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

Electric power steering systems use an electric motor mounted at the steering rack, column, or pinion to provide variable steering assistance, replacing traditional hydraulic pumps and fluid-based systems. This technology reduces parasitic engine losses, contributing to improved fuel economy and lower tailpipe emissions while providing a programmable electronic interface for vehicle dynamics control.

• •EPS systems eliminate hydraulic pumps, belts, and fluid reservoirs, reducing vehicle weight by several kilograms and lowering maintenance requirements
• •European OEMs have progressively adopted EPS across passenger car platforms since the early 2000s, with most new vehicles now equipped as standard

Stringent European Union CO2 emission targets and WLTP fuel economy standards have made EPS a critical enabling technology for automakers seeking compliance without sacrificing steering feel or performance. The technology's inherent compatibility with hybrid and fully electric vehicle architectures makes it essential as Europe accelerates its regulatory transition away from internal combustion engines.

• •EU CO2 fleet-average targets penalize excess emissions, driving automakers to adopt weight-reducing technologies such as EPS
• •EPS provides the electronic control foundation necessary for advanced driver assistance systems, lane-keeping assist, and autonomous driving features

Germany leads the European EPS market, anchored by its concentration of premium automotive manufacturers and a robust Tier 1 supplier ecosystem centered in Stuttgart, Munich, and the Neckarsulm region. The United Kingdom and France represent the second and third largest national markets, supported by significant domestic vehicle assembly and a growing share of electrified model launches.

• •Germany accounts for the largest share of European EPS demand due to high-volume production of premium vehicles with advanced steering requirements
• •Italy, Spain, and Eastern European assembly hubs are expanding EPS adoption as regional manufacturing modernizes to meet EU emission norms

What are the recent trends and outlook?

Steer-by-wire technology, which removes the mechanical linkage between the steering wheel and road wheels entirely, is expected to gain commercial traction in premium and autonomous vehicle segments across Europe over the next five years. Integration with vehicle-level energy management systems, over-the-air software updates, and redundancy architectures meeting ISO 26262 functional safety standards will increasingly differentiate EPS supplier offerings.

• •EPS systems are incorporating redundant torque sensors, angle sensors, and fail-safe motor controls to support higher levels of automated driving under UNECE regulations
• •Growing demand for steer-by-wire systems is rising as automakers prepare fully autonomous vehicle platforms without traditional steering columns