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

MARKET INSIGHTS

Global 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.

Electric Power Steering (EPS) motors are critical components in modern vehicle steering systems, replacing traditional hydraulic systems with electrically assisted mechanisms. These motors enable precise steering control while reducing energy consumption and improving fuel efficiency. The technology includes different motor types such as Column Assist (CEPS), Pinion Assist (PEPS), Rack Assist (REPS), and Electro-Hydraulic (EHPS) systems.

The market growth is driven by increasing adoption in electric and hybrid vehicles, where EPS systems are essential for energy efficiency and compatibility with advanced driver-assistance systems (ADAS). Regulatory pressures for fuel efficiency and rising consumer demand for comfortable driving experiences further propel market expansion. In 2024, key players like Bosch and ZF announced next-generation EPS motors with improved torque density and energy efficiency, catering to the growing electric vehicle market in Asia and Europe.

MARKET DYNAMICS

MARKET DRIVERS

Rise of Electric and Hybrid Vehicles Accelerates EPS Motor Demand

The global transition toward electric and hybrid vehicles represents the most significant growth driver for electric power steering (EPS) system motors. With battery electric vehicle sales projected to reach over 17 million units annually by 2028, automakers increasingly rely on EPS technology due to its compatibility with electrified powertrains. Unlike hydraulic systems, EPS motors operate efficiently without parasitic engine load losses, directly contributing to extended battery range. Furthermore, the ability to integrate regenerative braking systems with EPS units creates additional energy recovery opportunities, making them indispensable in modern EV architectures.

ADAS Integration Creates New Technical Imperatives

Advanced Driver Assistance Systems (ADAS) have transformed from premium options to standard safety features across vehicle segments. This technological shift drives demand for high-precision EPS motors capable of supporting autonomous functionalities. Modern lane-keeping systems require steering torque accuracy within ±0.1 Nm, while automated parking solutions need sub-degree positional precision - specifications only achievable with advanced brushless motor designs. The increasing ADAS penetration rate, expected to exceed 60% in passenger vehicles by 2027, establishes EPS motors as critical safety components rather than mere comfort features.

➤ Leading OEMs now design EPS systems with redundant motor windings and fail-safe architectures to meet ASIL-D safety requirements for autonomous applications.

Beyond technical requirements, consumer preferences for seamless human-machine interaction in semi-autonomous vehicles further elevate EPS importance. The growing expectation for "steering feel" customization through drive mode selections necessitates sophisticated motor control algorithms, creating additional value opportunities.

MARKET RESTRAINTS

Material Cost Volatility Squeezes Profit Margins

While EPS technology offers long-term cost advantages, manufacturers face acute pricing pressures from rare earth metal price fluctuations. Neodymium-iron-boron magnets, essential for high-performance permanent magnet synchronous motors, have experienced price swings exceeding 300% in recent years. With approximately 1kg of rare earth materials required per EPS unit, these cost variations directly impact system profitability. Many Tier 2 suppliers operate on single-digit margins, leaving limited room to absorb such material cost shocks without compromising quality standards or R&D investments.

Other Constraints

Thermal Management Challenges
High-density motor designs face inherent thermal limitations, particularly in performance EV applications. Sustained high-torque operation can elevate winding temperatures beyond 150°C, necessitating complex cooling solutions that add weight and complexity. These thermal constraints become particularly problematic in emerging markets with extreme ambient temperatures, where derating requirements may compromise steering performance.

Supply Chain Fragility
The concentrated nature of motor component manufacturing creates systemic vulnerabilities. Over 80% of high-grade electrical steel production originates from just five global suppliers, while rare earth processing remains geographically limited. Recent supply chain disruptions have highlighted how single-point failures can paralyze EPS production lines, forcing automakers to maintain costly dual-sourcing strategies.

MARKET OPPORTUNITIES

Emerging Markets Present Untapped Growth Potential

While developed markets approach EPS saturation with over 90% penetration rates, emerging economies represent the next frontier for growth. Countries implementing Bharat Stage VI and China VI emission standards now prioritize fuel efficiency technologies, creating regulatory tailwinds for EPS adoption. The Indian passenger vehicle market, projected to grow at 8% CAGR through 2030, presents particular promise as local manufacturers transition from column-assist to more sophisticated rack-mounted EPS solutions. Strategic localization partnerships between global Tier 1 suppliers and regional automakers are accelerating this transition while addressing cost sensitivities.

Simultaneously, commercial vehicle electrification creates new segments for EPS applications. Urban delivery fleets and electric buses increasingly adopt EPS systems to reduce maintenance costs and enable autonomous functionality. The global electric commercial vehicle market is anticipated to surpass 4 million annual units by 2028, representing a largely untapped market for high-torque EPS motor solutions.

