The Automotive Electric Power Steering (EPS) Systems market is witnessing robust expansion driven by technological advancements and stringent regulatory norms for vehicle safety and fuel efficiency. By integrating EPS systems, automakers are enhancing driver comfort and reducing vehicle weight, a key factor influencing industry growth. Current market dynamics reflect escalating demand for smarter, energy-efficient steering solutions in passenger and commercial vehicles globally.
Global Automotive Electric Power Steering (EPS) Systems Market is estimated to be valued at USD 32.62 Bn in 2025 and is expected to reach USD 46.83 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2025 to 2032.
This Automotive Electric Power Steering (EPS) Systems Market Growth by increasing adoption of electric vehicles and regulatory policies aiming for lower carbon emissions. The growing inclination toward advanced driver-assistance systems (ADAS) also contributes to market opportunities, further enhancing the industry size by integrating EPS as a key component of vehicle safety and performance.
Market Segments
The Automotive Electric Power Steering Systems market encompasses three core segment categories: By Type, By Vehicle Type, and By Application.
- By Type: Rack-and-Pinion EPS, Column EPS, and Pinion EPS are vital sub-segments. Rack-and-Pinion EPS remains dominant due to its lightweight design and better vehicle responsiveness, while Column EPS is the fastest-growing segment, driven by compact vehicle designs often seen in urban cars.
- By Vehicle Type: Passenger Cars, Commercial Vehicles, and Off-highway Vehicles are principal sub-segments. Passenger cars dominate the market revenue, while commercial vehicles showcase rapid growth, fueled by the electrification trend in logistics and transportation sectors.
- By Application: Steering Control, Chassis Control, and Suspension Control. Steering control holds dominance with the highest market insights, owing to its direct impact on driving experience and safety standards. Among these, chassis control is witnessing fast-paced growth as manufacturers integrate EPS with other stability systems for enhanced vehicle dynamics.
Market Drivers
One of the pivotal market drivers influencing the Automotive Electric Power Steering Systems industry is the escalating global emphasis on fuel efficiency and emission reduction. Stringent regulations imposed by entities such as the European Union and the U.S. Environmental Protection Agency in 2024 mandate reduced carbon footprints for vehicles, propelling the adoption of EPS. For instance, recent policy updates in 2024 have accelerated deployment of EPS in both passenger and commercial vehicles to replace hydraulic power steering systems, which are less efficient. Statistics from 2025 reveal that electric power steering contributes to enhancing fuel economy by approximately 5-7%, reinforcing sustained market revenue growth and widening market scope.
Segment Analysis
Focusing on the product type segment, rack-and-pinion EPS remains the largest contributor to market revenue in 2025, accounting for over 45% of total sales, validated through automotive OEM production reports. Its popularity stems from precise steering control and light weight, ideal for compact and mid-sized vehicles. However, the column EPS segment registers the highest CAGR of 7.2%, propelled largely by innovations in compact EPS units compatible with electric vehicles. Vehicle manufacturers in 2024-2025 have increasingly opted for column EPS to accommodate space constraints and reduce manufacturing cost, signaling promising business growth in this sub-segment.
Consumer Behaviour Insights
Shifts in consumer behaviour during 2024-2025 reveal an increased preference for vehicles equipped with EPS owing to enhanced driving comfort and safety. Digital consumption of automotive information has surged, with 68% of potential car buyers referencing online reviews emphasizing steering performance before purchase decisions. Furthermore, sustainability concerns have driven a trend towards steering systems that improve fuel efficiency, promoting demand for EPS over hydraulic alternatives. Price sensitivity remains a factor among customers in emerging markets; however, willingness to pay a premium for customization and integration with ADAS features is increasing, particularly in North America and Europe, identifying clear market trends for product differentiation.
Key Players
Prominent market players in the Automotive Electric Power Steering Systems space include JTEKT, Nexteer Automotive, ZF Friedrichshafen, Robert Bosch, NSK Ltd., Mitsubishi Electric, NSK Steering Systems, Nidec Corporation, The Timken Company, and Hitachi Astemo. In 2024-2025, these companies undertook strategic steps such as launching compact EPS modules tailored for electric vehicles, expanding production capacity in Asia-Pacific, and entering new regional markets to capitalize on rising electric vehicle adoption. For example, Nexteer Automotive’s capacity expansion in China in 2025 resulted in a 15% increase in production throughput, supporting rapid business growth aligned with market dynamics.
Key Winning Strategies Adopted by Key Players
Innovative market growth strategies distinguish certain key players. JTEKT, in 2025, focused on integrating AI-powered adaptive steering control with EPS systems, providing superior handling dynamics, enhancing product differentiation and consumer satisfaction. This initiative has positioned JTEKT as a forefront innovator, showcasing remarkable market revenue increments. Additionally, Robert Bosch adopted a strategy emphasizing modular and scalable EPS designs since early 2024, enabling OEMs to customize steering solutions efficiently—this enhanced market opportunities by reducing development time. Lastly, Nexteer Automotive’s emphasis on localizing manufacturing facilities in high-demand regions expedited delivery schedules and curtailed supply chain risks, leading to improved business growth and competitive edge.
FAQs
Q1: Who are the dominant players in the Automotive Electric Power Steering Systems market?
The market leaders include JTEKT, Nexteer Automotive, ZF Friedrichshafen, and Robert Bosch, recognized for their innovation in steering technologies and expansive manufacturing footprint.
Q2: What will be the size of the Automotive Electric Power Steering Systems market in the coming years?
The market size is forecasted to grow from USD 32.62 billion in 2025 to USD 46.83 billion by 2032, with a CAGR of 5.3%, supported by rising electric vehicle production and regulatory policies.
Q3: Which end user industry has the largest growth opportunity?
The passenger car segment holds the dominant position; however, commercial vehicles represent the fastest-growing sub-segment due to electrification trends and increased fleet modernization.
Q4: How will market development trends evolve over the next five years?
Market trends include enhanced integration of EPS with ADAS, modular EPS designs for customization, and AI-driven adaptive steering technologies, driving innovation and expanded market revenue.
Q5: What is the nature of the competitive landscape and challenges in the Automotive Electric Power Steering Systems market?
The market experiences intense competition with focus on technological innovation and cost optimization. Key challenges include supply chain volatility and high R&D investments, requiring strategic agility.
Q6: What go-to-market strategies are commonly adopted in the Automotive Electric Power Steering Systems market?
Market companies frequently leverage localized manufacturing, modular product designs, and strategic partnerships with OEMs to accelerate market penetration and optimize delivery timelines.
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