United States Electric Power Steering Market, By Type (C-EPS, P-EPS, R-EPS), By Component Type (Steering Column, Steering Wheel, Sensors, Electronic Control Unit, Electric Motor and Bearings), By Vehicle Type (Passenger Cars, Medium & Heavy Commercial Vehicles, Light Commercial Vehicles and Off-the-Road Vehicles), By Mechanism Type (Collapsible EPS, Rigid EPS), Regional, Competition, Forecast & Op
Published Date: March - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 320 million |
| CAGR (2023-2028) | 6.19% |
| Fastest Growing Segment | Light Commercial Vehicle |
| Largest Market | Western |
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Market Overview
United States Electric Power Steering Market has valued at USD 320 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.19%.
The American Electric Power Steering (EPS) market has also seen tremendous development and change over the past few years, illustrating the constantly shifting landscape of the auto industry. EPS technology is now a crucial part of present-day vehicles, increasingly taking the place of traditional hydraulic power steering systems because of its many benefits. These benefits include the improvement in fuel efficiency, increased safety features, compatibility with electric and autonomous vehicle technologies, and the smoothened integration with Advanced Driver Assistance Systems (ADAS). Among the trends of interest in this market is the merging of EPS with ADAS, encompassing lane-keeping assist, adaptive cruise control, and collision avoidance systems. This integration not only improves vehicle safety but also makes way for semi-autonomous and autonomous driving features. Additionally, the automobile industry's trend towards electrification has further propelled demand for EPS systems. With the transition towards electric and hybrid vehicles gaining pace, EPS technology is leading the charge with energy-efficient and light-duty solutions that assist in vehicle efficiency and performance. Shoppers looking for improved vehicle dynamics are driving the demand for more responsive and sensitive steering systems. EPS technology is retorting with variable steering assist, multiple driving modes, and better handling to address these consumer preferences. In addition, as environmental issues continue to increase, the trend toward sustainable and environmentally friendly driving habits is supporting the adoption of EPS systems. As more emphasis is being placed on energy efficiency, sustainability, and compliance with regulations, EPS technology is perfectly in line with the changing needs of the United States automotive industry.
Key Market Drivers
Fuel Efficiency and Environmental Concerns
One of the primary drivers of the United States Electric Power Steering (EPS) market is the growing emphasis on fuel efficiency and environmental sustainability in the automotive industry. As concerns about carbon emissions and fuel consumption continue to rise, manufacturers and consumers alike are seeking solutions to reduce the environmental impact of vehicles. EPS offers several advantages in this contextEPS systems are more energy-efficient compared to traditional hydraulic power steering systems. By eliminating the need for a hydraulic pump, EPS reduces energy loss, leading to improved fuel efficiency. This is especially significant in a market where stricter fuel economy standards are in place to combat emissions. Electric power steering systems are lighter and more compact than hydraulic systems, contributing to overall vehicle weight reduction. Lighter vehicles consume less fuel, further enhancing fuel efficiency. Some EPS systems are designed to harness energy through regenerative steering, where energy is recovered during turning and returned to the vehicle's electrical system. This regenerative capability has the potential to improve fuel efficiency further, especially in hybrid and electric vehicles. As the automotive industry undergoes a shift toward electric and hybrid vehicles, EPS systems are well-suited to work in harmony with these powertrains, contributing to the overall efficiency of electrified vehicles. The United States has implemented stricter emissions standards in recent years, and these regulations are expected to become even more stringent in the future. To meet these standards, automakers are increasingly adopting EPS to help reduce vehicle emissions. In a market where consumers are demanding more environmentally responsible vehicles, the fuel efficiency and eco-friendly attributes of EPS systems make them a critical driver of market growth.
