Electric Power Steering Market to Rise with 5.8% CAGR by 2032
New York, Wednesday, 12 November 2025.
Demand for fuel-efficient vehicles and tech advancements drive growth in electric power steering, projected to reach USD 42 billion by 2032, significantly impacting automotive industry dynamics.
Market Expansion Driven by Advancements
The automotive electric power steering market is projected to grow from USD 24 billion in 2022 to USD 42 billion by 2032, with a compound annual growth rate (CAGR) of 5.8% from 2023 to 2032. This expansion is largely driven by technological advancements in compact and cost-effective motor controller units, which enhance the economic viability of integrating electric power steering (EPS) systems into a broader range of vehicles [1].
Key Industry Developments
Several key developments are shaping the market landscape. For instance, DENSO Corporation introduced a new Electric Power Steering Motor Control Unit (EPS-MCU) in September 2020, which improves vehicle handling and safety while reducing size and cost by 10% compared to its predecessor [1]. Additionally, Nexteer Automotive launched a Modular Rack Assist Electric Power Steering (R-AEPS) system in April 2023, aimed at providing cost-effective solutions for various vehicle platforms [1].
Impact of Collaborations and Partnerships
Collaborations among automotive giants are further propelling the market. A notable partnership between NSK Ltd. and Volkswagen AG resulted in a successful joint development project focusing on pinion EPS systems, which offer improved fuel efficiency and customizable steering characteristics [1]. Such collaborations are critical as they align technological advancements with industry needs, fostering innovation and adoption of EPS technologies [1].
Geographical Market Trends
Regionally, Europe is anticipated to register the highest CAGR during the forecast period, driven by the increasing adoption of electric vehicles and advancements in automotive technologies [1]. The Asia-Pacific region, holding the largest market share in 2024, is expected to maintain its dominance due to increased vehicle production and the adoption of advanced steering technologies in markets like China and India [2].