Car Electric Power Steering

Car Electric Power Steering Market Outlook

The global Car Electric Power Steering Market is projected to reach a value of approximately USD 28 billion by 2035, expanding at a compound annual growth rate (CAGR) of around 8% during the forecast period from 2025 to 2035. This growth is primarily attributed to the increasing demand for fuel-efficient vehicles and advancements in automotive technologies. The rise in consumer awareness regarding vehicle safety, coupled with stringent government regulations concerning emissions and fuel consumption, has further accelerated the adoption of electric power steering (EPS) systems in vehicles. Additionally, the surge in electric vehicle (EV) sales worldwide is expected to enhance the integration of electric power steering systems, thereby contributing to the market's growth. Furthermore, as vehicle manufacturers are increasingly prioritizing driver comfort and enhanced maneuverability, EPS systems are becoming an essential component of modern vehicles.

Growth Factor of the Market

The growth factor of the Car Electric Power Steering Market can be attributed to several intertwined elements that are fostering its expansion. Firstly, the automotive industry is experiencing a significant shift towards electrification, compelling manufacturers to incorporate electric steering systems to improve energy efficiency and reduce overall vehicle weight. Moreover, advancements in autonomous driving technologies have necessitated the development of more responsive and precise steering systems, which electric power steering is well-equipped to provide. Additionally, the growing trend of integrating advanced driver-assistance systems (ADAS) into vehicles has increased the demand for EPS due to its capability to enhance vehicle control and safety. The rising consumer preference for comfort features in vehicles, including adjustable steering systems, is another factor driving the market. Lastly, the increasing production of electric and hybrid vehicles worldwide is creating a substantial demand for EPS systems, further solidifying the growth trajectory of this market.

Key Highlights of the Market

• The global Car Electric Power Steering market is expected to grow significantly, driven by the increase in electric vehicle production.
• Technological advancements in steering systems, including enhanced driver-assistance capabilities, are reshaping the market landscape.
• Passenger cars are anticipated to dominate the market, accounting for a substantial market share due to higher consumer demand.
• The integration of EPS in commercial vehicles is gradually rising, supporting both safety and efficiency in fleet operations.
• Asia Pacific is expected to witness the highest market growth due to rapid urbanization and rising disposable incomes in emerging economies.

By Vehicle Type

Passenger Cars:

Passenger cars represent the largest segment in the Car Electric Power Steering Market due to their widespread usage and the increasing consumer focus on comfort and convenience features. Manufacturers are increasingly incorporating electric power steering systems in passenger cars for their benefits, including improved fuel efficiency and reduced weight compared to traditional hydraulic systems. The growing demand for advanced safety features, such as lane-keeping assistance and adaptive cruise control, has further driven the integration of EPS in passenger vehicles. Additionally, as electric and hybrid car sales continue to rise, the necessity for optimized steering solutions will bolster the adoption of EPS systems within this segment, ensuring a comfortable and responsive driving experience for consumers.

Commercial Vehicles:

The commercial vehicles segment is observing a gradual increase in the adoption of electric power steering systems, driven by the need for enhanced safety and operational efficiency. Fleet operators are shifting towards EPS to facilitate better maneuverability and precision in driving, especially in urban environments where space is often constrained. As commercial vehicles often face significant wear and tear, EPS systems offer a more reliable and maintenance-free solution compared to traditional hydraulic setups. Additionally, with rising fuel costs and environmental regulations, the incorporation of EPS in commercial vehicles can lead to better fuel efficiency and lower emissions. This segment is expected to grow steadily as more commercial vehicle manufacturers recognize the benefits of electric power steering technology.

By Component Type

Electric Motor:

The electric motor is a critical component of the electric power steering system, providing the necessary torque to assist steering. This component is gaining traction due to its role in enhancing the overall responsiveness and efficiency of the steering system. Electric motors used in EPS applications are designed to be compact, lightweight, and efficient, contributing to reduced vehicle weight and improved fuel economy. As automakers look to optimize vehicle performance and responsiveness, the demand for high-performance electric motors in steering systems is anticipated to grow. Furthermore, advancements in motor technology, including brushless motors, are enhancing the efficiency and reliability of electric power steering systems across different vehicle types.

Sensors:

Sensors play a vital role in electric power steering systems by detecting the driver's steering input and providing data to the steering control unit for accurate response. The increasing integration of advanced sensors in EPS systems is revolutionizing vehicle steering, enabling more precise control and improved safety features. These sensors enhance the functionality of driver-assistance systems, such as adaptive steering and lane-keeping assistance, which further boosts vehicle safety. With the growing emphasis on vehicle safety and comfort, the demand for sophisticated sensor technologies in electric power steering systems is expected to rise significantly, contributing to a more enhanced driving experience.

