Electric Power Steering Market Analysis by Component (Steering Column, Sensors, Steering Gear, Mechanical Rack & Pinion, Electronic Control Unit, Electric Motor and Others); by Mechanism (Collapsible EPS, Rigid EPS); by Type (C-EPS, P-EPS, R-EPS); and by Vehicle Type (Passenger Vehicle, Commercial Vehicle, Electric Vehicle) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035

Buy Now Report ID: 4791 | Published Date: Apr 06, 2023

Global Electric Power Steering Market Size, Forecast, and Trend Highlights Over 2023 – 2035

The global electric power steering market size is estimated to reach ~USD 70 Billion by the end of 2035 by growing at a CAGR of ~8.40% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of electric power steering was ~USD 27 Billion. The growth of the market can be attributed to the rise in number of road accidents. The WHO estimates that about 1.3 million people die in road accidents globally each year, half of them pedestrians and motorcyclists, while the other half die in side-impact accidents. Also, as per the same source mentioned above, the main safety standards are not met by 80% of cars sold worldwide. There are only 40 countries that adhere to the seven most important car safety regulations. The increasing number of accidents and fatalities has made it necessary for end users to invest in better safety systems, such as electric power steering (EPS), in order to ensure a safe driving experience. EPS assists drivers in handling their vehicle and responding to road conditions. As the number of accidents increases with more vehicles on the road and more difficult driving conditions, electric power steering provides a safer alternative for drivers.

In addition to these, factors that are believed to fuel the market growth of electric power steering, includes the increasing demand for comfort and convenience in vehicles, the need to reduce fuel consumption and carbon dioxide emissions, and the development of advanced technology. Moreover, stringent government regulations mandating the installation of power steering as standard equipment in vehicles as well as the development of advanced driver assistance systems (ADAS) are projected to drive market growth. In the U.S., according to estimates, 92% of new vehicles have at least one automatic safety feature. It is predicted that most ADAS will be installed on 96% of all registered vehicles in the U.S. by 2043.

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Global Electric Power Steering Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 27 Billion

Forecast Year Market Size (2035)

~ USD 70 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Electric Power Steering Market: Growth Drivers and Challenges


Growth Drivers

  • Rising Trend in Electrification of Vehicles and The Popularity of Electric Vehicles-  For instance, over 2000% growth has been recorded in India's EV sales from 2019 to 2022. The number of electric vehicles sold has grown by over 2,220% within the past three years; by December 2022, over 4,42,901 electric vehicles were sold, a significant increase over the 19,100 vehicles sold in FY 2020. Electric vehicles require electric power steering systems, which are much more efficient than traditional hydraulic systems. This increased efficiency translates into lower emissions and increased range for electric vehicles, making them more attractive to consumers. As the popularity of electric vehicles continues to rise, the demand for electric power steering systems is expected to increase as well.

  • Emerging Investments for Product Development – For instance, to develop electromechanical power steering systems that can coordinate with a variety of driver assistance and self-driving systems, Thyssenkrupp has invested EUR 6.2 million in a new automotive R&D Competence Center in Budapest.

  • Rise in The Demand for Fuel-Efficient Cars Resulting from High Carbon Emission Levels - Approximately 2.8 billion metric tons of carbon dioxide emissions was produced by passenger cars worldwide in 2020. Additionally, transport is responsible for one-fifth of the global carbon dioxide emissions (CO2). With increased awareness of the environment, people are looking for ways to reduce their carbon footprint. Fuel-efficient cars such as autonomous vehicles are an ideal alternative, as they use less fuel than traditional cars. EPS is an advanced technology that can help autonomous cars more accurately and safely maneuver around turns and obstacles.

  • Rise in Percentage of Accidents Caused by Driver Distraction- It was observed that more than 60-65% of traffic accidents are caused by driver distractions and fatigue, with 95% of these accidents resulting from rear-end collisions. EPS assists drivers with maneuvering the vehicle owing to its improved control and maneuverability. This can help reduce the number of accidents caused by driver distraction, as it provides drivers with more control over their vehicle.

