Automotive Electric Power Steering System Motor Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

Global Automotive Electric Power Steering System Motor market size was valued at USD 2.28 billion in 2024. The market is projected to grow from USD 2.34 billion in 2025 to USD 2.63 billion by 2032, exhibiting a CAGR of 2.2% during the forecast period.

Automotive Electric Power Steering (EPS) system motors are electromechanical components that assist drivers by reducing steering effort while improving vehicle handling and fuel efficiency. These systems replace traditional hydraulic steering with precise electric motor assistance, enabling adaptive features like lane-keeping assist and automated parking. EPS motors are categorized into four types: Column-assisted (CEPS), Pinion-assisted (PEPS), Rack-assisted (REPS), and Electro-hydraulic (EHPS), each offering varying levels of torque support and integration capabilities.

The market growth is primarily driven by increasing adoption in electric and hybrid vehicles, where EPS systems enhance energy efficiency through regenerative braking compatibility. Furthermore, regulatory pressures for reduced emissions and growing consumer demand for advanced driver-assistance systems (ADAS) are accelerating market expansion. Major players such as Bosch, Denso, and ZF are investing in brushless motor technologies to improve reliability, with Bosch recently introducing a new modular EPS platform in Q1 2024 to support Level 3 autonomous driving functions.

MARKET DYNAMICS

MARKET DRIVERS

Accelerated Adoption of Electric Vehicles Fuels EPS Motor Demand

The global shift toward electrification in the automotive sector is driving significant growth in electric power steering (EPS) system motors. With battery electric vehicles (BEVs) projected to account for over 30% of new car sales by 2030, automakers are increasingly adopting EPS technology as it eliminates hydraulic components and reduces energy consumption. EPS motors demonstrate 4-6% better energy efficiency compared to traditional hydraulic systems, directly contributing to extended EV range - a critical purchase consideration. Furthermore, the absence of hydraulic fluid maintenance in EPS systems reduces total cost of ownership, making them particularly attractive for fleet operators.

Integration with ADAS Creates New Demand Verticals

Advanced driver assistance systems (ADAS) are becoming standard features across vehicle segments, with lane keeping assist and automated parking functions requiring precise steering control that EPS motors facilitate. The automotive industry has seen a compound annual growth rate of 12-15% in ADAS adoption since 2020, directly correlating with EPS motor demand. These motors enable the micro-adjustments needed for autonomous functions while providing the necessary torque for manual override scenarios. As Level 2+ autonomy becomes commonplace in mid-range vehicles, EPS systems are transitioning from premium features to standard equipment across all price points.

Consumer Preference for Enhanced Driving Experience Boosts Market

Modern drivers increasingly value responsive steering and customizable driving modes, both enabled by EPS technology. The system allows for variable assist levels that can be adjusted based on driving conditions or personal preference through vehicle settings. Market surveys indicate that nearly 65% of new car buyers consider steering feel an important purchase factor. EPS systems satisfy this demand by offering tunable characteristics from sporty to comfortable, all while maintaining consistent performance across speed ranges. This flexibility creates differentiation opportunities for automakers while meeting evolving consumer expectations.

MARKET RESTRAINTS

High System Costs Limit Penetration in Budget Segments

While EPS technology offers numerous advantages, its premium pricing remains a barrier for entry-level vehicles. The average EPS system costs 30-40% more than conventional hydraulic steering, creating pricing pressure for OEMs in competitive segments. In developing markets where price sensitivity is acute, this cost differential often leads manufacturers to opt for traditional systems despite the operational benefits. Component shortages and rising raw material prices have further exacerbated this challenge, with rare earth metals used in motor production seeing price volatility of up to 25% year-over-year.

