Electric Power Steering Market Outlook: Size, Share, Trends, Growth Analysis, Competitive Landscape & Forecast, 2026-2033

Vehicle Electrification Boosting EPS Adoption

The worldwide move toward electric vehicles is causing a dramatic increase in the number of electric power steering systems being used in new cars. The difference between hydraulic and electric power steering systems is that hydraulic systems must always be powered by the engine, while electric power steering systems only use power when steering assist is necessary. This results in improved vehicle efficiency and reduced energy consumption.

As battery electric vehicles (BEV), hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV) are experiencing greater success in the marketplace, manufacturers are beginning to change out hydraulic steering systems in favor of electric power steering systems. EPS systems help support lightweight vehicle designs, as well as extending the range or overall efficiency of electric vehicles.

EPS systems are also compatible with advanced electronic vehicle control systems and architectures, making the EPS system a critical part of many current and future electrified vehicles. The growth of EV manufacturing around the world is expected to create ongoing demand for EPS systems for both passenger and commercial vehicles.

Penetration in Commercial Vehicles

There is a significant potential for the growth of the electric power steering market from the growth of electric power steering systems on commercial vehicles. Traditionally, there was with have some commercial vehicles that need to use hydraulic steering system because they needed a lot of steering assistance to get the job done. More recently, the emergence of high powered electric motors along with better quality electronic controls and new rack assist system have led to the ability to use EPS in cars, and light trucks, and trucks used to deliver freight around the World.

There has also been an increase in fleet owners looking for solutions that help to save fuel, decrease the maintenance of vehicles and provide additional functions for the operation of the vehicle using advanced driver assist systems.

Fleet owners have begun replacing traditional commercial vehicle fleet platforms with electric versions or with fleets that will be electronically linked, which will drive up EPS adoption. Additionally, there are new opportunities for EPS suppliers as the market for autonomous capability, lane departure warning, and steer by wire systems in the commercial transportation industry continues to grow.

The "Electric Power Steering Market Size and Forecast (2022 - 2033)" report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all key market segments covered under the scope
• Market trends, along with market dynamics such as drivers, restraints, and key opportunities
• Market analysis covering key trends, global and regional frameworks, major players, regulations, and recent developments
• Industry landscape and competitive analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles, including SWOT analysis

Varying levels of growth in regional electric power steering (EPS) markets will be driven by factors such as volume of auto production, vehicle electrification strategies, government regulations and frequency of advanced driver assistance systems (ADAS) implementations. Over the next few years, as intelligent vehicle technologies and electrified mobility continue to develop around the globe, the EPS market is forecasted to continue to grow in parallel.

The North American EPS market has remained very active, in part because of the increasing use of electric vehicles (EVs), increased use of advanced driver assistance systems (ADAS) technologies and strong consumer interest in safety-related features. In addition to growing end-user demand for EPS systems, automotive OEMs in this region are making significant investments in software-enabled steering system architectures.

The electric power steering system market in Asia-Pacific is expected to be the largest and fastest-growing region as it has a very large automotive manufacturing base and a rapidly growing base of EV production. Countries with large automotive markets, such as China, Japan, South Korea and India, continue to increase their investments in vehicle electrification and next-generation mobility technologies.

Additionally, due to the new requirements surrounding fuel efficiency regulations, identified decarbonisation targets and developing economies, Europe is still a significant EPS market. European vehicle manufacturers are placing an increasing emphasis on integrating advanced EPS technology into their vehicles to enable ADAS and autonomous driving capabilities.

Emerging markets in the Middle East and Africa, and in South and Central America, have begun to progressively adopt EPS technology through vehicle modernisation programmes, upgraded automotive production capabilities and/or increased consumer demand for advanced vehicle safety features.

• The report includes qualitative and quantitative data in the Electric Power Steering Market across type, component, vehicle type, and geography.
• The report starts with the key takeaways (chapter 2), highlighting key trends and outlook of the market.
• Chapter 3 focuses on the research methodology of the study.
• Chapter 4 includes ecosystem analysis.
• Chapter 5 highlights the major industry dynamics in the market, including factors that are driving the market, prevailing deterrents, potential opportunities, as well as future trends. Impact analysis of these drivers and restraints is also covered in this section.
• Chapter 6 discusses the market scenario, in terms of historical market revenues, and forecast till the year 2033.
• Chapters 7 to 10 cover market segments by type, component, vehicle type, and geography across North America, Asia Pacific, Europe, Middle East and Africa, and South and Central America. They cover the market revenue forecast and factors driving the market.
• Chapter 11 describes the competitive analysis along with the heat map analysis for the key players operating in the market.
• Chapter 12 describes the industry landscape analysis. It provides detailed descriptions of business activities such as market initiatives, new developments, mergers, and joint ventures globally, along with a competitive landscape.
• Chapter 13 provides detailed profiles of the major companies operating in the market. Companies have been profiled on the basis of their key facts, business descriptions, products, financial overview, SWOT analysis, and key developments.
• Chapter 14, i.e., the appendix, is inclusive of a brief overview of the company, a list of abbreviations, and a disclaimer.

The electric power steering market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. Recent developments and news in the market include:

• In March 2025, Nexteer launched its new Rear-Wheel Steering (RWS) system and announced two production contracts with a leading Chinese OEM, with production scheduled for 2026. The system complements Nexteer's EPS and steer-by-wire portfolio.
• In April 2025, Nexteer Automotive announced its new High-Output Column-Assist Electric Power Steering (HO CEPS) system. The technology expands steering assist capacity up to 110 Nm, enabling broader deployment across heavier vehicles, electric vehicles, and global vehicle platforms while offering OEMs greater flexibility in balancing performance, cost, and scalability.