ELECTRIC POWER STEERING (EPS) SYSTEM MARKET ANALYSIS

Electric Power Steering (EPS) System Market Size and Trends

The Global Electric Power Steering (EPS) System Market is estimated to be valued at US$ 25.56 Bn in 2024 and is expected to reach US$ 36.64 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031. The growing adoption of electric vehicles across the world is driving the need for efficient steering systems in automobiles.

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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.

Increasing demand for advanced driver assistance systems

With rapid developments in automotive electronics and sensor technologies, advanced driver assistance systems that enhance safety and convenience are becoming widely adopted features across many new vehicles. Safety features like adaptive cruise control, lane keep assist, blind spot monitoring and auto emergency braking have now become expected standards. Meanwhile, next generation capabilities such as traffic jam assist, highway autopilot and automated parking are entering mainstream vehicles as well. All these driver assistance and semi-autonomous functions rely on precise control and integration of electric power steering systems with other vehicle control units and sensors. The growing consumer demand and regulatory push for advanced driver assistance pushing automakers to offer more Advanced driver assistance systems (ADAS) solutions as standard is directly fueling the electric power steering market.