Electric Power Steering Market Report Scope & Overview:

The Electric Power Steering Market was valued at USD 28.88 Billion in 2025 and is expected to reach USD 49.10 Billion by 2035, growing at a CAGR of 5.45% from 2026-2035.

The Electric Power Steering Market is witnessing high demand as a result of stringent regulations in place regarding the control of emissions from vehicles, leading to faster adoption of electrical power steering systems over hydraulic power steering due to the absence of parasitic loss associated with hydraulics. Electrical power steering systems assist with steering using sensors and electronics for providing fuel efficient and better vehicle control with a system architecture that is easily upgradable using software engineering tools suitable for platform vehicle design. High adoption of advanced driver-assistance systems, lane-keeping systems, and stability systems which rely on accurate steering inputs provided by electrical power steering systems is driving the demand for such systems.

Growth of the market towards the development of steer-by-wire technology, which removes the mechanical link between the steering wheel and steering gear, is enabling high future growth of the market.

In 2025, ZF commenced series production of steer-by-wire steering systems for Chinese manufacturer NIO's ET9 vehicle, marking a significant milestone in eliminating mechanical connections between the steering wheel and the steering gear.

Electric Power Steering Market Trends

• Continued industry advancement toward steer-by-wire technology eliminating mechanical steering column connections.
• Growing integration of electric power steering with advanced driver-assistance and lane-keeping systems.
• Rising adoption of high-output column-assist systems extending capability to heavier vehicle platforms.
• Increasing development of rear-wheel steering systems improving maneuverability for larger vehicles.
• Expanding regional manufacturing capacity investment to serve growing electric and hybrid vehicle production.

U.S. Electric Power Steering Market Outlook

The U.S. Electric Power Steering Market was valued at USD 3.21 Billion in 2025 and is expected to reach USD 5.05 Billion by 2035, growing at a CAGR of 4.65% from 2026-2035.

The U.S. Electric Power Steering Market growth continues to be reinforced by sustained domestic vehicle production, growing integration of advanced driver-assistance systems across passenger vehicle trims, and the country's concentration of leading steering system suppliers with substantial North American engineering and manufacturing operations. Domestic demand also benefits from continued regulatory emphasis on fuel efficiency, which continues to favor electric power steering adoption over legacy hydraulic systems. Growing domestic investment in steer-by-wire research and development further supports long-term demand as suppliers position themselves for next-generation autonomous vehicle platforms.

In April 2025, Nexteer Automotive, headquartered in Auburn Hills, Michigan, announced its High-Output Column-Assist Electric Power Steering system, expanding steering assist capacity up to 110 Nm and enabling column-assist technology to support larger and heavier vehicles that would typically require dual-pinion or entry-level rack-assist systems.

Electric Power Steering Market Segment Analysis

• By Type, the Column-Assist segment dominated the Electric Power Steering Market with approximately 42.50% share in 2025, while the Rack-Assist segment is the fastest growing with a CAGR of approximately 7.20%.
• By Mechanism, the Collapsible segment dominated the Electric Power Steering Market with approximately 66.80% share in 2025, while the Rigid segment is the fastest growing with a CAGR of approximately 6.80%.
• By Vehicle Type, the Passenger Cars segment dominated the Electric Power Steering Market with approximately 72.00% share in 2025, while the Commercial Vehicles segment is the fastest growing with a CAGR of approximately 6.90%.
• By Motor Type, the Brushless segment dominated the Electric Power Steering Market with approximately 78.20% share in 2025, and is also the fastest growing with a CAGR of approximately 7.60%.

By Type, Column-Assist dominates and Rack-Assist grows fastest

The Column-Assist E-Power steering system represents the most prominent type segment of the Electric Power Steering Market owing to the affordability and broad application of this technology in various vehicles such as small cars, sedans, and SUVs where the needs of steering assist can be satisfied with the help of column assist technology. It is important to note that the mentioned segment of the market continues evolving thanks to innovations that make it possible for column assist technology to be applied to heavier vehicle platforms.

As far as the Rack-Assist E-Power steering segment of the market is concerned, it may be defined as the fastest-growing one because of the growing demand for torque-assisted steering in heavy SUVs, light trucks, and high-performance vehicles. Therefore, it should be emphasized that the Rack-Assist technology is primarily focused on providing precise high torque steering assist in heavier vehicles.

