The Automobile Electric Power Steering Market size was estimated at USD 25.3 billion in 2023 and is projected to reach USD 40.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.50% during the forecast period (2024-2030).

Automobile Electric Power Steering Market

Market Summary

The automobile electric power steering market represents a critical segment within the global automotive and transportation industry, characterized by the widespread adoption of advanced steering systems that enhance vehicle efficiency and driver comfort. This market is driven by the automotive industry's ongoing transition from traditional hydraulic power steering systems to more sophisticated electric power steering mechanisms. These systems utilize an electric motor to provide steering assistance, thereby eliminating the need for hydraulic fluid and resulting in improved fuel economy and reduced emissions. The technology is increasingly becoming standard across various vehicle segments, from compact cars to luxury SUVs, due to its integration capabilities with advanced driver-assistance systems. Key industry participants are continuously investing in research and development to introduce innovative solutions that cater to the evolving demands for safety, connectivity, and autonomous driving functionalities. The market's expansion is further supported by stringent government regulations aimed at improving vehicle efficiency and reducing environmental impact. As automotive manufacturers worldwide prioritize electrification and automation, the electric power steering system is poised to remain a fundamental component in modern vehicle architectures, influencing design philosophies and manufacturing strategies across the supply chain.

Key Highlights

The automobile electric power steering market is distinguished by several pivotal developments that underscore its strategic importance. A primary highlight is the seamless integration of EPS systems with emerging autonomous driving technologies, where precise electronic control is paramount for vehicle safety and performance. Leading automotive suppliers such as JTEKT Corporation, NSK Ltd., and Nexteer Automotive are at the forefront, delivering systems that offer superior responsiveness and reliability. Another significant aspect is the contribution of EPS to overall vehicle weight reduction and enhanced fuel efficiency, aligning with global sustainability goals and corporate average fuel economy standards. The market is also witnessing a trend towards the development of fail-operational systems designed for higher levels of automation, ensuring functionality even in the event of component failures. Furthermore, the adoption of brushless motor technology in EPS systems is gaining traction, offering improved durability and quieter operation. These advancements are not only refining the driving experience but are also enabling original equipment manufacturers to differentiate their product offerings in a highly competitive landscape. The convergence of electrification and steering technology represents a cornerstone of modern automotive innovation, with continuous improvements in sensor accuracy, control unit processing power, and energy management.

Drivers, Opportunities & Restraints

The growth trajectory of the automobile electric power steering market is influenced by a combination of driving forces, potential opportunities, and certain restraining factors. A primary driver is the global push for vehicle electrification, which necessitates energy-efficient components like EPS that reduce the load on the engine or battery, thereby extending the driving range of electric and hybrid vehicles. Stricter government mandates concerning fuel economy and emissions are compelling automakers to adopt these systems widely. Additionally, the rising consumer demand for enhanced driving comfort and safety features, including lane-keep assist and automated parking, which rely on EPS functionality, is accelerating market penetration. Significant opportunities lie in the expansion of the automotive sector in emerging economies and the increasing production of vehicles equipped with advanced driver-assistance systems, creating a fertile ground for EPS adoption. The development of steer-by-wire technology, which eliminates the mechanical linkage between the steering wheel and the wheels, presents a futuristic opportunity for market players. However, the market faces restraints such as the high initial cost of advanced EPS systems compared to hydraulic alternatives, which can be a barrier in price-sensitive markets. Technical challenges related to system reliability, especially in harsh operating conditions, and the complexity of integrating EPS with other vehicle systems also pose hurdles. Furthermore, the susceptibility of electronic systems to cybersecurity threats requires ongoing investments in protective measures, adding to development costs and complexity.

Concentration Insights

The competitive landscape of the automobile electric power steering market is characterized by a high degree of concentration, with a few major players holding significant market share. This oligopolistic nature is a result of the substantial capital investment, extensive research and development capabilities, and established relationships with global automakers required to compete effectively. Key players such as Bosch, ZF Friedrichshafen, JTEKT, NSK, and Nexteer Automotive dominate the supply chain, offering a comprehensive portfolio of products and technologies. These companies possess a global manufacturing footprint and strong technical expertise, allowing them to cater to the diverse needs of original equipment manufacturers across different regions. The market concentration is further reinforced by long-term supply contracts and joint development agreements between Tier-1 suppliers and automotive OEMs, creating high barriers to entry for new participants. However, the market also features several specialized component manufacturers and emerging players focusing on niche applications or specific technological innovations, such as advanced sensors or control algorithms. The competitive dynamics are shaped by continuous technological innovation, with leading companies investing heavily in next-generation systems like steer-by-wire and fail-operational architectures to maintain their competitive edge. This concentrated structure ensures a focus on quality and reliability but also necessitates that smaller players or new entrants differentiate through innovation or cost-effective solutions.

