Market Overview
Electric Power Steering uses an electric motor to assist the driver in turning the steering wheel, eliminating the hydraulic pump and associated plumbing found in conventional systems. This technology delivers measurable improvements in fuel economy and reduces overall vehicle mass, making it a standard fitment across most new passenger cars produced in the UK. Domestic demand is closely tied to overall vehicle production volumes and replacement parts requirements in the aftermarket.
- •Market valued at approximately $1.49 billion in 2024, reaching an estimated $1.726 billion by 2026
- •Column-assist (C-EPS) variant commands the largest share of EPS unit volumes
- •Demand spans original equipment fitment on new vehicles and replacement parts in the service and repair segment
Growth Drivers
Stringent carbon dioxide emissions standards across Europe are pressuring original equipment manufacturers to reduce vehicle weight wherever possible, and EPS systems are significantly lighter than hydraulic alternatives. The accelerating shift toward battery electric and hybrid powertrains further amplifies demand, as electric platforms require steering architectures compatible with drive-by-wire and advanced driver assistance system integration. Rising average vehicle content of electronic driver assistance features also calls for more precise and responsive steering actuation.
- •EU emissions regulations and corporate average fuel economy targets incentivize weight reduction across vehicle platforms
- •Electrification of the vehicle parc increases per-vehicle steering-system content and complexity
- •Proliferation of advanced driver assistance and autonomous driving features creates demand for higher-precision steering control
Segmentation and Regional Analysis
The UK market is segmented by EPS architecture into column-assist, pinion-assist, and rack-assist types, with column-assist dominating due to cost efficiency and suitability for smaller vehicles. By vehicle type, passenger cars account for the bulk of demand, while light commercial vehicles represent a smaller but steadily growing application segment. Geographically, the UK market is embedded within the broader European supply chain, with concentration of final assembly near traditional automotive manufacturing clusters in the Midlands and North West of England.
- •Column-assist EPS leads in volume; rack-assist variants grow share in premium and electric vehicle applications
- •Passenger cars constitute the largest end-use segment, followed by light commercial vehicles
- •Production and supplier activity cluster around established UK automotive manufacturing regions, linked to continental European tier-one supply networks
Competitive Landscape
Who are the notable companies in the industry?
The competitive environment is characterized by a moderate-to-high degree of consolidation, with the market served by a mix of large integrated first-tier automotive suppliers and a smaller set of specialty steering-system producers. Technology routes span C-EPS, P-EPS, and R-EPS architectures, with each requiring distinct manufacturing capabilities in precision gearing, motor control electronics, and sensor integration. Manufacturing capacity for key sub-components such as steering columns, electric motors, and control modules is concentrated near major vehicle assembly hubs across the UK and Western Europe, with feedstock reliance on steel, aluminum, and engineered polymers.
- •Market structure combines a few dominant integrated tier-one automotive suppliers with niche steering-system specialists
- •Core technology routes include column-assist, pinion-assist, and rack-assist EPS architectures, each demanding different mechanical and electronic capabilities
- •Sub-component and final assembly capacity is concentrated in the UK Midlands and North West, supported by regional polymer and metal feedstock supply chains
Trends and Outlook
What are the recent trends and outlook?
Over the medium term, the market is expected to sustain a healthy expansion rate as electric vehicle platforms proliferate and autonomous driving functions place greater demands on steering-system responsiveness and redundancy. Integration of EPS with steer-by-wire architectures and advanced torque and angle sensors will drive up average selling prices per unit, partially offsetting volume pressures. Long-term forecasts project the UK market reaching between $2.69 billion and $3.15 billion by the mid-2030s, assuming stable vehicle production levels and continued regulatory pressure toward electrification.
- •Steer-by-wire and redundant EPS architectures expected to gain adoption alongside autonomous driving development
- •Average system complexity and electronic content per vehicle rising, supporting revenue growth even if unit volumes grow more slowly
- •Market projected to reach $2.69 billion to $3.15 billion by 2034-2035 depending on electrification pace and production volumes
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Connect to an analyst →Market size and forecast are Claight Analysis, informed by public research and industry data. Historical years before 2026 and all forecast years are Claight estimates at the stated CAGR. Retrieved 2026.