Thermal Management Challenges in High-Performance Applications

EPS motors face significant thermal constraints when applied in performance vehicles or heavy-duty applications. Continuous high-torque operation can lead to overheating, necessitating complex cooling solutions that add weight and cost. Real-world testing shows torque reduction of up to 15% when motor temperatures exceed optimal operating ranges. This limitation becomes particularly problematic in commercial vehicles or sports cars where sustained high-load steering inputs are common. While liquid-cooled EPS systems exist, they add approximately $75-100 to manufacturing costs per unit, impacting price competitiveness.

MARKET OPPORTUNITIES

Emerging Markets Present Untapped Growth Potential

Developing economies represent the next frontier for EPS adoption as vehicle electrification accelerates globally. Regions like Southeast Asia and Latin America are projected to see compound annual growth rates of 8-10% in EPS-equipped vehicles through 2030. Government mandates for improved fuel efficiency and lower emissions are driving this transition, with EPS systems offering an immediate 3-5% reduction in fuel consumption. Local production initiatives are further reducing costs, with several Asian manufacturers now offering EPS solutions at price points 20% below traditional suppliers while maintaining comparable quality standards.

Steer-by-Wire Technology Opens New Application Scenarios

The evolution toward steer-by-wire systems presents significant opportunities for EPS motor manufacturers. This technology completely eliminates mechanical linkages between the steering wheel and wheels, relying entirely on electronic controls and electric motors. Early adopter vehicles have demonstrated 15-20% weight savings from removed components while enabling innovative interior designs. As regulatory bodies establish safety standards for steer-by-wire, the market for specialized high-reliability EPS motors is expected to grow substantially. Several premium automakers have already announced plans to introduce production vehicles with this technology within the next three years.

MARKET CHALLENGES

Supply Chain Vulnerabilities Impact Production Stability

The EPS motor industry faces ongoing challenges from semiconductor shortages and rare earth material supply constraints. A single EPS unit requires 30-50 specialty chips, with lead times stretching to 40 weeks for certain components. The concentration of rare earth mining and processing in limited geographic regions creates additional supply risks, with recent trade tensions causing price fluctuations of up to 35% for key materials like neodymium. These factors combine to make production planning increasingly difficult, with some manufacturers reporting fulfillment rates below 80% of customer demand despite strong market conditions.

Technological Complexity Increases Development Costs

As EPS systems evolve to support autonomous driving functions, their development complexity has grown exponentially. Modern units now incorporate multiple redundancy systems, fail-safe mechanisms, and advanced diagnostics - all requiring substantial R&D investment. Benchmarking data indicates development costs for next-generation EPS motors have increased by 40-50% compared to previous generations. This places significant pressure on supplier margins while lengthening product development cycles. Smaller manufacturers in particular struggle to keep pace with these technological demands, potentially leading to further market consolidation in the coming years.

Segment Analysis:

By Type

CEPS Motor Segment Leads Due to Widespread Adoption in Passenger Vehicles

The market is segmented based on type into:

• CEPS Motor

  • Subtypes: Brushed, Brushless

• REPS Motor

• PEPS Motor

• EHPS Motor

• Others

By Application

Passenger Car Segment Dominates Owing to High Vehicle Production and Demand for Comfort Features

The market is segmented based on application into:

• Passenger car

  • Subtypes: Sedan, SUV, Hatchback

• Commercial Vehicle

  • Subtypes: Light Commercial Vehicles, Heavy Commercial Vehicles

By Vehicle Type

Electric Vehicles Show Fastest Growth Due to Government Incentives and Environmental Regulations

The market is segmented based on vehicle type into:

• Internal Combustion Engine (ICE) Vehicles

• Hybrid Electric Vehicles (HEV)

• Battery Electric Vehicles (BEV)

• Plug-in Hybrid Electric Vehicles (PHEV)

By Sales Channel

OEM Segment Leads as Major Automakers Integrate EPS as Standard Feature

The market is segmented based on sales channel into:

• OEM

• Aftermarket

COMPETITIVE LANDSCAPE

Key Industry Players

Automotive Giants and Specialists Compete Through Technological Advancements

The automotive electric power steering (EPS) motor market features a dynamic mix of global automotive suppliers and specialized component manufacturers. With the market projected to grow at a steady 2.2% CAGR through 2032, established players are aggressively expanding their EPS motor offerings while emerging competitors focus on niche applications.