MARKET CHALLENGES

Cybersecurity Risks Complicate Connected EPS Development

The integration of steer-by-wire technologies and vehicle-to-cloud communication exposes EPS systems to unprecedented cybersecurity threats. Recent demonstrations show how compromised EPS firmware could enable remote steering interference, creating potential safety hazards. Addressing these risks requires multi-layered security architectures including hardware-based secure boot, in-memory encryption, and continuous anomaly detection - all of which increase development costs by an estimated 15-20% per system.

Other Critical Challenges

Talent Shortages in Mechatronics Engineering
The specialized nature of EPS development creates intense competition for mechatronics engineers proficient in electromagnetic simulation, control theory, and functional safety. Industry surveys indicate a 30% deficit in qualified EPS development personnel, particularly in regions experiencing rapid automotive electrification.

Legacy Vehicle Integration Complexity
Retrofitting EPS systems into older vehicle platforms designed for hydraulic steering presents significant engineering challenges. Space constraints, crash structure modifications, and electrical system upgrades often require extensive vehicle re-engineering, limiting aftermarket potential and complicating fleet conversions.

Segment Analysis:

By Type

CEPS Motor Segment Leads Due to High Adoption in Compact and Mid-Sized Vehicles

The market is segmented based on type into:

• CEPS Motor (Column-Electric Power Steering)

• REPS Motor (Rack-Electric Power Steering)

• PEPS Motor (Pinion-Electric Power Steering)

• EHPS Motor (Electro-Hydraulic Power Steering)

By Application

Passenger Car Segment Dominates Owing to Increasing Consumer Demand for Fuel-Efficient Vehicles

The market is segmented based on application into:

• Passenger car

• Commercial Vehicle

By Voltage

12V Systems Remain Prevalent Across Majority of Vehicle Platforms

The market is segmented based on voltage into:

• 12V

• 24V

• 48V

By Vehicle Propulsion

Electric Vehicle Segment Shows Accelerated Growth Due to Regulatory Push for Emission Reduction

The market is segmented based on vehicle propulsion into:

• Internal Combustion Engine Vehicles

• Electric Vehicles

• Hybrid Vehicles

COMPETITIVE LANDSCAPE

Key Market Players Powering the Future of Vehicle Steering

Technological Innovation Drives Intensified Competition in EPS Motors

The global electric power steering (EPS) system motor market demonstrates a moderately consolidated structure, dominated by established automotive suppliers with deep engineering expertise. Nidec Corporation currently leads the market with approximately 22% revenue share, owing to its extensive brushless motor technology portfolio and partnerships with major OEMs across North America, Europe, and Asia-Pacific. The company's recent $100 million investment in its Mexican production facility underscores its commitment to meeting growing North American demand.

Robert Bosch GmbH and Denso Corporation follow closely, collectively holding about 35% of the 2024 market share. Their strength lies in vertically integrated manufacturing capabilities and strong relationships with vehicle manufacturers. Bosch's 2023 collaboration with a leading EV manufacturer to develop a next-generation dual-motor EPS system exemplifies how major players are adapting to evolving market needs.

Meanwhile, Mitsubishi Electric and ZF Friedrichshafen AG are making strategic moves to capture more market share. Mitsubishi's proprietary modular motor design has gained traction in Asian markets, particularly for compact vehicles, while ZF's acquisition of a Chinese EPS component manufacturer in 2023 strengthened its position in the world's largest automotive market.

Smaller but significant players like LG Innotek and Mitsuba Corporation are carving out niches through specialized offerings. LG's focus on high-efficiency motors for premium EVs and Mitsuba's cost-competitive solutions for emerging markets demonstrate the diverse strategies employed across the competitive spectrum.

List of Key Electric Power Steering System Motor Manufacturers

• Nidec Corporation (Japan)

• Robert Bosch GmbH (Germany)

• Denso Corporation (Japan)

• Mitsubishi Electric Corporation (Japan)

• ZF Friedrichshafen AG (Germany)

• LG Innotek (South Korea)

• Mitsuba Corporation (Japan)

• Mahle GmbH (Germany)

• Elite Electronic Systems (U.S.)

• Dare Auto (China)

ELECTRIC POWER STEERING SYSTEM MOTOR MARKET TRENDS

Electrification of Vehicles Driving EPS Motor Adoption

The shift toward vehicle electrification is accelerating demand for electric power steering (EPS) system motors worldwide. As automotive OEMs increasingly transition to hybrid and battery electric vehicles (BEVs), EPS motors have become indispensable due to their superior energy efficiency compared to hydraulic systems. Market data indicates that EPS-equipped vehicles improve fuel economy by 3-5%, making them crucial for meeting stricter emission regulations. Furthermore, the lightweight construction of modern EPS motors - averaging 20-30% lighter than conventional systems - aligns perfectly with EV manufacturers' weight reduction strategies to maximize battery range.

