The United States electric power steering (EPS) market size reached USD 5.51 billion in 2024. The market is expected to grow at a CAGR of 3.9% between 2025 and 2034, reaching almost USD 7.78 billion by 2034. This growth is driven by several factors, including increasing demand for fuel-efficient vehicles, advancements in steering technologies, and the shift toward electric vehicles (EVs). In this blog post, we will delve into the key market segments, regional dynamics, and the trends shaping the future of the U.S. electric power steering market.

1. Market Segmentation

The electric power steering market in the U.S. is diverse, with multiple product types and components driving growth across various vehicle segments. Let's explore the major categories within this market:

Product Type

  1. Rack Assist Type (REPS):

    • Description: Rack Assist Type (REPS) is the most widely used type of electric power steering in modern vehicles. This system consists of an electric motor that is attached directly to the steering rack, offering a direct and responsive steering feel. REPS systems are popular in both passenger cars and light commercial vehicles due to their efficiency and precise control.
    • Growth Drivers: The demand for REPS is expected to rise as automakers focus on improving fuel efficiency and driving comfort, particularly in urban environments where precise maneuvering is essential.

  2. Column Assist Type (CEPS):

    • Description: Column Assist Type (CEPS) is another prevalent EPS system that provides electric assistance to the steering column, reducing the amount of physical effort required to steer the vehicle. CEPS is often used in smaller vehicles and compact cars where space efficiency and reduced weight are critical.
    • Growth Drivers: The rise of compact cars, especially in urban areas, is expected to fuel the demand for CEPS systems. Additionally, the trend toward lightweight and cost-effective vehicle components is a significant driver of this segment.

  3. Pinion Assist Type (PEPS):

    • Description: Pinion Assist Type (PEPS) uses an electric motor mounted on the pinion gear, which is responsible for translating the driver’s steering input into movement of the wheels. This type of EPS is ideal for heavier vehicles, including trucks and SUVs, as it provides greater torque and handling precision.
    • Growth Drivers: The increasing adoption of EPS in larger vehicles, including SUVs and commercial vehicles, will drive the growth of the PEPS segment. As consumers demand enhanced comfort and improved fuel efficiency, automakers are more likely to integrate this technology into their vehicles.

Component Type

  1. Steering Rack/Column:

    • The steering rack/column is the central component of EPS systems, and its market is expanding as manufacturers focus on improving its efficiency, durability, and integration with other advanced driving systems. Innovations in materials, such as lightweight alloys, are enhancing the performance and longevity of these components.

  2. Sensors:

    • Sensors are critical in EPS systems to provide real-time data about steering angle, vehicle speed, and road conditions. The increasing integration of sensors with advanced driver-assistance systems (ADAS) is boosting the demand for high-precision sensors, which are integral for both safety and performance.

  3. Electric Motor:

    • The electric motor is the heart of any EPS system, responsible for assisting the driver’s steering efforts. As electric vehicles (EVs) become more mainstream, the demand for highly efficient, compact, and durable electric motors for steering will continue to rise.

Vehicle Type

  1. Passenger Cars:

    • Passenger vehicles continue to dominate the electric power steering market, driven by growing consumer demand for fuel-efficient, easy-to-maneuver cars. With the increasing popularity of electric and hybrid cars, EPS technology has become a key feature to enhance both driving dynamics and energy efficiency.

  2. Light Commercial Vehicles:

    • Light commercial vehicles, such as vans and light trucks, are increasingly adopting electric power steering for better fuel efficiency and easier handling, especially in urban settings where maneuverability is critical. The transition to EPS systems is also driven by the need for a reduction in weight and operational costs.

  3. Heavy Commercial Vehicles:

    • EPS adoption in heavy commercial vehicles, including buses, trucks, and delivery vehicles, is growing due to the need for improved driving comfort, better fuel efficiency, and reduced maintenance costs. These vehicles require high-torque EPS systems to manage their larger weight and size.

2. Sales Channels

The electric power steering market in the U.S. is primarily driven by OEM (Original Equipment Manufacturer) sales, but aftermarket sales are also significant.

  1. OEM (Original Equipment Manufacturer) Sales:

    • OEMs play a central role in the electric power steering market as they integrate EPS technology into new vehicle models. With automakers focusing on innovation and energy efficiency, EPS systems are becoming standard in most vehicle categories, including passenger cars, light trucks, and even heavy commercial vehicles.

  2. Aftermarket Sales:

    • The aftermarket for EPS components is gaining traction, particularly for the replacement of worn-out components like motors, racks, and sensors. As more vehicles are equipped with EPS, the demand for aftermarket parts and retrofitting services will increase, providing a secondary market for steering system components.

3. Regional Analysis

The U.S. electric power steering market is seeing varying levels of adoption across different regions. Key regions driving growth include:

  • Northeast: Known for its urbanization, this region has a high demand for fuel-efficient and compact vehicles. The adoption of electric power steering is prominent in passenger cars and light commercial vehicles.
  • West Coast: The West Coast is home to a significant number of EV manufacturers, leading to the growing integration of EPS systems in electric vehicles.
  • Midwest and South: As a hub for automobile manufacturing, these regions are seeing an uptick in the use of EPS in larger vehicles, including trucks and SUVs.

4. Market Dynamics

SWOT Analysis

  • Strengths: EPS systems are energy-efficient, reduce vehicle weight, and enhance the driving experience by providing easier handling.
  • Weaknesses: High initial cost of EPS components and technological complexities involved in manufacturing and integration.
  • Opportunities: Rising demand for electric vehicles and autonomous vehicles creates new avenues for EPS technology.
  • Threats: Competition from hydraulic steering systems and the risk of technological obsolescence as newer systems like steer-by-wire emerge.

Porter’s Five Forces Analysis

  • Threat of New Entrants: Moderate. While there are significant barriers to entry due to high capital investment, new entrants focusing on EVs and autonomous vehicles are expected to drive innovation.
  • Bargaining Power of Suppliers: Moderate. The market depends on a limited number of high-tech component suppliers, giving them some leverage.
  • Bargaining Power of Buyers: High. Consumers demand better fuel efficiency and cost-effective solutions, putting pressure on manufacturers to offer superior EPS systems.
  • Threat of Substitutes: Low. Hydraulic systems are increasingly being phased out in favor of EPS due to their energy efficiency and low maintenance.
  • Industry Rivalry: High. Major players like Bosch, JTEKT, and ZF Friedrichshafen are competing to offer cutting-edge EPS technologies, driving innovation and price competition.

5. Competitive Landscape

The U.S. electric power steering market is highly competitive, with a few key players dominating the industry:

  • Bosch: A leading provider of EPS systems, Bosch is known for its high-quality electric motors and sensors.
  • JTEKT: JTEKT offers innovative EPS solutions, including systems for both passenger and commercial vehicles.
  • ZF Friedrichshafen: ZF is a major player in the EPS market, providing advanced solutions for a range of vehicle types, including electric vehicles and commercial vehicles.