Automotive Power Steering Motor Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Automotive Power Steering Motor Market Analysis

The Automotive Power Steering Motor Market is expected to register a CAGR of 6.93% during the forecast period.

The automotive power steering motor industry is experiencing significant transformation driven by technological advancements and changing consumer preferences. Major industry players are intensifying their focus on research and development to maintain a competitive advantage, with companies like Nexteer Automotive investing approximately 5.1% of their annual revenue in R&D activities. This emphasis on innovation has led to breakthrough developments in electric power steering (EPS) systems, which are increasingly becoming standard features across vehicle segments. The integration of advanced steering technologies reflects the industry's broader shift toward more sophisticated automotive solutions that enhance both safety and the driving experience.

Strategic partnerships and facility expansions are reshaping the competitive landscape of the power steering motor market. Notable developments include JTEKT Corporation's USD 47 million investment in their Mexico facility expansion, focusing on electronic steering systems production. These strategic moves are complemented by increasing collaboration between automotive manufacturers and technology providers, as evidenced by Nexteer Automotive's partnership with Tactile Mobility for software development in steering systems. Such collaborations are accelerating the development of next-generation steering technologies that incorporate advanced driver assistance features.

The industry is witnessing a significant shift toward more sophisticated steering solutions, particularly in the electric power steering (EPS) segment. Major automotive manufacturers are increasingly adopting advanced steering technologies, as demonstrated by Toyota Motor Corporation's implementation of JTEKT's double-structured EPS system. This trend is further reinforced by innovations like Nexteer's Modular Column-Assist EPS (MCEPS), introduced to provide cost-effective and flexible solutions to OEMs. These technological advancements are driving the industry toward more efficient and reliable automotive steering system solutions.

The market is characterized by intense competition and continuous innovation in product development. Leading companies are focusing on expanding their product portfolios through strategic acquisitions and technological partnerships. The industry's commitment to innovation is reflected in substantial R&D investments, with companies like NSK Ltd. investing JPY 16.8 billion in research and development. This focus on innovation extends beyond product development to include manufacturing processes and quality control systems, ensuring higher reliability and performance of electric steering system motors while meeting increasingly stringent automotive safety standards.

Automotive Power Steering Motor Market Trends

High Preference for EPS Systems by OEMs and Buyers

The automotive industry has witnessed a significant shift towards electric power steering (EPS) systems, driven by both manufacturer preferences and consumer demands for more efficient and environmentally friendly vehicles. This transition is evidenced by major investments from industry leaders, such as ZF's allocation of USD 47.42 million for expanding their Shanghai plant in 2022, specifically targeting increased production of electric power steering systems. The investment is projected to boost EPS sales by more than USD 0.14 billion by 2024, demonstrating strong market confidence in EPS technology. Additionally, ThyssenKrupp's commitment to invest USD 200 million in a global facility for automotive electronic power steering systems in China further underscores the industry's strategic pivot towards EPS systems.

The preference for EPS systems is particularly pronounced in urban environments, where the need for efficient and precise steering control is paramount. These systems eliminate the need for traditional power steering components such as pumps, hoses, and hydraulic fluids, which are prone to wear and require frequent replacement. The reduced maintenance requirements and improved fuel efficiency offered by EPS systems have made them increasingly attractive to both manufacturers and consumers. This trend is further reinforced by the growing adoption of electric vehicles, where electric power steering systems provide superior high-speed stability and better integration with modern vehicle architectures. Major automotive manufacturers are actively incorporating advanced EPS technologies, as demonstrated by Toyota's commencement of mass production of the bZ4X model equipped with JTEKT's steer-by-wire technology in October 2022.

Increasing Automation and Demand for Active Safety

The automotive industry's rapid progression towards automated driving capabilities has significantly boosted the demand for sophisticated power steering systems that can support advanced driver assistance systems (ADAS) and active safety features. This trend is exemplified by the strategic collaboration between Geely and Hella in September 2022 to develop production-ready steer-by-wire (SBW) systems, with implementation planned for 2026. The integration of power steering systems with ADAS features enables crucial functionalities such as lane keeping, park assist, active return to center, and traffic jam assist, making these systems integral to the advancement of vehicle automation and safety.

