The Passenger Car EPS Market size was estimated at USD 18.5 billion in 2023 and is projected to reach USD 32 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.30% during the forecast period (2024-2030).

Passenger Car EPS Market

Market Summary

The passenger car Electric Power Steering (EPS) market represents a critical segment within the global automotive and transportation industry, focused on advanced steering systems that enhance vehicle maneuverability and fuel efficiency. This market is characterized by the widespread adoption of EPS systems, which have largely replaced traditional hydraulic power steering mechanisms. The shift is driven by the automotive industry's overarching goals of reducing vehicle weight, lowering emissions, and improving overall driving dynamics and safety. Major automotive manufacturers and their supply chains are deeply invested in the development and integration of these systems across various vehicle segments, from compact cars to luxury sedans. The technology's core function involves using an electric motor to provide steering assistance, controlled by an electronic control unit that processes inputs from torque and steering angle sensors. This enables features like variable assistance and advanced driver-assistance system (ADAS) integration, positioning EPS as a foundational technology for future autonomous driving capabilities. The market's evolution is intrinsically linked to global automotive production trends, consumer demand for enhanced comfort and safety, and stringent government regulations aimed at improving vehicular efficiency. Continuous innovation from key players ensures that EPS systems remain at the forefront of automotive electrification and smart vehicle development.

Key Highlights

The passenger car EPS market is distinguished by several pivotal developments that underscore its technological and strategic importance. A primary highlight is the seamless integration of EPS with advanced driver-assistance systems, enabling functionalities such as lane-keeping assist and automated parking, which are critical steps toward fully autonomous vehicles. Another significant trend is the industry's move toward brushless motor designs within EPS systems, which offer superior reliability, reduced noise, and enhanced longevity compared to their brushed counterparts. Furthermore, the development of dual-pinion and rack-assist EPS systems provides automakers with flexible solutions tailored to different vehicle architectures and performance requirements, allowing for optimized packaging and improved steering feel. The market is also witnessing a surge in the adoption of column-assist EPS in entry-level and compact vehicles due to its cost-effectiveness, while higher-end models increasingly utilize more sophisticated rack-assist systems for superior performance. The strategic focus on reducing system weight and power consumption remains a constant, aligning with global emissions standards. Collaborations and partnerships between automotive OEMs and specialized steering system suppliers are accelerating innovation, ensuring that EPS technology continues to evolve in response to the dynamic demands of the modern automotive landscape.

Drivers, Opportunities & Restraints

The growth trajectory of the passenger car EPS market is propelled by a confluence of powerful drivers, including stringent global fuel economy and emission regulations that compel automakers to adopt more efficient systems like EPS, which reduces parasitic engine load compared to hydraulic systems. The rising consumer preference for vehicles with enhanced comfort, safety, and driving ease further accelerates market penetration. The expanding integration of EPS as a fundamental enabler for ADAS and autonomous driving functionalities represents a significant long-term driver, as it provides the necessary electronic control for automated steering interventions. Key opportunities lie in the untapped potential of emerging economies, where increasing vehicle production and rising disposable incomes are creating new demand for feature-rich automobiles. The ongoing electrification of vehicles presents another substantial opportunity, as electric vehicles inherently benefit from and require electric steering systems. However, the market faces notable restraints, such as the higher initial cost of advanced EPS systems compared to conventional hydraulic steering, which can be a barrier to adoption in highly price-sensitive market segments. Furthermore, the complexity of these systems necessitates robust cybersecurity measures to prevent potential electronic hijacking, adding to development challenges and costs. Economic volatility and fluctuations in automotive production can also temporarily impede market growth.

Concentration Insights

The competitive landscape of the passenger car EPS market is characterized by a high degree of concentration, with a few established global players holding dominant market shares. This oligopolistic structure is a result of significant technological expertise, extensive research and development capabilities, and long-standing relationships with major automotive original equipment manufacturers that are critical for success. These leading companies possess comprehensive product portfolios that cover all major EPS types, including column-assist, pinion-assist, and rack-assist systems, allowing them to cater to a diverse range of vehicle platforms and OEM requirements. Their dominance is further reinforced by global manufacturing footprints and robust supply chains that ensure timely delivery and cost efficiency. The market also features several regional players that compete effectively in specific geographical areas or by specializing in particular vehicle segments. The high barriers to entry, including substantial capital investment for R&D, manufacturing, and stringent quality certifications, protect the positions of incumbent players. Consequently, competition is primarily based on technological innovation, product performance and reliability, system cost, and the ability to form strategic, long-term partnerships with automakers for new vehicle platforms.