  • Implementation of Vehicle Safety Norms and Regulations by Government – The effective implementation of norms, regulations and government initiatives are expected to drive the market growth. For instance, in the U.S., road vehicle regulations are enforced by the Federal Motor Vehicle Safety Standards (FMVSS), which specify design, performance, construction, and durability constraints for motor vehicles, as well as automobile systems, components, and design features related to road safety.


  • High initial cost associated with electric power steering systems - The high cost of electric power steering components, such as the electric motor, gearbox, and sensors, are the major factors predicted to slow down the market growth. For instance, an estimate of USD 500 to USD 1000 is predicted to be the installation cost of electric power steering systems in the USA.
  • Complexity of the electric power steering assist systems
  • The lack of public awareness about the benefits of electric power steering systems.

Global Electric Power Steering Market Segmentation

The global electric power steering market is segmented and analyzed for demand and supply by component into steering column, sensors, steering gear, mechanical rack & pinion, electronic control unit, electric motor and others. Out of these, the sensors segment is estimated to gain the largest market share of about ~23% in the year 2035. The growth of the segment can be attributed to the rising demand for advanced driver assistance systems (ADAS) such as lane-keeping assistance, automated parking, and adaptive cruise control. These systems require multiple sensors to detect the environment and provide the driver with necessary feedback. Moreover, the increasing demand for high-end vehicles and the growing focus on safety is projected to drive segment growth. Sensors are being increasingly incorporated into power steering systems in order to provide better control, accuracy, and reliability. Furthermore, advancements in technology have made them more cost-effective, driving their demand. For instance, a Tokyo Institute of Technology research team has developed a diamond quantum sensor-based detection system that can accurately estimate the charge of an electric vehicle battery with 99% precision.

The global electric power steering market is segmented and analyzed for demand and supply by mechanism into collapsible EPS, rigid EPS. Out of these, the collapsible EPS segment is estimated to gain the significant market share of about ~59% in the year 2035. The growth of the segment can be attributed to the growing demand for fuel-efficient vehicles, which require the use of collapsible EPS to reduce the amount of fuel consumed. Additionally, the increasing emphasis on safety features and the increasing number of stringent regulations for vehicle safety are also driving the demand for collapsible EPS. For instance, for administration of the Bharat New Car Assessment Program, the Government of India established an independent agency, Bharat-NCAP Authority. Bharat NCAP envisages assigning star ratings based on the safety of the cars sold in the country. Automakers are increasingly turning to EPS as a way to meet safety regulations. EPS helps to absorb more energy in the event of an accident and can help reduce the risk of injury. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global electric power steering market includes the following segments:

             By Component

  • Steering Column
  • Sensors
  • Steering Gear
  • Mechanical Rack & Pinion
  • Electronic Control Unit
  • Electric Motor
  • Others

          By Mechanism

  • Collapsible EPS
  • Rigid EPS

          By Type

  • C-EPS
  • P-EPS
  • R-EPS

          By Vehicle Type

  • Passenger Car
  • Commercial Vehicle
  • Electric Vehicle

Global Electric Power Steering Market Regional Synopsis


The market share of electric power steering in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~37% by the end of 2035. The growth of the market can be attributed majorly to the increasing automotive production in countries such as China, India, Japan, and South Korea. For instance, the total number of vehicles produced and sold in January 2023 totaled 1,593,000 units and 1,648,000 units, respectively. Furthermore, China had produced approximately 20 million passenger cars and 5 million commercial vehicles by 2021. The Indian automobile industry produced over 22 million vehicles in FY22. As electric power steering becomes more advanced, automotive manufacturers are increasingly incorporating it into their production lines. These systems are powered by an electric motor and provide power assistance when turning the steering wheel. A driver is able to control their vehicle more easily and less exertion by using this assistance to turn the steering wheel. Additionally, stringent government regulations for fuel efficiency and reduced emission levels are also driving the automotive industry in the region to switch from hydraulic power steering to electric power steering.

