Electric Power Steering Market Outlook:
Electric Power Steering Market size was over USD 29.23 billion in 2025 and is projected to reach USD 49.93 billion by 2035, growing at around 5.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of electric power steering is evaluated at USD 30.68 billion.
The electric power steering market remains on an upward trend as car manufacturers focus on fuel efficiency, car autonomy, and a cleaner environment. EPS systems reduce the use of hydraulic systems for steering, which are replaced by electric assisted systems that are more efficient in terms of power consumption. This has led to governments across the globe promoting lightweight vehicle technologies to achieve better fuel efficiency, which in turn has led to a faster adoption of EPS by manufacturers. Further, by-wire steering solutions that are a part of the Advanced Driver Assistance Systems (ADAS) market are emerging. In January 2025, ZF and Rane Group made a strategic move by launching EPS technology in India. Such moves caters to the increasing demand for enhanced steering systems in both the passenger and commercial vehicle markets in the country.
Stringent emission standards are significantly influencing the electric power steering market growth, as governments work to curb emissions and fuel consumption. According to the International Energy Agency (IEA), the overall sales of electric vehicles (EVs) increased from 2022 to 2023 by 3.5 million units, which is an annual growth of 35%, and thus, driving the demand for EPS in EVs and hybrid vehicles. Governments have also introduced measures such as the European Union Green Deal that seeks to reduce emissions by 45% in heavy-duty vehicles by 2030. Such goals put pressure on car makers to focus on energy-efficient parts, making EPS an essential solution to achieve such goals.
