Description
Electric Vehicle Steering System Market Overview
The Electric Vehicle Steering System Market is primarily represented by the Electric Power Steering (EPS) System Market, which was valued at approximately USD 31.37 billion in 2024, is projected to reach USD 33.04 billion in 2025, and is expected to grow to USD 52.67 billion by 2034, exhibiting a Compound Annual Growth Rate (CAGR) of 5.32% from 2025 to 2034.
The market for electric vehicle steering systems is rapidly growing as more and more consumers are making the switch to electric vehicles. With the increasing emphasis on sustainability and reducing carbon emissions, electric vehicles have become a popular choice for eco-conscious drivers. As a result, manufacturers are investing heavily in developing cutting-edge steering systems that are specifically designed for electric vehicles.
One of the key advantages of electric vehicle steering systems is their efficiency. Unlike traditional hydraulic steering systems, electric vehicle steering systems are powered by an electric motor, which provides precise control and feedback to the driver. This results in a smoother and more responsive driving experience, making electric vehicles easier and more enjoyable to drive.
In addition to their superior performance, electric vehicle steering systems are also more environmentally friendly. By eliminating the need for hydraulic fluids, these systems reduce the overall carbon footprint of electric vehicles, making them a more sustainable transportation option. This has led to increased demand for electric vehicles with advanced steering systems, driving innovation and competition in the market.
Furthermore, electric vehicle steering systems are paving the way for autonomous driving technology. By integrating advanced sensors and software, these systems can enhance safety features and assist drivers in navigating complex road conditions. As autonomous driving technology continues to evolve, electric vehicle steering systems will play a crucial role in enabling fully autonomous vehicles in the future.
Electric Vehicle Steering System Market Dynamics
Drivers
Environmental Concerns: With growing awareness of climate change and air pollution, consumers are increasingly turning to electric vehicles as a more sustainable and eco-friendly transportation option.
Government Incentives: Many governments around the world are offering subsidies and incentives to promote the adoption of electric vehicles, driving demand for EV steering systems.
Technological Advancements: Continuous advancements in technology have made electric vehicles more affordable, reliable, and efficient, increasing their appeal to a wider audience.
Fuel Cost Savings: EVs offer significant savings on fuel costs compared to traditional gasoline-powered vehicles, making them a cost-effective choice for consumers in the long run.
Restraints
High Initial Cost: The high upfront cost of electric vehicles remains a major barrier for many consumers, affecting the overall demand for EV steering systems.
Limited Range: The limited driving range of electric vehicles compared to traditional vehicles can pose challenges for consumers, especially for long-distance travel.
Charging Infrastructure: The availability and accessibility of charging stations continue to be a concern for potential EV buyers, impacting their willingness to invest in an electric vehicle.
Battery Technology: The performance and lifespan of batteries in electric vehicles remain a significant factor in the overall success and adoption of EV steering systems.
Challenges
Safety Concerns: Ensuring the safety and reliability of electric vehicle steering systems is crucial to gaining consumer trust and acceptance of this new technology.
Integration with Autonomous Driving: As autonomous driving technology continues to advance, integrating electric vehicle steering systems with these systems presents unique challenges that require careful consideration and development.
Regulatory Compliance: Adhering to strict regulations and standards in different regions and markets can pose challenges for manufacturers of electric vehicle steering systems, requiring a high level of compliance and certification.
Opportunities
Innovative Design: The shift towards electric vehicles opens up opportunities for manufacturers to innovate and develop advanced steering systems that cater to the specific needs of EVs.
Collaboration and Partnerships: Collaboration between automakers, suppliers, and technology companies can lead to the development of cutting-edge electric vehicle steering systems that are more efficient, reliable, and cost-effective.
Market Expansion: The growing demand for electric vehicles worldwide presents significant opportunities for manufacturers to expand their product offerings and reach new markets with innovative steering solutions.
List of Key Players
- Nexteer Automotive
- JTEKT Corporation
- ZF Friedrichshafen AG
- Robert Bosch GmbH
- NSK Ltd.
- Hyundai Mobis Co., Ltd.
- Mando Corporation
- Thyssenkrupp AG
- Showa Corporation
- Sona Comstar
- Knorr-Bremse AG
- Hitachi Astemo, Ltd.
