Global Power Steering Market Segmented By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Off the Road Vehicles), By Mechanism (Electronic Power Steering (EPS), Hydraulic Power Steering (HPS) and Electro-Hydraulic Power Steering), By Component (Hydraulic Pump, Sensors, Electric Motor and Other Components), By Regional, By Competition Forecast & Opportun

Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format

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Forecast Period 2024-2028
Market Size (2022) USD 29 billion
CAGR (2023-2028) 6.76%
Fastest Growing Segment Sensors
Largest Market Europe

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Market Overview

Global Power Steering Market has valued at USD 29 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.76% through 2028.

Globally, growing vehicle demand has directly fueled the expansion of the automotive steering system market. Many firms are developing cutting-edge steering technology. The vehicle steering system employs several technologies, including Steer by Wire (SbW) and control technology.

Key Market Drivers

Increase In Demand For Automobiles
With the automobile market still on the rise, the world automotive market is also likely to keep growing. Emerging economies like India, China, and Brazil, among others, are the most demanding for the automobile industry. China, the largest car market in the world, is also likely to grow further in the coming years, as big OEMs are also investing heavily in this region. Increase in demand for vehicles in the motor vehicle industry goes a long way in resulting in an increase in demand for steering systems since any vehicle needs to have a steering system to regulate vehicle direction. In addition, an accident might cause a change in the steering system or in one of its parts, further increasing demand for steering systems in the after-sale market.

Adoption Of A Power Steering System
The automotive sector has evolved from purely mechanical connection-based manual steering systems to power steering systems. The manual steering system has disadvantages as far as the maneuverability of a vehicle and fuel consumption is concerned. Nonetheless, the power steering system contains hydraulics and electricity, which support driving in addition to improving the efficiency of the vehicle. Consequently, the power steering system has gained extensive use across the globe. The rising use of power-assisted steering is why demand for steering systems in the auto industry has increased.

Power Steering Systems Are Costly
Power steering systems are extensively used in most types of vehicles, such as passenger cars, light commercial vehicles, and heavy commercial vehicles. In comparison to a manual steering system, a power steering system is equipped with an electrical motor or a hydraulic piston. These components are costly, increasing the price of the steering system. Power steering systems are to be credited for the escalation of automobile prices. Consequently, the high cost of power steering systems is anticipated to restrain the growth of the market.

Consumer Preference For Driving Comfort
Customers anticipate maximum comfort in their cars from manufacturers, such as power steering systems that enhance vehicle responsiveness, leading to higher driving quality and comfort. Road surfaces in developing countries like China and India are rough, requiring the implementation of a higher steering system to enhance driving quality. Besides, industrialized countries like the United States, the United Kingdom, and Germany have motorways where cars need adaptive steering systems to manage cars moving at high velocities. These factors also provide comfort to customers during the drive. Therefore, the automotive steering system market will presumably grow as customers consider driving comfort as a priority.

Key Market Challenges

Cost and Affordability

One of the primary challenges facing the EPS market is the cost associated with developing, manufacturing, and implementing Power Steering systems. While EPS systems offer superior efficiency and performance, their initial costs can be higher compared to traditional hydraulic systems. The integration of electronic components, sensors, and control units contributes to the elevated upfront expenses. As automakers strive to offer competitive pricing and meet the demands of cost-conscious consumers, finding ways to reduce the overall cost of EPS systems without compromising quality remains a critical challenge.

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Reliability and Durability
EPS systems depend on sophisticated electronic components, sensors, and control algorithms. Maintaining the reliability and durability of these systems is critical to vehicle safety and performance. Sensors and electric motors, for example, need to withstand various environmental conditions, road vibrations, and the passage of time. The challenge for manufacturers is to design EPS systems that can survive the harshness of everyday driving while providing consistent and reliable steering performance throughout the lifecycle of the vehicle.

Energy Usage and Battery Effect
Power Steering systems are powered by the vehicle's electrical system, which affects energy consumption, particularly in electric and hybrid vehicles. Although EPS systems are engineered to be energy-efficient, they still consume power from the vehicle's battery, which can affect the vehicle's total range in electric vehicles or fuel economy in hybrids. With manufacturers working to maximize electric power consumption and battery life, controlling the energy consumption of EPS systems is important.

Integration with Next-Generation Technologies
With cars becoming increasingly technologically sophisticated through the inclusion of advanced driver assistance systems (ADAS) and autonomous driving capabilities, integration of EPS systems with these technologies is a challenge. EPS systems must integrate effortlessly with other electronic systems so that the vehicle functions safely and in an integrated manner. This involves sophisticated software integration and intensive testing so that compatibility and reliability are maintained in every situation.

Software Complexity and Cybersecurity
EPS systems are considerably dependent on computer algorithms to govern steering assistance and feedback. The sophistication of the software raises the issues of development, testing, and maintenance. Protecting the software from would-be cyberattacks is of greatest concern. As cars become more connected and subject to hacking attacks, manufacturers must spend resources in effective cybersecurity steps to protect the functionality and integrity of EPS systems.

