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

Market Overview:

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 witnessing significant growth driven by increasing vehicle production, technological advancements, and regulatory support for fuel-efficient systems. Automakers are shifting toward EPS due to its advantages over hydraulic systems, including reduced fuel consumption, improved handling, and compatibility with advanced driver assistance systems (ADAS). Government policies promoting energy-efficient vehicles and stringent emission regulations are further encouraging EPS adoption. As vehicle electrification gains momentum, manufacturers are integrating EPS with electronic control units to enhance steering precision and adaptability, fueling market expansion.

Advancements in sensor technologies, software integration, and the development of steer-by-wire systems are transforming the EPS landscape. Automakers are focusing on intelligent steering solutions that improve safety, driving experience, and automation readiness. The rise of autonomous and semi-autonomous driving is accelerating EPS innovations, with manufacturers investing in high-precision torque sensors and AI-based control systems. Lightweight materials and compact designs are also gaining traction, enhancing system efficiency and performance. The growing preference for personalized and adaptive driving features is further shaping the market, leading to increased research and development efforts.

Challenges persist despite market growth, including concerns over system reliability, high initial costs, and cybersecurity risks associated with electronic steering controls. The complexity of integrating EPS with other vehicle components demands significant investment in research and engineering. Supply chain disruptions and fluctuations in semiconductor availability pose additional hurdles for manufacturers.

Market Drivers

Rising Vehicle Electrification

Automakers are increasingly adopting electrification, leading to a surge in demand for electronic power steering (EPS) systems. Unlike hydraulic power steering, EPS operates without an engine-driven pump, making it more efficient for hybrid and electric vehicles. As China pushes for energy-efficient transportation, EPS adoption is growing due to its ability to improve fuel economy and reduce emissions. Manufacturers are investing in innovative EPS designs that enhance vehicle performance while supporting the shift toward cleaner mobility solutions. For instance, in 2023, China dominated the global electric vehicle market, responsible for 58% of the 13.7 million BEVs and PHEVs sold globally. With EV penetration rates at 22%, China led in both BEV and PHEV sales, surpassing the US and Germany. China’s influence extends to battery production, where it accounted for 53% of global battery capacity deployed, producing 59% of the total power-hours for EVs. Moreover, China exported 49.5 GWh of battery power, further solidifying its position as the largest EV exporter worldwide. With aggressive incentives and innovations, China continues to lead global EV growth.

Government Regulations for Fuel Efficiency

Strict fuel efficiency and emission norms are compelling automakers to replace traditional hydraulic systems with EPS. Policies promoting lower carbon emissions align with EPS technology, which minimizes energy consumption by only drawing power when necessary. Compliance with these regulations is driving widespread adoption, as manufacturers integrate EPS to improve vehicle efficiency. The emphasis on sustainability and reduced environmental impact is accelerating EPS market growth across multiple vehicle segments.

Expansion of Advanced Driver Assistance Systems (ADAS)

Modern vehicles are integrating ADAS features such as lane-keeping assist and automatic parking, requiring precise and responsive steering. EPS plays a crucial role in enabling these functionalities by providing adaptable and electronically controlled steering support. Automakers are focusing on EPS with advanced sensors and software to enhance driving safety and automation capabilities. The increasing penetration of ADAS is elevating the need for high-performance EPS systems that offer greater control and stability.

Consumer Demand for Enhanced Driving Comfort

Drivers are seeking smoother, more responsive steering solutions that improve handling and reduce driver fatigue. EPS delivers a refined driving experience by eliminating the resistance associated with hydraulic systems. Automakers are leveraging EPS to develop vehicles with customizable steering modes, allowing drivers to adjust sensitivity based on road conditions. The push for a seamless and comfortable ride experience is contributing to the widespread adoption of EPS technology.

Integration with Steer-by-Wire Technology

The evolution toward steer-by-wire systems, which replace mechanical linkages with electronic controls, is creating new opportunities for EPS. This innovation enhances vehicle agility and enables more flexible design architectures, supporting autonomous driving development. Steer-by-wire reduces maintenance needs and improves responsiveness by eliminating traditional mechanical components. As automakers explore next-generation steering solutions, EPS integration with steer-by-wire technology is gaining momentum.

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Key Market Challenges

High Development and Implementation Costs

EPS requires advanced electronics, sensors, and control modules, making its development expensive. Automakers and suppliers invest heavily in research, engineering, and testing to ensure reliability and performance. The transition from hydraulic to EPS systems involves redesigning vehicle architectures, adding to production costs. Cost-sensitive segments face difficulties in widespread adoption, particularly in lower-priced vehicle categories.

