Electric Power Steering Market Size, Share, and Growth Analysis, By Components (Steering column, Sensors), By Electric Motor (Brush motor, Brushless motor), By Electric Vehicle, By EV Gear Type, By Type, By Region - Industry Forecast 2025-2032

Electric Power Steering Market size was valued at USD 27.1 billion in 2023 and is poised to grow from USD 28.62 billion in 2024 to USD 44.25 billion by 2032, growing at a CAGR of 5.6% during the forecast period (2025-2032).

The electric power steering (EPS) market is witnessing significant growth driven by the global shift towards sustainability and the rising demand for fuel-efficient vehicles. The surge in sales of electric and hybrid vehicles is projected to further enhance market expansion in the coming years. Additionally, increasing focus on vehicle safety, coupled with stringent regulations, is set to create favorable opportunities for EPS manufacturers. Consumer demand for improved driving comfort and experiences is also contributing to the market's growth, particularly with the rising integration of steer-by-wire systems in modern vehicles. However, challenges such as limited steering feedback, complexities in aftermarket installations, and high development costs continue to hinder broader adoption of electric power steering solutions in the automotive sector.

Top-down and bottom-up approaches were used to estimate and validate the size of the 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.

Electric Power Steering Market Segments Analysis

Global Electric Power Steering Market is segmented by Components, Electric Motor, Electric Vehicle, EV Gear Type, Type, Mechanism, Vehicle Type 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 Electric Vehicle, the market is segmented into BEV, PHEV and FCEV. Based on EV Gear Type, the market is segmented into Worm Gear and Ball Screw. Based on Type, the market is segmented into Rack assist type (REPS), Colum assist type (CEPS) and Pinion assist type (PEPS). Based on Mechanism, the market is segmented into Rigid and Collapsible. Based on Vehicle Type, the market is segmented into Passenger Car, Light Commercial Vehicles, Heavy Commercial Vehicles and Buses & Coaches. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Electric Power Steering Market

The increasing demand for a comfortable driving experience among consumers globally is significantly influencing automotive companies to advocate for electric power steering systems. These systems offer enhanced steering characteristics that are both smoother and more responsive, making them an attractive option for vehicle owners. This growing preference not only elevates the appeal of electric power steering but also propels the overall market development potential. As manufacturers recognize the benefits of incorporating these advanced steering technologies, the electric power steering market is poised for further growth, driven by the desire for improved vehicle performance and driver satisfaction.

Restraints in the Electric Power Steering Market

Although electric power steering provides exceptional comfort and convenience, it falls short in delivering the road feedback that traditional systems provide. This deficiency leads to a diminished sense of connection and awareness regarding the vehicle's traction on the road, particularly in high-performance vehicles. Consequently, the absence of adequate steering feedback is likely to hinder the future demand for electric power steering, as drivers may prefer systems that offer more tactile interaction and a better overall driving experience. Thus, this limitation poses a significant restraint on the growth of the electric power steering market moving forward.

Market Trends of the Electric Power Steering Market

The Electric Power Steering (EPS) market is witnessing a significant shift towards steer-by-wire technology, driven by the increasing demand for enhanced vehicle performance, efficiency, and customization. This innovation, which relies entirely on electronic controls, allows for greater flexibility in steering responses, catering to the unique requirements of autonomous and electric vehicles. As automakers increasingly prioritize lightweight designs and improved driving dynamics, EPS companies are compelled to invest in this technology to remain competitive. Furthermore, the anticipated growth in electric vehicle adoption accelerates the need for sophisticated steering solutions, indicating a robust market trend that promises to redefine driving experiences in the near future.