Electromagnetic Interference (EMI)
The electronic devices in EPS systems can generate electromagnetic interference that could impact other adjacent electronic systems in the vehicle. Such interference could cause malfunctions or interruptions in essential vehicle systems, impairing safety and performance. Controlling EMI demands careful design and shielding of devices, as well as rigorous testing to ensure that EPS systems will not interfere with the correct functioning of other electronic systems.

Maintenance and Repair Complexity
EPS systems, being made up of sophisticated electronic and mechanical elements, may prove difficult to repair and maintain. As opposed to the more commonly known hydraulic systems that mechanics are accustomed to, EPS systems tend to necessitate expert knowledge, tools, and diagnostics. This creates potential for increased maintenance costs as well as delays in repairs, a situation which may trouble vehicle owners and fleet operators demanding efficient and affordable maintenance processes.

Key Market Trends

Sensor Adoption is on the Rise
The steering column sensor tracks two important driver inputstorque (steering effort) and steering wheel speed and position. Three sensors of this type are utilized in these systemstorque sensor, steering wheel speed sensor, and position sensor. These sensors provide input to an ECU, which in turn provides a corresponding output to the steering system to create an action.

Torque sensors are normally non-contact. The sensor detects the steering force of the driver and thus facilitates precise control of the electric steering assistance. Nonetheless, with growing technology, sensor products in the automotive industry are being updated and improved continuously.

Electrification SynergyLeading the Charge towards Electric Vehicles (EVs)
The advent of electric vehicles has ushered in a paradigm shift in the automotive industry, with Power Steering systems at the center of it all. As EVs become the replacement for traditional internal combustion engine vehicles, EPS systems are becoming the steering solution of preference. The interplay between electric powertrains and EPS systems is deep. Both technologies are electrified and have common electrical power sources, making integration easier and energy utilization optimal. EPS systems are electric by nature, complementing the electric propulsion direction and overall vehicle efficiency. The shift to EVs accelerates the EPS market growth, solidifying its importance in the automotive world.

Autonomous Driving EnablerSteering into the Future of Mobility
The autonomous driving race is turning cars into smart platforms that can drive without human control. Power Steering systems are a vital facilitator of this change. As cars advance from driver assist to complete autonomy, EPS systems deliver accurate and responsive steering control. Their electronic design enables instantaneous adjustments based on real-time inputs from a myriad of sensors, cameras, and lidar equipment. These systems enable sophisticated moves like lane changing and parking maneuvers, improving safety and minimizing driver workload. EPS technology forms the cornerstone of self-driving vehicles' foundation, cementing its position in forging the mobility of the future.

Adaptable Steering DynamicsPersonalizing Driver Experience
Current drivers crave tailor-made experiences, matching their inclinations and conditions of driving. Power Steering systems are addressing this need by allowing adaptable steering dynamics. Through adapting software parameters, manufacturers can configure steering effort, responsiveness, and feedback levels to suit. Such flexibility enables drivers to transition from one steering mode to another at the press of a button, from comfort to sporty. Adjustable steering dynamics increase driving satisfaction and driver engagement, providing each ride as a personalized experience. With the competition to make vehicles stand out from the crowd, EPS systems are emerging as a key enabler to provide a wide variety of driving sensations.

Energy Efficiency and SustainabilityFacilitating Green Mobility Objectives
The international drive towards sustainability and lower carbon emissions is redefining the priorities of the automotive sector. Power Steering systems are adapting to these priorities by providing higher energy efficiency than conventional hydraulic systems. EPS systems utilize electric motors to provide steering assistance, with no hydraulic fluids required and less mechanical losses. This efficiency translates directly into better fuel economy for internal combustion engine vehicles and increased range for electric vehicles. As governments move to require more stringent emissions controls and consumers become more environmentally aware, car manufacturers are embracing EPS technology to complement their sustainability plans.

Segmental Insights

Market Analysis

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Mechanism Analysis

Electric Power Steering Segment to Dominate-Rising Usage by Automakers Will Favor Growth. The automobile steering system market is further subdivided into Power Steering (EPS), hydraulic power steering (HPS), and electro-hydraulic power steering (EHPS). The Power Steering category is expected to dominate the market throughout the projected period, owing to manufacturers' increased deployment of Power Steering in all vehicle types. Advances in Power Steering to steer-by-wire technology are also expected to promote market expansion in this area. Because of its widespread use in commercial vehicles, the hydraulic power steering category is predicted to rise rapidly in the market throughout the projection period. Because of its restricted load-bearing capability, electronic power steering does not function in commercial vehicles. Furthermore, hydraulic power steering is capable of absorbing road shocks. Because of its leaking, less durability, and vibration features, the manual steering category is predicted to rise steadily in the market. Steering the vehicle involves significant human effort.

The electro-hydraulic power steering category is predicted to increase significantly in the automotive steering market over the forecast period. When compared to conventional hydraulic power steering, it delivers smoother and more responsive handling.