Type Insights

The automobile electric power steering market is segmented based on the type of system, primarily into column-assist type, pinion-assist type, and rack-assist type. Each variant offers distinct advantages and is suited for different vehicle platforms and performance requirements. The column-assist type, where the assist motor is mounted on the steering column, is often utilized in smaller and lighter vehicles due to its compact design and cost-effectiveness. This type is prevalent in entry-level and compact car segments. The pinion-assist type features the motor attached to the steering pinion, providing a balance between performance and packaging, making it a popular choice for a wide range of mid-size vehicles. It offers improved steering feel and responsiveness compared to column-assist systems. The rack-assist type, also known as dual-pinion EPS, integrates the motor directly onto the steering rack. This configuration delivers the highest level of steering assistance and precision, making it the preferred solution for larger vehicles, such as SUVs and light trucks, which require greater force for steering maneuvers. The selection of EPS type is a critical decision for automakers, influenced by factors including vehicle architecture, performance targets, cost constraints, and integration with other chassis systems. Ongoing advancements are focused on enhancing the efficiency and functionality of each type, with developments in motor technology and control software driving improvements across all segments.

Application Insights

Application-wise, the automobile electric power steering market caters to a diverse range of vehicle types, primarily segmented into passenger cars and commercial vehicles. The passenger car segment represents the largest application area, driven by the high volume of global car production and the rapid integration of EPS as a standard feature across all trim levels. Within passenger cars, the adoption rate is particularly high in compact, mid-size, and luxury sedans, as well as in crossover utility vehicles, where consumers prioritize fuel efficiency and advanced features. The commercial vehicle segment, which includes light commercial vehicles, buses, and trucks, is also increasingly adopting electric power steering systems. The motivation in this segment is largely driven by the need for improved fuel economy, reduced driver fatigue, and the facilitation of advanced safety and automation features, such as lane departure warnings and stability control. The deployment in commercial vehicles often involves more robust systems designed to handle higher loads and demanding operating conditions. Furthermore, the emergence of electric commercial vehicles is a significant catalyst, as EPS systems contribute directly to maximizing the limited energy available from the battery. The application insights reveal a market that is not only expanding in volume but also in sophistication, with system specifications tailored to the unique demands of each vehicle category.

Regional Insights

Geographically, the automobile electric power steering market demonstrates distinct dynamics across different regions, influenced by local automotive production, regulatory frameworks, and consumer preferences. The Asia-Pacific region stands as the largest and fastest-growing market, propelled by the massive automotive manufacturing hubs in China, Japan, South Korea, and India. High vehicle production volumes, coupled with stringent emissions regulations and a strong consumer shift towards fuel-efficient vehicles, drive EPS adoption in this region. Europe represents another significant market, characterized by rigorous EU emissions standards and a high concentration of premium vehicle manufacturers who are early adopters of advanced technologies. The presence of leading automotive suppliers like ZF and Bosch further strengthens the regional market. North America exhibits strong demand, particularly in the United States and Canada, where the popularity of light trucks and large SUVs necessitates the use of robust rack-assist EPS systems. The region's focus on vehicle safety and the integration of ADAS features also contribute to market growth. Other regions, including Latin America and the Middle East & Africa, are emerging markets where growth is linked to increasing vehicle ownership and the gradual modernization of automotive fleets, although adoption rates may be slower due to economic variability and a higher proportion of older vehicle technology.

Company Insights

The competitive fabric of the automobile electric power steering market is woven by several prominent companies that lead through innovation, scale, and strategic partnerships. JTEKT Corporation, a Toyota Group company, is a global leader with a comprehensive portfolio of steering systems and a strong presence across all major automotive markets. NSK Ltd. is another key player renowned for its precision engineering and focus on developing high-performance EPS systems that offer excellent durability and smooth operation. Nexteer Automotive stands out for its specialized expertise in intuitive motion control, providing advanced systems that enhance steering feel and integrate seamlessly with autonomous driving functionalities. Robert Bosch GmbH leverages its broad expertise in automotive electronics and systems integration to deliver sophisticated EPS solutions, often bundled with other safety and chassis systems. ZF Friedrichshafen AG, following its acquisition of TRW Automotive, has solidified its position as a top-tier supplier, offering a wide range of steering technologies, including advanced steer-by-wire systems. Other significant contributors include Mitsubishi Electric Corporation and Thyssenkrupp AG, each bringing unique technological strengths to the market. These companies compete on factors such as technological innovation, system cost, reliability, and the ability to provide global support and customization to meet the specific requirements of diverse automakers.