Type Insights

Passenger car Electric Power Steering systems are categorized into several distinct types based on the placement of the assist motor and the mechanical configuration, each offering unique advantages for different vehicle applications. Column-Assist EPS (C-EPS) is widely utilized in smaller and compact vehicle segments due to its compact design and cost-effectiveness; the assist motor is mounted on the steering column, making it an ideal solution for vehicles with limited engine bay space and lower torque requirements. Pinion-Assist EPS (P-EPS) features the motor attached to the steering gear pinion, providing a balance of performance and packaging efficiency, which makes it a popular choice for mid-size sedans and crossovers. Rack-Assist EPS (R-EPS) positions the motor directly on the steering rack, delivering the highest levels of steering assist torque and performance, which is essential for larger vehicles, such as SUVs and premium luxury cars, that require robust handling capabilities. A emerging variant is the Dual-Pinion EPS, which employs a separate pinion for the assist motor, offering designers greater flexibility in packaging and often enabling more advanced features. The selection of a specific EPS type is a critical decision for automakers, influenced by factors including vehicle architecture, performance targets, cost constraints, and the desired level of integration with other vehicle systems like ADAS.

Application Insights

The application of passenger car EPS systems spans the entire spectrum of the automotive market, from entry-level economy vehicles to high-performance luxury models, with its adoption becoming nearly universal in new vehicle production. In compact and subcompact car segments, the primary application driver is the imperative to meet fuel efficiency standards, with Column-Assist EPS being the predominant solution due to its lightweight and economical attributes. For mid-size vehicles, including sedans and hatchbacks, Pinion-Assist systems are frequently deployed to offer a more refined steering feel and greater assist capability without a significant cost penalty. The application within Sports Utility Vehicles and larger passenger cars necessitates the use of more powerful Rack-Assist EPS systems to manage the higher axle loads and provide the precise control demanded by these vehicle types. A critical and rapidly growing application area is the integration of EPS with advanced driver-assistance systems; the electric steering system is fundamental for functionalities such as lane centering, traffic jam assist, and autonomous emergency steering. Furthermore, the proliferation of electric vehicles represents a key application frontier, as EVs exclusively use EPS systems due to the absence of a traditional engine to drive a hydraulic pump, underscoring the technology's integral role in the future of mobility.

Regional Insights

The demand and adoption patterns for passenger car EPS systems exhibit distinct characteristics across different global regions, shaped by local automotive production, consumer preferences, and regulatory environments. The Asia-Pacific region stands as the largest and most dynamic market, fueled by massive automotive production hubs in China, Japan, and South Korea, alongside rapidly growing vehicle ownership in countries like India and Thailand. This region's dominance is attributed to the high volume of small and compact car production, where EPS penetration is essential for meeting strict local emission norms. North America and Europe represent mature markets characterized by a high concentration of premium and larger vehicles, leading to a greater adoption of advanced Rack-Assist EPS systems to meet performance expectations. These regions are also at the forefront of integrating EPS with sophisticated ADAS features, driven by both consumer demand and regulatory push for enhanced vehicle safety. Emerging markets in Latin America and the Middle East & Africa are witnessing gradual growth, with adoption rates closely tied to economic stability and the modernization of local automotive manufacturing practices. Overall, regional strategies of global OEMs and suppliers are meticulously tailored to address these diverse market dynamics and regulatory frameworks.

Company Insights

The passenger car EPS market is led by a consortium of globally recognized automotive suppliers with deep expertise in steering and driveline technologies. JTEKT Corporation, originating from a merger between Koyo Seiko and Toyoda Machine Works, is a foremost leader, renowned for its extensive portfolio of column-assist, pinion-assist, and rack-assist systems. NSK Ltd. is another major Japanese player, celebrated for its innovative steering solutions and strong focus on developing systems compatible with autonomous driving. Robert Bosch GmbH, a German engineering giant, leverages its broad expertise in automotive electronics to produce highly integrated and intelligent EPS systems. ZF Friedrichshafen AG, following its acquisition of TRW Automotive, possesses a formidable position in the market, offering a wide range of steering technologies and focusing on systems for electric and autonomous vehicles. Nexteer Automotive, known for its precise steering feel and software capabilities, is a key supplier to numerous global OEMs. Mitsubishi Electric Corporation also holds a significant share, providing advanced EPS systems that emphasize efficiency and reliability. These companies compete intensely on innovation, system cost, global support, and their ability to form strategic, long-term partnerships with automotive manufacturers worldwide.

