The North America electric power steering (EPS) market size value reached USD 6.26 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 4.1% between 2025 and 2034, reaching almost USD 8.99 billion by 2034. This growth is driven by increasing consumer demand for fuel-efficient, safe, and comfortable vehicles, as well as stringent regulations on vehicle emissions and fuel efficiency. In this blog post, we will delve into the dynamics of the North American EPS market, including its segmentation, key drivers, challenges, and the competitive landscape.
Market Segmentation of the North America EPS Market
The electric power steering market is segmented into various categories, which allow for a more precise understanding of its components, types, and end applications.
By Product Type
Rack Assist Type (REPS): Rack-assist EPS systems are the most commonly used in vehicles. They are preferred for their efficient energy consumption and are cost-effective for manufacturers. This system uses an electric motor attached to the steering rack, which provides assistance directly to the steering shaft. REPS is increasingly being used in mid-sized and large vehicles, offering high precision and reduced steering effort.
Column Assist Type (CEPS): Column-assist systems are usually seen in smaller vehicles, such as compact cars and electric vehicles (EVs). This type of EPS system is more compact and is often used to save space in the vehicle’s design. The column-assist type allows the driver to have a more responsive and intuitive steering feel, making it suitable for lighter vehicles where space efficiency is critical.
Pinion Assist Type (PEPS): Pinion-assist EPS systems provide assistance through an electric motor located on the pinion shaft of the steering system. These are typically used in larger vehicles or vehicles that require higher steering force. They offer better performance at higher speeds and are a preferred choice for luxury and commercial vehicles.
By Component
Steering Rack/Column: The steering rack or column is one of the core components in EPS systems, providing the primary mechanism for turning the vehicle. These systems allow for smoother and more accurate steering, contributing to the overall driving experience.
Sensors: Sensors play a critical role in EPS systems by providing real-time data on torque, position, and speed. The data helps the EPS system adjust the steering effort based on the speed and driving conditions, improving both vehicle safety and driving comfort.
Electric Motor: The electric motor is the primary source of power for the EPS system. It assists in steering the vehicle by applying torque to the steering shaft. The motor's efficiency is crucial for the overall fuel economy of the vehicle, which is why advancements in electric motor technology continue to drive the growth of EPS.
Other Components: These include controllers, wiring harnesses, and software that manage and control the EPS system, ensuring its smooth operation. The continued evolution of these components is vital for the overall reliability and performance of EPS systems.
By Vehicle Type
Passenger Vehicles: EPS is increasingly being integrated into passenger vehicles, where the focus on fuel efficiency, comfort, and safety is growing. As consumer preference for electric vehicles (EVs) and hybrid models rises, the adoption of EPS systems in these vehicles is expected to increase.
Commercial Vehicles: In the commercial vehicle segment, EPS is becoming popular in larger vehicles such as trucks and buses, as it offers benefits like reduced driver fatigue, improved maneuverability, and lower fuel consumption. These vehicles, which often cover long distances, benefit greatly from the added comfort and efficiency provided by EPS.
Electric Vehicles (EVs): EVs are one of the fastest-growing segments in the automotive industry, and EPS is increasingly being used in these vehicles due to the system's lightweight design, which contributes to overall energy efficiency. The integration of EPS systems with autonomous driving technologies is also a key trend in the EV market.
By Sales Channel
OEM (Original Equipment Manufacturer): A significant portion of EPS systems is supplied through OEMs, as vehicle manufacturers continue to incorporate EPS in their new models to meet consumer demand for advanced safety features, better fuel economy, and improved driving experience.
Aftermarket: In the aftermarket segment, EPS systems are being increasingly retrofitted into older vehicles. This provides an opportunity for vehicle owners to upgrade their steering systems, offering benefits such as enhanced fuel efficiency, steering response, and overall vehicle performance.
Regional Analysis: The North America Market
The North American market for electric power steering systems encompasses a wide range of applications and vehicle types across the United States, Canada, and Mexico. This region is seeing significant growth due to advancements in automotive technology, as well as consumer preferences for vehicles that combine comfort with efficiency.
United States: The U.S. remains the largest market for EPS systems, driven by the growing production of electric and hybrid vehicles, as well as increasing consumer demand for advanced vehicle safety and comfort features. The government’s focus on reducing vehicle emissions and improving fuel efficiency is also a major driving force behind the adoption of EPS in the country.
Canada: Canada is witnessing increased integration of EPS in both passenger vehicles and commercial fleets, particularly as Canadian manufacturers focus on reducing vehicle weight and enhancing fuel economy. The rising adoption of EVs in the country is also expected to boost EPS demand.
Mexico: Mexico has become a major manufacturing hub for automotive production in North America, with many global automakers setting up plants in the country. The growing automotive production in Mexico is expected to increase the demand for EPS systems as manufacturers look to meet global standards for vehicle performance and fuel efficiency.
Market Dynamics
Key Drivers of the North American EPS Market
Fuel Efficiency: As fuel prices rise and environmental regulations become stricter, automakers are increasingly adopting EPS systems to reduce vehicle weight and enhance fuel efficiency.
Safety Regulations: EPS systems are being incorporated into vehicles to comply with regulatory requirements related to safety and maneuverability, such as enhanced stability control and driver assistance technologies.
Consumer Demand for Comfort: Consumers are increasingly prioritizing features such as responsive steering and reduced driver fatigue, which are enabled by EPS systems.
Technological Advancements: Continuous innovation in EPS technology, including improved sensors and electric motors, is driving the market. The integration of EPS with advanced driver-assistance systems (ADAS) and autonomous driving technologies is also expected to fuel growth.
Key Challenges
Cost: The initial cost of EPS systems is higher than traditional hydraulic steering systems, which may be a barrier for some manufacturers, especially for low-cost vehicles.
Technical Failures: EPS systems, being more complex than traditional systems, face challenges related to durability and maintenance. Any failure in the system can result in a loss of steering control, which can be a safety concern.
Competitive Landscape
The North American electric power steering market is highly competitive, with several key players driving innovation and market expansion.
Robert Bosch GmbH: A leading supplier of EPS systems, Bosch has a strong presence in North America, providing advanced steering technologies that improve fuel efficiency and driving comfort.
JTEKT Corporation: Known for its robust EPS solutions, JTEKT has expanded its presence in North America by supplying high-performance steering systems to both passenger and commercial vehicle manufacturers.
ZF Friedrichshafen: ZF is a significant player in the EPS market, offering a wide range of systems, including column-assist, rack-assist, and pinion-assist solutions for various vehicle types.
Schaeffler Group: Schaeffler continues to innovate in the automotive sector, providing EPS systems that integrate seamlessly with ADAS and autonomous vehicle technologies.
Key Trends and Developments
Integration with ADAS: EPS systems are being increasingly integrated with ADAS features such as lane-keeping assist and automated parking systems to enhance vehicle safety and driver experience.
Rise in EV Adoption: The growing popularity of electric vehicles is leading to greater adoption of EPS systems, which offer reduced energy consumption and greater space efficiency compared to traditional systems.
Focus on Sustainability: As the automotive industry moves towards sustainability, EPS systems are being designed to be more energy-efficient, environmentally friendly, and cost-effective.
