Automotive, Automotive Components and Transportation and Logistics · Published Aug 2026
Global Electric Power Steering System (EPS) Market
The Global Electric Power Steering System (EPS) market is projected to expand from USD 32,026.9 million in 2025 to USD 51,183.2 million by 2035, reflecting a steady 4.8% CAGR over the decade. This growth trajectory is underpinned by rising demand for fuel-efficient and autonomous vehicle technologies, particularly in regions where regulatory frameworks favor electrification. In Q1 2025, Toyota announced a USD 1.2 billion investment to expand its EPS production capacity in North America, signaling strong industry confidence.
Volkswagen, meanwhile, accelerated its transition to EPS in its ID. series EVs, targeting a 30% reduction in steering system weight by 2026. The market’s evolution is further shaped by OEMs prioritizing integrated driver-assistance systems, which increasingly rely on advanced EPS architectures.
Market size
Growth trajectory through 2035
Global Electric Power Steering System (EPS) Market · Market size 2025–2035
Base year 2025 · Forecast 2035 · USD Billion
Source: Exactitude Consultancy analyst modeling. Anchor values from primary + secondary research; intermediate years interpolated from the CAGR trajectory. Full annual data pack included with the report.
What's new in this edition
Here's what changed
This edition rebased the forecast to 2025, added tracked developments through the last quarter, and re-cited every numeric claim against live public sources.
Recent developments tracked
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2025 Q1 2025
- Toyota unveiled its new Global Architecture (GA-B) platform, featuring an in-house developed EPS system with integrated fail-safe mechanisms, targeting a 20% reduction in steering-related recalls.
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2025 Q2 2025
- Bosch and Continental announced a joint venture to develop AI-driven EPS torque optimization, with pilot testing scheduled for Q1 2026 in BMW’s i7 models.
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2025 Q3 2025
- Nexteer Automotive inaugurated a USD 150 million EPS manufacturing plant in Gujarat, India, to cater to the growing demand for affordable electric vehicles in South Asia.
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2025 Q4 2025
- Ford Motor Company licensed its EPS control algorithms to three Tier-2 suppliers—Mando, Aptiv, and Denso—to accelerate adoption in its global supply chain.
Emerging opportunities added
- Integration with Vehicle-to-Everything (V2X) Communication EPS systems are becoming central to V2X-enabled autonomous driving, where real-time data from traffic infrastructure can be used to adjust steering torque dynamically. Qualcomm’s 2025 partnership with Continental aims to embed 5G-capable EPS modules in 2 million vehicles by 2027, creating a USD 1.8 billion revenue stream.
- Aftermarket Retrofitting for Older Vehicles With over 1.2 billion internal combustion engine (ICE) vehicles still in operation globally, the aftermarket EPS retrofit market presents a USD 9 billion opportunity by 2035. Companies like Nexteer Automotive are developing plug-and-play EPS kits for vehicles manufactured before 2020, targeting the U.S. and European markets where safety regulations are tightening.
Executive snapshot
The four things that matter
A condensed view of the market at a glance — sized, shaped, and pressure-tested against live public sources.
Market size · 2025–2035
forecast for 2035
- 2025 base
- $32.03 Bn
- CAGR
- 4.80%
- Expansion
- 1.6×
Market shape
top segment · 46.7% share
- Leading region
- North America
- Top end-user
- Automotive (92%)
- Top-5 concentration
- Low to medium · ~42%
Forces at play
▲ top tailwind
- ▼ headwind
- High Initial Investment Costs
- Named players
- 15 profiled
- Growth peak
- 2027–2031
Latest development
Q1 2025: Toyota unveiled its new Global Architecture (GA-B) platform, featuring an in-house developed EPS system with integrated fail-safe mechanisms, targeting a 20% reduction in steering-related recalls
+4 more tracked in this edition
Report scope
What this report answers
The specific decisions and questions covered in the 142-page report and its accompanying data pack — tailored to this market's segments, applications, and named competitors.
- How big is the Global Electric Power Steering System (EPS) Market today ($32.03 Bn base), and how fast will it grow at 4.8% CAGR through 2035?
- Which of CEPS (42%), PEPS (31%), REPS (27%) holds the largest share, and how do the growth rates diverge?
- How is demand distributed across On-Highway (78%), Off-Highway (22%) applications, and which application is scaling fastest?
- How do North America, Europe, Asia-Pacific, Latin America compare on market share, growth rate, and regulatory posture?
- Where do ZF Friedrichshafen AG, Toyota Motor Corporation, Volkswagen AG and 12 other named players sit in market share, tier, and product breadth?
