Electric Steering Market Size

Electric Steering Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The electric steering market is projected to grow from a current market value of $ 28.71 billion in 2023 to $ 48.46 billion in 2032. This growth is equivalent to a compound annual growth rate (CAGR) of 5.89 percent from 2024 to 2032, indicating a high demand for steering technology in the automotive sector. Electric steering is a result of the increasing adoption of electric vehicles and stringent government regulations for reducing CO2 emissions. Electric steering systems offer improved fuel efficiency and improved vehicle handling. Also, technological developments such as the integration of advanced driver assistance systems (ADAS) and the development of driverless vehicles are expected to boost the electric steering market. The market is dominated by leading companies such as Robert Bosch, ZF Friedrichshafen and Nexteer Automotive. Strategic alliances and new product launches by companies are also expected to increase the competitiveness of the market. As the market continues to evolve, electric steering will play an important role in shaping the future of vehicle dynamics and safety.

Regional Market Size

Regional Deep Dive

The Electric Power Assist Market is experiencing significant growth across various regions, owing to the advancements in automobile technology, the rising demand for fuel-efficient vehicles, and the strict government regulations to reduce emissions. North America has a strong presence of major automobile manufacturers, and a growing trend towards electric and self-driving vehicles. Europe is witnessing rapid technological developments in electric steering systems, which is primarily driven by the EU’s focus on sustainable mobility and the adoption of advanced driver assistance systems. The Asia-Pacific region, especially China, is becoming the largest hub for electric vehicles, which is significantly influencing the electric power assist market. Middle East and Africa are gradually adopting electric power assist systems, whereas Latin America is exploring electric power assist systems as part of its modernization efforts.

North America

• The government of the United States has introduced various incentives for the introduction of electric vehicles, and this is driving the demand for electric steering systems from manufacturers such as General Motors and Tesla.
• In recent years, for example, the collaboration between Ford and Robert Bosch has focused on integrating electric power steering with advanced driver assistance systems. This integration is aimed at improving the safety and performance of the vehicle.
• The trend towards the electrification of vehicles and the trend towards autonomy are driving the manufacturers to invest in electric steering systems. This is leading to innovations in terms of system responsiveness and energy efficiency.

Europe

• Electrification of the steering wheel. The European Union’s tightening of the regulations relating to exhaust gases from motor vehicles has led to the introduction of electric steering, and it is in this respect that the great German motor-car makers are now ahead of their competitors.
• A new steering system is being developed by ZF Friedrichshafen AG. This is a new steering system that is used to increase the control of the vehicle and reduce its weight.
• In Europe, the increasing number of electric and hybrid vehicles has led to a steady increase in the market for electric steering systems, as manufacturers seek to improve both the energy efficiency and the driving experience.

Asia-Pacific

• The market for electric power steering systems has grown rapidly with the accelerated development of the Chinese electric vehicle industry, supported by government policies and subsidies.
• The Japanese car companies, including Toyota and Honda, are making extensive use of electric power steering, which is being progressively introduced in order to improve the safety and performance of their vehicles.
• A major focus of the electric steering system manufacturers in countries like South Korea is to combine them with the driverless technology.

MEA

• The car market in the United Arab Emirates is gradually shifting towards electric vehicles. The government is encouraging car makers to fit electric steering to new models.
• The local and international automobile industry has joined forces to develop electric-steering systems adapted to the special conditions of the local roads.
• The growing interest in sustainable transport solutions is bringing with it an increased demand for electric steering systems, especially in countries where the automobile industry is in its infancy, such as South Africa.

Latin America

• Brazil has begun to produce electric cars, and its car manufacturers are experimenting with electric steering systems, to increase the efficiency and performance of the vehicle.
• Government-driven initiatives to reduce CO2 emissions have encouraged automakers in the region to adopt electric power steering as part of their sustainable mobility strategies.
• The growing presence of the world's major carmakers in Latin America is fostering innovation in electric power steering, which is adapting to the needs and preferences of the local market.

Did You Know?

“Electric power steering can improve fuel economy by as much as 10 per cent over hydraulic systems, since it consumes less energy and makes the vehicle lighter.” — International Energy Agency (IEA)

Segmental Market Size

The electric steering market is a dynamic segment of the automotive industry, and it is experiencing robust growth, driven by technological advances in automobiles and a growing demand for an improved driving experience. The main drivers of the market are the increasing focus on fuel efficiency and the growing use of advanced driver-assistance systems (ADAS), which require precise steering. In addition, regulatory pressure to reduce emissions is pushing manufacturers to adopt electric steering systems, which are lighter and more efficient than hydraulic systems.

Electrified steering is currently in its testing stage, with the large automobile manufacturers like Ford and Tesla having the lead in putting it into production. It is being used mainly in buses, trucks and electric vehicles. The electric steering improves both maneuverability and safety. This trend is also influenced by the emergence of electric mobility and the trend towards sustainable mobility. The evolution of the electric steering system, with its steer-by-wire systems and the integration of sensors, is shaping the future of car design.

Future Outlook

From 2023 to 2032, the electric steering market is expected to grow at a CAGR of 5.89 % from $28,710,710,911 to $49,563,711,518. It is supported by the increasing use of electric vehicles (EVs) and the development of steering technology, which is expected to improve the performance and safety of vehicles. It is expected that electric steering will be used in more than 70 % of new vehicle models by 2032, driven by the desire for better driving experience and the need to meet the demand for fuel efficiency and reduce emissions.

The electric power steering market is expected to grow owing to the technological advancements such as the integration of advanced driver assistance systems (ADAS) and the development of fully automatic vehicles. The shift towards more sophisticated steering solutions, including steer-by-wire systems, is also expected to increase the adoption of electric power steering. Also, supportive government policies encouraging the adoption of sustainable transport solutions are likely to boost the transition to electric power steering systems. Moreover, the increasing trend towards vehicle connectivity and the Internet of Things (IoT) is expected to ensure that electric power steering remains at the forefront of automotive technology.