Safety and Advanced Driver Assistance Systems (ADAS)
Safety is a paramount concern in the automotive industry, and the integration of Advanced Driver Assistance Systems (ADAS) has become a significant driver of the United States Electric Power Steering market. These systems, which include features like adaptive cruise control, lane-keeping assist, and automated emergency braking, rely on accurate steering input and feedback. EPS plays a crucial role in the successful implementation of these safety technologiesEPS systems offer precise and rapid steering adjustments, ensuring quick response to sudden safety-related events. This enhances vehicle stability and helps mitigate accidents. Electric power steering is well-suited for integration with ADAS technologies. The feedback and control provided by EPS facilitate functions like lane-keeping assist and adaptive cruise control, improving driver assistance and enhancing overall vehicle safety. As autonomous driving technology advances, EPS systems are instrumental in providing the necessary steering control and feedback. They allow for seamless transitions between autonomous and manual driving modes, further enhancing vehicle safety. The ease of steering with EPS can reduce driver fatigue, making it easier for drivers to maintain focus and control over extended periods, contributing to improved safety. EPS systems enable more accurate and responsive steering adjustments for lane-keeping systems and collision avoidance features, enhancing their effectiveness. The United States market is increasingly influenced by safety-conscious consumers and evolving regulations, making EPS a critical driver in the integration of advanced safety technologies.
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Enhanced Vehicle Dynamics and Performance
Vehicle dynamics, handling, and performance are fundamental aspects that influence consumer choices. The United States Electric Power Steering market has been driven by the quest to enhance vehicle dynamics and driving experienceEPS systems allow for variable steering assistance, meaning that steering effort can be adjusted based on vehicle speed. This feature enhances driving comfort and stability, particularly at higher speeds. Many EPS systems offer multiple driving modes, such as sport and comfort settings, that adjust the steering response to cater to driver preferences. This flexibility allows consumers to customize their driving experience. Some EPS systems are designed to simulate the feel of traditional hydraulic power steering, providing drivers with a more natural and engaging steering experience, particularly in high-performance and sports vehicles. The precision and responsiveness of EPS systems contribute to better vehicle handling and cornering. This is a key consideration for performance-oriented consumers and sports car enthusiasts. EPS systems can integrate with dynamic stability control systems to enhance vehicle stability, especially in challenging road conditions. This feature is highly sought after in regions with variable weather patterns. In a market where consumers place a significant emphasis on driving experience and performance, EPS has emerged as a driving force by enhancing vehicle dynamics and steering precision.
Weight Reduction and Packaging Efficiency
Weight reduction and efficient packaging are vital considerations for automotive manufacturers aiming to meet strict fuel efficiency standards and enhance vehicle design. EPS systems offer several advantages that drive their adoption in the quest for lightweight, efficient, and space-saving solutionsEPS systems are inherently lighter than traditional hydraulic power steering systems. Reducing vehicle weight is a critical factor in improving fuel efficiency and handling. With reduced weight, the engine has less work to do to move the vehicle. This leads to improved overall engine efficiency and better fuel economy. EPS systems take up less space within the vehicle compared to hydraulic power steering systems, allowing for more efficient packaging and design flexibility. This is particularly important in compact and electric vehicles where space is at a premium. EPS systems are well-suited for use in hybrid and electric vehicles, where weight reduction and packaging efficiency are essential to maximize battery range and overall efficiency. The weight distribution of a vehicle is influenced by the steering system. Lighter EPS systems can contribute to better weight distribution, enhancing vehicle control and stability. The United States market is influenced by the demand for efficient, lightweight vehicles, and EPS systems are a key driver in achieving these goals.
Integration with Electric and Autonomous Vehicles
The rapid growth of electric vehicles (EVs) and autonomous vehicles (AVs) in the United States has significantly impacted the Electric Power Steering market. Several factors contribute to the growing adoption of EPS in the context of electrification and autonomous drivingElectric power steering systems are highly compatible with EVs, as they complement the electrical architecture of these vehicles. Their energy-efficient design aligns well with the energy-saving goals of EVs, contributing to increased range and efficiency. Autonomous vehicles require precise steering control, especially during transitions between autonomous and manual driving modes. EPS systems offer the accuracy and responsiveness needed for seamless integration with AV technology. As AV technology advances, EPS systems play a crucial role in enhancing driver-assist features such as automated lane-keeping and parking assistance. EPS systems are integral components of drive-by-wire systems that replace traditional mechanical linkages with electronic controls.
