Automotive, Automotive Components and Transportation and Logistics · Published Aug 2026
Electric Power Steering Market
The global electric power steering (EPS) market is projected to expand from USD 30,135.1 million in 2025 to USD 52,459.2 million by 2035, reflecting a compound annual growth rate (CAGR) of 5.7%. This trajectory underscores the accelerating shift from hydraulic to electric systems, driven by regulatory mandates and consumer demand for fuel-efficient vehicles. In Q1 2025, Toyota announced a USD 1.2 billion investment to expand its EPS production capacity in North America, signaling intensified competition among OEMs.
Volkswagen’s ID. series EVs, which exclusively use EPS, contributed to a 12% year-over-year increase in electric vehicle (EV) penetration in Europe during the same period. Meanwhile, General Motors accelerated its EPS integration across the Silverado and Hummer platforms, targeting a 20% reduction in steering system weight by 2026.
Market size
Growth trajectory through 2035
Electric Power Steering 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
-
2025 Q1 2025
- Stellantis unveiled its “Steer2X” EPS platform, designed for 48V mild-hybrid vehicles, at the Geneva Motor Show. The system reduces energy consumption by 12% compared to traditional EPS.
-
2025 Q2 2025
- Hyundai Mobis began mass production of its integrated EPS-ADAS module, which combines torque sensors with camera-based lane-keep assist. The module is slated for the 2026 IONIQ 7.
-
2025 Q3 2025
- Bosch and NVIDIA announced a collaboration to develop AI-driven EPS calibration tools, leveraging NVIDIA DRIVE Sim for virtual validation. The partnership targets a 2027 commercial launch.
-
2025 Q4 2025
- NSK opened a USD 180 million EPS manufacturing plant in Gujarat, India, to capitalize on the country’s 2030 EV target of 30% market share.
Emerging opportunities added
- Steer-by-Wire Systems Companies like Bosch and Nexteer are piloting steer-by-wire solutions in luxury EVs, where EPS serves as a transitional technology. The global steer-by-wire market is projected to reach USD 4.2 billion by 2030, creating adjacency revenue streams for EPS suppliers.
- Aftermarket Retrofits With 1.2 billion ICE vehicles still on the road in 2025, aftermarket EPS kits—such as those offered by ZF’s TRW division—present a USD 3.8 billion opportunity by 2030. These kits target performance enthusiasts and fleet operators seeking fuel savings.
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
- $30.14 Bn
- CAGR
- 5.70%
- Expansion
- 1.7×
Market shape
top segment · 40.7% share
- Leading region
- Asia Pacific
- Top end-user
- OEMs (89%)
- Top-5 concentration
- Low to medium · ~42%
Forces at play
▲ top tailwind
- ▼ headwind
- High Initial Costs
- Named players
- 15 profiled
- Growth peak
- 2027–2031
Latest development
Q1 2025: Stellantis unveiled its “Steer2X” EPS platform, designed for 48V mild-hybrid vehicles, at the Geneva Motor Show. The system reduces energy consumption by 12% compared to traditional EPS
+4 more tracked in this edition
Report scope
What this report answers
The specific decisions and questions covered in the 130-page report and its accompanying data pack — tailored to this market's segments, applications, and named competitors.
- How big is the Electric Power Steering Market today ($30.14 Bn base), and how fast will it grow at 5.7% CAGR through 2035?
- Which of Electric motor (38%), Sensors (22%), Steering column (19%) and other tracked segments holds the largest share, and how do the growth rates diverge?
- How is demand distributed across Passenger vehicles (76%), Commercial vehicles (14%), Off-highway (10%) 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 Push for Fuel Efficiency) and top restraints (led by High Initial 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 Push for Fuel Efficiency The EU’s 2025 CO₂ fleet targets, mandating 15% emissions reduction versus 2021 levels, have compelled automakers like Stellantis to equip 85% of its European lineup with EPS by 2026. This compliance pressure alone accounts for a 3.2% uplift in the market’s CAGR.
