Electric Power Steering System Market

Government programs and increased focus on safer automotive systems drive market growth.

The increased focus on safer automotive systems drives Market CAGR for electric power steering systems. Approx. 1.24 million people lose their li in road accidents each year on average worldwide; half of them are vulnerable road users like walkers and motorcycle riders, and the other half are victims of side-impact collisions. 80% of cars sold worldwide, according to the World Health Organization (WHO), do not meet the essential safety requirements. Forty nations have only implemented the complete set of the seven most crucial standards for auto safety.

The incidence of incidents has significantly increased, which has prompted end users to adopt improved safety measures. In all first-world nations, accident and fatality rates have consistently decreased thanks to road and vehicle design advancements. Governments are focusing on enforcing strict safety regulations and encouraging the adoption of various car subsystems because accident rates are still higher in some developing nations.

OEMs are incorporating advanced sensors into EPS to enhance the system's overall functionality and vehicle safety. The electric power steering (EPS) system uses several steering sensors to give the driver additional safety advantages. Furthermore, the development of advanced steering systems (like EPS), which heavily rely on steering sensors, is considered to be greatly influenced by the adoption of strict fuel economy criteria by governments and international safety regulations. A new automotive R&D Competence Centre in Budapest has received a EUR 6.2 million investment from ThyssenKrupp to develop electromechanical power steering systems with various driver assistance and self-driving systems.

Several nations have implemented stringent regulations governing automobile emissions and fuel efficiency. Regulatory bodies include the US NHTSA, the European ICCT, and other organizations implementing fleet-level regulations. These specifications set a minimum emission level that automakers must follow. These regulations have compelled automakers to invest more in fuel-efficient steering systems, such as electric power steering. Players are working together and designing cutting-edge steering systems to meet these needs. Thus, driving the electric power steering system market revenue.

OEMs have recently moved their attention from hydraulic to electric power steering systems to simplify and boost efficiency. EPS systems assist in steering by using an electric motor rather than a hydraulic pump, which helps to lighten the car's weight. The amount of steering power being exerted by the driver is calculated by electronic sensors. With the aid of an electric motor, the force is amplified to simplify steering. Currently, hydraulic power steering (HPS), which has a complex structure, consumes a lot of power, leaks quickly, and is challenging to control, dominate the market for power steering in commercial vehicles.

The benefits of EPS include customizable power, superb steering, minimal fuel usage, and zero pollution. As a result, commercial cars would eventually begin to use it.

The Global Electric Power Steering System Market Industry experiences a surge in demand driven by the automotive sector's focus on fuel efficiency. As consumers become more environmentally conscious, manufacturers are compelled to adopt technologies that enhance fuel economy. Electric power steering systems, which reduce energy consumption compared to traditional hydraulic systems, are increasingly favored. In 2024, the market is projected to reach 20.4 USD Billion, reflecting a growing trend towards sustainable automotive solutions. This shift not only aligns with regulatory pressures but also meets consumer expectations for greener vehicles, thereby propelling the market forward.

The rise of autonomous vehicles is reshaping the Global Electric Power Steering System Market Industry. As automakers develop self-driving technologies, the need for precise steering control becomes paramount. Electric power steering systems offer the necessary responsiveness and adaptability required for autonomous navigation. This trend is likely to accelerate market growth, with projections indicating a market size of 33.7 USD Billion by 2035. The integration of electric power steering in autonomous vehicles not only enhances safety but also improves overall driving dynamics, making it a crucial component in the evolution of modern transportation.

Government regulations promoting electric vehicles (EVs) significantly influence the Global Electric Power Steering System Market Industry. Many countries are implementing stringent emissions standards and providing incentives for EV adoption, which in turn drives the demand for electric power steering systems. These systems are inherently more compatible with electric drivetrains, making them a preferred choice for manufacturers. As regulatory frameworks continue to evolve, the market is expected to expand, supported by a growing consumer base that values sustainability. This regulatory push aligns with the industry's trajectory towards greener technologies, further solidifying the role of electric power steering.