By Mechanism, Collapsible dominates and Rigid grows fastest

Collapsible mechanism systems remain the dominant mechanism segment within the Electric Power Steering Market, reflecting their essential role in passenger safety by allowing the steering column to collapse in a controlled manner during a frontal collision to reduce injury risk to the driver. This segment benefits from regulatory safety standards worldwide that continue to favor collapsible steering column designs across the vast majority of passenger vehicle platforms.

Rigid mechanism systems are emerging as the fastest-growing mechanism segment, driven by specialized applications in commercial and off-highway vehicles where structural rigidity requirements outweigh the collapsible design considerations more relevant to passenger vehicle crash safety. This segment focuses on durable, high-strength steering column designs suited to demanding commercial vehicle operating conditions, positioning rigid mechanism systems to capture growing demand as commercial vehicle electric power steering adoption continues to expand.

By Vehicle Type, Passenger Cars dominates and Commercial Vehicles grows fastest

Passenger Cars segment is expected to lead among various vehicle types in the Electric Power Steering market. This can be attributed to the wide prevalence of electric power steering technology in small and medium sized passenger cars in the wake of automobile manufacturers replacing their traditional hydraulic steering systems in order to minimize energy losses and ensure better control of the vehicle.

The Commercial Vehicle type segment is expected to witness substantial growth in the coming years owing to increased use of electric power steering technology in light and medium commercial vehicles which have been predominantly fitted with hydraulic steering systems in the past. The commercial vehicle segment will concentrate more on high torque steering solutions in line with the requirements of the heavier payloads involved in the commercial vehicle applications.

By Motor Type, Brushless dominates and grows fastest

Brushless motors remain both the dominant and fastest-growing motor type segment within the Electric Power Steering Market, offering superior efficiency, reliability, and precise control relative to conventional brush motor designs. This segment benefits from continued advancement in brushless motor technology that delivers improved responsiveness and durability suited to the demanding performance requirements of modern electric power steering systems.

This segment also focuses on continued cost reduction in brushless motor manufacturing, which continues to narrow the price gap with legacy brush motor designs while delivering meaningfully superior performance characteristics. As automakers increasingly prioritize precision steering control for advanced driver-assistance system integration, this segment is positioned to sustain its leadership across both current market share and forward growth relative to brush motor alternatives.

Regional Analysis

Asia Pacific Electric Power Steering Market Insights

The Asia Pacific accounted for about 45.00% of the worldwide Electric Power Steering Market share in 2025, and also it is expected to grow at the fastest rate of about 8.00% between the forecast period 2026 to 2035. This growth will be due to the large-scale vehicle manufacturing and the fast pace of increasing electric vehicle production in the region.

China is the largest country in the region and the main reason behind that is the presence of the large automotive assembly plant and rising development of domestic steer-by-wire in the region. Japan and South Korea also form the demand in the region, as both countries have their own established producers of steering systems having a long history in the automotive engineering field.

North America Electric Power Steering Market Insights

North America represents a significant regional market for electric power steering, anchored by the United States' large vehicle production base and its concentration of leading steering system suppliers and research and development activity. The United States accounts for the substantial majority of regional demand, reflecting both its vehicle production scale and its technological leadership in steer-by-wire development.

Canada contribute additional regional volume through cross-border automotive supply chain integration linked to broader North American vehicle assembly. Continued regulatory emphasis on fuel efficiency standards, including annual fuel economy gains required for passenger vehicle fleets, further supports steady regional demand for electric power steering technology.

Europe Electric Power Steering Market Insights

Europe represents a significant regional market for electric power steering, anchored by Germany's large automotive manufacturing base and its concentration of premium automakers and leading steering system suppliers such as ZF Friedrichshafen and Robert Bosch. Germany's share within the European market reflects both its outsized share of regional vehicle production and its home-market presence of major steering technology developers.

France and the United Kingdom contribute additional regional demand, supported by established automotive manufacturing sectors. Continued European automaker investment in advanced driver-assistance systems and steer-by-wire research supports steady regional demand for electric power steering technology across premium and mainstream vehicle segments.

