The global electric power steering (EPS) market was valued at USD 25.32 billion in 2023 and is expected to grow significantly to reach USD 39.27 billion by 2030, expanding at a Compound Annual Growth Rate (CAGR) of 6.6% during the forecast period from 2024 to 2030. This robust growth trajectory is largely driven by the increasing popularity and development of autonomous and semi-autonomous vehicles, which require highly responsive and integrated steering systems. EPS has emerged as a modern and efficient alternative to conventional steering mechanisms like hydraulic and electro-hydraulic systems. Unlike these traditional systems, EPS does not rely on hydraulic fluid, making it more energy-efficient and environmentally friendly.

One of the major benefits of adopting EPS is the reduction in overall vehicle weight, which directly contributes to improved fuel efficiency. Additionally, EPS systems offer superior steering precision, driver comfort, and safety, which are critical parameters for next-generation vehicles.

The electric power steering industry is currently in a moderate stage of growth, yet it is witnessing an accelerating pace of innovation and expansion. Although the market is highly fragmented with the presence of numerous players, the growth potential remains strong due to the automotive sector’s push for vehicles that are more fuel-efficient, intelligent, and safe. Continuous technological advancements in automotive electronics and increasing R&D investments are shaping the competitive dynamics of the EPS market.

Key Market Trends & Insights:

• The Asia Pacific region dominated the global EPS market in 2023, accounting for the largest revenue share of 50.5%. Within Asia Pacific, South Korea is projected to exhibit the fastest CAGR over the forecast period, indicating rapid adoption of EPS technologies due to the country’s high-tech automotive industry and increasing focus on innovation.
• In terms of broader regions, Europe is also expected to register the fastest CAGR during the forecast period. This growth can be attributed to the region’s stringent environmental regulations, emphasis on vehicle safety, and strong adoption of electric and hybrid vehicles.
• Among EPS product types, the Collapsible Electric Power Steering (CEPS) segment accounted for the largest market share of 57.2% in 2023. CEPS systems are widely used due to their compact design, cost-effectiveness, and ease of integration into various vehicle platforms. However, the Rigid Electric Power Steering (REPS) segment is expected to witness the fastest CAGR in the coming years.
• From a technology type perspective, the Column Assist Type EPS (C-EPS) held the largest revenue share in 2023. These systems are commonly used in small and mid-sized vehicles due to their simplified architecture and reduced manufacturing costs. Conversely, the Rack Assist Type EPS (R-EPS) is projected to experience the highest growth rate during the forecast period.
• By vehicle type, passenger cars led the market with the largest revenue share in 2023, primarily due to their high production volume and increased consumer demand for better driving comfort and fuel efficiency. The light commercial vehicle (LCV) segment is expected to register the fastest CAGR during the forecast period.

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Market Size & Forecast:

• 2023 Market Size: USD 25.32 Billion
• 2030 Projected Market Size: USD 39.27 Billion
• CAGR (2024-2030): 6.6%
• Asia Pacific: Largest market in 2023

Key Companies & Market Share Insights:

Several major players are actively involved in the EPS market, focusing on innovation, strategic partnerships, and technological advancements to strengthen their market position. Two prominent companies include:

• Hyundai Mobis: A leading global supplier of EPS systems, Hyundai Mobis caters to a wide range of automakers across the world. The company is known for its substantial investments in research and development aimed at enhancing the performance, safety, and energy efficiency of its EPS offerings. Hyundai Mobis provides steering solutions suitable for various vehicle segments, including compact cars, SUVs, and light trucks.
• Nexteer Automotive: Nexteer is another key market player that offers an extensive portfolio of electric power steering systems designed for vehicles of all sizes from small cars to heavy-duty trucks and light commercial vehicles. The company focuses on delivering EPS technologies that enhance driver safety, fuel efficiency, road feel, and overall driving comfort. Its steering systems are also designed to support connected and autonomous vehicle functions.

Key Players

• JTEKT Corporation
• Denso Corporation
• GKN Automotive Limited
• Hitachi Astemo, Ltd.
• Hyundai Mobis
• Mitsubishi Electric Corporation
• Nexteer Automotive
• NSK Ltd.
• Robert Bosch GmbH
• ZF Friedrichshafen AG
• thyssenkrupp AG

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Conclusion:

The electric power steering market is experiencing notable growth due to the increasing demand for advanced, fuel-efficient, and autonomous vehicles. The transition from traditional steering systems to electric alternatives is driven by the need for improved performance, reduced vehicle weight, and enhanced driver safety and comfort. Regions such as Asia Pacific and Europe are witnessing rapid adoption, supported by technological advancements and strong automotive manufacturing bases. With expanding applications across passenger cars and commercial vehicles, and continuous innovation from key market players, the EPS market is poised to play a crucial role in the future of automotive steering systems.