Automotive Electric Power Steering Market

The Global Automotive Electric Power Steering (EPS) Market is experiencing significant trends driven by a growing emphasis on fuel efficiency and environmental sustainability. Automakers are increasingly integrating electric power steering systems as they offer better energy efficiency compared to traditional hydraulic systems, aligning with global initiatives to reduce carbon emissions. This shift is influenced by regulatory frameworks in various regions aimed at promoting greener technologies and enhancing vehicle performance. Rising consumer demand for advanced driver assistance systems also plays a key role, as EPS facilitates easy integration with systems like lane-keeping assist and adaptive cruise control.

Global market openings stem from cutting-edge automotive engineering and invention. Through the use of artificial intelligence and machine learning, vehicle manufacturers are trying to further enhance the responsiveness and adaptability of the steering systems. Furthermore, the wider acceptance of electric and hybrid vehicles is enhancing the growth opportunities for the EPS market since these types of vehicles, as compared to traditional ones, are more dependent on electronic components. Recent updates show that more attention is now being placed on the safety of the users alongside comfort; hence, the need to control the steering becomes far more sophisticated.

There is a noticeable shift towards lightweight materials and compact designs, which improve overall vehicle efficiency. Furthermore, global supply chain advancements are enabling manufacturers to streamline production processes, ensuring that these innovative technologies can be adopted widely. With the automotive landscape continuously evolving, the Automotive Electric Power Steering Market is set to remain dynamic, adapting to the needs and expectations of consumers while addressing environmental concerns.

The Global Automotive Electric Power Steering Market Industry is poised for substantial growth, with projections indicating a market value of 28.4 USD Billion in 2024 and an anticipated increase to 45 USD Billion by 2035. This growth trajectory is supported by a compound annual growth rate of 4.29% from 2025 to 2035. Such figures reflect the industry's response to evolving consumer demands, technological advancements, and regulatory pressures. The market's expansion is indicative of a broader trend towards electrification in the automotive sector, suggesting that electric power steering systems will play a crucial role in shaping the future of vehicle design and functionality.

The Global Automotive Electric Power Steering Market Industry is experiencing a surge in demand for fuel-efficient vehicles. As consumers become increasingly aware of environmental issues, automakers are responding by integrating electric power steering systems that enhance fuel economy. These systems reduce energy consumption compared to traditional hydraulic systems, thereby contributing to lower emissions. In 2024, the market is projected to reach 28.4 USD Billion, reflecting a shift towards sustainable automotive technologies. This trend is likely to continue as regulations tighten and consumers prioritize eco-friendly options, suggesting a robust growth trajectory for the electric power steering segment.

Government policies and regulations are increasingly favoring the adoption of electric vehicles, thereby influencing the Global Automotive Electric Power Steering Market Industry. Initiatives aimed at reducing carbon emissions and promoting sustainable transportation are encouraging manufacturers to adopt electric power steering systems. For instance, various countries are implementing stricter emissions standards, which necessitate the use of more efficient steering technologies. This regulatory environment is likely to bolster market growth, as automakers align their strategies with governmental objectives. The anticipated compound annual growth rate of 4.29% from 2025 to 2035 further underscores the positive impact of regulatory support on the industry.

Technological innovations play a pivotal role in shaping the Global Automotive Electric Power Steering Market Industry. Advancements such as steer-by-wire systems and enhanced sensor technologies are revolutionizing vehicle handling and safety. These innovations not only improve driving comfort but also enable features like lane-keeping assistance and automated parking. As vehicles become more connected and autonomous, the demand for sophisticated steering solutions is expected to rise. The market's growth is indicative of a broader trend towards integrating advanced technologies in automotive design, which could potentially drive the market value to 45 USD Billion by 2035.

The production of electric and hybrid vehicles is on the rise, which is positively impacting the Global Automotive Electric Power Steering Market Industry. As manufacturers ramp up their efforts to produce more electric and hybrid models, the demand for electric power steering systems is expected to grow correspondingly. These vehicles require efficient steering solutions that align with their energy-saving capabilities. The market's expansion is likely to be fueled by the increasing availability of electric and hybrid vehicles, which are projected to dominate the automotive landscape in the coming years. This shift could lead to a substantial increase in market value, reinforcing the industry's growth trajectory.