The increasing focus on active safety has prompted power steering manufacturers to develop more sophisticated solutions that can handle complex driving scenarios and provide enhanced driver support. These advanced systems are being designed to offer redundancy and backup operations, ensuring vehicle safety even in the event of system failures. For instance, manufacturers are developing double-structured EPS systems equipped with backup power supplies and multiple control systems. The trend towards automation has also led to increased investment in software development and integration capabilities, with companies focusing on developing intelligent power steering systems that can adapt to various road conditions and driving situations. This evolution in power steering technology is particularly crucial for electric vehicles and autonomous driving applications, where precise steering control and reliable system performance are essential for safety and operational efficiency. The development of the electric power steering motor and EPS motor is pivotal in these advancements, providing the necessary power and precision required for modern automotive steering components.

Segment Analysis: Vehicle Type

Passenger Cars Segment in Automotive Power Steering Motor Market

The passenger cars segment dominates the automotive power steering motor market, commanding approximately 74% of the total market share in 2024. This significant market position is primarily driven by the widespread adoption of electric power steering (EPS) technology in modern passenger vehicles, particularly in entry-level segment cars. The segment's dominance is further strengthened by the growing focus on safety and comfort features in passenger vehicles, with manufacturers increasingly incorporating advanced steering technologies. China remains the largest consumer of automotive electric steering systems, accounting for about one-third of global passenger car sales. The continuous integration of EPS technology in new vehicle models, coupled with the rising demand for electric vehicles and premium passenger cars across major automotive markets, has solidified the segment's leading position in the market.

Commercial Vehicles Segment in Automotive Power Steering Motor Market

The commercial vehicles segment is projected to be the fastest-growing segment in the automotive power steering motor market during the forecast period 2024-2029, with an expected growth rate of approximately 6%. This accelerated growth is primarily attributed to the increasing adoption of electric power steering in commercial vehicles, which traditionally relied on hydraulic steering systems. The segment's growth is further fueled by stringent environmental regulations pushing for electrically actuated power steering as a standard feature in commercial vehicles. The expansion of the logistics sector and construction industry worldwide is driving the demand for commercial vehicles, particularly trucks, which in turn is boosting the demand for steering assist motors. Additionally, the growing trend toward electric mobility in the commercial vehicle sector, particularly in urban delivery vehicles and public transportation, is creating new opportunities for power steering motor manufacturers.

Segment Analysis: Power Steering Type

EPHS Segment in Automotive Power Steering Motor Market

The Electric Power Hydraulic Steering (EPHS) segment dominates the automotive power steering motor market, commanding approximately 56% of the total market share in 2024. This significant market position is attributed to EPHS systems combining the benefits of hydraulic steering systems with fuel-efficient operations powered by vehicle batteries rather than the engine. The technology has gained widespread acceptance due to its ability to use only 25% of the total energy compared to traditional systems, resulting in fuel savings of up to 0.3 liters per 100 kilometers and reducing carbon dioxide emissions by about 7 grams per kilometer. The segment's success is further bolstered by the automotive industry's transition toward 48V electrical architecture in vehicles and the deployment of advanced electronic control units (ECUs).

EPS Segment in Automotive Power Steering Motor Market

The EPS motor segment is projected to be the fastest-growing segment in the automotive power steering motor market from 2024 to 2029, with an expected growth rate of approximately 6%. This growth is driven by the increasing adoption of electric vehicles and the automotive industry's shift toward more energy-efficient solutions. EPS motors are gaining popularity due to their ability to reduce vehicle weight by eliminating the need for hydraulic pumps and associated components. The segment's growth is further supported by the rising demand for advanced driver assistance systems (ADAS) and the integration of smart driving technologies. Major automotive manufacturers are increasingly incorporating EPS systems into their vehicle models, particularly in luxury and premium segments, despite the higher initial costs.

Remaining Segments in Power Steering Type

The Hydraulic Power Steering (HPS) segment continues to maintain its presence in the automotive power steering motor market, particularly in the commercial vehicle sector. HPS systems remain popular in heavy commercial vehicles due to their ability to handle higher front axle weights and provide reliable performance under demanding conditions. The technology continues to be relevant in markets where durability and proven mechanical reliability are prioritized over electrical sophistication. Despite the industry's shift toward electric solutions, HPS systems maintain their significance in specific applications where high torque requirements and robust performance characteristics are essential.