Recent Developments

The passenger car EPS market is undergoing rapid transformation, marked by several recent technological and strategic advancements. A prominent development is the intensified focus on developing fail-operational and redundant EPS systems, which are critical safety requirements for higher levels of vehicle automation (Level 3 and above); these systems ensure steering functionality remains available even in the event of a single-point electronic failure. There is a significant industry push towards the commercialization of steer-by-wire technology, which eliminates the mechanical linkage between the steering wheel and the wheels, offering unparalleled design flexibility and paving the way for new cockpit architectures. Suppliers are also introducing software-defined steering features, allowing for customizable steering feel and characteristics that can be updated over-the-air to suit driver preferences or specific driving scenarios. In response to the electric vehicle boom, companies are launching new EPS products optimized for EV platforms, focusing on ultra-high efficiency to minimize impact on the vehicle's range. Furthermore, strategic collaborations between steering specialists and semiconductor companies are accelerating, aiming to develop next-generation control units with enhanced processing power for complex autonomous driving algorithms while maintaining functional safety standards.

Report Segmentation

This comprehensive market research report on the global passenger car EPS market provides a detailed and structured analysis segmented across multiple dimensions to offer granular insights. The segmentation by type meticulously categorizes the market into Column-Assist EPS (C-EPS), Pinion-Assist EPS (P-EPS), Rack-Assist EPS (R-EPS), and others, analyzing the adoption trends, advantages, and market share of each system configuration. The application segmentation delves into the utilization of EPS across different vehicle classes, examining its penetration and specific requirements in compact cars, mid-size cars, SUVs, luxury vehicles, and others. Geographically, the report provides an in-depth regional analysis, breaking down the market into key regions and major countries within North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa, highlighting regional production, consumption patterns, and regulatory impacts. Furthermore, the report includes a detailed competitive landscape section, profiling the key companies operating in this space, their market shares, product portfolios, and recent strategic initiatives such as mergers, acquisitions, and new product launches. This multi-faceted segmentation allows stakeholders to identify precise growth opportunities, understand competitive dynamics, and make informed strategic decisions based on a thorough analysis of each market sub-segment.

FAQs

What is electric power steering in a car? Electric power steering is an automotive system that uses an electric motor to provide steering assistance to the driver. It replaces traditional hydraulic systems by employing sensors to detect steering wheel torque and movement, with an electronic control unit commanding the motor to apply the necessary assistive force, resulting in improved fuel efficiency and enabling advanced driver-assistance features.

How does electric power steering work? Electric power steering works through a network of components including a torque sensor on the steering column, a steering angle sensor, and an electronic control unit. The torque sensor measures the force applied by the driver to the steering wheel. The ECU processes this data, along with vehicle speed information, and commands an electric motor to provide precisely calibrated assistance, making steering easier at low speeds and firmer at high speeds.

What are the different types of EPS systems? The primary types of EPS systems are classified based on the location of the assist motor. These include Column-Assist EPS, where the motor is on the steering column; Pinion-Assist EPS, where the motor drives the pinion gear; and Rack-Assist EPS, where the motor is directly attached to the steering rack. Each type offers different levels of assistance and is suited for specific vehicle sizes and performance requirements.

What are the advantages of electric power steering? Electric power steering offers numerous advantages over hydraulic systems, including significant improvements in fuel economy by eliminating the engine-driven hydraulic pump, reduced vehicle weight, and lower maintenance needs as there are no hydraulic fluids to leak or change. It also allows for customizable steering feel and is a fundamental prerequisite for advanced driver-assistance systems like lane-keeping assist and autonomous driving functions.

What is the difference between hydraulic and electric power steering? The core difference lies in the source of power assistance. Hydraulic power steering uses a pump driven by the engine to push pressurized fluid into a cylinder, which aids steering. Electric power steering uses an electric motor controlled by a computer to provide assistance. EPS is more efficient, adaptable, and lighter than hydraulic systems, and it enables software-based features that are impossible with hydraulic technology.

Can electric power steering be repaired? Yes, electric power steering systems can be repaired, but it often requires specialized diagnostic equipment and technical expertise. Common issues may involve failures of the torque sensor, the electric motor, or the electronic control unit. Diagnosis typically involves scanning for fault codes within the system's ECU. While some components may be serviced individually, repairs are generally more electronic and software-focused compared to the mechanical repairs of hydraulic systems.

Citius Research has developed a research report titled “Passenger Car EPS 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

• Passenger Car EPS 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 Passenger Car EPS 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.

Passenger Car EPS Market Segmentation

Regions Covered

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

Passenger Car EPS Market Analysis

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

• Overview of Passenger Car EPS Market
• Research Methodology
• Executive Summary
• Market Dynamics of Passenger Car EPS 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 Passenger Car EPS Market
• Cost and Gross Margin Analysis of Passenger Car EPS Market
• Passenger Car EPS 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 “Passenger Car EPS 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.

Passenger Car EPS Market Key Stakeholders

Below are the key stakeholders for the Passenger Car EPS Market:

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

Passenger Car EPS Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Passenger Car EPS 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 Passenger Car EPS 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 Passenger Car EPS 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

Report Customization

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