sujeet rai
Electric Power Steering Market Growth, and Demand Forecast 2025-2033
Market Overview
According to IMARC Group's latest research publication, "Electric Power Steering Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global electric power steering market size reached USD 29.62 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 45.30 Billion by 2033, exhibiting a growth rate (CAGR) of 4.59% during 2025-2033.
This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.
How AI is Reshaping the Future of Electric Power Steering Market
- AI-powered predictive steering algorithms process sensor data on driver behavior, vehicle speed, and road conditions to predict steering adjustments milliseconds in advance, enabling real-time adaptation to varying terrains and enhancing precision control.
- The automotive AI market is projected to surge from USD 5.2 billion in 2024 to USD 21 billion by 2030 at 27.5% CAGR, reflecting the integration of intelligent steering systems across the industry.
- Machine learning powers Advanced Driver Assistance Systems (ADAS) integration, with 25% of new models expected to feature AI-driven steering control for improved safety and adaptability to different driving conditions by 2025.
- AI enables EPS systems to learn driver preferences and anticipate steering needs before they emerge, with neural networks providing pattern recognition that transforms EPS technology features.
- By 2025, nearly 60% of cars sold globally will feature Level 2 autonomy including adaptive cruise control, lane-keeping assistance, and collision avoidance—all requiring precise AI-enhanced EPS integration for optimal performance.
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Key Trends in the Electric Power Steering Market
- Steer-by-Wire Technology Advancement: Steer-by-wire technology, which eliminates mechanical connections between steering wheels and wheels, is predicted to increase vehicle adoption by 22% in 2025. This innovation enables customizable driving dynamics, reduced mechanical complexity, and enhanced safety through redundancy systems.
- Integration with ADAS and Autonomous Vehicles: The integration with Advanced Driver Assistance Systems and autonomous driving technologies is revolutionizing EPS applications. Nearly 60% of cars sold globally will feature Level 2 autonomy by 2025, with Mercedes-Benz advancing toward Level 3 autonomy capabilities.
- Rising Electric Vehicle Adoption: Battery electric vehicles are projected to grow at 16.50% annually through 2030, the fastest among all propulsion types. China's EV market witnessed significant expansion in 2024, with ZF Automotive Technology increasing Chinese EPS production capacity to serve local manufacturers' surging demand.
- Modular and Scalable EPS Solutions: Companies are introducing modular electric power steering systems like Nexteer's mPEPS, designed to be cost-efficient, flexible, and scalable. These systems enhance component reuse, shorten development cycles, and offer low noise, vibration, and harshness levels.
- Enhanced Safety and Performance Features: Electric power steering systems now reduce vehicle weight by up to 10 kilograms compared to hydraulic systems, improving energy efficiency by nearly 5%. Over 50% of new vehicle platforms incorporate modular steering systems compatible with over-the-air updates.
Growth Factors in the Electric Power Steering Market
- Government Regulations and Fuel Efficiency Mandates: Government regulations promoting fuel efficiency and emission reduction, combined with safety mandates, are accelerating EPS adoption across all vehicle segments. National Research Council studies indicate 1.3% fuel reduction for midsize cars and 1.1% for large cars when replacing hydraulic systems with EPS.
- Rising Demand for Fuel-Efficient Vehicles: EPS eliminates hydraulic fluids and reduces engine load, with systems consuming approximately 5% less fuel compared to traditional hydraulic systems. Fleet operators increasingly recognize EPS as infrastructure investment delivering immediate operational cost reductions.
- Enhanced Vehicle Safety Requirements: The European Union's General Safety Regulation II, effective July 2024, mandates advanced safety technologies that integrate seamlessly with EPS systems. These safety mandates position EPS as a foundational technology rather than optional equipment.
- Technological Advancements and Innovation: Manufacturers are investing heavily in AI-based steering algorithms, lightweight composite materials, and high-precision sensors to meet growing regulatory and consumer expectations. Sensor fusion technologies combining torque sensors, angle sensors, and cameras are used in over 60% of advanced steering systems.
- Expansion of Production Capacity: Major manufacturers are expanding production facilities globally. In December 2024, Bosch announced a USD 117 million investment in electric steering production in Hungary, supported by USD 27 million in state funding, reflecting growing demand for EPS systems.
Leading Companies Operating in the Global Electric Power Steering Industry:
- HELLA GmbH & Co. KGaA (Faurecia SE)
- Hycet Technology Co. Ltd
- JTEKT Corporation
- Mitsubishi Electric Corporation
- Nexteer Automotive
- NSK LTD
- NXP Semiconductors N.V.
- Robert Bosch GmbH
- ThyssenKrupp AG
- TT Electronics plc
- ZF Friedrichshafen AG
Electric Power Steering Market Report Segmentation:
Breakup By Component:
- Steering Column
- Sensors
- Steering Gear
- Mechanical Rack and Pinion
- Electronic Control Unit
- Electric Motor
- Others
Sensors account for the majority of shares due to their critical role in developing high-performance accuracy and safety for electric power steering systems.
Breakup By Mechanism:
- Rigid EPS
- Collapsible EPS
Collapsible EPS dominates with 56.7% market share due to superior safety capabilities and increased adaptability in different vehicle types.
Breakup By Type:
- Rack Assist Type (REPS)
- Column Assist Type (CEPS)
- Pinion Assist Type (PEPS)
Column assist type (CEPS) leads with 36.8% market share, driven by widespread adoption in small and mid-sized passenger vehicles.
Breakup By Vehicle Type:
- Passenger Car
- Commercial Vehicle
Passenger cars dominate with 68.6% market share, attributed to rising demand for fuel efficiency and technology-savvy vehicles.
Breakup By Region:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
Asia Pacific enjoys the leading position with over 50.5% market share, driven by the augmenting demand for energy-efficient vehicles and rapid urbanization.
Recent News and Developments in Electric Power Steering Market
- February 2025: ZF Friedrichshafen AG commenced series production of steer-by-wire steering systems for Chinese manufacturer NIO's ET9 vehicle, marking one of the first commercial applications of fully electronic steering architecture in production vehicles.
- January 2025: ZF Friedrichshafen AG signed a major agreement to provide brake-by-wire and EPS systems to a multinational Original Equipment Manufacturer, demonstrating the increasing use of integrated by-wire technologies.
- December 2024: ZF Automotive Technologies (Shanghai) agreed to expand electronic power steering systems production in China through an investment agreement with Shanghai Anting Economic Development Centre, with volume production scheduled to start by 2025.
- December 2024: Bosch announced the expansion of electric steering production in Hungary, with an investment of USD 117 million, supported by USD 27 million in state funding, reflecting growing demand for EPS systems in European markets.
- October 2024: Nissan launched the 2025 Nissan Murano, featuring advanced EPS system integration to improve handling and damping sensitivity, reinforcing EPS adoption in the automotive sector.
- August 2024: Nexteer Automotive introduced its Modular Pinion-Assist Electric Power Steering (mPEPS) system, expanding cost-effective and modular EPS solutions to include both Single-Pinion and Dual-Pinion systems.
- August 2024: JTEKT India Limited announced development of a next-generation Column-Assist Electric Power Steering (CEPS) system designed to enhance performance of modern automobiles while offering improved efficiency.
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by sujeet rai on 2026-01-20 05:43:12
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