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The global electric power steering system market is set to reach US$ 29.4 BN by 2032, at a 5.3% CAGR between years 2023-2032. The recent dynamic transformations in the market can be attributed to novel technological breakthroughs, regulations, and consumer behavior.
Some of the primary drivers of the market are the recent shift from hydraulic systems to electric power steering systems and the growing need for fuel-efficiency and reduced emissions from automobiles. Electric power steering systems provide better than normal energy conservation as compared with their hydraulic counterparts when going out of the industry’s way to sustainability initiatives. Also, the increase in electric and hybrid vehicles has had a profound effect on the market for electric power steering system.
As automakers adopt electrification as a means of satisfying stringent emission limits, the need for EPS becomes essential because it is suitable to electric drivetrains. It has resulted in rapid growth of the market due to an increased interest towards adopting electric power steering systems across various vehicle segments. Another crucial factor influencing market dynamics is the continuous technological progress in automotive electronics.
The introduction of sensors, control units and advanced algorithms has improved the efficiencies and functionalities of electric power steering systems. These developments have resulted in better accuracy, quickness and driving experience overall to enhance appeal of EPS for both manufacturers as well as customers. The safety standards and regulatory measures have also contributed significantly to the evolution of electric power steering system market.
Today as governments of the world are getting tougher with their regulations to ensure better vehicle safety and reduce environmental impaction. For instance, the electric power steering systems that can provide support for ADAS and compliance with safety regulations are gaining popularity.
The competitive structure of the electric power steering system market has also seen a gradual increase in players, from conventional OEM suppliers to new competitors with expertise in electronic and electrical sub-systems. This diversity brings about creativity and further fuels competition, leading to Product innovation continuously lowering costs. Therefore, electric power steering systems provide more options and features to the consumers.
Market dynamics are also driven to a great extent by factors of cost. This has resulted in significant reduction of manufacturing and integration costs for electric power steering systems hence their accessibility to a wider market. The cost-effectiveness of EPS is a major driver behind the widespread use this technology, especially in mid-range and economy vehicle classes; therefore, contributing directly to market growth.
Another market dynamics aspect to note is the aftermarket segment. As the vehicle installed base equipped with electric power steering systems slowly increases, so does the demand for aftermarket services of repair and upgrade. In this respect, there are choices for OEMs and independent service providers to address the continually changing demands of vehicle owners.
Electric Power Steering System Market Highlights:
Electric Power Steering System Market Overview:
The Electric Power Steering System Market size was valued at USD 19.4 Billion in 2023. The Electric Power Steering System industry is projected to grow from USD 20.42 Billion in 2024 to USD 29.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.65% during the forecast period (2024 - 2032). Government regulations and standards for fuel-efficient technologies, OEM initiatives worldwide to make their vehicles lighter and simpler, and rising vehicle production are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Electric Power Steering System Market Trends
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.
Electric Power Steering System Market Segment Insights:
Electric Power Steering System Type Insights
Based on type, the Electric Power Steering System Market segmentation includes C-EPS, R-EPS and P-EPS. According to estimates, the R-EPS is the fastest-growing category by type. The rising rate of EPS installation in commercial vehicles is one of the factors boosting this market segment. Mostly found in huge commercial vehicles, rack EPS (R-EPS). Therefore, the rise of R-EPS systems would be prompted by the rising popularity of EPS in large commercial vehicles.
Electric Power Steering System Vehicle Type Insights
The Electric Power Steering System Market segmentation, based on vehicle type, includes Passenger Vehicles, Light Commercial Vehicles and Heavy Commercial Vehicles. The passenger vehicle segment held a market share of 55.61% in 2022 due to increased sales and production of passenger cars across major countries such as India, China and the US. Over the predicted period, it is also expected to grow at the fastest CAGR.
Figure 1: Electric Power Steering System Market by Vehicle Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Electric Power Steering System Mechanism Insights
Based on mechanism, the Electric Power Steering System Market segmentation includes collapsible and rigid EPS. The collapsible category led the market. The employment of a collapsible electric power steering system has grown as the age of modern technology has arrived. Both electric and conventional automobiles frequently employ collapsible electric power steering systems.
Electric Power Steering System Regional Insights
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, MRFR 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.
Electric Power Steering System Key Market Players & Competitive Insights
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.
Key Companies in the electric power steering system market include
- Showa Corporation (Japan)
- JTEKT Corporation (Japan)
- Nexteer Automotive (US)
- Hyundai Mobis (South Korea)
- Thyssenkrupp AG (Germany)
- ZF Friedrichshafen AG (Germany)
- Robert Bosch GmbH
Electric Power Steering System Industry Developments
Toyota Motor Corporation (Toyota) sold Yutaka Seimitsu Kogyo Ltd. shares to JTEKT. Yutaka makes and distributes gears for various machinery as well as automotive components. The agreement aims to make Toyota and JTEKT's primary driveline operations more competitive. JTEKT will take over from Toyota for all Yutaka operations involving drive components.
In China's Liuzhou's Liudong New District, Nexteer inaugurated a new facility. Customers will receive C-EPS (column-assist electric power steering) systems, related technology, and services from this new 12,000-square-meter facility. To address the rising demand for electric power steering systems in the Chinese and Asia Pacific markets, opening the new plant will increase Nexteer's manufacturing capacity in the region. To manufacture electric power steering (EPS) systems, NSK Ltd.'s joint venture Rane NSK Steering Systems Pvt. Ltd., built a new facility in Gujarat (India). The facility has a 5,200 square meter floor area and an 18,000 square meter plot of land. The investment is a component of the company's strategic expansion plan. The business will produce 250,000 electric power steering systems annually.
Electric Power Steering System Market Segmentation:
Electric Power Steering System Type Outlook
- C-EPS
- R-EPS
- P-EPS
Electric Power Steering System Vehicle Type Outlook
- Passenger Vehicle
- Light Commercial Vehicle
- Heavy Commercial Vehicle
Electric Power Steering System Mechanism Outlook
- Collapsible EPS
- Rigid EPS
Electric Power Steering System Regional Outlook
North America
- US
- Canada
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
- Middle East
- Africa
- Latin America
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