MEA & Latin America Electric Power Steering Market Insights

The Middle East & Africa region continues to be a relatively smaller part of the world market with growth taking place in GCC countries like UAE, where increased imports of vehicles and automotive assembly activities are contributing towards growth in the demand for components. South Africa remains the dominant demand center in Africa with its relatively well-developed automotive assembly and export infrastructure.

Brazil dominates the Latin America region in terms of demand for Electric Power Steering with its well-established automotive assembly and export infrastructure accounting for the majority of demand in the region. Increased sales of electric vehicles, following recent tax incentives, have contributed towards growth in the demand for this product in the region.

Market Dynamics

Growth Drivers: Emission Regulation and ADAS Integration Requirements

Stringent regulations to control vehicular emissions represent a primary growth driver for the Electric Power Steering Market, as automakers continue replacing hydraulic power steering systems with electronic alternatives that eliminate parasitic engine load and improve overall vehicle fuel efficiency. This dynamic is reinforced by rising integration of advanced driver-assistance systems, lane-keeping technologies, and stability control modules that require the precise, electronically controllable steering input electric power steering architectures provide.

Continued advancement toward steer-by-wire technology provides an additional significant source of demand, as this next-generation architecture eliminates the mechanical connection between steering wheel and steering gear entirely, supporting both conventional and increasingly autonomous vehicle platforms. Rising platform-based vehicle development further supports market growth as electric power steering's scalable, software-compatible architecture aligns well with modern vehicle platform-sharing strategies.

Restraints: Technical Complexity and Steer-by-Wire Adoption Barriers

The technical complexity and redundancy requirements associated with steer-by-wire system development represent a significant restraint on the Electric Power Steering Market's transition toward fully electronic architectures, as safety-critical steering functions require extensive validation and fail-safe engineering before regulatory approval and widespread commercial deployment. This dynamic has kept steer-by-wire adoption limited to a small number of production vehicles despite years of supplier development investment.

Regulatory frameworks in many markets have not yet fully addressed the certification requirements for steer-by-wire systems, creating uncertainty that continues to slow broader commercial adoption relative to conventional electric power steering technology. Continued semiconductor and electronic control unit component cost volatility adds further uncertainty to long-term manufacturing cost planning across the broader steering system supply chain.

Opportunities: Steer-by-Wire Commercialization and Rear-Wheel Steering Expansion

The further commercialization of steer-by-wire technology creates a significant growth potential for the Electric Power Steering Market, as early deployments of steer-by-wire technology have already proven its viability and create a base for further widespread use on both conventional and self-driving cars. Supplier companies able to offer validated and safety-certified steer-by-wire solutions will be likely to capitalize on further developments in regulatory landscape and technologies.

Increasing number of rear-wheel steering system developments offers a long-term growth potential for suppliers offering an extended range of products by introducing chassis technology that increases maneuverability and stability of larger vehicles, such as trucks, sports utility vehicles and long-wheelbase electric vehicles. With further interest of automakers in differentiated handling qualities, supplier companies having developed rear-wheel steering systems will take disproportional market share of emerging demand.

Recent Developments:

• 2024: Bosch initiated electric steering systems production in Hungary, representing a significant manufacturing capacity expansion in the European market to serve growing automaker demand for locally produced steering components.
• 2026: Knorr-Bremse secured another EPS series-production customer in the Asia-Pacific region for trucks and buses, with series production scheduled to start in 2028.

Electric Power Steering Market Key Players are:

• Robert Bosch GmbH
• ZF Friedrichshafen AG
• NSK Ltd.
• JTEKT Corporation
• Nexteer Automotive Group Limited
• Hyundai Mobis Co., Ltd.
• Mando Corporation
• Hitachi Astemo, Ltd.
• Denso Corporation
• Continental AG
• Mitsubishi Electric Corporation
• thyssenkrupp Presta AG
• NTN Corporation
• GKN Automotive Limited
• Sona Koyo Steering Systems Limited
• Bharat Forge Limited
• China Automotive Systems, Inc.
• Bosch Automotive Steering GmbH
• Yamada Manufacturing Co., Ltd.
• GKN Sinter Metals Engineering GmbH

Electric Power Steering Market Report Scope: