As per MRFR analysis, the US Automotive Electric Power Steering Market Size was estimated at 3.92 (USD Billion) in 2023. The US Automotive Electric Power Steering Market Industry is expected to grow from 4.5(USD Billion) in 2024 to 7 (USD Billion) by 2035. The US Automotive Electric Power Steering Market CAGR (growth rate) is expected to be around 4.098% during the forecast period (2025 - 2035).
Key US Automotive Electric Power Steering Market Trends Highlighted
The US Automotive Electric Power Steering Market is increasingly driven by the demand for fuel efficiency and sustainability, as consumers and manufacturers alike are focusing on reducing vehicle emissions. This shift towards eco-friendly technology has propelled the adoption of electric power steering systems, which offer advantages such as improved energy efficiency compared to traditional hydraulic systems. Additionally, advancements in technology, including the integration of advanced driver-assistance systems (ADAS), are key drivers of this market.
These systems rely on precise and responsive steering for features like lane-keeping assistance and adaptive cruise control, making electric power steering an essential component for modern vehicles.Opportunities in the US market include catering to the rising electric vehicle segment, where manufacturers are seeking lightweight and energy-efficient steering solutions. As electric vehicle sales continue to grow across the nation, the need for advanced steering technologies that enhance performance and energy conservation will be essential. Moreover, automakers are exploring partnerships with technology firms to further innovate and integrate smart steering systems, providing an attractive opportunity for players in the electric power steering market.
In recent times, there has been a noticeable trend toward increasing regulatory support for electric and hybrid vehicles in the US.Government initiatives aimed at reducing carbon footprints and promoting clean energy are shaping the automotive landscape, encouraging manufacturers to invest heavily in electric power steering systems. The push for higher safety standards and enhanced driver assistance features also aligns with consumer preferences, reinforcing the shift toward electric power steering solutions. As automakers adapt to these evolving trends, the US market is poised for continued growth and innovation within the electric power steering sector.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Automotive Electric Power Steering Market Drivers
Growing Adoption of Electric Vehicles in the US
The increasing demand for electric vehicles (EVs) in the US significantly drives the US Automotive Electric Power Steering Market Industry. According to the US Department of Energy, sales of electric vehicles have increased by over 40% in the previous year alone, reflecting a growing acceptance of EV technology among consumers. Major automotive manufacturers like Tesla and Ford are investing heavily in EV development, with projections showing that by 2030, EVs could account for nearly 30% of all vehicle sales in the US.
This shift towards EVs necessitates advanced steering technologies, leading to a robust demand for electric power steering systems. The incorporation of electric power steering helps enhance the energy efficiency of electric vehicles, thus aligning with the automotive industry's transition towards sustainability. As legislative support and consumer preference push towards more environmentally friendly vehicles, the prospects for the US Automotive Electric Power Steering Market are looking very positive.
Technological Advancements in Steering Systems
Technological innovations are fundamentally transforming the steering systems in vehicles, which positively impacts the US Automotive Electric Power Steering Market Industry. With continuous improvements in safety and adaptability, electric power steering systems are becoming more sophisticated.
According to the National Highway Traffic Safety Administration, new technologies, including advanced driver-assistance systems, are expected to be integrated into 75% of new cars sold in the US by 2025.Companies like General Motors and Toyota are at the forefront of this technological transition, investing significantly in Research and Development initiatives to enhance steering systems. The rise of automated driving functions requires highly responsive and efficient steering, further driving the need for electric power steering solutions in the market.
Stringent Government Regulations and Safety Standards
Government regulations aiming at enhancing vehicle safety are key drivers for the US Automotive Electric Power Steering Market Industry. The US government has mandated stringent fuel economy standards, which pressure manufacturers to adopt more energy-efficient technologies such as electric power steering.
The Corporate Average Fuel Economy standards require automakers to achieve a fleet-wide average of 54.5 miles per gallon by 2025, compelling manufacturers to transition towards systems that optimize energy consumption.Entities like the Environmental Protection Agency play a crucial role in establishing these regulations, supporting a swift shift towards advanced technologies like electric power steering. In response, automotive manufacturers are increasingly integrating electric power steering into their designs to comply with these regulations, thereby bolstering market growth.
US Automotive Electric Power Steering Market Segment Insights:
Automotive Electric Power Steering Market Type Insights
The US Automotive Electric Power Steering Market is experiencing significant growth with a notable focus on various types classified primarily into Column Electric Power Steering, Rack Electric Power Steering, and Pinion Electric Power Steering. Column Electric Power Steering systems, typically integrated into smaller vehicles, have become prominent due to their compact design and ease of installation. These systems are favored in urban environments where space is limited and the need for agile handling is critical. They use electric motors positioned at the steering column, which enables a direct connection to the steering wheel, enhancing responsiveness and reducing the physical effort required by the driver. On the other hand, Rack Electric Power Steering is increasingly being adopted in a wide array of vehicle models due to its efficiency and performance advantages.