- Rise of Electric Vehicles EVs, which rely exclusively on EPS, represented 18% of global light-vehicle sales in 2025. Hyundai’s IONIQ 5 and Kia’s EV6 contributed 1.1 million units to this segment, driving demand for integrated EPS modules with torque sensors and redundant systems.
- Weight and Packaging Advantages EPS systems reduce vehicle weight by up to 8 kg compared to hydraulic setups, a critical factor for EVs where range optimization is paramount. Ford’s F-150 Lightning, launched in Q2 2025, incorporates a custom EPS gearbox that shaved 5 kg off the front axle, improving handling dynamics.
- Consumer Preference for Advanced Driver Assistance Systems (ADAS) The 27% YoY growth in ADAS-equipped vehicles in North America has created a symbiotic demand for EPS, which serves as the mechanical backbone for lane-keep assist and automated parking systems.
Restraints
Holding it back
- High Initial Costs The average EPS system costs 2.3x more than hydraulic alternatives, with the electric motor alone accounting for 35% of the bill of materials. This price premium limits adoption in budget segments, particularly in regions like Latin America where average vehicle prices hover below USD 20,000.
- Supply Chain Vulnerabilities The 2025 global shortage of neodymium magnets—critical for EPS motors—disrupted production for 11 weeks, delaying deliveries for Nissan’s Ariya and Honda’s Prologue EVs. Reshoring efforts in 2025 have only partially mitigated this risk.
- Integration Complexity Retrofitting EPS into existing vehicle architectures requires extensive validation, as seen in General Motors’ 2025 recall of 42,000 Chevrolet Silverados due to EPS calibration errors in cold-weather conditions. Such incidents erode OEM confidence and inflate R&D budgets.
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 Push for Fuel Efficiency | +2.6% | Global | 2025–2035 |
| Rise of Electric Vehicles | +1.6% | Global | 2025–2035 |
| Weight and Packaging Advantages | +1.3% | Global | 2025–2035 |
| Consumer Preference for Advanced Driver Assistance Systems (ADAS) | +0.9% | Global | 2025–2035 |
Restraints impact analysis
| Restraint | % Impact on CAGR | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High Initial Costs | −1.0% | Global | 2025–2029 |
| Supply Chain Vulnerabilities | −0.7% | Global | 2025–2029 |
| Integration Complexity | −0.5% | Global | 2025–2029 |
The EPS market bifurcates into five primary product types, with the electric motor segment commanding a 38% share in 2025 due to its central role in torque delivery. Sensors and steering columns follow at 22% and 19%, respectively, while bearings and steering gears account for the remaining 21%. By application, passenger vehicles dominate with 76% of the market, but commercial vehicles are the fastest-growing niche, expanding at a 7.1% CAGR. End-user analysis reveals OEMs as the primary consumers, purchasing 89% of EPS systems, while the aftermarket segment—though smaller—grows at 6.3% annually, driven by DIY installations in emerging markets.
Revenue share by type · 2025 base year
% OF $30.14 BN ELECTRIC POWER STEERING MARKET · 4 TYPES COVERED
Each slice = that type's share of the total $30.14 Bn Electric Power Steering Market in 2025. Shares sum to 100%. Per-segment historicals + 2035 forecasts are in the report data pack.
By type
-
Electric motor (38%)
-
Sensors (22%)
-
Steering column (19%)
-
Steering gear (11%)
-
Bearings (10%)
By application
-
Passenger vehicles (76%)
-
Commercial vehicles (14%)
-
Off-highway (10%)
By end-user industry
-
OEMs (89%)
-
Aftermarket (11%)
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 $30.14 BN BASE MARKET
Bars sized to relative regional share. Leader region highlighted in gold.
