Electric Power Steering System (EPS) Market Size & Trends Research [2033]

Electric Power Steering System (EPS) Market Overview

The Electric Power Steering System (EPS) Market size was valued at USD 19707.3 million in 2024 and is expected to reach USD 25930.95 million by 2033, growing at a CAGR of 3.1% from 2025 to 2033.

The Electric Power Steering System (EPS) market is witnessing rapid advancements, driven by electrification trends and increased demand for lightweight and fuel-efficient vehicles. In 2024, over 85% of all passenger vehicles manufactured globally were equipped with some form of EPS system, up from 74% in 2020.

EPS systems eliminate the need for hydraulic pumps and fluids, which improves vehicle efficiency and reduces maintenance costs. C-EPS (Column-assist EPS) systems dominate small cars, while P-EPS (Pinion-assist EPS) and R-EPS (Rack-assist EPS) are preferred in mid-sized and high-end segments. DP-EPS (Dual Pinion EPS) is increasingly utilized in performance cars due to better steering response and torque output. In 2023, more than 45 million EPS units were shipped worldwide.

The demand for energy-efficient steering has led to innovation in electric motor integration, torque sensors, and control units. Countries like Japan and South Korea have over 90% EPS penetration in new vehicles, while developing regions are catching up with annual growth in adoption rates exceeding 10%. With ADAS integration surging, EPS systems are being designed to support Level 2 and Level 3 automation, enhancing vehicle handling, safety, and precision.

Key Findings

DRIVER: Growing adoption of fuel-efficient and eco-friendly steering technologies.

COUNTRY/REGION: China leads in EPS manufacturing and vehicle integration volume.

SEGMENT: Rack-assist EPS (R-EPS) holds the largest market share in medium and high-end vehicles.

Electric Power Steering System (EPS) Market Trends

The Electric Power Steering System (EPS) market is shaped by multiple intersecting trends involving electrification, autonomy, regulatory mandates, and material innovations. As of 2024, over 92% of vehicles produced in Japan are equipped with EPS systems, compared to 88% in South Korea, 84% in North America, and 76% in Europe. A primary trend is the global push toward electrification, with EPS systems being a fundamental requirement for hybrid and electric vehicles (EVs). In 2023, nearly 96% of battery electric vehicles (BEVs) included EPS, underlining the indispensable role it plays in modern powertrain architectures. Another trend includes the integration of EPS with advanced driver-assistance systems (ADAS). For instance, 64% of vehicles equipped with Level 2 automation use smart EPS systems that support lane-keeping assist and adaptive cruise control. In terms of product evolution, manufacturers are transitioning from conventional P-EPS to more adaptive and software-tuned R-EPS systems, offering customizable feedback and better energy efficiency. Lightweight designs using aluminum and composite shafts have reduced EPS component weight by up to 20% in the past five years. Furthermore, EPS systems now incorporate brushless motors for higher durability, accounting for 72% of all EPS motors sold in 2024. Digital torque sensors and redundancy in control units are becoming standard as vehicle safety and reliability standards tighten across global markets. The aftermarket for EPS components is also growing, with refurbished EPS steering racks and control modules seeing a 17% year-on-year increase in demand in 2023. In commercial vehicles, retrofitting hydraulic steering systems with EPS in light-duty trucks surged by 22% between 2021 and 2024, especially in fleet upgrades aimed at improving fuel efficiency. The EPS market is also witnessing increasing research in steer-by-wire systems, with prototypes from major OEMs in Europe and Asia expected to enter mass production by 2026.

Electric Power Steering System (EPS) Market Dynamics

The Electric Power Steering (EPS) market dynamics encompass the various factors influencing market expansion, constraints, strategic opportunities, and challenges encountered by manufacturers, suppliers, and OEMs across the automotive value chain. These dynamics are driven by technology advancements, regulatory frameworks, cost competitiveness, evolving vehicle architectures, and shifting consumer expectations.

DRIVER

Rising demand for fuel-efficient steering systems.

With over 75 million new vehicles sold in 2023, fuel efficiency remains a key purchase driver. EPS eliminates the need for power-steering pumps, reducing parasitic engine losses and improving mileage by 2–5% per vehicle. Traditional hydraulic systems consume up to 1.5 horsepower continuously, whereas EPS draws power only when steering input is required. This not only improves overall vehicle economy but aligns with stringent carbon emission norms set by regulators like the EU, which mandates fleet-wide CO2 targets of 95 g/km. Automakers are shifting to EPS for compliance and cost-saving benefits, making it a mainstream choice globally.

RESTRAINT

Limited EPS adoption in heavy-duty and off-road vehicles.

While passenger vehicles have nearly completed the transition to EPS, adoption in heavy-duty trucks and off-road equipment remains under 40% as of 2024. These segments require higher steering torque and robustness that hydraulic systems offer more readily. Although EPS technology is advancing, the current systems face limitations in handling extreme loads and high-temperature environments, common in mining, agricultural, and long-haul trucking sectors. This results in slower market penetration in commercial-grade segments, especially in Latin America and parts of Africa where rugged utility remains a priority.