Nidec Corporation currently leads the market with approximately 23% revenue share in 2024, according to industry analysis. Their dominance stems from high-volume supply agreements with Asian automakers and continuous improvements in brushless motor technology for EPS applications. Meanwhile, Bosch maintains strong positioning through its integrated EPS systems that combine motors with advanced control units, particularly benefiting European automaker clients.

A significant development in 2024 saw Denso Corporation introduce a new lightweight, high-torque EPS motor design that reduces energy consumption by 15% compared to previous models. This innovation helped the company gain nearly 2% additional market share in the first half of 2024 alone. Similarly, Mitsubishi Electric has been expanding its footprint through strategic partnerships with North American EV startups, supplying customized EPS solutions for next-generation vehicle architectures.

The competitive landscape also features intense R&D activity from second-tier suppliers. LG Innotek recently entered the market with a novel dual-redundant EPS motor design targeting autonomous vehicle applications, while Mitsuba Corporation focuses on cost-competitive solutions for economy vehicle segments in emerging markets.

List of Key Automotive EPS Motor Manufacturers

• Nidec Corporation (Japan)

• Robert Bosch GmbH (Germany)

• Denso Corporation (Japan)

• Mitsubishi Electric Corp. (Japan)

• ZF Friedrichshafen AG (Germany)

• LG Innotek (South Korea)

• Mitsuba Corporation (Japan)

• MAHLE GmbH (Germany)

• Elite Electronics (China)

• Dare Auto (China)

Market observers note an emerging trend where traditional automotive suppliers are forming technology alliances with semiconductor firms to develop next-generation EPS controllers. This shift reflects the increasing importance of software integration in steering systems, beyond just motor hardware performance. As ADAS features become standard, the ability to offer complete EPS solutions with precise torque control algorithms is becoming a key differentiator among competitors.

AUTOMOTIVE ELECTRIC POWER STEERING SYSTEM MOTOR MARKET TRENDS

Electrification of Vehicles Driving Demand for EPS Systems

The rapid shift toward vehicle electrification has emerged as a dominant trend shaping the EPS motor market. With electric and hybrid vehicles projected to account for over 30% of global passenger car sales by 2030, automakers are increasingly adopting Electric Power Steering (EPS) systems due to their superior energy efficiency compared to hydraulic alternatives. EPS motors reduce energy consumption by up to 3% in internal combustion engine vehicles and play a crucial role in regenerative braking systems for EVs. This compatibility with electrified powertrains makes EPS technology indispensable as governments worldwide implement stricter fuel efficiency standards and emissions regulations.

Other Trends

ADAS Integration Accelerating Market Growth

Advanced Driver Assistance Systems (ADAS) are transforming steering technologies, with EPS motors serving as the backbone for features like lane-keeping assist and automated parking. The growing consumer demand for safety features, combined with regulatory mandates for collision avoidance systems in major markets, has created a 12% annual growth in ADAS-equipped vehicles. EPS motors enable the precise torque control required for these semi-autonomous functions, leading automakers to prioritize this technology in new vehicle architectures. This trend is particularly evident in premium vehicle segments where ADAS penetration exceeds 80%.

Technological Advancements in Motor Efficiency

The market is witnessing significant innovation in EPS motor design focused on improving efficiency and performance. Brushed DC motors are gradually being replaced by brushless variants offering 15-20% higher efficiency and longer service life. Manufacturers are also developing compact high-torque density motors to accommodate space constraints in next-generation vehicle platforms. Smart motor control algorithms powered by AI are emerging to optimize power consumption based on driving conditions. These advancements are critical as automakers strive to reduce electrical system loads while meeting rising consumer expectations for responsive steering performance across all vehicle classes.

