Strategic Analysis of US Automotive EPS Market Market Growth 2025-2033

Key Insights

The US Automotive Electric Power Steering (EPS) market is poised for robust expansion, projected to reach an estimated $28,900 million by 2025, driven by a compound annual growth rate (CAGR) of 6.20% from 2019 to 2033. This significant growth is primarily fueled by the increasing adoption of advanced driver-assistance systems (ADAS) and autonomous driving technologies, which rely heavily on the precision and responsiveness of EPS systems. Stringent government regulations promoting fuel efficiency and reduced emissions are also playing a pivotal role, as EPS systems are more energy-efficient than traditional hydraulic power steering. Furthermore, the growing consumer demand for enhanced driving comfort, safety features, and a premium vehicle experience further bolsters the market's upward trajectory. The ongoing technological advancements in EPS, including the development of more sophisticated sensors, efficient steering motors, and integrated control units, are also contributing to market expansion by offering improved performance and cost-effectiveness.

The market segmentation reveals key areas of opportunity within the US Automotive EPS landscape. Passenger cars are expected to dominate the vehicle type segment, reflecting the overall health of the consumer automotive sector and the increasing integration of EPS across all vehicle classes. Within EPS types, column assist systems are anticipated to hold a substantial market share due to their widespread application and cost-effectiveness in a broad range of vehicles. However, pinion and rack assist types are likely to witness accelerated growth driven by their superior performance characteristics, particularly in performance-oriented vehicles and those equipped with advanced ADAS features. Key components such as steering columns, sensors, and steering motors are all critical to the functioning of EPS systems, with continuous innovation in sensor technology and motor efficiency expected to drive demand. Major players like JTEKT Corporation, Hyundai Mobis, and Nexteer Automotive are at the forefront of this evolution, investing heavily in research and development to capture market share and introduce next-generation EPS solutions that meet the evolving demands of the US automotive industry.

This in-depth report provides a granular analysis of the US Automotive Electric Power Steering (EPS) Market, covering the period from 2019 to 2033, with a base year of 2025 and a forecast period extending from 2025 to 2033. Delve into market dynamics, technological advancements, and future projections for this critical automotive component.

US Automotive EPS Market Market Composition & Trends

The US automotive EPS market is characterized by a moderately concentrated landscape, with key players actively pursuing innovation and strategic collaborations to maintain and expand their market share. Continuous advancements in steering technology, driven by the increasing demand for enhanced vehicle safety, fuel efficiency, and autonomous driving capabilities, act as significant innovation catalysts. The regulatory environment, particularly concerning vehicle emissions and safety standards, plays a pivotal role in shaping market trends, encouraging the adoption of lighter and more efficient EPS systems. While direct substitute products are limited, improvements in traditional hydraulic power steering systems and the ongoing development of steer-by-wire technologies represent potential competitive pressures. End-user profiles are diverse, ranging from major Original Equipment Manufacturers (OEMs) focused on mass-market vehicles to specialized manufacturers of commercial vehicles and performance cars, each with unique demands. Mergers, acquisitions, and strategic partnerships are frequent, with recent M&A deals valued in the hundreds of millions of dollars, indicating robust consolidation and expansion strategies. The market share distribution is closely watched, with established players holding significant portions while emerging entities strive to carve out niches.

• Market Concentration: Moderately concentrated with key players.
• Innovation Catalysts: Vehicle safety, fuel efficiency, autonomous driving, advanced driver-assistance systems (ADAS).
• Regulatory Landscape: Impacted by emission standards, safety mandates, and future autonomous driving regulations.
• Substitute Products: Advanced hydraulic power steering, steer-by-wire technologies.
• End-User Profiles: Mass-market OEMs, commercial vehicle manufacturers, performance car manufacturers, Tier 1 automotive suppliers.
• M&A Activity: Active M&A landscape with deal values in the hundreds of millions of dollars.

US Automotive EPS Market Industry Evolution

The US automotive EPS market has witnessed a significant evolutionary trajectory, driven by relentless technological innovation and a rapidly shifting consumer preference towards safer, more fuel-efficient, and technologically advanced vehicles. Over the historical period (2019-2024), the market experienced consistent growth, propelled by the mandatory inclusion of EPS systems in a growing number of vehicle models to meet stringent regulatory requirements and enhance driver comfort. The base year (2025) reflects a mature but still expanding market, where the adoption rate of EPS across various vehicle segments is high, exceeding 90% for passenger cars and demonstrating substantial growth in commercial vehicles. Technological advancements have been a cornerstone of this evolution. Early EPS systems primarily focused on basic steering assistance, but continuous research and development have led to sophisticated solutions offering variable assist ratios, enhanced feedback, and seamless integration with ADAS features like lane-keeping assist and automated parking.