Steering Control Unit:

The steering control unit (SCU) is an integral component of the electric power steering system, responsible for processing data from the sensors and generating appropriate output to the electric motor. The SCU ensures optimal responsiveness and assists in adapting the steering feel based on various driving conditions. As vehicle manufacturers focus on enhancing the driving experience through advanced control algorithms, the demand for innovative steering control units is projected to increase. The SCU's ability to support features like variable steering ratio, which adjusts steering response based on vehicle speed, further emphasizes its importance in modern electric power steering systems. As a result, the steering control unit segment is poised for growth, driven by advancements in automotive technology and increasing consumer expectations.

Others:

The "Others" category encompasses various additional components used in electric power steering systems, such as wiring harnesses and connectors, which are essential for the seamless operation of the system. While these components may not individually dominate the market, their cumulative impact is significant in ensuring the reliability and performance of EPS systems. As the automotive industry continues to evolve, manufacturers are focusing on optimizing these ancillary components to enhance the overall efficiency and reliability of electric power steering systems. The increasing complexity of vehicle electrical architectures and the need for integrated solutions are expected to boost demand in this segment, providing a comprehensive support structure for electric power steering systems.

By Sales Channel

OEMs:

The OEM (Original Equipment Manufacturer) segment is the primary sales channel for electric power steering systems, as vehicle manufacturers are the main adopters of this technology for new vehicle models. The increasing trend towards vehicle electrification and the incorporation of advanced safety features have led OEMs to integrate electric power steering systems as standard equipment. This segment is bolstered by the growing production of electric and hybrid vehicles, which heavily rely on EPS for efficiency and maneuverability. As OEMs continue to innovate and enhance vehicle performance, the demand for electric power steering systems through this channel is expected to remain robust, further solidifying the market’s growth.

Aftermarket:

The aftermarket segment is gradually gaining prominence in the Car Electric Power Steering Market, driven by the increasing need for replacement and upgrading of existing steering systems in vehicles. As the automotive landscape evolves, consumers are increasingly interested in enhancing their vehicles with modern steering technologies that offer better performance and comfort. The aftermarket presents opportunities for suppliers to provide electric power steering components and systems for older vehicle models that still utilize hydraulic systems. The rising awareness of safety and efficiency benefits associated with EPS is driving the demand for aftermarket solutions, leading to a projected increase in sales within this segment as consumers seek to retrofit their vehicles with advanced steering technologies.

By System Type

Rack-Assist Type:

The rack-assist type of electric power steering is gaining traction due to its compact design and efficient performance, making it suitable for a wide range of vehicle applications. This system operates by using an electric motor mounted on the steering rack, providing direct assistance to the driver’s input. The rack-assist type offers a more natural steering feel compared to traditional hydraulic systems, enhancing driver comfort and control. Its lightweight nature contributes to overall vehicle efficiency, which is crucial in the era of increasing fuel economy standards. As consumers prioritize responsive handling and enhanced driving experiences, the demand for rack-assist EPS is expected to witness significant growth in the coming years, particularly in passenger vehicles.

Column-Assist Type:

Column-assist electric power steering systems are characterized by their integration directly into the steering column, allowing for a straightforward design and installation process. This system type is particularly favored in compact vehicles where space is limited. The column-assist type provides a balance between performance and space efficiency, making it an attractive option for manufacturers. The growing trend of urbanization and the demand for smaller, more fuel-efficient vehicles are propelling the adoption of column-assist EPS systems. As automakers continue to innovate and focus on compact designs, the column-assist type is expected to maintain a favorable position in the market, catering to the evolving needs of consumers.

Pinion-Assist Type:

The pinion-assist electric power steering system is designed to provide a robust and reliable steering solution, particularly in larger vehicles and SUVs. This type features an electric motor mounted on the pinion gear, offering direct assistance to the steering mechanism. The pinion-assist design allows for a more precise control of the steering input, enhancing the overall driving experience. With the increasing popularity of SUVs and larger vehicles, the demand for pinion-assist EPS systems is expected to rise significantly. Furthermore, the capability of pinion-assist systems to handle higher loads makes them suitable for various applications, reinforcing their importance in the Car Electric Power Steering Market.