Key Market Challenges
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Technical Complexity and Maintenance Challenges
The integration of Electric Power Steering (EPS) systems into modern vehicles has launched technical complexities that present challenges for both automakers and consumers. These challenges include EPS systems are electronic and involve various components, including sensors, controllers, and electric motors. This complexity can make diagnosing and repairing EPS issues more challenging than traditional hydraulic power steering systems. Maintenance and repairs of EPS systems may require specialized equipment and expertise, which can increase service costs. These complexities can lead to longer service times and higher maintenance expenses. EPS systems often rely on software for optimal performance. As with other electronic components in vehicles, software updates may be necessary, requiring a visit to the dealership or service center for consumers. Any issues with EPS components can impact vehicle steering, which is a critical safety aspect. Ensuring the reliability of EPS systems is paramount, as unexpected failures could lead to accidents and safety concerns. Vehicle owners may have limited knowledge of EPS systems and how they operate. This can lead to a lack of awareness about the importance of EPS maintenance, potentially resulting in neglected upkeep. Automakers and service providers must invest in training and education to address these challenges and ensure that EPS systems are maintained and repaired correctly. In addition, the development of user-friendly diagnostic tools and standardized procedures for EPS maintenance can help alleviate these technical complexities.
Cost Considerations and Price Sensitivity
Cost considerations are a significant challenge for the United States Electric Power Steering Market. While EPS systems offer numerous advantages, their upfront cost, maintenance expenses, and repair costs can be a barrier for both automakers and consumersIntegrating EPS systems into vehicles adds to the initial production cost. For automakers, this can result in increased manufacturing expenses, which can be passed on to consumers in the form of higher vehicle prices. As mentioned earlier, EPS systems can be more expensive to maintain and repair due to their technical complexity. These costs can be burdensome for vehicle owners, especially if repairs are not covered by warranties. Many consumers are price-sensitive and prioritize affordability when purchasing vehicles. The added cost of EPS systems can deter budget-conscious buyers, especially in a competitive automotive market. When EPS components require replacement, the cost of parts can be significant. Replacing components like electric motors or sensors can be expensive, particularly if consumers choose original equipment manufacturer (OEM) parts. Consumers expect reliability and durability from their vehicles, and they may not be willing to compromise on safety and performance, even if it means paying a premium for EPS systems. Automakers and EPS component manufacturers must work to balance cost considerations with the benefits of EPS technology. This may involve exploring cost-effective manufacturing methods, creating more affordable maintenance options, and offering transparent pricing structures.
Technical Standardization and Compatibility
Technical standardization and compatibility are critical challenges in the United States Electric Power Steering Market. EPS technology needs to be standardized to ensure that components from various manufacturers can work together seamlessly. These challenges includeSome automakers use proprietary EPS systems, making it difficult for third-party service providers and independent repair shops to work on these systems. This can limit consumer choices for maintenance and repair services. Compatibility issues may arise when trying to integrate EPS systems with other vehicle components, such as advanced driver assistance systems (ADAS) or autonomous driving technology. Ensuring compatibility is essential for seamless vehicle integration. Software plays a crucial role in EPS systems. Compatibility challenges can emerge when software updates are required, and different software versions are not easily compatible with one another. Standardized diagnostic tools and software are essential for effective maintenance and troubleshooting. The lack of standardization can lead to confusion and inefficiencies when diagnosing and repairing EPS issues. As vehicles become more connected and dependent on electronic systems, interoperability between EPS and other vehicle systems becomes increasingly important to ensure seamless functionality. Standardization and compatibility are essential for ensuring that EPS systems are not only effective but also easy to service and maintain. A lack of standardization can result in confusion and inefficiencies, increasing costs and reducing consumer choices.
Supply Chain Disruptions and Material Costs
Supply chain disruptions and material costs are challenges that have been magnified in recent years, impacting the Electric Power Steering Market. These challenges includeThe automotive industry relies on complex global supply chains. Disruptions, such as those caused by the COVID-19 pandemic, can lead to delays in production and a shortage of critical components for EPS systems. The cost of materials, including metals and electronic components, can fluctuate due to factors like trade tariffs, supply and demand, and geopolitical events. These cost fluctuations can impact the overall cost of EPS systems. Some materials used in EPS systems, such as rare earth elements and specialized sensors, may have limited supply, which can drive up material costs and create potential shortages. The manufacturing process for EPS components can be complex, and bottlenecks or constraints in the production process can result in supply shortages. Supply chain disruptions and material cost fluctuations can lead to increased lead times for EPS component production and delivery, affecting the automotive manufacturing schedule.