Segment Analysis: Product Type

Column Assist Type (CEPS) Segment in Automotive Power Steering Motor Market

The Column Assist Type (CEPS) segment dominates the automotive power steering motor market, commanding approximately 62% of the total market share in 2024. This segment's prominence can be attributed to its optimal design for compact vehicles with smaller engine compartments, as the power assist unit is located in the cabin rather than the engine bay. CEPS systems are particularly suitable for light, compact, and medium cars, offering significant advantages in terms of installation simplicity and space optimization. The segment's growth is further driven by the increasing adoption of CEPS technology in entry-level vehicles, with manufacturers focusing on incorporating these systems to enhance safety and comfort features. Additionally, the segment benefits from not requiring waterproofing measures since the engine and transmission architecture remain unaffected, making it a cost-effective solution for vehicle manufacturers. The technology also features built-in safety mechanisms that allow manual steering control in case of system failure, making it particularly attractive for automotive manufacturers focusing on safety features.

Remaining Segments in Product Type

The Pinion Assist Type (PEPS) and Rack Assist Type (REPS) segments represent significant portions of the automotive power steering motor market, each serving distinct vehicle applications and requirements. PEPS systems are primarily utilized in small vehicles and compact cars, with their seamless functioning and compact size being key advantages. The technology provides drivers with enhanced control compared to column-type systems and reduces torsional compliance across column assemblies. Meanwhile, REPS systems have carved out a crucial niche in the heavy commercial vehicle segment, offering superior performance for vehicles with higher front-axle loads. These systems are particularly valued for their optimized space utilization and ability to handle more demanding steering requirements in larger vehicles. Both segments continue to evolve with technological advancements, focusing on improving efficiency, reducing weight, and enhancing overall steering performance.

Segment Analysis: Demand Category

Replacement Segment in Automotive Power Steering Motor Market

The replacement segment continues to dominate the automotive power steering motor market, holding approximately 65% market share in 2024. This significant market position is primarily driven by the increasing global vehicle parc and growing average age of vehicles across major automotive markets, particularly in Europe and North America. The segment's strength is further reinforced by the rising adoption of electric power steering systems in newer vehicles, which creates a steady demand for replacement parts as these systems age. Additionally, the growing awareness among vehicle owners about the importance of regular maintenance and timely replacement of steering components has contributed to the segment's market leadership. The replacement market is particularly strong in developing regions where the average vehicle age tends to be higher, and there is a greater need for aftermarket steering system components.

OEM Segment in Automotive Power Steering Motor Market

The OEM segment has emerged as the fastest-growing segment in the automotive power steering motor market, driven by several key factors shaping the automotive industry. The rapid transition towards electric vehicles and advanced driver assistance systems (ADAS) has created a strong demand for sophisticated power steering solutions from automotive manufacturers. OEMs are increasingly focusing on incorporating electric steering systems in their new vehicle models, particularly in the growing electric vehicle segment. The segment's growth is further supported by stringent safety regulations and the increasing consumer preference for vehicles with advanced steering capabilities. Additionally, the expansion of automotive manufacturing capabilities in emerging markets and the growing trend of vehicle electrification across all vehicle segments have contributed to the robust growth trajectory of the OEM segment.

Automotive Power Steering Motor Market Geography Segment Analysis

Automotive Power Steering Motor Market in North America

The North American power steering system market demonstrates robust growth driven by technological advancements and increasing adoption of electric power steering systems. The United States leads the regional market, followed by Canada, with both countries showing strong demand for advanced automotive steering components. The region benefits from the presence of major automotive manufacturers and their continued investment in research and development of steering technologies. The market is characterized by high consumer preference for vehicles equipped with advanced safety features and sophisticated steering systems.

Automotive Power Steering Motor Market in the United States

The United States dominates the North American automotive steering system market, accounting for approximately 87% of the regional market share in 2024. The country's market leadership is supported by the presence of thirteen major car manufacturers and established manufacturing capabilities. The automotive sector in the United States continues to drive innovation in steering technologies, particularly in electric power steering systems. The country's strong focus on vehicle safety regulations and consumer preference for advanced steering solutions further strengthens its market position. The presence of prominent automotive manufacturers and Original Equipment Manufacturers (OEMs) in the country serves as a major factor propelling the power steering motor market.