- China Automotive Systems, Inc.
- Mobis Steering System
- Danfoss Power Solutions
- ATS Automation Tooling Systems
- Rane NSK Steering Systems Ltd.
- Kayaba Industry Co., Ltd. (KYB)
- ElringKlinger AG
- thyssenkrupp Presta AG
Recent Developments:
Nexteer Automotive – March 2025: Announced the launch of a new modular steer-by-wire system for next-gen EV platforms with redundancy and safety features.
Bosch – January 2024: Developed and showcased a new integrated EPS solution with predictive lane-centering for autonomous-ready electric vehicles.
JTEKT Corporation – May 2024: Expanded its manufacturing facility in India to support the growing demand for electric vehicle steering systems in Asia.
Hyundai Mobis – October 2023: Introduced a four-wheel steering system designed for large EVs and autonomous applications.
Electric Vehicle Steering System Market Segmentation
By Type:
- Manual Steering
- Hydraulic Power Steering (HPS)
- Electro-Hydraulic Power Steering (EHPS)
- Electric Power Steering (EPS)
- Column Assist EPS (C-EPS)
- Pinion Assist EPS (P-EPS)
- Rack Assist EPS (R-EPS)
- Dual-Pinion EPS (DP-EPS)
By Component:
- Steering Column
- Steering Gear
- Steering Motor
- Sensors
- ECU (Electronic Control Unit)
- Torque and Angle Sensors
By Vehicle Type:
- Passenger Cars
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Electric Buses
- Two-Wheelers
By Propulsion Type:
- Battery Electric Vehicles (BEVs)
- Plug-in Hybrid Electric Vehicles (PHEVs)
- Hybrid Electric Vehicles (HEVs)
- Fuel Cell Electric Vehicles (FCEVs)
By Technology:
- Steer-by-Wire
- Active Front Steering
- Power-Assisted Steering
- Four-Wheel Steering
By Sales Channel:
- OEM
- Aftermarket
Regional Market Insights: A Breakdown by Region
North America: Leading the Way in Electric Vehicle Innovation
North America has been at the forefront of electric vehicle technology, and the adoption of electric vehicle steering systems is no exception. With a strong focus on sustainability and reducing carbon emissions, North American automakers have been quick to embrace this revolutionary technology. From Tesla’s Autopilot system to Ford’s BlueCruise, electric vehicle steering systems have become a standard feature in many vehicles on the roads of North America.
Europe: Embracing Green Technology
In Europe, where environmental consciousness is a top priority, electric vehicle steering systems have been widely adopted. Countries like Germany, France, and the Netherlands have introduced incentives to encourage the use of electric vehicles, leading to a surge in the demand for electric vehicle steering systems. With major automakers like BMW, Audi, and Volvo investing heavily in electric vehicle technology, Europe is poised to lead the way in the transition to sustainable transportation.
Asia Pacific: A Growing Market for Electric Vehicles
The Asia Pacific region has seen a rapid increase in the adoption of electric vehicles, driven by the growing concern over air pollution and the need for sustainable transportation solutions. Countries like China, Japan, and South Korea are investing heavily in electric vehicle infrastructure, including charging stations and battery technology. As a result, the demand for electric vehicle steering systems in the Asia Pacific region is on the rise, with local automakers like BYD and Hyundai leading the charge.
Latin America and Middle East: Emerging Markets for Electric Vehicles
Latin America and the Middle East are emerging markets for electric vehicles, with a growing interest in sustainable transportation solutions. As the demand for electric vehicles continues to grow in these regions, so does the need for advanced technologies like electric vehicle steering systems. With government support and increased awareness of the benefits of electric vehicles, Latin America and the Middle East are poised to become key players in the global electric vehicle market.
Target Audience
Electric Vehicle OEMs
Steering System and Component Suppliers
Tier-1 Automotive Suppliers
Electric Vehicle R&D and Engineering Firms
Software Developers (for steer-by-wire and AI integration)
Automotive Sensor and ECU Manufacturers
EV Aftermarket Parts Suppliers
Automotive Dealerships and Service Providers
Autonomous Vehicle Developers
Regulatory Bodies and Industry Associations