Integration with Autonomous Driving Technology
The integration of Electric Power Steering (EPS) with autonomous driving technology presents a significant challenge in the United States Electric Power Steering Market. While EPS systems play a crucial role in enabling autonomous driving, they must meet the high standards of safety and reliability required for autonomous vehiclesAutonomous vehicles require redundant systems to ensure safety in the event of component failures. EPS systems must be designed with fail-safe mechanisms to guarantee that steering control can be maintained in case of a malfunction. Autonomous driving systems rely on precise steering input to navigate and make driving decisions. The accuracy and responsiveness of EPS systems are critical for the success of autonomous driving technology. Autonomous vehicles are equipped with various sensors, such as lidar, radar, and cameras. EPS systems must seamlessly integrate with these sensors to provide accurate steering input based on the vehicle's surroundings. Autonomous vehicles require constant connectivity and communication between various vehicle systems. EPS systems need to maintain this connectivity to ensure that the steering input aligns with the vehicle's automated driving decisions. The integration of EPS with autonomous technology is subject to rigorous safety regulations and standards. Complying with these regulations is crucial, as non-compliance can result in safety risks and regulatory challenges.
Key Market Trends
Integration with Advanced Driver Assistance Systems (ADAS)
The integration of Electric Power Steering (EPS) with Advanced Driver Assistance Systems (ADAS) is a notable trend among United States automotive consumers. ADAS refers to a broad range of safety and driver-assist technologies, such as adaptive cruise control, lane-keeping assist, automated emergency braking, and more. EPS is a critical component in providing the precise and responsive steering control needed for these advanced systems. EPS systems cooperate with lane-keeping assist systems to assist drivers in keeping their vehicles in their lane. EPS assists in steering to nudge the vehicle back into the lane if it begins to drift, increasing vehicle stability and safety. Adaptive cruise control systems depend on EPS for steering control adjustments. EPS makes sure the vehicle follows the speed of the leading vehicle in a smooth manner and keeps a safe distance behind. This increases the overall safety and efficiency of adaptive cruise control. EPS technology also adds to the efficiency of collision avoidance systems. When these systems recognize a potential collision, EPS can rapidly and precisely correct the steering angle to assist the driver in evading the collision. Most contemporary cars feature parking assistance systems that utilize EPS for accurate steering control in parallel parking and perpendicular parking maneuvers. EPS technology makes parking easier and more convenient for drivers. As autonomous driving technology continues to develop, EPS systems are critical to delivering accurate steering input, enabling smooth transitions between autonomous and driver-controlled modes of driving. EPS systems are central to the provision of safe and accurate steering in autonomous mode. Merging EPS with ADAS not only improves the safety of the vehicle but also plays a crucial role in creating semi-autonomous and autonomous driving technologies. As the need for sophisticated safety technologies and autonomous tech continues to expand, this is a trend likely to define the future of the EPS market.
Electrification of the Automotive Industry
The electrification of the vehicle industry is a revolutionary wave that is extensively impacting the United States Electric Power Steering Market. Electrification comprises a movement toward electric vehicles (EVs), hybrid vehicles, and coupling electric powertrains with conventional internal combustion engines. EPS technology perfectly complements electrified vehicles and is positively affecting their efficiency and performance. EPS systems fit optimally with hybrid and electric vehicles. Their energy-saving construction supports the intentions of electrified powertrains, making their hybrid and electric vehicles more range- and fuel-efficient. There are EPS systems that feature regenerative steering technology, which absorbs energy in a turn and delivers it back into the vehicle's electrical system. This regenerative function helps achieve the energy-saving nature of electric vehicles. It is important that electric and hybrid vehicles be reduced in weight as it directly correlates with energy use and range. EPS systems, lighter than conventional hydraulic power steering systems, help in reducing weight in such vehicles. EPS technology is compatible with electric vehicle features like torque vectoring, which enables very precise control of power to each wheel. This improves the vehicle's performance and stability, particularly in all-wheel-drive electric vehicles. As car manufacturers build electric platforms for their cars, EPS technology is readily compatible and adaptable to such platforms, and integration becomes an easy process. Vehicle electrification is likely to gain momentum in the United States as a result of tighter emissions standards and customers' desire for cleaner and more efficient vehicles. As their use becomes more widespread, EPS technology will remain a major driver of their performance and efficiency.