Technological innovations play a pivotal role in shaping the Global Electric Power Steering System Market Industry. Advancements in sensor technology, software algorithms, and electric motor design contribute to enhanced steering performance and driver experience. For instance, the integration of advanced driver-assistance systems (ADAS) with electric power steering allows for improved vehicle handling and safety. As these technologies evolve, they are expected to drive market growth significantly. The anticipated compound annual growth rate (CAGR) of 4.66% from 2025 to 2035 indicates a robust future for the industry, as manufacturers increasingly invest in cutting-edge steering solutions.

Consumer preferences are shifting towards vehicles that offer superior driving experiences, which is positively impacting the Global Electric Power Steering System Market Industry. Electric power steering systems provide enhanced feedback and responsiveness, catering to the desires of modern drivers for more engaging vehicle interactions. As automakers strive to differentiate their offerings, the integration of advanced steering technologies becomes essential. This trend is likely to drive market growth as manufacturers seek to meet evolving consumer expectations. The increasing emphasis on driving pleasure and comfort suggests a promising outlook for electric power steering systems in the automotive landscape.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The market is dominated by Asia-Pacific, with China dominating, followed by India and Japan. Over the forecast period, this dominance is anticipated to continue. Chinese passenger car production hit 996,000 units in April 2022 and sales at 965,000. Due to this, production and sales have decreased by 41.9% and 43.4%, respectively, from the previous year. The output of passenger cars fell 2.6% year over year from January through April 2022, totaling 6,494 million units.

The presence of many local and international players distinguishes the nation. 

Joint partnerships with local businesses are the most common way international enterprises enter the Chinese market. For instance, Dongfeng Nexteer Steering Systems (Wuhan) Co. Ltd. was established through an agreement between Nexteer Automotive and Dongfeng Motor Parts & Components Group. This new business will make single-pinion assist electric power steering (SPEPS) systems. Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Electric Power Steering System Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's electric power steering system market accounts for the second-largest market share due to increasing demand of advanced steering assist mechanisms in premium passenger vehicles in the region. Further, the German electric power steering system market held the largest market share, and the UK electric power steering system market was the fastest growing market in the European region.

The North America Electric Power Steering System Market is expected to grow fastest from 2024 to 2032 as the sales of luxury cars equipped with advanced power steering system is expected to increase. Moreover, US electric power steering system market held the largest market share, and the Canadian electric power steering system market was the fastest growing market in the North American region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the electric power steering system market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global electric power steering system industry to benefit clients and increase the market sector. In recent years, the electric power steering system industry has offered some of the most significant advantages to medicine. Major players in the electric power steering system market include Showa Corporation (Japan), Nexteer Automotive (US), JTEKT Corporation (Japan), Thyssenkrupp AG (Germany), Hyundai Mobis (South Korea), ZF Friedrichshafen AG (Germany), and Robert Bosch GmbH, and others, are attempting to increase market demand by investing in research and development operations.

Auburn Hills, Michigan, serves as the corporate headquarters for the American automotive supplier BorgWarner Inc. As of June 6th, 2022, the corporation employs 49,000 people and operates production facilities and technical systems at 93 locations across 22 nations. One of the top 25 global suppliers to the automotive industry is BorgWarner. Since August 1st, 2018, Frédéric Lissalde has served as CEO of BorgWarner Inc. Delphi Technologies was purchased by BorgWarner in October 2020 for USD 3.3 billion in stock.

A leader in electrified propulsion is projected to be created due to the purchase, which is anticipated to boost BorgWarner's electronics and power electronics product range, capabilities, and scale.

ZF is a leading chassis and driveline technology producer for cars and trucks, as well as specialized plant machinery like construction equipment. In addition to normal industrial applications, it is also involved in the rail, maritime, defense, and aviation industries. ZF employs over 165,000 people across 168 production sites in 32 nations. ZF Friedrichshafen AG purchased WABCO for USD 7 billion in May 2020. 

The Commercial Vehicle Control Systems Division of WABCO has now been incorporated into ZF, and together with WABCO, ZF will create a globally integrated system for commercial vehicle technology. In the past, WABCO and ZF collaborated to create systems like Evasive Manoeuvre Assist for commercial trucks to reduce collisions. Additionally, ZF relied heavily on WABCO as a supplier of braking systems.