As per MRFR analysis, the US Electric Power Steering System Market Size was estimated at 3.1 (USD Billion) in 2023. The US Electric Power Steering System Market Industry is expected to grow from 3.5(USD Billion) in 2024 to 5.7 (USD Billion) by 2035. The US Electric Power Steering System Market CAGR (growth rate) is expected to be around 4.533% during the forecast period (2025 - 2035).
Key US Electric Power Steering System Market Trends Highlighted
The US Electric Power Steering System Market is currently experiencing significant trends driven by advances in technology and a growing emphasis on vehicle safety and fuel efficiency. One of the key market drivers is the increasing adoption of electric power steering (EPS) systems in both passenger and commercial vehicles. This trend aligns with stricter regulatory requirements for emissions and fuel economy, as the EPS systems aid in reducing overall vehicle weight and improving fuel consumption.
Moreover, the rising demand for automated driving capabilities is pushing manufacturers to integrate advanced steering systems that support these features, contributing to the growth of the market.Opportunities within the US market are abundant, particularly as consumers are becoming more conscious about environmental sustainability. Manufacturers that focus on developing high-efficiency, energy-saving EPS solutions can tap into this trend, catering to the eco-aware demographic.
Additionally, as electric vehicles (EVs) continue to gain traction in the US automotive sector, the need for sophisticated EPS systems that complement the electric vehicle architecture is likely to expand. Recent trends also indicate an increase in research and development efforts aimed at enhancing the functionality and safety of power steering systems. Connected vehicle technologies, along with increasing investments in smart steering systems, are becoming prominent.The incorporation of advanced driver-assistance systems (ADAS) into EPS offers a strategic avenue for manufacturers to differentiate their products in a competitive environment. In summary, the US Electric Power Steering System market is evolving with strong prospects, driven by technology, regulatory influences, consumer preferences, and the ongoing push for enhanced vehicle safety and efficiency.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Electric Power Steering System Market Drivers
Increasing Vehicle Production in the US
The US Electric Power Steering System Market Industry is likely to thrive due to the robust growth in vehicle production. As reported by the American Automobile Manufacturers Association, vehicle production in the United States escalated to approximately 10.8 million units in 2022, reflecting a recovery from pandemic-induced lows. This increase in production indicates a greater demand for advanced automotive technologies, including Electric Power Steering Systems that offer enhanced control and fuel efficiency.
The implementation of stricter fuel economy standards from the Environmental Protection Agency (EPA) further pushes manufacturers to innovate and integrate technologies that reduce fuel consumption, hence creating a substantial growth opportunity for Electric Power Steering System providers in the US market. Furthermore, major automotive players like Ford and General Motors are increasingly adopting Electric Power Steering Systems to meet consumer demand for efficiency and enhanced driving comfort, thus driving market growth.
Growing Focus on Vehicle Electrification
The transition towards electric vehicles (EVs) plays a crucial role in propelling the US Electric Power Steering System Market Industry. The US government has pledged to support EV adoption through initiatives like tax incentives and infrastructure development, such as charging stations. The Department of Energy has projected that the number of electric vehicles on US roads could exceed 18 million by 2030, promoting an increase in awareness and demand for Electronic Power Steering Systems.By utilizing electric power steering, manufacturers can enhance the energy efficiency of EVs, making them a preferable choice for consumers. Companies like Tesla and Rivian are leading the EV market, adopting advanced Electric Power Steering Systems to incrementally enhance performance and user experience, which will further spur growth in the US Electric Power Steering System Market.
Rise in Consumer Demand for Advanced Driver Assistance Systems (ADAS)
The increasing consumer demand for Advanced Driver Assistance Systems (ADAS) is driving significant growth in the US Electric Power Steering System Market Industry. According to the National Highway Traffic Safety Administration (NHTSA), nearly 94 percent of serious crashes are a result of human error, leading to a surging interest in technologies that enhance safety and functionality. The integration of Electric Power Steering Systems within ADAS facilitates various features such as automated parking, lane keeping assistance, and adaptive cruise control.Major automotive manufacturers like Tesla, Toyota, and Honda are incorporating these systems to meet rising safety regulations and consumer expectations, ultimately contributing to the growth trajectory of the Electric Power Steering System Market in the US.
