Electric Power Steering Market Size: Steering the Automotive Industry Toward a Smarter Future

The global electric power steering market was valued at USD 25.09 billion in 2021 and is expected to grow at a CAGR of 5.8% during the forecast period, according to Polaris Market Research. The rise in a number of government norms and mandates regarding fuel-efficient technologies, increasing production of the automotive vehicle including power-driven vehicles, and the measures taken by OEMs worldwide to reduce the weight and complexity of their vehicles are a few factors influencing the growth of the market. As automakers race to build lighter, more efficient, and increasingly connected vehicles, electric power steering has become one of the most important technologies shaping how modern cars handle and perform.

Understanding Electric Power Steering

Electric power steering, commonly known as EPS, replaces traditional hydraulic steering systems with an electric motor that assists the driver in turning the wheel. Unlike hydraulic systems that rely on a constantly running pump, EPS only draws power when steering assistance is actually needed, making it significantly more energy-efficient. This shift has made EPS the preferred choice across nearly every vehicle segment, from compact passenger cars to increasingly electric vehicles.

The growing demand for advanced power-driven steering, coupled with regulation and initiatives towards de-carbonization, also favors market growth. As emission standards tighten around the world, automakers are under mounting pressure to squeeze efficiency out of every component, and steering systems are no exception.

How the Pandemic Left Its Mark

Like much of the automotive supply chain, electric power steering was not immune to pandemic-era disruption. The recent outbreak of the COVID-19 pandemic tapped automakers under massive pressure, causing companies to undergo extreme difficulties in managing their output level and supplies of components in the international electric power steering industry. Vehicle production losses stemming from factory shutdowns were substantial, and the ripple effects were felt throughout component manufacturing, including EPS systems. While the industry has since stabilized, the disruption underscored just how tightly linked steering system production is to broader automotive manufacturing cycles.

The Regulatory Push Behind EPS Adoption

Government regulation has arguably been the single biggest force behind EPS adoption worldwide. Bodies such as the National Highway Traffic and Safety Administration in the US and the International Council on Clean Transportation in Europe have implemented fleet-level emissions regulations that push automakers toward more efficient technologies. These rules have effectively compelled OEMs to adopt electric power steering as a practical way to meet fuel economy and emissions targets.

The numbers behind this shift are striking. According to the US Department of Energy, EPS systems can improve fuel productivity by 2% to 4%, cut fuel consumption by up to 6%, and reduce CO2 emissions by roughly 8 grams per kilometer. These efficiency gains, combined with the technology's growing maturity, have made EPS the default choice for automakers pursuing both compliance and performance.

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https://www.polarismarketresearch.com/industry-analysis/electric-power-steering-market

Segment Insights: Sensors and Passenger Cars Take the Lead

Among EPS components, sensors are expected to hold the largest market share while also posting the fastest growth rate. These components handle the critical job of detecting, transferring, and analyzing vehicle performance data, feeding both internal and external environmental information into the steering system. As vehicle automation and connected car technology continue to expand, demand for sophisticated sensors within EPS systems is only expected to climb.

On the vehicle side, passenger cars dominate the market, driven by rapid advancements in automotive technology and consumer demand for improved fuel efficiency. Interestingly, the electric vehicle segment is projected to post the strongest growth rate going forward. Rising EV penetration, growing environmental awareness, and government sustainability initiatives are combining to make EPS an increasingly standard feature in the world's fastest-growing vehicle category.

Regional Outlook: Asia Pacific Leads, North America Gains Ground

Asia Pacific dominates the global electric power steering market, fueled largely by rising investment in China and India. Rapid economic growth in these countries has driven a surge in vehicle production and supply, with automakers increasingly turning to EPS as an alternative to traditional steering that improves fuel efficiency while requiring less driver effort.

North America is also seeing considerable growth, supported by steady expansion in the region's automotive sector. Regulatory frameworks like the Federal Motor Vehicle Safety Standards have further reinforced this trend, setting design and performance requirements that favor safer, more efficient steering technologies like EPS.

Competitive Landscape

Major players shaping the global electric power steering market include BorgWarner, Hycet Technology Co. Ltd., Hyundai Mobis, JTEKT, Mando Corporation, Mitsubishi Electric, Nexteer, NSK, Robert Bosch, Tenneco, ThyssenKrupp, and ZF Friedrichshafen AG. Recent developments highlight how fast the technology is evolving. In February 2025, ZF Friedrichshafen AG began series production of steer-by-wire systems for NIO's ET9, marking one of the first commercial applications of fully electronic steering that removes the mechanical link between the steering wheel and gear. In December 2024, Robert Bosch GmbH started EPS production in Hungary, expanding its European manufacturing footprint to meet rising regional demand.

Looking Ahead

Electric Power Steering Market Size is projected to climb from USD 25.09 billion in 2021 to USD 41.10 billion by 2030, growing at a CAGR of 5.8% throughout the forecast period. As emissions regulations tighten, electric vehicles gain broader adoption, and steer-by-wire technology moves from concept to commercial reality, electric power steering is set to remain a cornerstone innovation steering the automotive industry toward a smarter, more efficient future.

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