Electric Steering System Market Size, Share, Growth Analysis, By Components, By Electric Motor, By Type, By Vehicle Type, By Gear Type, By Mechanism, By Application, By Region - Industry Forecast 2025-2032

Global Electric Steering System Market size was valued at USD 27.7 billion in 2023 and is poised to grow from USD 29.28 billion in 2024 to USD 45.62 billion by 2032, growing at a CAGR of 5.7% during the forecast period (2025-2032).

The global electric power steering (EPS) market is on a rapid growth trajectory, fueled by the automotive industry's transition towards advanced driver assistance systems and a rising demand for environmentally friendly technologies. The push for sustainable autonomous and semi-autonomous vehicles aligns with EPS's capabilities, making it a preferred choice among manufacturers. As consumer interest in enhanced safety and fuel-efficient gasoline vehicles grows, EPS's role in optimizing vehicle performance becomes increasingly significant. Its adoption is further accelerated by the automotive industry's shift towards hybrid electric vehicles, recognizing EPS's compatibility with this innovation. With its electric motor assistance, EPS enhances driving comfort, energy savings, and turning precision, positioning it as a vital component that meets the demands for safety and luxury in modern automobiles.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Electric Steering System 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 Electric Steering System Market Segmental Analysis

Global Electric Steering System Market is segmented by Components, Electric Motor, Type, Vehicle Type, Gear Type, Mechanism, Application and Region. Based on Components, the market is segmented into Steering column, Sensors, Steering gear, Mechanical rack and pinion, Electronic control unit, Electric motor and Bearing. Based on Electric Motor, the market is segmented into Brush motor and Brushless motor. Based on Type, the market is segmented into Column Assist Type (CEPS), Pinion Assist Type (PEPS) and Rack Assist Type (REPS). Based on Vehicle Type, the market is segmented into Passenger Car, Light Commercial Vehicles, Heavy Commercial Vehicles and Buses & Coaches. Based on Gear Type, the market is segmented into Worm Gear and Ball Screw. Based on Mechanism, the market is segmented into Rigid and Collapsible. Based on Application, the market is segmented into Passenger Cars (PC) and Commercial Vehicles (CV). Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Electric Steering System Market

One of the key drivers of the Global Electric Steering System market is the rising integration of Advanced Driver Assistance Systems (ADAS) with Electric Power Steering (EPS). This integration enhances safety features related to road maintenance and parking assistance, thereby bolstering their adoption. Furthermore, there is a noticeable trend towards implementing cable systems in steering mechanisms, rather than traditional touch devices that connect the steering wheel to the wheels. This shift is primarily attributed to the enhanced flexibility and customization options it offers to vehicle systems, catering to the evolving preferences of manufacturers and consumers alike, ultimately propelling the market forward.

Restraints in the Global Electric Steering System Market

One significant challenge facing the Global Electric Steering System market is the high initial cost associated with the implementation of Electric Power Steering (EPS) systems, which tends to be more expensive than traditional hydraulic steering systems. This elevated price point can deter price-sensitive consumers, particularly in an economic climate marked by uncertainty. Additionally, another constraint involves the complexity associated with storage and maintenance of these EPS systems, given that they incorporate advanced electronic interfaces and require specialized skills and processors for their operation and repair. These factors may limit widespread adoption and growth in the market.

Market Trends of the Global Electric Steering System Market

The Global Electric Steering System market is poised for significant growth, driven by advancements in power steering technology and electrification trends. With a growing focus on energy efficiency, Electric Power Steering (EPS) systems enhance vehicle control and safety while reducing maintenance costs, making them increasingly attractive to consumers, particularly in emerging markets like Japan, China, and India, where the demand for cost-effective, fuel-efficient vehicles is surging. Additionally, the rising adoption of Steer-by-Wire (SBW) systems is reshaping the landscape, offering increased flexibility, reduced weight, and enhanced safety features, such as automatic collision avoidance, thus propelling market expansion and innovation.