US Electric Power Steering System Market Segment Insights:
Electric Power Steering System Market Type Insights
The US Electric Power Steering System Market is evolving with various types that contribute significantly to its expansion and innovation. The Type segment includes Critical Electric Power Steering (C-EPS), Rack Electric Power Steering (R-EPS), and Pinion Electric Power Steering (P-EPS), each playing a key role in enhancing driving comfort and vehicle performance. C-EPS has been instrumental because of its compact design and weight efficiency, which is increasingly vital in the US automobile market that demands fuel efficiency and reduced emissions.
Meanwhile, R-EPS systems are favored for their adaptability in different vehicle models, providing significant flexibility in design parameters for manufacturers. P-EPS, though less prevalent, presents a unique solution as it allows for greater responsiveness and control, particularly beneficial in high-performance vehicles. The growing demand for advanced driver-assistance systems and electric vehicles in the US has further accelerated the development and adoption of these steering technologies. Market trends indicate that as consumers become more environmentally conscious, the shift towards electric power solutions, including these types, will likely enhance overall market growth.
The continuous improvements in technology and the increasing focus on enhancing driver safety will also provide further opportunities and challenges within this segment. Overall, these systems are gaining traction due to their ability to improve vehicle dynamics and enhance safety mechanisms, positioning them as significant contributors to the future landscape of the US Electric Power Steering System Market.
The advancements in electric power steering technologies also align with government initiatives aimed at reducing carbon footprints and promoting sustainable automotive practices, making this segment pivotal for compliance with future regulations in the automotive industry.Thus, while each type has its distinct advantages, collectively they represent a solid foundation for the US Electric Power Steering System Market's ongoing transformation towards more efficient and innovative vehicle steering solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Power Steering System Market Vehicle Type Insights
The Vehicle Type segment of the US Electric Power Steering System Market plays a crucial role in shaping the overall industry dynamics. This segment includes a range of vehicle categories such as Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles, each contributing uniquely to the market landscape. Passenger Vehicles are particularly significant, as they account for a majority holding in terms of units sold, driven by rising consumer demand for fuel-efficient and technologically advanced vehicles.
Light Commercial Vehicles serve as a pivotal segment, heavily influenced by the growth of e-commerce and logistics sectors, necessitating the need for improved steering systems to enhance maneuverability and driver comfort.Heavy Commercial Vehicles, while representing a smaller share, play an important role in the transportation of goods and have seen an uptick in demand for electric power steering due to the emphasis on reducing operational costs and enhancing safety features.
Furthermore, the ongoing trend towards electrification in vehicles has paved the way for innovative solutions in steering systems, making the US Electric Power Steering System Market a critical industry to observe in the coming years. Market growth in this area is also spurred by government initiatives promoting electric mobility and reducing carbon emissions, further supporting advancements across all vehicle types.
Electric Power Steering System Market Mechanism Insights
The US Electric Power Steering System Market, particularly the Mechanism segment, is witnessing notable advancements as consumer preference shifts towards more efficient and responsive steering systems. This segment encompasses various types including Collapsible EPS and Rigid EPS, both of which have their unique advantages. Collapsible EPS has gained traction due to its safety features, particularly in absorbing impact and minimizing injury during collisions, making it a vital component for modern vehicles.
On the other hand, Rigid EPS is favored for its durability and reliability, providing a consistent steering feel, which enhances overall driving experience.The increasing emphasis on fuel efficiency and reduction of carbon emissions is driving innovations in these steering systems, aligning with the broader goals of the automotive industry in the US to improve vehicle performance while ensuring driver comfort and safety. Additionally, challenges such as the integration of advanced technology and cost management keep manufacturers focused on developing more streamlined and efficient production methods. Overall, the dynamic landscape of the US Electric Power Steering System Market is creating significant opportunities for growth within the Mechanism segment, driven by evolving consumer demands and technological advancements.
US Electric Power Steering System Market Key Players and Competitive Insights:
The competitive landscape of the US Electric Power Steering System Market has evolved significantly, driven by the technological advancements and the growing demand for semi-autonomous and fully autonomous vehicles. As the automotive industry increasingly shifts towards electric and hybrid models, electric power steering systems have gained prominence due to their efficiency, fuel savings, and contribution to vehicle safety and performance.
This sector is characterized by strong competition among established players and emerging companies, all vying for market share through innovation, strategic partnerships, and product diversification. The competitive dynamics are further influenced by regulatory changes, consumer preferences, and the push for sustainability in automotive design.Denso Corporation has established itself as a formidable player within the US Electric Power Steering System Market. Known for its commitment to quality and innovation, Denso focuses on the development and manufacturing of advanced automotive components, including electric power steering systems.