The forecast period (2025-2033) is poised for sustained and accelerated growth, projected at a Compound Annual Growth Rate (CAGR) of approximately 6.5%. This expansion is underpinned by several key factors. Firstly, the burgeoning autonomous driving revolution necessitates highly precise and responsive steering systems, making advanced EPS a critical enabler. Secondly, the ongoing trend towards vehicle electrification further bolsters EPS adoption, as electric vehicles (EVs) inherently benefit from the energy efficiency and compact packaging of electric steering systems compared to traditional hydraulic counterparts. Consumer demand for a more intuitive and engaging driving experience, coupled with a heightened awareness of safety features, continues to drive OEM investments in sophisticated EPS technologies. The industry is also witnessing a move towards more compact and lighter EPS modules, contributing to overall vehicle weight reduction and improved fuel economy, aligning with global sustainability goals. Furthermore, the increasing integration of AI and machine learning within EPS control units promises predictive steering adjustments and personalized driving experiences, further solidifying its position as a vital component in the future of mobility. This continuous adaptation to evolving automotive paradigms ensures the enduring relevance and growth of the US automotive EPS market.

Leading Regions, Countries, or Segments in US Automotive EPS Market

Within the dynamic US Automotive EPS Market, a definitive leadership can be identified across various segments, driven by distinct factors. In terms of Vehicle Type, the Passenger Car segment commands the largest market share, accounting for an estimated 75% of the total market value in the Base Year 2025. This dominance is attributed to the sheer volume of passenger car production and sales in the US, coupled with the widespread adoption of EPS as a standard feature across almost all new passenger vehicles. The increasing consumer demand for comfort, safety, and fuel efficiency directly translates to a higher requirement for EPS systems in this segment.

The EPS Type segment is led by the Column Assist Type, holding approximately 60% of the market share in 2025. This prevalence stems from its cost-effectiveness and suitability for a wide range of passenger car applications, offering a good balance of performance and affordability. However, the Rack Assist Type is experiencing rapid growth, projected to increase its market share by 15% by Forecast Period 2033, driven by its superior steering precision and responsiveness, making it increasingly favored for performance-oriented vehicles and those incorporating advanced ADAS features.

Considering Component Type, the Steering Motor segment is the largest, representing an estimated 40% of the market value in 2025. This is directly linked to the core function of providing powered assistance to the steering mechanism. The Sensor segment, crucial for providing real-time data to the EPS control unit, also holds a significant share, approximately 30%, and is expected to grow robustly due to advancements in sensor technology for enhanced accuracy and integration with autonomous driving systems.

• Dominant Vehicle Type: Passenger Car (estimated 75% market share in 2025)
  • Key Drivers: High production volumes, widespread adoption of EPS as standard, consumer demand for comfort and safety.
• Leading EPS Type: Column Assist Type (estimated 60% market share in 2025)
  • Key Drivers: Cost-effectiveness, suitability for mass-market applications.
  • Growth Segment: Rack Assist Type (significant growth projected)
    • Drivers: Superior steering precision, integration with ADAS, performance vehicle demand.
• Dominant Component Type: Steering Motor (estimated 40% market share in 2025)
  • Key Drivers: Core component for power assistance.
• Key Component Segment for Growth: Sensor (estimated 30% market share in 2025, robust growth)
  • Drivers: Advancements in sensor accuracy, integration with ADAS and autonomous systems.

US Automotive EPS Market Product Innovations

Recent product innovations in the US Automotive EPS Market are revolutionizing vehicle steering. Manufacturers are increasingly integrating advanced sensor technologies that offer higher resolution and faster response times, crucial for sophisticated driver-assistance systems and the burgeoning field of autonomous driving. Innovations focus on lighter, more compact steering motors that enhance fuel efficiency and packaging within increasingly crowded engine bays, particularly in electric vehicles. Furthermore, smart EPS systems are emerging, capable of learning driver preferences and adapting steering feel dynamically. Applications range from enhanced active safety features like lane-keeping assist and automatic emergency steering to improved parking maneuvers and more engaging driving dynamics for performance vehicles. Unique selling propositions include enhanced precision, reduced latency, improved energy efficiency, and seamless integration with vehicle-wide electronic architectures. These technological advancements are pushing the boundaries of what's possible in vehicle control and driver experience, with a projected market value of approximately $15,000 Million by 2025.

Propelling Factors for US Automotive EPS Market Growth

The US Automotive EPS Market's growth is propelled by a confluence of technological, economic, and regulatory forces. The persistent demand for enhanced vehicle safety, driven by government mandates and consumer awareness, is a primary catalyst, with EPS playing a crucial role in advanced driver-assistance systems (ADAS) like lane-keeping assist and automatic emergency steering. The accelerating transition towards electric vehicles (EVs) further boosts EPS adoption, as electric powertrains are inherently more compatible with the energy efficiency and compact design of electric power steering compared to traditional hydraulic systems. Economic factors, such as rising disposable incomes and a growing preference for technologically advanced vehicles, also contribute to higher sales of vehicles equipped with EPS. Additionally, evolving government regulations aimed at improving fuel economy and reducing emissions indirectly favor EPS systems due to their lighter weight and lower energy consumption compared to hydraulic alternatives. The market is projected to reach approximately $18,000 Million by 2030.

