Global Electric Power Steering (EPS) Market Research Report: Forecast (2025-2030)

Market Definition

Electric Power Steering (EPS) is a specially designed system in which the steering is controlled by an electric motor, and an electronic control unit is attached to the steering. EPS aids in the swift handling of vehicles as it works on torque sensors, over conventional steering.

Market Insights & Analysis: Global Electric Power Steering (EPS) Market (2025-30):

The Global Electric Power Steering (EPS) Market size was valued at around USD 26.96 billion in 2024 and is projected to reach USD 38.78 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 6.2% during the forecast period, i.e., 2025-30. This market growth is observed due to the increase in the demand for electronic and hybrid vehicles, advancements in technology, rise in foreign direct investments (FDI) inflow, stringent regulations, and others.

*Boost strategic growth with in-depth market analysis - Get a free sample preview today!

The demand for hybrid and electric vehicles has surged significantly with government support. The government is implementing numerous policies and schemes to promote the growth of electric vehicles worldwide. This is due to the low emissions produced by electric vehicles. The electric power steering is compact and lightweight, and is fuel-efficient as it reduces emissions over the traditional. The electric vehicle dynamics work on the electronic motors, thus raising the utility of electric power steering. Furthermore, the electric power steering is equipped with sensors and motors that conveniently reduce the load exerted by the driver while driving. Hence, providing an expensive premium experience to the driver.

Moreover, the Electric Power Steering (EPS) is enforced by the guidelines of the officials due to its safety features, such as collapsible EPS, which reduces the risk of injuries during an accident. Additionally, the Adaptive Driving-Assistance System (ADAS) aids in the automation of the vehicle, it changes lanes, helps in detecting barriers, and others. Thus, the implication of such advancements boosts the growth of vehicles across the globe.

Global Electric Power Steering Market Driver:

Increase in Electric Vehicle Sales – A rise in the demand for electric vehicles is observed due to urbanization, economic stability, an increase in the white-collar population, and others. These factors have resulted in a rise in disposable income, thus raising the ownership of vehicles. Along with this, the rise in consumer awareness has inclined the consumer towards environmentally friendly alternatives such as electric vehicles. The reduced maintenance cost and low emissions have further encouraged the global population to adopt electric vehicles. As per the International Energy Agency (IEA) 2024, sales of more than 3 million electric vehicles were observed in the first quarter of 2024, which is nearly 25% more than the sales in 2023. The dynamics of electric vehicles work on electricity; thus they use electric motors to empower steering.

Additionally, the installation of electric power steering reduces the weight of the vehicle, and its torque sensors make the vehicle convenient for driving. Hence, this pushes the demand for electric vehicles, further pushing the market growth.

Global Electric Power Steering Market Opportunity:

Government Initiatives for the Automotive Sector – In recent years, government officials and non-profit organizations have been actively introducing schemes and policies to reduce the emissions caused by the automobile sector. Several countries, such as the United Kingdom, Japan, and numerous others, are aiming to achieve zero emissions in the transportation sector. This leads the authorities to push electric vehicles across the globe. Hence, to ensure the adoption of electric vehicles, the government has lowered taxes and provided incentives for the purchase of the vehicles. For instance, Australian authorities have exempted the owners of non-emission vehicles from the ownership tax, since 2022. Similarly, other nations are investing in electric vehicles, thus indirectly generating the potential for electric power steering manufacturers.

Global Electric Power Steering (EPS) Market Challenge:

High-Cost of Electric Power Steering – The electric power system mainly comprises motor sensors, an electric motor, an Electronic Control Unit (ECU), and a steering gear. However, the cost of an electric motor and an ECU is comparatively much higher than the price of a hydraulic power system by more than four times. This difference in the cost is observed as the average cost of an electric power system is nearly USD581.80 whereas the price of a conventional system is about USD139.63. Moreover, to empower the electric motor and the ECU, a high-power battery is implanted in the system. This, in turn, raises the cost of the vehicle. Thus high cost of electric power steering acts as a growth restraint factor for the market.