Cybersecurity Risks in Electronic Steering Systems

As vehicles become increasingly software-driven, EPS systems are vulnerable to cybersecurity threats. Hackers targeting electronic steering components can potentially manipulate vehicle control, raising safety concerns. Automakers must implement robust cybersecurity measures, requiring additional investments in secure communication protocols and encryption. Addressing these risks is essential for maintaining consumer trust and ensuring vehicle safety in an increasingly connected automotive landscape.

Complexity of System Integration

EPS must seamlessly integrate with various vehicle components, including braking and stability control systems. Achieving this level of synchronization requires advanced engineering and extensive testing, making the development process challenging. Variability in vehicle models and platform designs further complicates standardization efforts. Automakers must ensure compatibility across diverse vehicle configurations, increasing design complexity and production lead times.

Limited Steering Feedback Perception

Compared to hydraulic systems, EPS lacks the traditional road feel that some drivers prefer. The electronic nature of the system can make steering feel less responsive or artificial, especially in performance vehicles. Manufacturers are working on refining software algorithms to replicate natural feedback while maintaining EPS efficiency. Balancing precision and driver perception remains a key challenge in system optimization.

Supply Chain Constraints for Semiconductor Components

EPS relies on semiconductor chips, sensors, and electronic control units, all of which are susceptible to supply chain disruptions. Shortages in semiconductor production can delay manufacturing timelines and increase costs for automakers. The reliance on global suppliers for critical electronic components makes the industry vulnerable to geopolitical and economic factors. Addressing supply chain resilience is crucial for ensuring stable EPS production and availability.

Key Market Trends

Advancements in AI-Based Steering Control

Artificial intelligence is enhancing EPS capabilities by enabling real-time adaptive steering adjustments. AI-driven algorithms analyze driving patterns, road conditions, and vehicle dynamics to optimize steering responsiveness. Automakers are incorporating machine learning to improve predictive handling, enhancing safety and performance. The fusion of AI and EPS is leading to smarter and more intuitive steering solutions.

Lightweight and Compact EPS Designs

Manufacturers are developing EPS systems with reduced weight and compact structures to improve vehicle efficiency. Lighter components contribute to fuel savings and enhanced steering precision. Innovations in material science are enabling the production of high-strength, lightweight EPS components without compromising durability. The shift toward compact EPS designs aligns with the industry's focus on vehicle weight reduction.

Enhanced Software Integration for Adaptive Steering

Automakers are investing in advanced software-driven EPS solutions that offer customizable driving experiences. Adaptive steering technology allows vehicles to adjust steering effort based on speed, terrain, and driving conditions. Software updates enable continuous improvements, ensuring EPS systems evolve with changing user preferences. The growing reliance on software-defined vehicle architecture is shaping the future of EPS technology.

Increased Adoption of Dual-Pinion EPS Systems

Dual-pinion EPS is gaining traction due to its ability to provide enhanced precision and durability. Unlike single-pinion systems, dual-pinion configurations offer improved load distribution, reducing wear and tear. The design enhances steering response and supports better torque management, making it suitable for a wider range of vehicles. Automakers are incorporating dual-pinion EPS to achieve a balance between efficiency and performance.

Integration with Autonomous Driving Technologies

The development of self-driving cars is accelerating innovations in EPS, as precise and reliable steering control is essential for automation. Autonomous vehicle prototypes rely on EPS to enable lane-centering, automatic maneuvering, and fail-safe redundancy. Automakers are designing EPS systems with fail-operational capabilities, ensuring continued steering functionality in case of electronic failures. The evolution of autonomous mobility is pushing the boundaries of EPS technology and innovation.

Segmental Insights

Component Type Insights

The steering motor segment dominated China’s Automotive EPS market in 2024, driven by its critical role in enabling efficient and responsive electronic steering systems. The demand for high-performance, precise, and energy-efficient steering solutions has led to advancements in motor technology, making it the most influential component in the EPS ecosystem. As automakers transition from hydraulic to electronic steering systems, steering motors have become the backbone of modern vehicle control, ensuring smooth handling, reduced energy consumption, and enhanced safety features. The increasing integration of EPS in passenger and commercial vehicles has further amplified the importance of high-torque, compact, and lightweight steering motors.

