and JTEKT are expanding manufacturing footprints across Asia and Europe to meet rising global demand.
- Emerging manufacturers in China, India, and Eastern Europe are entering the market with cost-effective and energy-efficient EPS motor technologies, driving competition and innovation.
These players are increasingly forming strategic alliances, joint ventures, and technology partnerships to expand their global reach and enhance product portfolios. The push toward smart, connected vehicles is opening new growth avenues, encouraging both established firms and new entrants to invest in digital steering systems and intelligent torque management technologies.
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