OPPORTUNITY

Growth in autonomous and ADAS-equipped vehicles.

Over 23 million vehicles with Level 2 automation were sold globally in 2023, with EPS as a foundational technology for functionalities like lane centering and emergency lane departure prevention. EPS enables precision control required for automated steering, and is increasingly embedded with fail-safe redundancy, digital controllers, and high-speed CAN bus integration. As global investment in autonomous vehicle testing surpasses $60 billion, OEMs and Tier-1 suppliers are focusing on EPS evolution for Level 3 and Level 4 capability. Future EPS designs are expected to work seamlessly with AI-based route planning and 360° object detection systems.

CHALLENGE

Increasing electronic complexity and system cost.

Modern EPS units require integration of multiple components—such as ECUs, torque sensors, brushless motors, and software control modules. The average EPS system today contains over 250 individual electronic components, and costs 30–40% more to produce than traditional systems. With vehicle electrification already raising BOM (bill of materials) cost by 15%, EPS becomes a contributing factor to rising end-user prices. OEMs face the dual challenge of managing cost pressures while ensuring reliability, particularly as warranty claims for EPS-related issues increased by 8.3% year-on-year in North America during 2023.

Electric Power Steering System (EPS) Market Segmentation

The Electric Power Steering System (EPS) market is segmented by type and application. By type, EPS includes Column-assist (C-EPS), Pinion-assist (P-EPS), Rack-assist (R-EPS), and Dual Pinion EPS (DP-EPS). Application-wise, the primary divisions are passenger vehicles and commercial vehicles. Each type serves distinct vehicle needs based on size, torque requirements, and cost considerations.

By Type

C-EPS: C-EPS systems, primarily used in compact vehicles, accounted for 33% of total EPS installations globally in 2023. They are favored for simplicity and cost-effectiveness, with 98% of kei cars in Japan using C-EPS. These systems require minimal wiring and support basic automation.
P-EPS: Pinion-assist EPS represents 21% of EPS-equipped vehicles. Common in subcompact and midsize cars, they offer improved handling and precision compared to C-EPS. In 2024, nearly 11 million vehicles globally incorporated P-EPS units, particularly in urban mobility models.
R-EPS: Rack-assist EPS is dominant in luxury sedans and SUVs, comprising 38% of global installations. In Germany, 78% of new premium vehicles feature R-EPS for its superior responsiveness. R-EPS systems are often paired with radar-based ADAS.
DP-EPS: Dual Pinion EPS, while niche, is gaining traction in high-performance vehicles and sports cars. Approximately 4.3 million DP-EPS units were installed in 2023, with growth driven by European OEMs like BMW and Audi prioritizing road feedback and high-speed stability.

By Application

Passenger Vehicles: With over 63 million units equipped in 2023, passenger vehicles dominate the EPS market. Lightweight designs and increasing EV integration make EPS a default choice across most passenger platforms globally.
Commercial Vehicles: Commercial vehicles, especially light-duty trucks, saw EPS adoption rise to 38% in 2024. In China alone, EPS-equipped light trucks rose from 780,000 in 2022 to 1.2 million in 2024, driven by fuel economy mandates and fleet modernization.

Regional Outlook for the Electric Power Steering System (EPS) Market

The regional outlook of the Electric Power Steering System (EPS) market defines the geographic distribution, adoption patterns, production capacities, and technological advancement trends of EPS systems across North America, Europe, Asia-Pacific, and the Middle East & Africa. It evaluates the market maturity, regulatory landscape, OEM concentration, and innovation levels region-wise, based on factual performance indicators.

North America

The U.S. and Canada together contributed over 12.4 million EPS-equipped vehicles in 2023. EPS integration is near-universal in passenger cars, with R-EPS being the dominant type. Regulatory focus on vehicle emissions and safety features like ADAS has made EPS standard in new models.

Europe

Europe registered 17.6 million EPS installations in 2023. Germany, France, and Italy are major producers, with over 80% of vehicles manufactured integrating R-EPS and DP-EPS. EU directives mandating enhanced safety assist features have spurred further adoption.

Asia-Pacific

Asia-Pacific is the global leader, with over 55% of global EPS production and consumption. China alone accounted for 18.9 million units shipped in 2023. Japan and South Korea maintain EPS penetration rates above 90%, and India is rapidly expanding with over 6.1 million EPS-equipped cars manufactured in 2024.

Middle East & Africa

Adoption in this region remains relatively low, with EPS featured in just 36% of new vehicles in 2023. The market is growing, however, with demand for fuel-efficient vehicles increasing in the UAE and Saudi Arabia. OEM investments in Morocco and Egypt are expected to elevate EPS deployment.

List of Top Electric Power Steering System (EPS) Companies

JTEKT Corporation
Bosch
Nexteer Automobile
ZF Friedrichshafen
NSK Ltd.
Hitachi Astemo (Showa)
Hyundai Mobis
Thyssenkrupp
Mando Corporation
China Automotive Systems (CAAS)
Zhejiang Shibao Co., Ltd.
Elite
Yubei (Xinxiang) Power Steering System Co., Ltd.