Improved Vehicle Dynamics and Steering Control
Improved vehicle dynamics and steering control are inherent features of the Electric Power Steering Market in the United States. Consumers are increasingly looking for responsive and accurate steering, as well as improved handling and driving experience. Car makers and EPS producers are meeting the demand with new EPS technologyEPS systems provide variable steering support, where steering effort can be set as a function of vehicle speed. The benefit is greater driving comfort and stability, especially at higher speeds. Numerous modern vehicles with EPS systems have several different driving modes, like sport and comfort modes. These modes modify the steering reaction to suit driver preferences, enabling a personalized driving experience. Some EPS systems are designed to mimic the sensation of mechanical hydraulic power steering to give drivers a more natural and interactive steering feel, especially in high-performance and sports cars. The accuracy and responsiveness of EPS systems enable improved vehicle handling and cornering. This is an important aspect for performance consumers and sports car buyers. EPS systems can be combined with dynamic stability control systems to provide more vehicle stability, particularly under demanding road conditions. This aspect is very desirable in areas with changeable weather patterns. The consumers who demand greater vehicle dynamics and steering control drive the need for these aspects. As automakers continue to refine EPS technology and develop advanced steering systems, this trend will be instrumental in shaping the market.
Eco-Friendly and Sustainable Driving
The growing emphasis on eco-friendly and sustainable driving practices is a trend that significantly impacts the United States Electric Power Steering Market. Consumers are more and more concerned about the environmental performance of their vehicles and are looking for technologies that support sustainability objectivesEPS technology is energy-efficient by nature, as it does not require a hydraulic pump. The decrease in energy consumption leads to better fuel economy and lower greenhouse gas emissions. Certain EPS systems use sustainable materials and manufacturing processes to minimize their environmental impact. This includes the use of bio-based compounds and recycled materials. Manufacturers often include eco-friendly driving modes in vehicles equipped with EPS systems. These modes adjust the steering and other vehicle parameters to optimize fuel efficiency and reduce emissions. To meet environmental regulations and emissions standards, automakers are increasingly adopting EPS technology. Compliance with these standards requires technologies that enhance fuel efficiency and reduce emissions. As environmental consciousness among consumers increases, green features such as EPS technology are becoming key selling points for cars. Consumers are ready to spend money on environmentally friendly cars. The drive towards green and sustainable driving is likely to become more pronounced in the United States as emissions regulations tighten, and consumers increasingly demand environmentally friendly transportation. EPS technology, due to its energy efficiency and sustainability potential, is well-suited to be part of this trend.
Segmental Insights
Vehicle Type Insights
Regional Insights
The market is dominated by the western region. California prefers environment-friendly technologies due to strict regulations on environmental control. The western region accepts EPS technology due to its support towards lower emissions and better fuel economy. California, with an increased use of electric and hybrid vehicles, contributes towards the high demand for EPS as well. The Northeast combines the urban and suburban settings and supports compact and midsize vehicles. EPS technology is popular for its light weight and fuel economy, appealing to daily commuters. Luxury vehicles with EPS systems are also popular in this market. The Midwest region boasts a high concentration of automotive manufacturing. EPS technology is heavily adopted in vehicles made in this region, aiding the trend toward lighter and more fuel-efficient cars and trucks. Full-size trucks equipped with EPS systems are preferred for their fuel-saving advantages. The Southern United States is marked by varied terrains and a love for SUVs and trucks. EPS systems are prevalent in these vehicles to improve off-road capability and provide for towing and hauling requirements.
Recent Developments
- ZF Friedrichshafen AG purchased WABCO ina USD 7 billion agreement in May 2020. Now that WABCO is part of ZF'sCommercial Vehicle Control Systems Division, ZF and WABCO will work together tocreate a global integrated system for commercial vehicle technology. For thedevelopment of solutions like Evasive Maneuver Assist for commercial vehiclecollision mitigation, WABCO and ZF previously cooperated.
- Toyota Motor Corporation sold its YutakaSeimitsu Kogyo Ltd. stock to JTEKT in January 2020. Yutaka produces vehicleparts and distributes gears for various machinery. The agreement aims toincrease the core driveline activities of Toyota and JTEKT's competitiveness.All future Yutaka operations involving drive components will be moved fromToyota to JTEKT.
Key Market Players
- Nexteer
- Robert Bosch
- Hyundai Mobis
- Delphi
- Mitsubishi Electric
- Showa Corporation
- ZF Friedrichshafen AG
- JTEKT Corporation
- Federal Mogul
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