By Region

The Car Electric Power Steering Market is witnessing robust growth across various regions, with Asia Pacific emerging as a dominant player. The region is projected to hold a substantial market share, driven by the rapid urbanization and increasing production of vehicles, particularly in countries like China and India. The growth in disposable income levels in these countries is facilitating consumer spending on automobiles. With a CAGR of 9% anticipated during the forecast period, Asia Pacific is set to lead the market, propelled by the extensive adoption of electric power steering systems in both passenger and commercial vehicle segments. This growth trajectory reflects the region's commitment to adopting advanced automotive technologies, further enhancing its position in the global market.

North America is another significant region in the Car Electric Power Steering Market, characterized by a high demand for advanced driver-assistance systems and fuel-efficient vehicles. The region's stringent regulations regarding vehicle emissions and safety standards are driving the manufacturers to adopt electric power steering systems as standard equipment in new vehicles. The U.S. automotive market is expected to continue supporting the growth of EPS, with increasing investments in electric vehicle infrastructure and technology. Furthermore, Europe is also witnessing a steady increase in EPS adoption, particularly in the luxury vehicle segment, where enhanced driving performance and comfort features are prioritized. In total, while the global market is anticipated to reach approximately USD 28 billion by 2035, North America and Europe are projected to contribute significantly to this growth without surpassing the global numbers.

Opportunities

The Car Electric Power Steering Market presents numerous opportunities for growth and innovation in the coming years. One of the key opportunities lies in the rising demand for electric and hybrid vehicles, as manufacturers increasingly adopt electric power steering systems to enhance fuel efficiency and reduce vehicle weight. The global shift towards electrification offers a fertile ground for companies focusing on EPS technology, allowing them to develop advanced solutions tailored to the specific needs of electric vehicles. Additionally, with consumers becoming more aware of the benefits of enhanced safety features, such as lane-keeping assistance and adaptive steering, there exists a significant opportunity for the integration of EPS systems into a wider range of vehicle models. As vehicle manufacturers aim to meet consumer demands for comfort and safety, the EPS market is expected to see substantial growth, particularly in emerging markets.

Moreover, the ongoing advancements in connected vehicle technologies and autonomous driving systems present further opportunities for innovation in the electric power steering segment. As vehicle automation becomes more prevalent, EPS systems are being integrated with various sensors and control systems to provide better handling and maneuverability. This convergence of technologies allows for the development of more sophisticated steering solutions that enhance driver experience and safety. Companies that can innovate and adapt their EPS offerings to align with these emerging trends will likely gain a competitive edge in the market. Furthermore, the aftermarket segment presents opportunities for growth, as older vehicles require upgrades and replacements for steering systems to meet modern safety and efficiency standards.

Threats

Despite the promising growth prospects for the Car Electric Power Steering Market, several threats could potentially hinder its expansion. One significant threat is the volatility of raw material prices, particularly for electronic components and metals used in manufacturing electric power steering systems. Fluctuations in the cost of these materials can impact the production costs for manufacturers, forcing them to either absorb the additional expenses or pass them on to consumers. This situation may lead to increased prices for electric power steering systems, potentially deterring consumers and impacting overall market growth. Additionally, the market faces competition from alternative steering technologies, such as hydraulic systems, which may appeal to cost-sensitive consumers who prioritize price over advanced features.

Another threat to the Car Electric Power Steering Market is the slow adoption rate in some regions due to varying levels of regulatory support and infrastructure development. In certain developing markets, the adoption of electric power steering systems may lag due to limited consumer awareness and lower purchasing power. Manufacturers operating in these regions may encounter challenges in establishing a foothold as they compete with well-established hydraulic steering systems. Furthermore, the risk of technological obsolescence is a cause for concern, as rapidly advancing automotive technologies necessitate continuous improvement and innovation in electric power steering systems. Failure to keep pace with industry advancements could lead to loss of market share and relevance in an increasingly competitive landscape.

Restrainer factors also exist within the Car Electric Power Steering Market, particularly regarding the integration process and associated costs. Retrofitting older vehicles with electric power steering systems can be costly and technically challenging, often requiring specialized knowledge and skills. This complexity can deter aftermarket adoption and limit the overall market growth potential. Additionally, the relatively higher initial investment required for electric power steering systems compared to traditional hydraulic systems may act as a barrier for some consumers, particularly in price-sensitive markets. Manufacturers must find ways to optimize production processes and reduce costs to ensure the widespread adoption of electric power steering systems while simultaneously addressing consumer concerns regarding affordability and installation.