This type of system connects the electric motor directly to the rack, allowing for improved steering feel and feedback. With advancements in technology, Rack Electric Power Steering also supports features such as variable assist steering, which adapts the level of steering assistance based on vehicle speed. This is particularly valuable for improving fuel efficiency and enhancing overall driving comfort, making it a preferred choice among manufacturers aiming to cater to safety and sustainability trends in the automotive industry.
Pinion Electric Power Steering is another notable type that contributes to the overall dynamics of the US Automotive Electric Power Steering Market. This system utilizes a pinion gear that engages directly with the steering rack. Its design is lauded for providing a more direct and responsive steering experience, which is crucial for high-performance vehicles that demand superior handling characteristics. The simplicity of the Pinion system also translates into reduced maintenance and production costs, making it an attractive option for many vehicle manufacturers in today’s competitive market.
Emerging technologies and a growing emphasis on electric vehicles are further driving advancements in these segments, encouraging innovations such as system integration with driver assistance technologies and enhanced vehicle dynamics. The shift towards greener alternatives and electrified powertrains in the automotive industry presents opportunities for these segments to evolve, allowing for smarter and more efficient power steering solutions that meet the increasing expectations of safety, reliability, and performance among consumers. As regulatory standards continue to tighten regarding fuel economy and emissions, manufacturers are keen on adopting Electric Power Steering systems that not only fulfill consumer demands but also align with environmental goals. This evolving landscape signifies substantial potential for investment and growth within the US Automotive Electric Power Steering Market as a whole.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Electric Power Steering Market Vehicle Type Insights
The US Automotive Electric Power Steering Market, particularly within the Vehicle Type segment, showcases a diverse landscape comprising Passenger Vehicles, Commercial Vehicles, Motorcycles, and Heavy-Duty Vehicles. The Passenger Vehicles segment holds a significant portion of the market, driven by the increasing demand for fuel-efficient and eco-friendly vehicles. Innovations in electric power steering technologies enhance driving comfort and safety, making them a vital component for manufacturers aiming to meet consumer expectations.
Commercial Vehicles have also gained momentum, as they prioritize operational efficiency and reduced maintenance costs; these vehicles increasingly adopt advanced steering systems to improve maneuverability and performance in urban environments.The Motorcycle segment benefits from a surge in recreational riding and commuting, leading to heightened interest in lightweight steering solutions that enhance control and performance. Heavy-Duty Vehicles are pivotal in logistics and transportation, making the integration of electric power steering essential for better handling and reduced driver fatigue over long distances. Collectively, these segments contribute to the robust growth of the US Automotive Electric Power Steering Market, reflecting both technological advancements and shifts in consumer preferences towards smarter and more efficient vehicle operation.
Automotive Electric Power Steering Market End Use Insights
The US Automotive Electric Power Steering Market, particularly within the End Use segment, showcases notable diversity, primarily split between Original Equipment Manufacturers (OEMs) and the Aftermarket. OEMs remain a crucial component, as they are typically responsible for the integration of advanced electric power steering systems in new vehicles, reflecting the latest technological innovations and regulatory developments aimed at enhancing fuel efficiency and safety.
This segment's growth is driven by the increasing demand for electric vehicles and the shift towards more sustainable automotive designs in response to government policies and consumer preferences.Conversely, the Aftermarket segment plays a significant role, servicing the existing fleet of vehicles and providing enhancements or replacements for older systems. With an increased focus on vehicle longevity and performance upgrades, the Aftermarket contributes to driving competition and fostering innovation in electric power steering solutions. As consumers look for ways to enhance their vehicles' handling and maneuverability, both segments are positioned for development, thus highlighting the importance of the US Automotive Electric Power Steering Market in meeting evolving automotive needs and preferences.
Automotive Electric Power Steering Market Technology Insights
The Technology segment of the US Automotive Electric Power Steering Market encompasses various innovative solutions that enhance vehicle performance, comfort, and efficiency. Brushless DC Motors stand out as a key component, owing to their high efficiency and reliability, which contribute significantly to reduced energy consumption and improved vehicle responsiveness. Similarly, Stepper Motors are gaining traction due to their precision control, enabling smoother steering adjustments that enhance driver experience. The Integrated Electric Power Steering system is essential as it combines multiple functionalities into a compact unit, minimizing space while maximizing the effect of steering assist and enhancing overall vehicle dynamics.
These technologies not only support the growing demand for fuel-efficient and environmentally friendly vehicles but also address safety concerns by improving steering feedback and control. With the US government's emphasis on advancing automotive technology and reducing emissions, the integration of these solutions becomes increasingly relevant as automakers strive to meet regulatory standards and consumer expectations. Overall, the segmentation of the US Automotive Electric Power Steering Market within the Technology domain highlights the industry's commitment to innovation and sustainability.
US Automotive Electric Power Steering Market Key Players and Competitive Insights:
The US Automotive Electric Power Steering Market is characterized by dynamic competition driven by technological advancements, innovations in vehicle design, and a growing emphasis on fuel efficiency and driver comfort. As the automotive industry continues to transition towards electrification, electric power steering systems are increasingly being recognized for their benefits, including increased energy efficiency, reduced weight, and enhanced driving performance. The landscape reflects a diverse array of players, each striving to gain market share by developing cutting-edge steering solutions that cater to the evolving demands of consumers and automotive manufacturers alike. Factors such as regulatory changes, advancements in manufacturing processes, and strategic partnerships within the industry further complicate the competitive dynamics of this market.