Regional Analysis: Automotive Electric Power Steering System Motor Market

North America
The North American market for Automotive Electric Power Steering (EPS) motors is driven by stringent fuel efficiency standards and the rapid adoption of electric and hybrid vehicles. The U.S. Bipartisan Infrastructure Law has allocated substantial investments toward EV infrastructure, indirectly boosting EPS motor demand for energy-efficient steering systems. Column-assist EPS (CEPS) dominates the market due to its widespread use in passenger cars, while rack-assist EPS (REPS) is gaining traction in SUVs and light trucks. Key automakers like Ford and GM are integrating EPS motors with advanced driver-assistance systems (ADAS), further accelerating market growth. However, higher manufacturing costs and supply chain constraints pose challenges.

Europe
Europe is a global leader in EPS motor innovation, supported by strict EU emission regulations and the proliferation of premium EVs from brands like BMW and Volkswagen. The region has seen significant adoption of dual-pinion EPS (PEPS), particularly in German luxury vehicles, due to its superior precision and compatibility with autonomous driving features. Sustainability initiatives, such as the European Green Deal, are pushing OEMs to adopt lightweight EPS motor designs. Despite strong demand, competition from Asian suppliers and raw material shortages, especially rare-earth magnets for motors, present hurdles for local manufacturers.

Asia-Pacific
Asia-Pacific is the largest and fastest-growing EPS motor market, fueled by booming automotive production in China, Japan, and India. China alone accounts for over 40% of global EPS motor demand, driven by government subsidies for EVs and domestic OEMs like BYD. Brushless DC motors are increasingly preferred for their durability in budget-friendly passenger cars. Japan remains a hub for high-performance EPS motors, with suppliers like Denso and JTEKT leading R&D in compact, high-torque designs. While cost sensitivity favors local manufacturers, tightening emission norms are pushing Tier-1 suppliers to innovate.

South America
South America’s EPS motor market is emerging but constrained by economic instability and reliance on imported automotive components. Brazil is the primary market, where hydraulic steering systems still dominate due to lower costs in commercial vehicles. However, the gradual shift toward fuel-efficient passenger cars is creating opportunities for CEPS motors, particularly in urban centers. Limited local manufacturing and currency volatility hinder large-scale adoption, though partnerships with global suppliers could unlock growth.

Middle East & Africa
The Middle East & Africa exhibit niche demand, primarily centered in GCC countries and South Africa, where premium vehicle sales support EPS motor adoption. The UAE and Saudi Arabia are witnessing gradual electrification of fleets, creating opportunities for EPS-integrated ADAS solutions. Africa’s market remains underdeveloped due to low vehicle electrification rates and a preference for cost-effective hydraulic systems. Long-term growth potential exists as urbanization and EV infrastructure improve.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Automotive Electric Power Steering System Motor Market?

-> Global Automotive Electric Power Steering System Motor market was valued at USD 2276 million in 2024 and is projected to reach USD 2634 million by 2032, growing at a CAGR of 2.2% during the forecast period.

Which key companies operate in Global Automotive Electric Power Steering System Motor Market?

-> Key players include Nidec, Bosch, Mitsubishi Electric, Denso, ZF, LG Innotek, Mitsuba, Mahle, Elite, and Dare Auto among others.

What are the key growth drivers?

-> Key growth drivers include rising adoption of electric vehicles, integration with ADAS features, increasing consumer demand for advanced steering technologies, and regulatory push for fuel efficiency.

Which region dominates the market?

-> Asia-Pacific dominates the market due to rapid automotive production growth in China, Japan, and South Korea, while Europe shows strong adoption of advanced EPS technologies.

What are the emerging trends?

-> Emerging trends include development of brushless EPS motors, integration with autonomous driving systems, lightweight motor designs, and increasing adoption of dual-pinion EPS systems.