Electric Power Steering System Market Size was valued at USD 18.5 Billion in 2022. The electric power steering system market is projected to grow from USD 19.5 Billion in 2023 to USD 29.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.3% during the forecast period (2023 - 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
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.
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.
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
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.
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 2023 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.
January 2020: 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.
June 2019:Â 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.
November 2018: 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.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 18.5 Billion |
| Market Size 2023 | USD 19.4 Billion |
| Market Size 2032 | USD 29.4 Billion |
| Compound Annual Growth Rate (CAGR) | 5.3% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Showa Corporation (Japan), Nexteer Automotive (US), JTEKT Corporation (Japan), Thyssenkrupp AG (Germany), Hyundai Mobis (South Korea) and ZF Friedrichshafen AG (Germany) |
| Key Market Opportunities | Government programs and increased focus on safer automotive systems |
| Key Market Dynamics | OEMs took global steps to simplify and lighten cars |
Electric Power Steering System Market Highlights:
Frequently Asked Questions (FAQ) :
The Electric Power Steering System Market size was valued at USD 18.5 Billion in 2022.
The global market is projected to grow at a CAGR of 5.3% during the forecast period, 2023-2032.
Asia Pacific had the largest share of the global market
The key players in the market are Showa Corporation (Japan), Nexteer Automotive (US), JTEKT Corporation (Japan), Thyssenkrupp AG (Germany), Hyundai Mobis (South Korea) and ZF Friedrichshafen AG (Germany).
The R-EPS dominated the market in 2022.
Passenger vehicles had the largest share of the global market.
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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