The North America electric power steering market is estimated to be the second largest, registering a share of about ~27% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for electric vehicles, along with the associated government regulations and subsidies. Furthermore, high disposable income and rising standards of living in the region are expected to contribute to an increase in demand for luxury cars and passenger vehicles. Estimates indicate that Tesla sold over 481,000 vehicles in the United States in 2022, while BMW sold over 150,000. Electric power steering systems are becoming increasingly popular owing to their ability to provide smoother and more precise steering, as well as greater fuel efficiency. The rise in demand for luxury cars and passenger vehicles is driving the need for more efficient and comfortable power steering systems. Moreover, the growing need for fuel-efficient, low-emission vehicles and increasing measures by OEMs to minimize complexity and weight of vehicles are expected to drive regional market growth. Electric power steering systems help reduce the overall weight of vehicles, and they also improve fuel efficiency and reduce emissions by eliminating the need for a hydraulic pump and other related components. As such, they are becoming increasingly popular with OEMs.

Further, the electric power steering market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The European market is expected to benefit from the presence of several automakers and suppliers in the region. The increasing demand for advanced vehicle systems and the government's insistence on the adoption of electric power steering systems are also expected to contribute to the growth of the market. Automakers and suppliers are investing heavily in the development of advanced technologies, such as autonomous driving, connected vehicle systems and advanced driver assistance systems. This is expected to drive the growth of the European market over the next few years.

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Top Featured Companies Dominating the Global Electric Power Steering Market

    • Robert Bosch Automotive Steering GmbH
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Mitsubishi Electric Corporation
    • ZF Friedrichshafen Group
    • Nexteer Automotive
    • NSK Ltd.
    • JTEKT Corporation
    • Toyota Motor Corporation (Toyota)
    • Volkswagen AG
    • SHOWA Corporation
    • Thyssenkrupp Presta AG


In The News

  • As a result of a formal agreement signed between NSK Ltd. and Volkswagen AG's steering division, the two companies intend to strengthen their partnership in order to increase steering innovation even further. The agreement will enable NSK Ltd. and Volkswagen AG's steering division to combine their expertise and resources in order to develop cutting-edge technology and innovations in the field of automobile steering.

  •  JTEKT Corporation (JTEKT) and Toyota Motor Corporation (Toyota) announced in January 2020 that JTEKT to acquire Toyota-owned shares of Yutaka Seimitsu Kogyo, Ltd. (Yutaka Seimitsu). The transfer of these shares is intended to further enhance the performance of Toyota and JTEKT's driveline operations.


Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Author Credits:  Payel Roy, Dhruv Bhatia

Key Questions Answered in the Report

1) What are the major factors driving the growth of the electric power steering market?

Ans: Increasing demand for fuel efficient vehicles, growing stringency in emission norms, and the rising demand for convenience and comfort features in vehicles are the major factors driving the market growth.

2) What would be the CAGR of electric power steering market over the forecast period?

Ans: The market size of electric power steering is anticipated to attain a CAGR of ~8.40% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the electric power steering market growth?

Ans: The high initial cost associated with electric power steering systems, as well as the complexity of the system are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of electric power steering market in future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the electric power steering market?

Ans: The major players in the market are Robert Bosch Automotive Steering GmbH, Mitsubishi Electric Corporation, ZF Friedrichshafen Group, Nexteer Automotive, NSK Ltd., JTEKT Corporation, Toyota Motor Corporation (Toyota), Volkswagen AG, SHOWA Corporation, Thyssenkrupp Presta AG.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the electric power steering market?

Ans: The market is segmented by component, mechanism, type, vehicle type and by region.

8) Which segment captures the largest market size in the component segment in the electric power steering market?

Ans: The sensors segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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