Electric Steering Market

The growth of electric power steering is driving the market growth

The growth of electric power steering drives Market CAGR for electric steering. EPS systems are more energy-efficient, provide better feedback to drivers, and are more responsive, leading to improved handling and safety. In addition, EPS systems require less maintenance, resulting in lower consumer costs over the vehicle's lifetime. As a result, the demand for EPS systems is expected to grow, especially in developing markets such as Japan, China, and India, where the demand for affordable and fuel-efficient vehicles is rising.

Additionally, the increasing adoption of Steer-by-wire (SBW) systems is a type of electric steering that eliminates the contact between the steering wheel and the car's wheels. Instead, SBW systems use electronic signals to control the steering, allowing greater vehicle design flexibility and reducing weight and complexity. 

SBW systems also offer improved safety features such as automatic collision avoidance and switching between left and right-hand drives without mechanical modifications. While SBW systems are currently only used in high-end luxury vehicles, their adoption is expected to rise in the expected future as the technology becomes more affordable.

Autonomous driving technology is rapidly advancing, and electric steering systems are critical in enabling self-driving cars. Electric steering systems are essential in controlling the vehicle's direction, and the increased accuracy and responsiveness of electric steering systems make them the preferred choice for autonomous vehicles. In addition, electric steering systems can be integrated with other autonomous driving technologies, such as lane departure warning systems and adaptive cruise control.

As the demand for autonomous driving technology increases, the demand for electric steering systems is also expected to grow. For instance, the growth of EPS and SBW systems and advancements in autonomous driving technology are among the key trends shaping the electric steering market. We expect to see further developments in electric steering systems to improve vehicle performance, safety, and reliability, driving the Electric Steering market revenue.

The Global Electric Steering Market Industry is poised for substantial growth, with projections indicating a market value of 30.6 USD Billion in 2024 and an anticipated increase to 57.5 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 5.89% from 2025 to 2035. The increasing adoption of electric steering systems across various vehicle segments, including passenger cars and commercial vehicles, underscores the industry's potential. As manufacturers continue to innovate and enhance the performance of electric steering technologies, the market is likely to experience robust expansion, driven by both consumer demand and regulatory support.

The Global Electric Steering Market Industry is witnessing a surge in demand for fuel-efficient vehicles. As consumers become increasingly aware of environmental issues, automakers are focusing on technologies that enhance fuel economy. Electric steering systems, which reduce weight and improve vehicle dynamics, play a crucial role in achieving these goals. In 2024, the market is projected to reach 30.6 USD Billion, driven by the need for sustainable transportation solutions. The integration of electric steering systems not only contributes to lower fuel consumption but also aligns with global regulatory standards aimed at reducing carbon emissions. This trend is likely to continue, further propelling the industry's growth.

Government regulations promoting electric vehicles (EVs) are significantly influencing the Global Electric Steering Market Industry. Many countries are implementing stringent emissions standards and offering incentives for EV adoption. Electric steering systems are integral to the design of EVs, providing benefits such as reduced energy consumption and improved handling. As regulatory frameworks become more supportive, the market for electric steering is expected to expand. This regulatory push aligns with the projected CAGR of 5.89% for the period from 2025 to 2035, indicating a robust growth trajectory. The alignment of industry standards with environmental goals further solidifies the role of electric steering in the automotive landscape.

The expansion of electric vehicle infrastructure is a crucial factor propelling the Global Electric Steering Market Industry. As charging stations and support systems for electric vehicles proliferate, consumer confidence in EVs increases. This infrastructure development encourages automakers to invest in electric steering technologies, which are vital for the performance of electric vehicles. The anticipated growth in the electric vehicle market is likely to drive demand for electric steering systems, aligning with the overall trend towards sustainable transportation. The synergy between infrastructure development and electric steering technology is expected to create a favorable environment for market expansion.

The Global Electric Steering Market Industry is also driven by changing consumer preferences towards enhanced driving experiences. Modern drivers increasingly seek vehicles that offer superior handling, responsiveness, and comfort. Electric steering systems provide these attributes by allowing for customizable steering feel and improved feedback. As automakers strive to meet these consumer demands, the integration of electric steering becomes essential. This shift in consumer behavior is likely to contribute to the market's growth, with projections indicating a significant increase in market value over the next decade. The focus on user experience in vehicle design underscores the importance of electric steering in achieving customer satisfaction.

Technological innovations are a primary driver of the Global Electric Steering Market Industry. The advent of advanced driver-assistance systems (ADAS) and autonomous driving technologies necessitates the integration of sophisticated steering systems. Electric steering offers precise control and adaptability, which are essential for these advanced applications. As the automotive sector evolves, the demand for electric steering systems is expected to rise significantly. By 2035, the market could reach 57.5 USD Billion, reflecting the industry's response to technological advancements. The continuous improvement in sensor technology and software algorithms further enhances the capabilities of electric steering, making it a vital component in modern vehicles.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Electric Steering market will grow significantly, owing to the presence of established players, technological advancements, and supportive government initiatives driving the adoption of electric steering systems in this region. The growing consumer preference for electric and hybrid vehicles also boosts the market's expansion.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Electric Steering Market Share By Region 2024 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Electric Steering market accounts for the second-largest market share owing to a well-established automotive industry and is known for its technological innovations. The stringent emission regulations imposed by the European Union have compelled automobile manufacturers to adopt electric steering systems to improve fuel efficiency and reduce carbon emissions. Further, the German Electric Steering market held the largest market share, and the UK Electric Steering market was the rapid-growing market in the European region.

The Asia-Pacific Electric Steering Market will dominate the market from 2023 to 2032. The rising disposable income, rapid urbanization, and increasing consumer purchasing power drive this region's demand for electric steering systems. Additionally, the focus on reducing vehicle weight, enhancing fuel efficiency, and complying with stringent emission norms has led to automotive manufacturers' widespread adoption of electric steering systems in Asia. Moreover, China’s Electric Steering market held the largest market share, and the Indian Electric Steering market was the significant-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Electric Steering market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Electric Steering industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Electric Steering industry to benefit clients and increase the market sector. The Electric Steering industry has recently offered some of the most significant medical advantages. Major players in the Electric Steering market, including JTEKT Corporation, Robert Bosch GmbH, ZF TRW Automotive Holdings Corp., NSK Ltd., Nexteer Automotive Group Limited, Mando Corporation, ThyssenKrupp Ag, Hyundai Mobis Co. Ltd., Showa Corporation, China Automotive System, and others, are attempting to increase market demand by investing in research and development operations.

Robert Bosch GmbH, also known as Bosch, founded in 1886, located in Arlington, Germany, is a German multinational engineering and technology company spread across four business sectors, including hardware & software, consumer goods and industrial technology, and energy & building technology. In June 2022, Robert Bosch announced its plans to strengthen production and development capabilities in the field of mobility in Japan. Under this plan, the company will transfer its assembly line for electric power steering (EPS) systems for Japanese automakers from Robert Bosch Group's outside Japan to its Musashi Plant in Namegawa Town.

Nexteer Automotive, founded in 2009, located in Auburn Hills, Michigan, United States, is a motion control technology company. It is an automotive supplier delivering electric and hydraulic power steering systems, steer-by-wire systems, steering columns driveline systems, and OEMs. In June 2019, Nexteer launched its new facility in Liudong's new district, Liuzhou, China. This new 12,000-square-meter plant provides customers with column-assist EPS systems, related technologies, and services. Establishing the new plant will boost Nexteer's manufacturing capacity in the Asia Pacific to meet the rising demand for electric power steering systems in the Chinese and Asia Pacific markets.