Obstacles in the US Automotive EPS Market Market

Despite its robust growth, the US Automotive EPS Market faces several obstacles. Regulatory challenges can arise from evolving safety standards and homologation requirements for new EPS technologies, particularly concerning autonomous driving integration, potentially leading to extended development and approval cycles. Supply chain disruptions, as witnessed in recent years, can impact the availability of critical components like semiconductors and rare earth magnets, leading to production delays and increased costs. Intense competitive pressures among established Tier 1 suppliers and new entrants can lead to price erosion, affecting profit margins. Furthermore, high initial investment costs for research and development of next-generation EPS systems, especially those incorporating advanced AI and steer-by-wire capabilities, can be a barrier for smaller players. The cost of raw materials for electronic components and motors also presents a continuous challenge. The market is estimated to be valued at approximately $15,000 Million in 2025, with these obstacles potentially moderating growth rates if not effectively addressed.

Future Opportunities in US Automotive EPS Market

The US Automotive EPS Market is ripe with future opportunities, particularly in the burgeoning fields of autonomous driving and vehicle electrification. The development of advanced steer-by-wire systems, which completely eliminate mechanical linkage between the steering wheel and the wheels, presents a significant opportunity for enhanced control and integration with autonomous driving functionalities, with a projected market size of over $7,000 Million by 2033. The increasing demand for personalized driving experiences opens avenues for adaptive EPS systems that can learn and adjust steering characteristics based on individual driver preferences and driving conditions. Furthermore, the integration of AI and machine learning within EPS control units offers potential for predictive steering and enhanced safety features. The expansion of the commercial vehicle segment to adopt EPS for improved fuel efficiency and driver comfort also represents a substantial growth area. The development of cost-effective EPS solutions for entry-level vehicles could further unlock new market segments.

Major Players in the US Automotive EPS Market Ecosystem

• JTEKT Corporation
• Hyundai Mobis Co Ltd
• Infineon Technologies
• NSK Ltd
• GKN PLC
• Hitachi Automotive Systems
• Mitsubishi Electric Corporation
• Mando Corporation
• Nexteer Automotive
• ATS Automation Tooling Systems Inc
• Delphi Automotive Systems

Key Developments in US Automotive EPS Market Industry

• 2024 January: Nexteer Automotive announces a new generation of its electric power steering (EPS) technology, focusing on enhanced modularity and scalability for various vehicle platforms.
• 2023 December: Hyundai Mobis showcases an advanced steer-by-wire system at CES, highlighting its potential for autonomous vehicle integration and improved vehicle dynamics.
• 2023 September: Infineon Technologies launches a new family of automotive microcontrollers optimized for high-performance EPS applications, offering increased processing power and functional safety features.
• 2023 July: JTEKT Corporation expands its EPS production capacity in North America to meet the growing demand from major automotive OEMs.
• 2023 March: Mando Corporation collaborates with a leading LiDAR supplier to integrate advanced sensor technology into its EPS solutions, paving the way for enhanced ADAS capabilities.
• 2022 November: GKN PLC announces strategic investments in research and development for advanced electric drive modules, which often incorporate integrated EPS components.
• 2022 May: Hitachi Automotive Systems (now Hitachi Astemo) continues to innovate in integrated vehicle control systems, including advanced EPS functionalities.
• 2022 February: NSK Ltd introduces a new generation of lightweight and compact EPS units, contributing to vehicle weight reduction and improved fuel efficiency.
• 2021 October: Delphi Technologies (now part of BorgWarner) focuses on expanding its portfolio of electrification solutions, including advanced EPS for EVs.
• 2021 June: ATS Automation Tooling Systems Inc. continues to provide sophisticated automation solutions for EPS component manufacturing, enhancing production efficiency.

Strategic US Automotive EPS Market Market Forecast

The strategic outlook for the US Automotive EPS Market remains exceptionally strong, driven by a clear upward trajectory. The indispensable role of EPS in the progression of autonomous driving technologies, coupled with the ongoing electrification of the automotive industry, guarantees sustained demand. Innovations in steer-by-wire, advanced sensor integration, and AI-powered adaptive steering systems will unlock new revenue streams and enhance competitive advantages. The market is poised for significant expansion, with projections indicating a robust growth potential driven by technological advancements and increasing consumer appetite for safer, more efficient, and highly connected vehicles. The overall market value is expected to surpass $25,000 Million by 2033, reflecting its critical importance in shaping the future of mobility in the United States.

US Automotive EPS Market Segmentation

• 1. Vehicle Type
  • 1.1. Passenger Car
  • 1.2. Commercial Vehicle
• 2. EPS Type
  • 2.1. Colum Assist Type
  • 2.2. Pinion Assist Type
  • 2.3. Rack Assist Type
• 3. Component Type
  • 3.1. Steering Column
  • 3.2. Sensor
  • 3.3. Steering Motor
  • 3.4. Other Components

US Automotive EPS Market Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific