Automotive Electric Power Steering Market Size, Share, Growth Analysis, By Type, By Component, By Vehicle Type, By Mechanism, By Sales Channel, By Region - Industry Forecast 2024-2031

Global Automotive Electric Power Steering Market size was valued at USD 20.15 billion in 2022 and is poised to grow from USD 21.14 billion in 2023 to USD 34.80 billion by 2031, growing at a CAGR of 6.3% during the forecast period (2024-2031).

The global Automotive Electric Power Steering (EPS) market is experiencing significant growth, driven by a combination of key factors reshaping the automotive landscape. A primary catalyst is the rising demand for fuel-efficient and environmentally friendly vehicles, which is leading to a transition from traditional hydraulic systems to electric power steering solutions. Stringent emission regulations worldwide further accelerate this shift toward electrically assisted steering systems. EPS technology offers numerous advantages, including energy efficiency, enhanced maneuverability, and seamless integration with advanced driver-assistance systems (ADAS), all of which are crucial in today's automotive innovation. As automakers increasingly focus on enhancing driving experiences and improving fuel efficiency, the Automotive EPS market is well-positioned for ongoing expansion and technological advancements. This trend reflects a broader commitment within the industry to adopt sustainable practices while meeting consumer expectations for functionality and performance, indicating a robust future for EPS technologies.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Automotive Electric Power Steering market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Automotive Electric Power Steering Market Segmental Analysis

Global Automotive Electric Power Steering Market is segmented by type, component, vehicle type, mechanism, sales channel and region. Based on type, the market is segmented into column assist EPS (C-EPS), pinion assist EPS (P-EPS), rack assist EPS (R-EPS) and direct drive EPS (D-EPS). Based on component, the market is segmented into steering column, steering motor, sensors (torque sensors, position sensors), electronic control unit (ECU) and others (power steering pump, power steering fluid). Based on vehicle type, the market is segmented into passenger cars (compact cars, mid-size cars, SUVs, luxury cars) and commercial vehicles (light commercial vehicles (LCVs), heavy commercial vehicles (HCVs)). Based on mechanism, the market is segmented into conventional EPS and advanced EPS (steer-by-wire, active steering). Based on sales channel, the market is segmented into OEM (original equipment manufacturer) and aftermarket. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Driver of the Global Automotive Electric Power Steering Market

The Global Automotive Electric Power Steering market is significantly driven by the rising demand for improved driving experiences and enhanced fuel efficiency among consumers. As drivers seek vehicles that offer superior handling and responsiveness, the shift towards electric power steering (EPS) systems has gained momentum over traditional hydraulic mechanisms. EPS not only provides optimized energy efficiency but also aligns with the automotive industry's commitment to sustainability and innovation. This growing preference for technologically advanced steering solutions underscores the automotive sector's focus on delivering a more dynamic and eco-friendly driving experience, further propelling the market for electric power steering systems.

Restraints in the Global Automotive Electric Power Steering Market

The Global Automotive Electric Power Steering (EPS) market faces significant restraints, primarily due to the high initial implementation costs associated with electric steering systems. This financial barrier can deter consumers, especially in emerging markets or among owners of older vehicle models. Furthermore, the intricate nature of EPS technology requires ongoing maintenance, which may hinder original equipment manufacturers (OEMs) from fully embracing these systems. Additionally, the heavy reliance on electronic components increases vehicle susceptibility to potential cybersecurity threats, thus adding another layer of complexity and concern for manufacturers and consumers alike in the adoption of EPS systems.

Market Trends of the Global Automotive Electric Power Steering Market

The Global Automotive Electric Power Steering market is witnessing a significant trend towards the integration of advanced sensor technologies and steer-by-wire systems, which eliminate the traditional physical connection between the steering wheel and the wheels. This evolution enhances design flexibility and paves the way for sophisticated driver-assistance systems. Moreover, there is a growing focus on software-driven enhancements, allowing for customizable steering experiences that tailor responsiveness to individual driver preferences. Additionally, the incorporation of Artificial Intelligence (AI) and machine learning algorithms is optimizing steering control, enabling systems to adapt to varying driving conditions, thereby enhancing safety and user experience.