Recent Developments

The automobile electric power steering market is continuously evolving, with recent developments highlighting a strong focus on innovation and strategic expansion. A prominent trend is the accelerated development of steer-by-wire technology, which completely decouples the steering wheel from the wheels, offering greater design flexibility for vehicle interiors and enhanced integration with autonomous driving systems. Companies like ZF and Nexteer have unveiled advanced prototypes and concept systems aimed at commercializing this technology. Another significant development is the increased investment in producing EPS systems specifically designed for electric vehicles, focusing on ultra-high efficiency to minimize energy consumption and maximize range. There has been a noticeable surge in collaborations and partnerships between EPS suppliers and semiconductor companies to develop more powerful and integrated control units capable of handling complex algorithms for autonomous functions. Furthermore, leading players are expanding their manufacturing capacities in emerging markets, particularly in Southeast Asia and Eastern Europe, to be closer to growing production hubs and reduce logistics costs. The industry is also witnessing a push towards standardizing components and platforms to achieve economies of scale and reduce time-to-market for new vehicle models. These developments collectively indicate a market that is not only growing but also rapidly advancing in terms of technological sophistication and global reach.

Report Segmentation

This market research report on the automobile electric power steering system provides a detailed and structured analysis segmented to offer comprehensive insights. The segmentation is based on several critical parameters to cater to the specific analytical needs of industry stakeholders. The report is segmented by type, distinguishing between column-assist electric power steering, pinion-assist electric power steering, and rack-assist electric power steering systems, each analyzed for their market presence and growth prospects. It is further segmented by application, covering passenger cars and commercial vehicles, with insights into adoption trends and demand drivers within each category. A crucial component of the segmentation is the geographical analysis, which breaks down the market into key regions and major countries within those regions, providing an understanding of regional production, consumption, and regulatory influences. Additionally, the report includes a competitive landscape section that profiles major companies, discussing their market share, product portfolios, and recent strategic initiatives such as mergers, acquisitions, and new product launches. This multi-faceted segmentation allows for a granular analysis of the market, enabling businesses to identify specific growth opportunities, understand competitive dynamics, and make informed strategic decisions based on comprehensive and categorized data.

FAQs

What is an electric power steering system?

An electric power steering system is an automotive steering technology that uses an electric motor to provide steering assistance to the driver. It replaces traditional hydraulic systems, offering improved fuel efficiency, reduced emissions, and enhanced integration with advanced driver-assistance features.

What are the benefits of electric power steering?

The benefits of electric power steering include significant improvements in fuel economy by reducing engine load, a more responsive and adaptable steering feel, lower maintenance requirements due to the absence of hydraulic fluid, and seamless compatibility with modern safety and autonomous driving technologies.

How does electric power steering work?

Electric power steering works through sensors that detect the steering wheel's position and torque input from the driver. An electronic control unit processes this data and commands an electric motor to apply the necessary assistance force to the steering mechanism, either at the column, pinion, or rack.

What is the difference between hydraulic and electric power steering?

The primary difference lies in the power source; hydraulic power steering uses a pump driven by the engine to circulate pressurized fluid, while electric power steering uses an electric motor controlled by a computer. EPS is more efficient, lighter, and offers greater programmability for features like lane-keeping assist.

Which cars use electric power steering?

Electric power steering is used in a vast majority of new vehicles produced today across all segments. It is found in models from nearly every major automaker, including Toyota, Honda, Ford, General Motors, Volkswagen, BMW, and Mercedes-Benz, ranging from compact cars to full-size trucks and SUVs.

Can electric power steering be repaired?

Yes, electric power steering systems can be repaired, typically involving the replacement of faulty components such as the torque sensor, electronic control unit, or the assist motor itself. Diagnosis often requires specialized diagnostic tools, and repairs should be performed by qualified technicians due to the system's complexity.

Citius Research has developed a research report titled “Automobile Electric Power Steering Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Automobile Electric Power Steering Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Automobile Electric Power Steering Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Automobile Electric Power Steering Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Automobile Electric Power Steering Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Automobile Electric Power Steering Market
• Research Methodology
• Executive Summary
• Market Dynamics of Automobile Electric Power Steering Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Automobile Electric Power Steering Market
• Cost and Gross Margin Analysis of Automobile Electric Power Steering Market
• Automobile Electric Power Steering Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Automobile Electric Power Steering Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Automobile Electric Power Steering Market Key Stakeholders

Below are the key stakeholders for the Automobile Electric Power Steering Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Automobile Electric Power Steering Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Automobile Electric Power Steering Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Automobile Electric Power Steering Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Automobile Electric Power Steering Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

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