Technological advancements in electric motor design have significantly improved steering response, power efficiency, and durability. Brushless DC motors and permanent magnet synchronous motors are widely used due to their high power density and ability to deliver precise torque adjustments. These motors provide superior efficiency by operating only when steering assistance is needed, reducing overall energy consumption and aligning with the industry’s push for fuel efficiency. The rise of advanced driver assistance systems (ADAS) and semi-autonomous driving features has intensified the demand for steering motors with rapid response capabilities. As vehicles incorporate lane-keeping assist, automatic parking, and adaptive steering, the need for highly efficient steering motors continues to grow.

The widespread adoption of steer-by-wire technology and software-driven steering enhancements has further strengthened the position of steering motors as the dominant EPS component. These systems rely on advanced electric motors to provide instant steering corrections, improving vehicle agility and driver comfort. The expansion of electric vehicle platforms, which require more sophisticated EPS solutions, has also contributed to the segment’s leadership. With automakers prioritizing weight reduction and performance optimization, compact and high-torque steering motors are preferred for their ability to deliver precise control without adding significant mass to the vehicle.

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Regional Insights

East China leads the automotive EPS market in 2024, driven by its strong manufacturing ecosystem, advanced technological infrastructure, and high vehicle production capacity. The region is home to a dense network of automotive manufacturers, suppliers, and research centers that continuously develop and refine EPS technology. With a well-established industrial base, the demand for electronic power steering is accelerating as automakers prioritize energy efficiency, vehicle automation, and improved driving dynamics. The presence of skilled labor, advanced production facilities, and government support for innovation further strengthens the region’s dominance in EPS adoption and manufacturing.

The region’s extensive automotive supply chain contributes to the rapid integration of EPS across various vehicle segments. Automakers and component suppliers collaborate closely, enabling faster development cycles and improved product quality. The availability of advanced materials and precision engineering capabilities has enhanced the production of key EPS components, including steering motors, sensors, and electronic control units. With stringent emissions regulations driving the transition from hydraulic to electronic steering, manufacturers in the region are focusing on lightweight and energy-efficient EPS systems that align with regulatory and consumer expectations.

High vehicle ownership rates and growing consumer demand for enhanced driving experiences are fueling the expansion of EPS-equipped models in the market. Urban centers in East China have a strong preference for passenger vehicles with advanced driver assistance features, reinforcing the need for intelligent steering solutions. For instance, rising disposable income across global regions is fueling economic growth, with significant increases projected through 2050. In Asia-Pacific, China and India show the most notable increases, with China’s income rising to USD 31,383 and India’s to USD 17,609 by 2050. This upward trend in disposable income globally, particularly in emerging markets like China and India, signals increased consumer purchasing power, influencing market dynamics in sectors such as retail, tourism, and automotive. Automakers are integrating EPS with software-driven enhancements to improve maneuverability, steering precision, and fuel efficiency. As electric and hybrid vehicles gain traction, the reliance on EPS for optimized performance and energy savings is increasing, further strengthening the segment’s growth.

Recent Developments

• In 2024, ​ZF has announced a strategic cooperation to advance EPS systems in China, focusing on innovation, localization, and production. This move strengthens its position in the growing market for intelligent and fuel-efficient steering solutions. ​
• In 2024, Nexteer Automotive has introduced its Modular Pinion-Assist Electric Power Steering (mPEPS) system, expanding its modular EPS offerings to include Single-Pinion and Dual-Pinion systems. This scalable approach leverages existing EPS building blocks, providing cost and time efficiencies, shorter development cycles, and higher component reuse for OEMs. The mPEPS system supports various vehicle propulsion types, including electric and internal combustion engines.
• In 2023, Nidec Corporation has developed a new Electric Power Steering (EPS) Motor Power Pack, integrating the motor and ECU into a single unit. This innovation enhances steering responsiveness and vehicle safety while reducing system weight and space requirements. The compact design supports the growing demand for efficient, electrified vehicle systems, aligning with the automotive industry's shift toward electrification and advanced driver-assistance systems.

Key Market Players

• 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

Report Scope:

In this report, the China Automotive EPS Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•         China Automotive EPS Market, By Component Type:

o    Steering Rack/Column

o    Sensor

o    Steering Motor

o    Other

•        China Automotive EPS Market, By Vehicle Type:

o    Passenger Cars

o    Commercial Vehicles

•        China Automotive EPS Market, By Type:

o    Column Type

o    Pinion Type

o    Dual Pinion Type

•        China Automotive EPS Market, By Region:

o    Northeast

o    East

o    South Central

o    Southwest

o    North

o    Northwest

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the China Automotive EPS Market.

Available Customizations:

China Automotive EPS Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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