Automotive Power Steering Motor Market in Canada

Canada emerges as the fastest-growing market in North America, with a projected growth rate of approximately 6% during 2024-2029. The country's automotive sector is characterized by over five heavy-duty assembly plants, 540 OEM part manufacturers, and 400 dealerships. The Canadian automotive industry maintains close ties with the United States through various trade agreements, including the United States-Mexico-Canada Agreement (USMCA). The government's push to reduce freight bottlenecks and support for exporters under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) is expected to boost automotive manufacturing and sales. The growing focus on electric vehicles and new product launches continues to drive market expansion in Canada.

Automotive Power Steering Motor Market in Europe

The European power steering motor market showcases significant growth potential, driven by stringent safety regulations and increasing adoption of advanced steering technologies. The region's market is led by Germany, followed by France and the United Kingdom, with each country contributing significantly to the overall market development. The European market benefits from the presence of major automotive manufacturers and their continued investment in research and development of innovative steering solutions. The region's focus on electric vehicle adoption and autonomous driving technologies further drives the demand for advanced power steering systems.

Automotive Power Steering Motor Market in Germany

Germany maintains its position as the largest market in Europe, representing approximately 21% of the regional market share in 2024. The country's automotive industry benefits from a strong manufacturing base and the presence of leading automotive companies. Germany's commitment to electric mobility and stringent emission regulations continues to drive innovation in power steering technologies. The country's automotive sector demonstrates remarkable resilience and adaptability to changing market demands, supported by substantial investments in research and development activities.

Automotive Power Steering Motor Market in Germany

Germany also leads the European market in terms of growth rate, with a projected growth rate of approximately 6% during 2024-2029. The country's market expansion is driven by its leadership in automotive technology innovation and strong focus on electric vehicle development. The implementation of stringent emission and fuel economy norms, combined with the shifting trend toward electrification, continues to boost the demand for advanced power steering systems. German automotive manufacturers maintain their commitment to developing sophisticated steering solutions that meet evolving consumer preferences and regulatory requirements.

Automotive Power Steering Motor Market in Asia-Pacific

The Asia-Pacific region represents a dynamic market for power steering system, with China leading the market followed by Japan, India, and South Korea. The region benefits from rapid industrialization, increasing vehicle production, and growing consumer demand for advanced automotive technologies. The market is characterized by the presence of major automotive manufacturers and their continued investment in expanding production capabilities. The region's automotive sector demonstrates strong growth potential, supported by favorable government policies and increasing adoption of electric vehicles.

Automotive Power Steering Motor Market in China

China maintains its position as the largest market in the Asia-Pacific region, driven by its massive automotive manufacturing capabilities and strong domestic demand. The country's automotive sector benefits from substantial investments in research and development, particularly in electric vehicle technologies. China's market leadership is supported by the presence of major automotive manufacturers and their focus on developing advanced steering solutions. The country's commitment to electric mobility and autonomous driving technologies continues to drive innovation in power steering systems.

Automotive Power Steering Motor Market in India

India emerges as the fastest-growing market in the Asia-Pacific region, driven by rapid industrialization and increasing vehicle production. The country's automotive sector benefits from growing domestic demand and increasing investments in manufacturing capabilities. India's market growth is supported by the government's push for electric mobility and the presence of major automotive manufacturers. The country's focus on developing advanced automotive technologies and increasing adoption of electric power steering systems continues to drive market expansion.

Automotive Power Steering Motor Market in Rest of the World

The Rest of the World region, encompassing Brazil, Mexico, and the United Arab Emirates, demonstrates varying levels of market development and growth potential. Brazil leads the market in this region, benefiting from its position as the eighth-largest automaker globally and strong manufacturing capabilities. Mexico emerges as a significant market driven by its strategic location and strong automotive manufacturing base. The United Arab Emirates shows promising growth potential supported by increasing demand for luxury vehicles and advanced automotive technologies. The region's market development is characterized by increasing investments in automotive manufacturing capabilities and growing adoption of advanced steering technologies, with Brazil emerging as both the largest and fastest-growing market in this region.