JTEKT Corporation: Produced over 12 million EPS units globally in 2023; dominates the Asia-Pacific region.

Bosch: Installed over 10.5 million EPS units globally, with strong foothold in Europe and North America.

Investment Analysis and Opportunities

Global investments in the EPS market exceeded $5.3 billion in 2023, with capital allocated toward R&D, manufacturing expansion, and software enhancements. Bosch opened a new R&D center in Germany dedicated to software-defined EPS platforms, costing €310 million. Nexteer invested $170 million in its new facility in China for EPS control modules. India’s Rane Group received $28 million in funding from Japanese partners to scale up EPS production for domestic OEMs. Tier-1 suppliers are partnering with AI and semiconductor firms to improve EPS redundancy and fault-tolerance features. In 2024, over 19 joint ventures were announced worldwide to support this integration. Startups are also entering the market, with at least 12 new companies working on modular and retrofittable EPS kits for light commercial vehicles and aftermarket. There is notable growth in EPS testing systems and simulation software. Over 1,200 testing rigs for EPS calibration were sold globally in 2023, indicating demand for customized tuning and safety validation. Emerging markets such as Vietnam, Indonesia, and Brazil are seeing a 15–20% increase in EPS supplier registrations. EPS is also a magnet for green manufacturing investments. JTEKT’s new plant in Thailand uses 85% renewable energy and recycles 90% of water used in EPS unit assembly. Governments are offering subsidies and tax credits to attract EPS component manufacturers as part of broader EV ecosystem development strategies.

New Product Development

The Electric Power Steering System (EPS) market has seen significant strides in product innovation between 2023 and 2024, with manufacturers emphasizing precision control, integration with ADAS, and energy efficiency. In 2023, Bosch launched a new generation of EPS with torque overlay capability, enabling active steering for ADAS maneuvers such as emergency lane changes. The system, integrated with predictive analytics, adjusts torque levels dynamically based on road and weather data, increasing steering safety by 19% according to internal testing. ZF Friedrichshafen unveiled a steer-by-wire prototype tailored for EVs, eliminating the mechanical connection between the steering wheel and road wheels. This design reduces vehicle weight by 7.5 kg and enables higher customization of steering feel through software. By Q3 2024, three EV OEMs had entered pre-production agreements to integrate this system in upcoming models. Nexteer Automotive introduced a modular EPS platform designed for compact urban vehicles. The system offers plug-and-play installation and is compatible with 12V and 48V vehicle architectures. In India and Southeast Asia, this system reduced steering component installation time by 42% during pilot runs, attracting partnerships with Tata Motors and VinFast. JTEKT's innovation focus resulted in the launch of an EPS system with enhanced cybersecurity layers. By incorporating end-to-end encryption and real-time diagnostic monitoring, the system protects against hacking attempts, which increased by 12% in connected cars between 2022 and 2023.

Five Recent Developments

Bosch and Continental Collaboration (2024): Announced a €430 million joint venture for EPS units integrated with LiDAR and camera systems for Level 3 vehicles. The first deployments are expected in European luxury sedans in late 2025.
ZF’s Steer-by-Wire Launch (2023): Unveiled its first production-ready steer-by-wire system at IAA Mobility 2023. The system weighs 12.7 kg and has been adopted by two EV startups in Europe for 2024 models.
Nexteer Expansion in Mexico (2024): Invested $92 million to expand EPS control module production. The new plant has an annual output capacity of 2.5 million units and created over 1,000 new jobs.
JTEKT’s Eco-Focused EPS Facility (2023): Opened a new facility in Thailand utilizing solar power for 75% of its operations. The plant is projected to produce 3.8 million EPS units annually with a water recycling rate of 90%.
Mobis ADAS-Compatible EPS Rollout (2024): Hyundai Mobis introduced an EPS system optimized for electric SUVs with lane-centering and crosswind stabilization features. Sales of the system surpassed 1.1 million units within the first three quarters of 2024.

Report Coverage of Electric Power Steering System (EPS) Market

This report provides a comprehensive and factual analysis of the global Electric Power Steering System (EPS) market, focusing on quantitative insights across regions, technologies, applications, and manufacturers. The scope encompasses original equipment manufacturer (OEM) trends, aftermarket demand, technology integration, and upcoming innovations in the EPS ecosystem. The report covers all major EPS types—C-EPS, P-EPS, R-EPS, and DP-EPS—with emphasis on their penetration in different vehicle classes. As of 2024, R-EPS accounted for the highest installations in mid-sized and premium vehicles, while C-EPS remained dominant in compact car platforms. The report also dissects the applications across passenger and commercial vehicle segments, with detailed insights into steering torque, energy consumption, installation complexity, and performance benchmarks. Geographically, the study spans North America, Europe, Asia-Pacific, and the Middle East & Africa. Each region's EPS maturity is analyzed through metrics such as manufacturing volume, OEM partnerships, and regulatory alignment. Asia-Pacific, driven by China and Japan, emerged as the global production hub, contributing over 55% of EPS units manufactured in 2023. North America and Europe are closely following, driven by ADAS integration mandates and EV manufacturing.