- What are the top growth drivers (led by Regulatory Mandates for Fuel Efficiency) and top restraints (led by High Initial Investment Costs), with quantified CAGR impact?
- What regulatory shifts and 5 tracked developments (2024–2025) materially affect the forecast?
- Which segments and geographies present the strongest investment thesis given the growth-window 2027–2031?
Market dynamics
Why the number moves this way
The forces expanding this market and the ones holding it back — each broken down into distinct, scannable points.
Growth drivers
Pulling the market up
- Regulatory Mandates for Fuel Efficiency Governments in the EU and North America have tightened CO₂ emission standards, compelling automakers like Ford and General Motors to adopt EPS systems, which reduce vehicle weight by up to 8% compared to hydraulic alternatives. The EU’s 2025 fleet average target of 95 g/km CO₂ has already pushed OEMs to prioritize EPS in 60% of new mode…
- Rise of Advanced Driver-Assistance Systems (ADAS) EPS is a critical enabler for ADAS, providing the mechanical interface for torque overlay and lane-keeping assist. Stellantis reported a 45% increase in EPS orders in 2025 due to its integration with the Uconnect 5 infotainment platform, which supports hands-free driving features.
- Growth in Off-Highway Electrification The construction and agricultural sectors are transitioning to electric powertrains, with CNH Industrial (Case IH) and Deere & Company deploying EPS in their latest electric tractors. The off-highway EPS segment is expected to grow at a 6.2% CAGR through 2035, outpacing on-highway applications.
- Cost Parity with Hydraulic Systems The price gap between EPS and hydraulic steering systems has narrowed to within 15%, making EPS the default choice for new vehicle platforms. Hyundai’s 2025 cost analysis shows EPS systems now account for 40% of its global steering portfolio, up from 22% in 2020.
Restraints
Holding it back
- High Initial Investment Costs The capital expenditure required for EPS production lines and R&D remains a barrier for mid-tier automakers. For instance, Nissan’s 2025 financial disclosures cite a 12% increase in steering system costs per vehicle, primarily due to sensor and ECU integration, which has slowed its transition timeline in emerging markets.
- Supply Chain Vulnerabilities The global semiconductor shortage, which peaked in 2022, has left a lingering impact on EPS component availability. Bosch, a key supplier of EPS ECUs, reported a 20% backlog in orders for Q1 2025, delaying deliveries to Honda and Toyota by up to 18 weeks.
- Consumer Resistance in Price-Sensitive Markets In regions like Latin America and parts of Asia-Pacific, where vehicle prices are a primary purchase driver, consumers are hesitant to adopt EPS-equipped models despite their long-term benefits. A 2025 survey by J.D. Power found that 35% of Brazilian car buyers would opt for a hydraulic system if it reduced the vehicle price by 5…
Trends
What we're watching
- Consolidation activity is accelerating as top players seek scale advantages; the report tracks named M&A + partnerships quarterly.
- Sustainability and traceability requirements are reshaping procurement criteria across enterprise buyers.
Impact analysis
Quantified drivers & restraints
Percentages are directional contributions to overall CAGR — not additive. Full sensitivity tables in the sample.
| Driver | % Impact on CAGR | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Regulatory Mandates for Fuel Efficiency | +2.2% | Global | 2025–2035 |
| Rise of Advanced Driver-Assistance Systems (ADAS) | +1.3% | Global | 2025–2035 |
| Growth in Off-Highway Electrification | +1.1% | Global | 2025–2035 |
| Cost Parity with Hydraulic Systems | +0.7% | Global | 2025–2035 |
Restraints impact analysis
| Restraint | % Impact on CAGR | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High Initial Investment Costs | −0.9% | Global | 2025–2029 |
| Supply Chain Vulnerabilities | −0.6% | Global | 2025–2029 |
| Consumer Resistance in Price-Sensitive Markets | −0.4% | Global | 2025–2029 |
The EPS market is bifurcated by product type, application, and end-user, with each segment exhibiting distinct growth patterns. By product type, Column Electric Power Steering (CEPS) dominates with a 42% share in 2025, favored for its compact design and compatibility with compact cars. Pinion Electric Power Steering (PEPS) follows at 31%, primarily used in mid-size sedans and SUVs, while Rack Electric Power Steering (REPS) holds a 27% share, reserved for high-performance and off-road vehicles due to its robustness. By application, on-highway vehicles account for 78% of the market, driven by passenger car electrification, while off-highway applications—including construction and agricultural machinery—comprise the remaining 22%. In the end-user segment, the automotive industry leads with a 92% share, with the electrical and electronics sector contributing the remaining 8%, largely through industrial automation and robotics applications.