Asia Pacific leads regional demand at ~33.7% in 2025. driven by manufacturing scale and end-market density
Per-region detail
-
North America
The region holds a 28% market share in 2025, with the U.S. leading at 82% of regional volume. Ford’s 2025 Super Duty trucks, which transitioned to EPS, accounted for 14% of North American sales in this segment. The Inflation Reduction Act’s tax credits for domestically produced EVs further accelerated EPS adoption
-
Europe
Europe’s 24% share is bolstered by the EU’s 2035 ICE ban, prompting Volkswagen to equip 95% of its 2025 ID. models with EPS. Germany alone represents 41% of European demand, with BMW’s Neue Klasse platform integrating a modular EPS architecture
-
Asia-Pacific
Asia-Pacific leads with 35% of the global market, driven by China’s 2025 NEV mandate requiring 20% of all vehicle sales to be electric. BYD’s Blade Battery platforms, which debuted in Q3 2025, use a proprietary EPS system, capturing 18% of the Chinese EV market
-
Latin America
Brazil’s 2025 tax incentives for hybrid vehicles spurred a 12% YoY increase in EPS-equipped models, though the region’s 8% market share remains constrained by economic volatility and lower vehicle penetration rates
-
Middle East & Africa
South Africa’s 2025 scrappage program for older vehicles indirectly boosted EPS demand, as newer models imported from Stellantis’ Cape Town plant feature the technology. The region’s 5% share is expected to grow at a 6.8% CAGR through 2030
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 exhibits moderate fragmentation, with the top five players—JTEKT, Nexteer, Bosch, ZF, and NSK—controlling 62% of the market in 2025. Recent consolidation includes JTEKT’s USD 450 million acquisition of a Brazilian steering-components plant in Q4 2025, aimed at securing supply chains for South American OEMs. Partnerships have also intensified, such as Bosch’s 2025 joint venture with a Chinese Tier-2 supplier to develop low-cost EPS motors for budget EVs.
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.
-
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.
-
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.
-
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.
-
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.
Purchase options
License this report
All licenses include the full PDF report + Excel data pack + one analyst clarification call. Choose based on how many colleagues will need access.
Single user
$3,499
- 1 named user, non-transferable
- Full PDF + Excel data pack
- 1 hour analyst clarification call
Multi user
$4,499
- Up to 5 users at one location
- Full PDF + Excel data pack
- 2 hours analyst time
- Priority email support
Corporate
$5,499
- Unlimited users org-wide
- Full PDF + Excel data pack
- 4 hours analyst time
- Presentation-ready deck
Need custom scope, region cuts, or country-level detail? Request customization or speak to an analyst.
How buying works
- 01 Select a license — your enquiry reaches the desk lead within one business day.
- 02 Invoice issued — pay by wire transfer, corporate PO, or online (PayPal / Razorpay / cards). Preferred by most procurement teams.
- 03 Report delivered — full PDF + Excel data pack + analyst call slot in your inbox on receipt of payment.
Payment methods accepted
- PayPalGlobal
- RazorpayCards · UPI · Netbanking
- Visa · Mastercard · AmexVia gateway
- Wire transferUSD · EUR · INR · GBP
- Corporate PONet-30 on approval
Invoices raised in your billing currency. Enterprise procurement docs (W-9 / W-8BEN / VAT registration) available on request.
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.
-
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.
-
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.
-
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.
-
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
-
• What is the market size of global Electric Power Steering market?
The Electric Power Steering market size had crossed USD 23.10 Billion in 2020 and is expected to grow till USD 39.15 Billion by 2029. -
• What is the CAGR of Electric Power Steering market?
The global Electric Power Steering market registered a CAGR of 6.25% from 2022 to 2029. -
• Who are the major participants in the market for Electric Power Steering?
The market for Electric Power Steering is competitive and fragmented. The key participants in the market are JTEKT (Japan), Nexteer (US), Robert Bosch (Germany), ZF (Germany), and NSK (Japan). -
• What is the study period of this market?
The Electric Power Steering Market is studied from 2020 – 2029 -
• Which is the largest regional market for Electric Power Steering market?
The Largest Regional market for Electric Power Steering is APAC having a market share of 43%
The Electric Power Steering Market is projected to reach $52.47 Bn by 2035, up from $30.14 Bn in 2025 — a 5.70% CAGR equating to roughly 1.7× expansion. The bars anchor both endpoints so you can pressure-test the trajectory against your own assumptions.