Electric Power Steering (EPS) System Market, By Type (Column Assist Type (CEPS), Pinion Assist Type (PEPS), and Rack Assist Type (REPS)), By Component (Steering Rack/Column, Sensor, Steering Motor, and Others), By Vehicle Type (Passenger Car, Light Commercial Vehicles, Heavy Commercial Vehicles, and Buses & Coaches) By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Feb 2025

Code : CMI4991

Pages :205

Formats :

Excel and PDF

Industry : Consumer Electronics

Electric Power Steering (EPS) System Market Size and Trends

The Global Electric Power Steering (EPS) System Market is estimated to be valued at US$ 26.97 Bn in 2025 and is expected to reach US$ 39.26 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2025 to 2032. The growing adoption of electric vehicles across the world is driving the need for efficient steering systems in automobiles.

Electric Power Steering (EPS) System Market Key Factors

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This is attributed to factors such as growing demand for fuel-efficient and high-performance vehicles integrated with advanced steering systems. Manufacturers are focusing on developing lightweight and affordable EPS which provide better vehicle control and comfort to the driver. Government regulations regarding vehicle safety and efficiency are also driving the demand for electric power steering globally.

Drivers of the Market:

Increasing production of electric vehicles

The global automotive industry has seen rapid adoption of electric vehicles in recent years, driven mainly by stringent emission norms and push for sustainable mobility solutions. As electric vehicles do not require mechanical steering systems, the demand for electric power steering among OEMs and component manufacturers has increased tremendously. Advanced EPS systems allow automakers to better integrate electric drive components and optimize interior space in electric vehicle designs. Many new electric vehicle models now come with steer-by-wire or steer-by-motion technology which fully replaces traditional steering columns and linkages with electric actuators. This allows for creative form factors and new driving experiences.

As countries propose bans on internal combustion engines and more consumers warm up to the idea of electric mobility, analysts predicts sales of electric cars to grow exponentially in the coming years. All major and niche automakers are aggressively working to launch affordable long range electric vehicles across various segments. This rising demand base for electric cars in turn is majorly driving the need for advanced electric power steering systems that are optimized for weight, packaging and performance in electric vehicle platform designs. While mechanical power steering will still be needed for hybrids and smaller cars, electric vehicles provide a huge growth opportunity for EPS suppliers to partner with automakers and lead technology innovations in integrated steering and drivetrain solutions.