Vehicle Type Analysis

The passenger car segment is expected to dominate the market throughout the forecast period. The automotive steering system market is divided into three segmentspassenger automobiles, light commercial vehicles, and heavy commercial vehicles. Due to rising sales and production in Asia Pacific emerging nations, the passenger vehicle category is likely to dominate the market in the next years. The increasing deployment of Power Steering systems in passenger automobiles is also expected to drive market expansion in this sector. The light commercial vehicle category is predicted to develop rapidly in the market. The hydraulic power steering system is most found in light commercial vehicles.

Regional Insights

During the projected period, Asia Pacific is estimated to lead the automobile steering system market. The growing sales and production of automakers from emerging nations are likely to drive the growth of the automotive steering system market in this area. Demand for high-end luxury vehicles and rising disposable income in developing nations are also expected to drive market expansion in this area.

Europe is estimated to be the second-largest market stakeholder and to exhibit significant growth in the market throughout the projection period. Government fuel economy standards in this region have resulted in an increase in the use of fuel-efficient automobiles with an effective steering system. The global market for electric vehicles is quickly expanding. In Europe, for example, 2021 was a record year for electric car sales. European manufacturers were reluctant to enter the EV industry but rapidly established themselves as significant participants. Furthermore, some governments throughout the world have developed regulations, incentives, and initiatives to encourage the use of electric vehicles.

By 2024, electric vehicles are predicted to account for approximately 4% of new car sales and 7% of the global car fleet. With the increasing sales of electric vehicles, the deployment rate of power steering systems (such as Power Steering (EPS)) is predicted to increase throughout the projection period.

Over the projected period, North America is also predicted to see strong growth in the automobile steering system market. It is the second-largest market for hydraulic power steering systems, with a few big automakers operating in both Canada and the United States. This aspect is projected to drive the market expansion of this area.

Recent Developments

  • Melexis launched the new MLX90376, an absolutemagnetic position sensor IC capable of handling 360° rotating automotiveapplications while demonstrating strong stray field immunity, in December 2022.The gadget delivers cutting-edge sensing for steering and valve applicationsand facilitates system integration up to ASIL D-level functional safety.
  • DAF introduces an electronic hydraulic steering(EHS) system on a 6x2 tractor and rigid trucks with a steered pusher axle inDecember 2022. The new technology is available for the whole New Generation DAFtruck range, including the XF, XG, XD, and XG+.
  • The FAW Hongqi R&D Centre stated in November2022 that the Hongqi steering team of the FAW New Energy Development Center'schassis development division created the Hands On/Off Detection (HOD) steeringwheel technology, which debuted in China.
  • ZF expects to invest around USD 100 million inNovember 2022 to enhance the existing product range and chassis componentproduction capability at the Zhangjiagang facility. The chassis componentfacility will produce control arms, steering knuckles, steering tie rods andstabiliser links, effectively covering the whole chassis component productline.

Key Market Players

 By Vehicle Type

By Mechanism

By Component

By Region

  • Passenger Cars
  • Light Commercial Vehicle
  • Medium & Heavy Commercial Vehicle
  • Off the Road Vehicle
  • Electronic Power Steering (EPS)
  • Hydraulic Power Steering (HPS)
  • Electro-Hydraulic Power Steering (EHPS)
  • Hydraulic Pump Sensors
  • Electric Motor
  • Others
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East & Africa

Table of Content

Here's a suggested Table of Contents (TOC) for a report titled "Global Power Steering Market":


Table of Contents

  1. Executive Summary

  2. Introduction

    • 2.1. Scope of the Report

    • 2.2. Research Methodology

    • 2.3. Definitions and Assumptions

  3. Market Overview

    • 3.1. Market Dynamics

      • 3.1.1. Drivers

      • 3.1.2. Restraints

      • 3.1.3. Opportunities

      • 3.1.4. Challenges

    • 3.2. Market Trends

    • 3.3. Regulatory Landscape

  4. Technology Overview

    • 4.1. Hydraulic Power Steering (HPS)

    • 4.2. Electro-Hydraulic Power Steering (EHPS)

    • 4.3. Electric Power Steering (EPS)

  5. Market Segmentation

    • 5.1. By Type

    • 5.2. By Component

    • 5.3. By Vehicle Type

    • 5.4. By Distribution Channel

  6. Regional Analysis

    • 6.1. North America

    • 6.2. Europe

    • 6.3. Asia-Pacific

    • 6.4. Latin America

    • 6.5. Middle East & Africa

  7. Competitive Landscape

    • 7.1. Market Share Analysis

    • 7.2. Key Players and Strategic Initiatives

    • 7.3. Recent Developments

  8. Forecast Analysis

    • 8.1. Market Size and Growth Forecast (2024–2030)

    • 8.2. Regional Forecasts

    • 8.3. Trend Projections

  9. Impact of Global Events

    • 9.1. COVID-19 Impact Analysis

    • 9.2. Geopolitical Factors

  10. Conclusion and Recommendations

  11. Appendices

  • 11.1. Glossary

  • 11.2. List of Abbreviations

  • 11.3. References

List Tables Figures

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