Automotive Electric Power Steering Systems Market Size - Share Outlook, Growth Analysis Report and Forecast Trends 2026-2030

The automotive EPS market comprises column-assist, pinion-assist, rack-assist and steer-by-wire systems supplied to passenger cars, light commercial vehicles and heavy-duty trucks. EPS units use an electric motor to provide steering assistance, eliminating the engine-driven pump found in hydraulic setups and reducing parasitic losses by 3-5% in typical applications. Independent research houses converge on a 2025 valuation in the high-$20s to mid-$30s billion range, with a long-term CAGR generally between 5.5% and 9% depending on the scope and methodology used.

• •Estimated 2025 global market value: roughly $32.0 billion
• •Long-term forecasts cluster around 5.5%-9% annual growth
• •EPS now accounts for the majority share of all automotive steering technologies

The phase-out of hydraulic power steering is the single biggest structural driver, since EPS improves fuel economy by 2-4% and reduces tailpipe CO2, directly helping automakers meet regional fleet-average targets. Rising ADAS penetration, including lane-keeping assist, lane centering and automated parking, depends on the precise electronic control that only EPS can deliver. At the same time, the shift to battery-electric vehicles is accelerating adoption because EVs have no engine-driven pump and benefit most from the lower parasitic loads of electric assistance.

• •CO2 and fuel-economy regulations penalizing hydraulic systems
• •ADAS features such as lane-keep and automated parking require electronic steering
• •Vehicle electrification removes the engine-driven pump that hydraulic systems rely on

By vehicle type, passenger cars hold the dominant share, while light commercial vehicles are the fastest-growing segment as pickup and SUV platforms adopt EPS in volume. Asia-Pacific leads global consumption, driven by China, Japan, South Korea and India, which together account for the majority of new vehicle production worldwide. Europe is the second-largest region on the strength of strict emissions rules and rapid ADAS uptake, while North America trails but is growing steadily as full-size pickup trucks transition away from hydraulic systems.

• •Passenger cars dominate volume; light commercial vehicles are the fastest-growing segment
• •Asia-Pacific is the largest region, anchored by China, Japan, South Korea and India
• •Europe is the second-largest market, propelled by emissions rules and ADAS adoption

What are the recent trends and outlook?

Steer-by-wire is moving from niche to mainstream, with several global OEMs committing to remove the mechanical steering shaft within the next vehicle generations. Integration of EPS with vehicle dynamic control, over-the-air calibration updates and cybersecurity protections is becoming standard practice. On balance, the market is on track to roughly double over the coming decade, supported by regulation, electrification and the steady migration of ADAS features from premium into mass-market vehicles.

• •Steer-by-wire systems are scheduled for broad OEM rollout across the next vehicle generations
• •OTA calibration updates and cybersecurity are now standard EPS development priorities
• •Long-term outlook points to roughly a doubling of market size over the next ten years