Other Trends

Advanced Driver Assistance Systems (ADAS) Integration

The rapid deployment of ADAS features is transforming EPS motor requirements across all vehicle segments. Autonomous parking and lane-keeping assist systems now demand steering torque precision within ±0.5 Nm, driving manufacturers to develop brushless motor variants with enhanced control algorithms. Industry forecasts suggest over 75% of new passenger vehicles will feature EPS-integrated ADAS by 2027, creating significant growth opportunities for high-performance motor solutions. This technological convergence is particularly evident in premium vehicle segments, where steer-by-wire prototypes using dual redundant EPS motors are entering advanced development phases.

Regional Market Expansion and Localization

Emerging economies are exhibiting accelerated EPS motor adoption as vehicle electrification penetrates price-sensitive markets. Automakers are implementing cost-optimized EPS solutions that maintain performance while reducing component counts by 15-20%. This strategic adaptation has enabled EPS systems to capture over 60% market share in Asia's compact vehicle segment, displacing traditional hydraulic systems. Meanwhile, North American and European markets continue to drive innovation with higher torque EPS motors (up to 15Nm) for electric SUVs and light trucks, reflecting regional preferences for larger vehicle formats.

Regional Analysis: Electric Power Steering System Motor Market

North America
The North American EPS motor market is driven by strict fuel efficiency standards and rapid adoption of electric vehicles (EVs). The U.S. leads the region with technological advancements in column-assist EPS (CEPS) systems, particularly for SUVs and light trucks. Regulatory pressures, including CAFE standards pushing for 49 mpg by 2026, accelerate the shift from hydraulic to electric systems. Key players like ZF and Bosch dominate the OEM supply chain, with innovations in dual-pinion EPS (PEPS) for autonomous driving compatibility. However, supply chain disruptions and semiconductor shortages have recently impacted production timelines.

Europe
Europe’s market thrives on stringent CO₂ emission targets (95 g/km for passenger cars) and robust EV adoption. Germany remains the hub for R&D, with Denso and Nidec advancing brushless motor designs that enhance energy efficiency by up to 30%. The EU’s Euro 7 norms and subsidies for hybrid vehicles further propel demand. Challenges include high production costs and competition from Chinese manufacturers offering cost-effective alternatives. Despite this, the region’s focus on ADAS integration ensures sustained growth, with EPS motors critical for features like automated parking.

Asia-Pacific
China and Japan account for over 60% of regional demand, fueled by massive automotive production scales and government-backed EV initiatives like China’s NEV mandate. Affordable rack-assist EPS (REPS) motors dominate in budget vehicle segments, while premium models adopt high-torque CEPS systems. India’s market is emerging, with Maruti Suzuki and Tata Motors localizing EPS production to reduce costs. However, inconsistent quality control and tariff wars between trading partners occasionally disrupt supply chains. The region’s rapid urbanization and middle-class expansion underscore long-term potential.

South America
Growth here is tempered by economic instability, though Brazil’s automotive sector shows resilience with modest 4% annual EPS adoption growth. The focus remains on cost-sensitive REPS solutions for compact cars, as high import taxes deter advanced systems. Argentina’s sporadic policy shifts and currency devaluation further complicate market entry for global suppliers. Nonetheless, regional trade agreements and localized assembly plants by Mitsuba and Mahle offer localized solutions, aligning with Mercosur’s automotive trade frameworks.

Middle East & Africa
The UAE and Saudi Arabia lead in EPS adoption, driven by luxury vehicle preferences and investments in smart city projects. ZF’s regional partnerships with Gulf automakers highlight the demand for high-performance PEPS systems in extreme climates. Africa’s market remains nascent, with South Africa as the only notable adopter due to its established auto sector. Infrastructure gaps and low vehicle electrification rates hinder broader EPS penetration, though rising disposable incomes signal gradual growth potential.

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 Electric Power Steering System Motor Market?

-> Global Electric Power Steering System Motor market was valued at USD 2,276 million in 2024 and is projected to reach USD 2,634 million by 2032, growing at a CAGR of 2.2% during the forecast period.

Which key companies operate in Global 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, and increasing consumer demand for advanced steering comfort and efficiency.

Which region dominates the market?

-> Asia-Pacific leads the market due to high automotive production, while Europe shows strong growth due to stringent fuel efficiency regulations.

What are the emerging trends?

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