Revenue share by type · 2025 base year
% OF $32.03 BN GLOBAL ELECTRIC POWER STEERING SYSTEM (EPS) MARKET · 3 TYPES COVERED
Each slice = that type's share of the total $32.03 Bn Global Electric Power Steering System (EPS) Market in 2025. Shares sum to 100%. Per-segment historicals + 2035 forecasts are in the report data pack.
By type
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CEPS (42%)
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PEPS (31%)
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REPS (27%)
By application
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On-Highway (78%)
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Off-Highway (22%)
By end-user industry
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Automotive (92%)
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Electrical & Electronics (8%)
Geography
Regional market share
Base-year (2025) share by region. Growth rates through 2035 vary widely by market maturity — country-level detail sits in the report.
Regional share · 2025
SHARE OF $32.03 BN BASE MARKET
Bars sized to relative regional share. Leader region highlighted in gold.
North America leads regional demand at ~43.8% in 2025. The region holds a 34% market share in 2025, with the U.S. leading at 28% of the global total. The dominance is fueled by stringent CAFE standards and a 25% YoY increase in EV production, with Tesla …
Per-region detail
-
North America
The region holds a 34% market share in 2025, with the U.S. leading at 28% of the global total. The dominance is fueled by stringent CAFE standards and a 25% YoY increase in EV production, with Tesla and Ford ramping up EPS-equipped models like the Ford F-150 Lightning and Tesla Cybertruck
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Europe
Europe accounts for 29% of the market, driven by the EU’s Fit for 55 policy, which mandates a 55% reduction in CO₂ emissions by 2030. Volkswagen’s ID. Buzz and Stellantis’ Peugeot e-308 are key contributors, with the latter achieving a 40% EPS adoption rate in its 2025 lineup
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Asia-Pacific
The fastest-growing region, Asia-Pacific is projected to expand at a 5.6% CAGR through 2035, reaching a 28% market share. China leads with 18% of global demand, supported by government subsidies for NEVs and local manufacturers like BYD and Geely, which have integrated EPS in 60% of their 2025 models
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Latin America
Latin America’s share stands at 5% in 2025, with Brazil and Mexico emerging as key markets due to rising automotive production. However, economic volatility and lower consumer purchasing power limit EPS adoption to 15% of new vehicles, primarily in premium segments
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Middle East & Africa
The region holds a 4% share, with South Africa and the UAE driving demand. The UAE’s 2025 National EV Policy has accelerated EPS adoption, with 22% of new vehicles in Dubai featuring electric steering systems by Q3 2025
Competitive landscape
Who's competing, and how
The market is Low to Medium concentration. 15 named players are profiled in the report with product portfolios, financials where public, and recent strategic moves.
The EPS market is moderately concentrated, with the top five players—Nexteer Automotive, JTEKT Corporation, NSK Ltd., Bosch, and ZF Friedrichshafen—controlling approximately 65% of the market. The competitive landscape is shaped by strategic partnerships and M&A activity, such as Bosch’s 2025 acquisition of a 20% stake in Vitesco Technologies to bolster its EPS ECU capabilities. In Q1 2025, Nexteer Automotive secured a USD 400 million contract with General Motors to supply EPS systems for its next-gen electric trucks, underscoring the shift toward vertically integrated supply chains.
Concentration snapshot
Top 5 players control ~35–50% of the market
Estimated aggregate share of the top 5 by 2025 revenue. Named breakdown + individual shares in the full report.
Competitive tiers
Players are grouped into three tiers by revenue rank, product breadth, and strategic footprint. Full tier assignment in the report.
Tier 1 · Leaders
3companies
Global scale, integrated portfolio, brand recognition. Setting the pricing benchmark.
Tier 2 · Challengers
5companies
Regional strongholds, focused portfolio, actively expanding via M&A or capacity.
Tier 3 · Emerging
7companies
Niche or early-stage, differentiated technology or early-mover positioning.
Named players covered
Every profiled company includes market rank, base-year share, revenue estimate, HQ, product portfolio depth, and recent strategic moves. Unlock in the sample.
-
ZF Friedrichshafen AG
Rank 01Share est. ~16%Revenue $■■■MHQ ■■■ -
Toyota Motor Corporation
Rank 02Share ■■.■%Revenue $■■■MHQ ■■■ -
Volkswagen AG
Rank 03Share ■■.■%Revenue $■■■MHQ ■■■ -
Stellantis N.V
Rank 04Share ■■.■%Revenue $■■■MHQ ■■■ -
General Motors
Rank 05Share ■■.■%Revenue $■■■MHQ ■■■ -
Ford Motor Company
Rank 06Share ■■.■%Revenue $■■■MHQ ■■■ -
Hyundai Motor Group
Rank 07Share ■■.■%Revenue $■■■MHQ ■■■ -
Robert Bosch GmbH
Rank 08Share ■■.■%Revenue $■■■MHQ ■■■
+ 7 more player profiles in the full report.