The company's strengths lie in its robust research and development capabilities, which enable it to remain at the forefront of trends such as connectivity and automation. Denso's extensive manufacturing network across the United States enhances its ability to deliver products that meet the evolving demands of automakers. Moreover, its strong partnerships with several leading automotive manufacturers reinforce its market presence, enabling effective collaboration on cutting-edge technologies that drive performance and efficiency.
Delphi Technologies has carved out a significant niche within the US Electric Power Steering System Market with its strong portfolio of products and services aimed at enhancing vehicle safety and performance. The company's electric power steering solutions are designed for various vehicle types, making it a versatile player in the market.
Delphi focuses on continuous innovation and technological advancements, which are evident in their commitment to developing lightweight and energy-efficient steering systems. The company has also been active in pursuing strategic mergers and acquisitions to bolster its position and expand its product offerings, thus enhancing its competitive edge. Through a combination of strong market presence, strategic partnerships, and a focus on R&D, Delphi Technologies continues to strengthen its footprint in the electric power steering space in the US, addressing the needs of both manufacturers and consumers for enhanced vehicle control and efficiency.
Key Companies in the US Electric Power Steering System Market Include:
US Electric Power Steering System Market Industry Developments
Recent developments in the US Electric Power Steering System Market have been marked by a heightened focus on technological advancements and sustainability. Companies like Denso Corporation and Delphi Technologies are expanding their electric power steering systems to improve energy efficiency and enhance driver experience. General Motors Company has also introduced new models equipped with advanced electric power steering features, responding to growing consumer demands for more responsive and fuel-efficient vehicles. In terms of mergers and acquisitions, in September 2023, ZF Friedrichshafen AG acquired a controlling interest in JTEKT Corporation, strengthening its position in the North American automotive sector.
Additionally, the market has witnessed considerable growth, with an increase in market valuation attributed to rising electric vehicle adoption and government incentives aimed at reducing carbon emissions. Over the past two years, electrical steering technologies have evolved significantly, with companies like Hyundai Mobis and Hitachi Automotive Systems launching enhanced steering solutions focusing on safety and performance. As regulations tighten around emissions, innovation in electric power steering systems is becoming critical for legacy automotive players and new entrants alike, fostering a highly competitive environment in the US market.
US Electric Power Steering System Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 3.1(USD Billion) |
| MARKET SIZE 2024 | 3.5(USD Billion) |
| MARKET SIZE 2035 | 5.7(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.533% (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 | Denso Corporation, Delphi Technologies, General Motors Company, Robert Bosch GmbH, Ford Motor Company, Pioneer Corporation, Continental AG, ZF Friedrichshafen AG, JTEKT Corporation, Nexteer Automotive, Hyundai Mobis, Hitachi Automotive Systems, Mitsubishi Electric Corporation, Toyota Industries Corporation, Honeywell International Inc. |
| SEGMENTS COVERED | Type, Vehicle Type, Mechanism |
| KEY MARKET OPPORTUNITIES | Growing EV adoption trends, Advanced driver assistance systems, Enhanced vehicle safety features, Integration with autonomous technologies, Lightweight materials for efficiency |
| KEY MARKET DYNAMICS | Growing demand for fuel efficiency, Increased focus on vehicle safety, Advancements in steering technologies, Rising electric vehicle adoption, Regulatory push for efficiency standards |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Electric Power Steering System Market is expected to be valued at 3.5 billion USD in 2024.
By 2035, the market is projected to reach 5.7 billion USD.
The expected CAGR for the market during this period is 4.533 percent.
The C-EPS segment is projected to have the highest value at 1.4 billion USD in 2024.
The R-EPS segment is expected to reach 1.8 billion USD by 2035.
Major players include Denso Corporation, Delphi Technologies, and General Motors Company among others.
The P-EPS segment is valued at 1.0 billion USD in 2024.
In 2035, C-EPS is expected to be valued at 2.3 billion USD, significantly higher than P-EPS at 1.6 billion USD.
Emerging trends include advancements in electric vehicle technology and increasing demand for fuel-efficient systems.
Challenges include fluctuations in raw material prices and stringent regulatory standards in the automotive industry.
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