Global Electric Power Steering Market Trend:

Integration of AI in Electric Power Steering – Technological advancements such as AI have revolutionized the automotive industry. The fusion of AI in the industry has resulted in the development of the Advanced Driver-Assistance System (ADAS). ADAS is a sensor and camera-controlled, which alters the driver of threats while driving vehicles. It also automates the vehicle, changes the lane, helps in parking, and others. Thus, ensuring the safety of the driver and surroundings, and further, reducing the risk of accidents and injuries.  This AI-designed system works more efficiently with the electric power steering as it contains sensors such as torque sensors and others. Thus, raising the demand for Electric Power Steering in vehicles globally.

Global Electric Power Steering Market (2025-30): Segmentation Analysis

The Global Electric Power Steering (EPS) Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2025–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Vehicle Type:

• Passenger Cars & SUVs
• Commercial Vehicles
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

Passenger Cars & SUVs hold the largest market share of approximately 75%. This is due to fuel efficiency, the dynamics of the vehicles, and the terrain of vehicle mobility. Passenger Cars and SUVs are more likely to be driven by the urban population, where there is a regular need for managing the vehicle. However, commercial vehicles are used for longer routes and on highways, which require less management, thus reducing the need for an EPS. Moreover, passenger vehicles are compact and lightweight, hence they are equipped with electric motors for controlling the steering. Thus, providing more space and a premium driving experience in the vehicle.  Hence, raising the demand for electric power steering in passenger cars and SUVs.

Based on Mechanism:

• Collapsible
• Rigid

The collapsible kind of mechanism has the largest market share, with more than 67% of the total. This market share is observed due to its distinctive mechanism, which collapses during a collision. In a collision, the force is absorbed by the tolerance ring in the steering column of the electric power steering, which leads to the collapse of the steering shaft. Thus, preventing the steering wheel from entering the interiors of the cars. Hence, protecting the driver from fatal injuries in sensitive organs such as the lungs, etc.

Moreover, to minimize the road accident mortality rate, the government authorities have issued strict guidelines to install collapsible power steering in conventional and electric vehicles. Henceforth, raising the market share of collapsible mechanisms in the electric power steering industry globally.

Global Electric Power Steering (EPS) Market (2025-30): Regional Projections

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

Regionally, the market is growing in multiple regions, however, Asia-Pacific is the fastest-growing region with approximately 43% market share. Countries such as China, India, Japan, and South Korea in the Asia-Pacific contribute to more than 34% of the global export of vehicles in 2023. This growth is seen due to the availability of ample amounts of low-cost manpower and large manufacturing units in this region. These factors have resulted in attracting manufacturers and foreign direct investments (FDI) in the Asia-Pacific. For instance, Volkswagen Group partnered with SAIC to strengthen and establish a new joint venture in China in 2024. These expansion and partnership projects raise the demand for conventional and electric vehicles, which further increases the consumption of electric power steering.

Moreover, government support for electric vehicles has increased significantly in recent years. Several authorities investing in electric vehicles, such as the Indian government, have initiated schemes such as PM E-DRIVE, under which an investment of about USD1.30 billion is planned to develop an electric vehicle ecosystem in the country by 2026. This results in generating the demand for electric power steering in Asia-Pacific.

Global Electric Power Steering (EPS) Industry Recent Development:

• 2025: JTEKT Corporation partnered with German-based investor AEQUITA to transfer its supply of needle roller bearings business in Europe.
• 2025: Denso Corporation developed a new eAxle for a battery-operated electric vehicle of Suzuki with BluE Nexus Corporation.
• 2024: Bosch has announced to launch of its real-time services in commercial vehicles including Mercedes-Benz Trucks.

Gain a Competitive Edge with Our Global Electric Power Steering (EPS) Market Report

1. Global Electric Power Steering Market by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Electric Power Steering (EPS) Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

*Reports Delivery Format - Market research studies from MarkNtel Advisors are offered in PDF, Excel and PowerPoint formats. Within 24 hours of the payment being successfully received, the report will be sent to your email address.