The global Electric Power Steering Market Size was valued at USD 25.09 billion in 2021 and is expected to grow at a CAGR of 5.8% during the forecast period, reaching USD 41.10 billion by 2030, according to Polaris Market Research. Rising government mandates for fuel-efficient technologies and increasing production of power-driven vehicles continue to fuel steady expansion across the industry.

Electric power steering (EPS) systems have become a defining feature of modern vehicle design, replacing traditional hydraulic steering with electronically assisted mechanisms that improve fuel efficiency and reduce vehicle weight and complexity. As automakers worldwide face mounting pressure to meet emissions targets while enhancing driving performance, EPS has emerged as a practical solution that balances both priorities. The rising demand for advanced power-driven steering, coupled with regulation and initiatives toward decarbonization, continues to favor the growth of the Electric Power Steering Market across passenger, commercial, and electric vehicle segments.

Key Growth Drivers

Globally, several governments have launched stringent policies related to emission and fuel economy for vehicles. Regulatory bodies such as the National Highway Traffic and Safety Administration (NHTSA) in the US and the International Council on Clean Transportation (ICCT) in Europe have implemented fleet-level regulations demonstrating average emission limits that automotive OEMs must retain. These norms have compelled manufacturers to adopt advanced technologies, significantly paving the way for continued industry growth.

According to the US Department of Energy, EPS systems can improve fuel productivity by 2% to 4%, minimize fuel consumption by up to 6%, and lessen CO2 emissions by 8g/km. These measurable environmental benefits, combined with ongoing technology development for near-term deployment, continue to expand the growth outlook of the market worldwide. The COVID-19 pandemic did present challenges, with the European Automobile Manufacturers Association reporting production losses of roughly 2,446,344 motor vehicles due to factory shutdowns, temporarily pressuring supply chains and output levels across the industry.

Segment Insights

By component, the sensors segment holds the largest market share and is also expected to register the fastest CAGR over the forecast period. Sensors play a prominent role in detecting, transferring, examining, recording, and displaying vehicle performance data related to both internal and external environments. With the growing trend of vehicle automation and escalating demand for connected cars, this segment is positioned for significant growth. The automotive steering system segment also accounts for a substantial revenue share, driven by rising vehicle production, particularly in markets such as China, Japan, and India.

By vehicle type, passenger cars are anticipated to hold the largest share, supported by rapid advancements in automotive technology and consumer preference for improved fuel efficiency without manual steering assistance. Meanwhile, the electric vehicle segment is projected to register a significant growth rate, driven by rising EV penetration and growing government focus on sustainable development. According to the World Economic Forum, electric vehicles accounted for 4.2% of overall light vehicle sales in 2020, nearly double the 2.5% share recorded in 2019, with Norway, Iceland, and Sweden leading global adoption.

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https://www.polarismarketresearch.com/industry-analysis/electric-power-steering-market

Regional Outlook

Asia Pacific dominated the global market, driven by increasing investments in the deployment of EPS technology, particularly in China and India. Rapid economic growth in these countries has fueled a sharp rise in vehicle production and supply, with automakers increasingly opting for EPS as an alternative to traditional steering systems that promotes fuel efficiency with reduced effort.

North America is also witnessing considerable growth, supported by the region's steady automotive market expansion and rising deployment of fuel-efficient, emission-reducing technologies. The implementation of Federal Motor Vehicle Safety Standards (FMVSS) by the US government, which specifies design, performance, construction, and durability requirements for motor vehicles, continues to support regional industry growth.

Competitive Landscape

Major players operating in the global market include BorgWarner, Hycet Technology Co. Ltd., Hyundai Mobis, JTEKT, Mando Corporation, Mitsubishi Electric, Nexteer, NSK, Robert Bosch, Tenneco, ThyssenKrupp, and ZF Friedrichshafen AG.

Recent developments highlight the pace of innovation in the sector. In February 2025, ZF Friedrichshafen AG began series production of steer-by-wire systems for NIO's ET9, marking a key step toward removing mechanical links between the steering wheel and gear, and standing among the first commercial uses of fully electronic steering in mass-production vehicles. In December 2024, Robert Bosch GmbH started electric power steering production in Hungary, expanding manufacturing capacity in Europe to address rising EPS demand and strengthen its ability to supply locally manufactured components to regional automakers.

Market Outlook

With a forecasted revenue of USD 41.10 billion by 2030, the industry is set to grow substantially over the coming years. Continued advancements in sensor technology, steer-by-wire innovation, and expanding electric vehicle adoption will likely sustain this growth trajectory across all major regions.

Electric Power Steering Market growth will continue to be shaped by tightening emissions regulations, rising vehicle automation, and the increasing sophistication of connected steering technologies. As automakers prioritize fuel efficiency, reduced vehicle weight, and enhanced driving performance, electric power steering systems will remain a cornerstone of modern automotive engineering worldwide.

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