China Automotive EPS Market to Grow with a CAGR of 13.48% through 2030

Rising vehicle production, increasing demand for fuel-efficient steering systems, and advancements in electronic power steering technology are the factors driving the market in the forecast period 2026-2030.

According to TechSci Research report, “China Automotive EPS Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, The China Automotive EPS Market was valued at USD 15.72 Billion in 2024 and is expected to reach USD 33.56 Billion by 2030 with a CAGR of 13.48% during the forecast period.

The China Automotive Electric Power Steering (EPS) market is expanding rapidly, driven by the increasing adoption of intelligent mobility solutions and the demand for enhanced driving dynamics. Automakers are prioritizing steering technologies that support vehicle automation, safety, and fuel efficiency, making EPS a key component in modern vehicle architecture. The transition away from mechanical and hydraulic steering systems is fueled by the need for precision control, reduced maintenance, and improved adaptability across different vehicle segments. With growing urbanization and expanding road networks, consumer preferences are shifting toward smoother and more responsive steering mechanisms, accelerating EPS adoption across passenger cars and commercial vehicles.

Innovations in electromechanical actuation, fail-safe redundancies, and real-time torque adjustments are transforming the market. The integration of predictive analytics, over-the-air (OTA) software updates, and AI-powered calibration is enhancing EPS performance, enabling vehicles to adapt to varying road conditions and driver inputs with greater accuracy. Automakers are investing in multi-mode EPS configurations that allow customized steering feedback for different driving scenarios, such as city navigation, highway cruising, and off-road terrain. The industry is also seeing a rise in modular EPS architectures, which simplify production and allow for cost-effective scalability across vehicle lineups. These advancements are making EPS a crucial enabler of smart and connected vehicles, reinforcing its long-term market potential.

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China Automotive EPS Market Is Segmented by Component Type, Vehicle Type, Type, and By Region.

Based on Vehicle Type, The commercial vehicles segment is experiencing the fastest growth in China’s automotive EPS market in 2024. Increasing demand for logistics, expanding e-commerce operations, and rising urban transportation needs are driving the shift toward advanced steering technologies in trucks, buses, and delivery vehicles. EPS adoption in commercial vehicles is accelerating as fleet operators seek fuel efficiency, reduced maintenance costs, and improved maneuverability. Unlike traditional hydraulic systems, EPS provides variable steering assistance, reducing driver fatigue in long-haul operations and urban traffic conditions. The transition toward intelligent fleet management and connected vehicle technologies is further boosting EPS integration, as real-time steering adjustments enhance vehicle stability and safety.

Regulatory policies aimed at reducing emissions and improving commercial vehicle efficiency are pushing manufacturers to replace conventional steering systems with energy-saving EPS solutions. Stricter fuel consumption standards and urban low-emission zones are compelling fleet operators to adopt vehicles with optimized power steering mechanisms. Growth in the electric and hybrid commercial vehicle market is also a key driver, as EPS enables seamless integration with electric drivetrains, eliminating the need for power-hungry hydraulic pumps. Expanding infrastructure projects and urban development initiatives are further stimulating demand for commercial vehicles equipped with precision-controlled steering that enhances navigation through congested and complex routes.

Based on region, South Central China is the fastest-growing region for EPS adoption in 2024, driven by rapid industrial expansion, increasing vehicle production, and strong demand for commercial and passenger vehicles. The region’s booming logistics industry, expanding urban centers, and rising automotive investments are fueling the growth of EPS-equipped vehicles. High vehicle ownership rates and infrastructure development projects are increasing the demand for advanced steering systems that enhance vehicle control, efficiency, and safety. The presence of a robust automotive supply chain, skilled workforce, and supportive policies is attracting EPS manufacturers and automakers to expand operations in the region.

Rising urbanization and economic growth in cities within South Central China are creating a strong consumer base for modern vehicles with advanced driving technologies. Commercial vehicle operators in the region are adopting EPS to comply with regulatory mandates, improve fleet efficiency, and enhance driver comfort in high-traffic environments. Increased research and development activities in steering system innovation and intelligent vehicle control are further accelerating market expansion. The combination of industrial growth, regulatory support, and increasing demand for fuel-efficient vehicles positions South Central China as a key driver in the evolution of the country’s EPS market.

Major Market Players Operating in China Automotive EPS Market Are:

• ATS Automation Tooling Systems Inc
• Denso Corporation
• GKN Automotive Limited
• Hitachi Astemo Automotive Systems (China) Ltd.
• Hyundai Mobis Co., Ltd.
• JTEKT (China) Investment Co., Ltd
• Mitsubishi Electric Corporation
• Nexteer Automotive Corporation
• NSK Ltd
• Robert Bosch GmbH

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Growing adoption of intelligent steering solutions, advancements in steer-by-wire technology, and increasing integration of EPS in commercial vehicles are driving China’s automotive EPS market. Automakers are investing in AI-driven steering control, modular EPS architectures, and fail-safe electronic steering systems to enhance vehicle efficiency and automation. South Central China is the fastest-growing region in 2024, driven by rising vehicle production, expanding logistics networks, and increasing demand for fuel-efficient commercial fleets. Government policies, technological advancements, and strong supply chain infrastructure are fueling EPS adoption in the region", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“China Automotive EPS Market By Component Type (Steering Rack/Column, Sensor, Steering Motor, Other), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Type (Column Type, Pinion Type, Dual Pinion Type), By Region, Competition, Forecast & Opportunities, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the China Automotive EPS Market.

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