Electric Power Steering Market Outlook and Forecast

The Electric Power Steering Market is undergoing a significant transformation as automotive manufacturers increasingly prioritize efficiency, safety, and advanced driver assistance technologies. Electric power steering (EPS) systems have become a critical component in modern vehicles, replacing traditional hydraulic systems due to their enhanced fuel efficiency, reduced emissions, and improved control precision.

2025 Market Size: USD 28.21 Billion
Projected 2035 Market Size: USD 53.96 Billion
Growth Forecasts (2026–2035): 6.7%

From a regional standpoint, North America continues to demonstrate strong adoption of EPS systems, driven by stringent fuel efficiency regulations and the growing penetration of electric vehicles. Europe remains a mature yet innovation-driven market, with automakers focusing on integrating EPS with autonomous driving capabilities. Meanwhile, Asia Pacific dominates global production, fueled by high automotive manufacturing output in countries such as China, Japan, and India, alongside increasing consumer demand for passenger vehicles equipped with advanced safety features.

Segment-wise, the collapsible EPS segment accounted for a significant 58.2% share in 2025, reflecting its widespread adoption due to enhanced safety features and compact design. On the other hand, the rack assist type (REPS) segment held a 51.5% market share, driven by its superior steering performance and suitability for a wide range of vehicle types, particularly passenger cars and light commercial vehicles.

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Top Market Trends Transforming the Electric Power Steering Industry

The electric power steering market is shaped by several transformative trends that are redefining the automotive landscape. One of the most prominent trends is the rapid electrification of vehicles. As electric vehicles (EVs) gain momentum globally, EPS systems are becoming indispensable due to their compatibility with electric drivetrains and ability to reduce overall vehicle weight.

Another key trend is the integration of EPS with advanced driver assistance systems (ADAS). Modern EPS systems are designed to work seamlessly with features such as lane-keeping assist, automated parking, and collision avoidance systems. This integration enhances vehicle safety and paves the way for higher levels of vehicle autonomy.

Digitalization and software-driven steering technologies are also gaining traction. Automotive manufacturers are increasingly adopting software-controlled EPS systems that allow real-time adjustments based on driving conditions. For instance, adaptive steering systems can modify steering response at different speeds, improving both comfort and control.

Sustainability remains a major driver in the market. EPS systems eliminate the need for hydraulic fluids, reducing environmental impact and maintenance requirements. Automakers are leveraging this advantage to meet global emission norms and sustainability targets, further boosting EPS adoption.

Recent industry developments include partnerships between automotive OEMs and technology firms to develop next-generation steering systems. These collaborations are focused on enhancing system efficiency, reliability, and integration with autonomous driving platforms.

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Recent Company Developments in the Electric Power Steering Market

The competitive landscape of the electric power steering market is characterized by continuous innovation, strategic partnerships, and technological advancements. Leading companies are investing heavily in research and development to maintain their competitive edge and cater to evolving automotive requirements.

JTEKT Corporation has recently expanded its EPS product portfolio with advanced systems designed for electric and hybrid vehicles. The company is focusing on improving energy efficiency and reducing system weight to enhance vehicle performance.

Robert Bosch GmbH continues to lead innovation in EPS technology, introducing systems integrated with AI-based driver assistance features. Bosch has also strengthened its global manufacturing footprint to meet rising demand.

NSK Ltd. has been actively investing in smart EPS systems that support autonomous driving functionalities. The company’s recent developments emphasize enhanced safety and system reliability.

ZF Friedrichshafen AG has introduced next-generation EPS solutions that offer improved steering precision and reduced noise levels. The company is also collaborating with automakers to integrate EPS with advanced vehicle control systems.

Nexteer Automotive has focused on expanding its presence in emerging markets, particularly in Asia Pacific. The company has launched innovative rack assist EPS systems tailored for compact and mid-sized vehicles.

Mando Corporation has strengthened its position through strategic partnerships and product innovations aimed at electric vehicles. The company is developing EPS systems optimized for battery-powered platforms.

Thyssenkrupp AG has been enhancing its EPS offerings by incorporating advanced sensor technologies and digital control systems. These innovations aim to improve steering responsiveness and driver comfort.

Hyundai Mobis has introduced EPS systems integrated with advanced safety features, supporting the company’s vision for autonomous mobility solutions. The firm is also investing in expanding its R&D capabilities.

Showa Corporation, now part of Hitachi Astemo, has been focusing on developing compact and efficient EPS systems for a wide range of vehicle applications. The company’s recent initiatives include improving system durability and reducing manufacturing costs.

These developments highlight the dynamic nature of the electric power steering market, where continuous innovation and strategic collaborations are key to sustaining growth and competitiveness.

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