The Global Automotive Electric Power Steering Market Industry is witnessing a shift in consumer preferences towards vehicles equipped with advanced safety features. Electric power steering systems facilitate the integration of safety technologies such as adaptive cruise control and collision avoidance systems. These features not only enhance the driving experience but also significantly improve vehicle safety. As consumers prioritize safety in their purchasing decisions, automakers are increasingly incorporating electric power steering to meet these demands. This trend is expected to further drive market growth, as the industry adapts to evolving consumer expectations and regulatory requirements.

The Automotive Electric Power Steering Market was valued at 28.36 USD Billion in 2024, reflecting a robust growth trajectory across various regions. North America led the market with a valuation of 10.85 USD Billion in 2024, expected to reach 16.73 USD Billion by 2035, demonstrating its majority holding in the global landscape. Europe followed closely with a projected value of 9.14 USD Billion in 2024 and 13.68 USD Billion in 2035, driven by increasing vehicle automation and stringent regulations on fuel efficiency.

The APAC region, was valued at 6.9 USD Billion in 2024, is anticipated to grow to 10.67 USD Billion, fueled by rising automotive production and growing demand for electric vehicles.

South America and MEA represented smaller segments, valued at 1.84 USD Billion and 0.63 USD Billion in 2024, respectively, showing growth potential as these markets evolve. Collectively, the Automotive Electric Power Steering Market segmentation illustrates significant regional dynamics, with North America and Europe demonstrating strong market positions due to advanced automotive technologies and infrastructure, while APAC showcases rapid expansion through innovation and increased consumer demand. The emergence of electric power steering systems across all regions is a response to the rising emphasis on vehicle efficiency and safety, driving opportunities for market participants.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

The Automotive Electric Power Steering Market has witnessed significant growth, driven by advancements in technology and the rising demand for fuel-efficient vehicles. As automotive manufacturers continue to prioritize steering technology that enhances vehicle performance, safety, and driver comfort, competitive dynamics in this market have become increasingly pronounced. Companies in the automotive electric power steering sector are focusing on innovation, with R&D expenditures on the rise, seeking to develop systems that integrate seamless functionality with advanced driver assistance systems (ADAS).

The competitive landscape is characterized by the presence of both established industry giants and emerging players, all vying for market share through strategic partnerships, technological advancements, and geographical expansions. As the market evolves, regulatory frameworks, environmental concerns, and consumer preferences will also play a critical role in shaping competitive strategies.

Denso stands out in the Automotive Electric Power Steering Market due to its extensive experience and technological expertise. The company has built a strong reputation for its high-quality steering systems, harnessing advanced electrification technologies to deliver efficient and reliable solutions to automobile manufacturers around the world. Denso’s global presence is supported by robust manufacturing capabilities and a commitment to sustainability, which resonates with the growing demand for eco-friendly automotive technologies. Their investments in research and development have enabled them to stay at the forefront of innovation, ensuring that their products not only meet but exceed market expectations.

The company’s strategic collaborations with OEMs further reinforce its position, as it works closely with clients to create bespoke steering solutions tailored to specific vehicle requirements.

Infineon Technologies has made a significant mark in the Automotive Electric Power Steering Market by specializing in semiconductor solutions that cater to this sector’s needs. The company’s product portfolio includes microcontrollers, ICs, and power management solutions that are critical for the functionality of electric power steering systems. Infineon Technologies is recognized for its pioneering role in creating components that enhance vehicle safety, energy efficiency, and overall performance. With a strong market presence, the company leverages its engineering capabilities to support manufacturers in implementing cutting-edge technologies into their electric power steering systems.

Furthermore, Infineon has been involved in various strategic mergers and acquisitions to bolster its capabilities and expand its market reach globally, ensuring that it remains competitive as the demand for adaptive steering solutions continues to rise in the automotive sector. Their focus on innovation and quality has fostered trust among partners and customers, making them a key player in the market.