Competitor Outlook

• Bosch Group
• ZF Friedrichshafen AG
• Continental AG
• JTEKT Corporation
• Hitachi Automotive Systems, Ltd.
• Audi AG
• Thyssenkrupp AG
• Hyundai Mobis
• NSK Ltd.
• TRW Automotive Holdings Corp.
• Mercedes-Benz AG
• Denso Corporation
• Magneti Marelli S.p.A.
• Valeo SA
• Parker Hannifin Corporation

The competitive landscape of the Car Electric Power Steering Market is characterized by a mix of well-established global players and emerging companies. Major companies such as Bosch Group, ZF Friedrichshafen AG, and Continental AG dominate the market due to their extensive experience in automotive technologies and robust R&D capabilities. These companies are continually investing in developing innovative electric power steering solutions, enhancing their product offerings to meet the ever-evolving demands of consumers and vehicle manufacturers alike. Their strong distribution networks and partnerships with key automakers further solidify their competitive positions within the market, allowing them to leverage economies of scale and drive down costs, while improving product quality and performance.

In addition to the major players, the market also features a number of specialized companies, such as JTEKT Corporation and Hitachi Automotive Systems, which focus on providing tailored solutions for electric power steering systems. These companies often excel in niche segments, offering unique technologies or services that cater to specific market needs. As the automotive industry undergoes a significant transformation towards electrification and automation, these specialized firms are poised to play a crucial role in driving innovation and competition within the electric power steering sector. Furthermore, the aggressive strategy of mergers and acquisitions among these players signifies the importance of expanding technology portfolios and entering new markets to capture growth opportunities.

Companies are increasingly collaborating with tech firms to integrate advanced features into their electric power steering systems, such as connectivity and advanced driver-assistance systems (ADAS). For instance, partnerships with software developers enable these companies to create smart steering solutions that adapt to varying driving conditions and enhance user experience. The competitive landscape is also influenced by geographical expansion, as firms are targeting emerging markets in Asia Pacific and Latin America, where the demand for electric power steering systems is on the rise. As these regions continue to develop their automotive sectors, companies that can establish a strong presence and build relationships with local manufacturers will likely benefit from significant growth opportunities.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 Audi AG
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 NSK Ltd.
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Valeo SA
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 Bosch Group
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 Hyundai Mobis
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 Continental AG
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Thyssenkrupp AG
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Mercedes-Benz AG
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 Denso Corporation
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 JTEKT Corporation
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 ZF Friedrichshafen AG
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 Magneti Marelli S.p.A.
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 Parker Hannifin Corporation
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 TRW Automotive Holdings Corp.
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Hitachi Automotive Systems, Ltd.
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Car Electric Power Steering Market, By System Type
    • 6.1.1 Rack-Assist Type
    • 6.1.2 Column-Assist Type
    • 6.1.3 Pinion-Assist Type
  • 6.2 Car Electric Power Steering Market, By Vehicle Type
    • 6.2.1 Passenger Cars
    • 6.2.2 Commercial Vehicles
  • 6.3 Car Electric Power Steering Market, By Component Type
    • 6.3.1 Electric Motor
    • 6.3.2 Sensors
    • 6.3.3 Steering Control Unit
    • 6.3.4 Others

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Asia Pacific - Market Analysis
    • 10.2.1 By Country
      • 10.2.1.1 India
      • 10.2.1.2 China
      • 10.2.1.3 Japan
      • 10.2.1.4 South Korea
  • 10.3 Latin America - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 Brazil
      • 10.3.1.2 Argentina
      • 10.3.1.3 Mexico
  • 10.4 North America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 USA
      • 10.4.1.2 Canada
  • 10.5 Middle East & Africa - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 Middle East
      • 10.5.1.2 Africa
  • 10.6 Car Electric Power Steering Market by Region

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Car Electric Power Steering market is categorized based on

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Component Type

• Electric Motor
• Sensors
• Steering Control Unit
• Others

By System Type

• Rack-Assist Type
• Column-Assist Type
• Pinion-Assist Type

By Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Bosch Group
• ZF Friedrichshafen AG
• Continental AG
• JTEKT Corporation
• Hitachi Automotive Systems, Ltd.
• Audi AG
• Thyssenkrupp AG
• Hyundai Mobis
• NSK Ltd.
• TRW Automotive Holdings Corp.
• Mercedes-Benz AG
• Denso Corporation
• Magneti Marelli S.p.A.
• Valeo SA
• Parker Hannifin Corporation