Valeo stands out within the US Automotive Electric Power Steering Market due to its commitment to innovation and a robust product portfolio that includes a range of intelligent steering systems designed to enhance vehicle performance and safety. The company leverages its extensive research and development capabilities to produce efficient, lightweight, and environmentally friendly steering solutions that cater specifically to the needs of the US market. Valeo’s strong presence is bolstered by its strategic collaborations with leading automotive manufacturers, allowing it to solidify its position in the market. The company's strengths lie in its ability to adapt to market trends swiftly and its focus on delivering high-quality products that integrate seamlessly into modern vehicles while contributing to overall vehicle efficiency and driver satisfaction.
ZF Friedrichshafen has established itself as a key player in the US Automotive Electric Power Steering Market, offering a comprehensive suite of products and services tailored to the requirements of automotive manufacturers in the region. The company’s electric power steering systems are recognized for their advanced technology, providing precise control and improved driving experience. ZF Friedrichshafen's strengths are exemplified by its wide array of innovative solutions, including steer-by-wire technology, which enhances overall vehicle dynamics and safety.
The company's significant market presence is further strengthened by strategic mergers and acquisitions that have expanded its product offerings and bolstered its technological capabilities. In the US market, ZF Friedrichshafen continues to capitalize on its extensive experience and network, positioning itself strongly against competitors by delivering reliable and high-performance steering solutions that align with the industry’s push towards automation and electric vehicle development.
Key Companies in the US Automotive Electric Power Steering Market Include:
US Automotive Electric Power Steering Market Industry Developments
The US Automotive Electric Power Steering Market has seen some significant developments recently, particularly in the realm of technological innovation and strategic alliances. Companies such as Valeo, ZF Friedrichshafen, and Nexteer Automotive have been focusing on enhancing their electric power steering systems to improve vehicle efficiency and performance. In terms of mergers and acquisitions, Thyssenkrupp announced a partnership with Showa Corporation in June 2023 to expand their portfolio in electric steering technologies, signaling a commitment to innovation in the sector.
Meanwhile, Continental AG has been investing heavily in Research and Development for electric steering systems, driven by increasing demand for electric vehicles in the US market. Market valuation is on the rise, driven by regulatory shifts pushing for operational efficiencies and sustainability in the automotive sector. You can trace major happenings back to June 2022, when Aisin Seiki expanded its manufacturing capabilities in the US, aiming to meet heightened demand from automotive manufacturers transitioning to electric power steering systems. This push for development and collaboration has resulted in elevated financial growth in the market, highlighting a robust outlook for the future.
US Automotive Electric Power Steering Market Segmentation Insights
Automotive Electric Power Steering Market Type Outlook
Automotive Electric Power Steering Market Vehicle Type Outlook
Automotive Electric Power Steering Market End Use Outlook
Automotive Electric Power Steering Market Technology Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 3.92(USD Billion) |
| MARKET SIZE 2024 | 4.5(USD Billion) |
| MARKET SIZE 2035 | 7.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.098% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Valeo, ZF Friedrichshafen, Aisin Seiki, Jtekt Corporation, ADB Company, Showa Corporation, Thyssenkrupp, GKN Automotive, Magna International, Continental AG, Nexteer Automotive, Robert Bosch, Hyundai Mobis, Mitsubishi Electric, DENSO Corporation |
| SEGMENTS COVERED | Type, Vehicle Type, End Use, Technology |
| KEY MARKET OPPORTUNITIES | Integration with autonomous vehicles, Growing demand for fuel efficiency, Rising consumer preference for EVs, Enhanced safety features and performance, Technological advancements in steering systems |
| KEY MARKET DYNAMICS | Increasing vehicle electrification, Growing consumer demand for comfort, Stringent fuel efficiency regulations, Advancements in steering technologies, Rising adoption of autonomous vehicles |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Automotive Electric Power Steering Market is expected to be valued at 4.5 USD Billion in 2024.
By 2035, the market is expected to grow to 7.0 USD Billion.
The expected CAGR for the US Automotive Electric Power Steering Market is 4.098% from 2025 to 2035.
Key players include Valeo, ZF Friedrichshafen, Aisin Seiki, Jtekt Corporation, and Continental AG among others.
Rack Electric Power Steering is expected to be valued at 2.1 USD Billion in 2024, making it the highest among the types.
Column Electric Power Steering is expected to reach a market value of 2.2 USD Billion by 2035.
Rack Electric Power Steering is projected to grow from 2.1 USD Billion in 2024 to 3.3 USD Billion by 2035.
Increased vehicle production and demand for fuel-efficient technologies are key growth drivers.
Innovations in autonomous vehicles and enhanced driver-assistance systems are expected to significantly boost market growth.
Pinion Electric Power Steering is projected to reach 1.5 USD Billion by 2035.
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Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
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