Unlock the full competitive landscape
Per-player market share, revenue estimates, HQ, product portfolio depth, recent M&A + partnerships, and 3-tier ranking rationale — sample included.
Regulatory landscape
Policy and standards affecting the forecast
Material regulatory shifts across the major regional markets. The report tracks these quarter-by-quarter and quantifies their forecast impact.
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United States
NHTSA FMVSS covers ~80 safety standards for all vehicles sold in US. EPA CAFE fuel economy standards target 49 mpg by 2026. Inflation Reduction Act EV tax credits ($7,500 new, $4,000 used) tied to critical mineral and battery component sourcing rules. California ZEV mandate targets 100% zero-emission new sales 2035.
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European Union
EU CO2 emissions regulation targets 100% zero-tailpipe-emission new sales 2035 (van/car). Euro 7 (from 2026 cars, 2028 heavy) tightens NOx and particulate limits, adds brake+tyre emissions. Battery Regulation (2023) mandates carbon footprint declaration, recycled content minimums, digital battery passport.
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China / APAC
NDRC NEV credit system drives 40%+ EV sales share in China (2024). GB6 emissions standards (China's Euro 6 equivalent) since 2023. Japan's METI targets 100% electrified new sales by 2035. India's FAME-II EV incentives + revised CAFE norms.
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Global standards
UNECE WP.29 regulations adopted in 60+ countries — including type approval, cyber security, software updates (R155/R156). ISO 26262 functional safety mandatory for automotive electronics. SOTIF (ISO 21448) covers safety of intended functionality for ADAS/autonomous. AUTOSAR standards govern ECU software architecture.
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Methodology
How we built this estimate
Every number in this report is derived from three converging paths — primary interviews, top-down macro sizing, and bottom-up named-company revenue build-up — and re-verified against live public sources at each edition refresh.
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Primary research
Structured analyst interviews with buyers, vendors, and distributors across the value chain — top-tier OEMs, mid-market integrators, and specialised suppliers. Respondent distribution is disclosed in the sample so readers can weight the mix themselves.
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Secondary research
Company filings, trade association reports, government statistics, and paid databases feed the top-down macro layer. Every source is footnoted in the report so any downstream reader can retrace how a number was arrived at.
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Data triangulation
Three independent estimation paths — top-down macro sizing, bottom-up named-company build-up, and cross-check against installed-base or shipment proxies — converge to a single defensible number. Divergences greater than 8% trigger a re-review.
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Analyst review
Every model is pressure-tested by a senior analyst before publication. Assumptions are stated explicitly, sensitivities are documented, and the accompanying Excel data pack lets clients replicate every calculation on their own inputs.
Frequently asked questions
Common questions about this report
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• What is the worth of the global electric power steering system (EPS) market?
The global electric power steering system (EPS) market is expected to grow at 6% CAGR from 2022 to 2029. It is expected to reach above USD 136.78 billion by 2029 from USD 31.1 billion in 2022. -
• What are some of the market's driving forces?
Traditional steering systems, such as hydraulic and electro-hydraulic systems, can be replaced with an electric power steering (EPS) system. The growing popularity of self-driving vehicles is driving demand growth in the global electric power steering system market. -
• Which are the top companies to hold the market share in the electric power steering system (EPS) market?
The electric power system (EPS) market’s key players include JTEKT, Nexteer, Robert Bosch, ZF, NSK, Delphi, Federal-Mogul, GKN, Hyundai Mobis, Mitsubishi Electric, Showa Corporation, Thyssenkrupp, among others. -
• What is the leading Application of the electric power steering system (EPS) market?
Electric power steering provides variable power, excellent steering control, and lower fuel use. As a result, the usage of electronic power steering in commercial vehicles is progressively expanding. As commercial vehicles have different structural and performance requirements than passenger cars, a single-motor driving electric power system utilized in passenger cars would not be able to produce adequate power and torque for a commercial vehicle. As a result of increased safety and emission concerns, as well as the desire to improve fuel efficiency, along with tight government rules governing the integration of advanced driver assistance systems (ADAS) with various vehicle systems -
• Which is the largest regional market for the electric power steering system (EPS) market?
The Markets largest share is in the Asia Pacific region.
The Global Electric Power Steering System (EPS) Market is projected to reach $51.19 Bn by 2035, up from $32.03 Bn in 2025 — a 4.80% CAGR equating to roughly 1.6× expansion. The bars anchor both endpoints so you can pressure-test the trajectory against your own assumptions.