United States Electric Power Steering Market, By Type (C-EPS, P-EPS, R-EPS), By Component Type (Steering Column, Steering Wheel, Sensors, Electronic Control Unit, Electric Motor and Bearings), By Vehicle Type (Passenger Cars, Medium & Heavy Commercial Vehicles, Light Commercial Vehicles and Off-the-Road Vehicles), By Mechanism Type (Collapsible EPS, Rigid EPS), Regional, Competition, Forecast & Opportunities 2018-2028

Market Overview

United States Electric Power Steering Market has valued at USD 320 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.19%. The United States Electric Power Steering (EPS) market has witnessed remarkable growth and transformation in recent years, reflecting the ever-evolving landscape of the automotive industry. EPS technology has become a pivotal component in modern vehicles, gradually replacing conventional hydraulic power steering systems due to its numerous advantages. These advantages encompass fuel efficiency improvements, enhanced safety features, adaptability to electric and autonomous vehicle technologies, and the seamless integration with Advanced Driver Assistance Systems (ADAS). One of the noteworthy trends shaping this market is the integration of EPS with ADAS, which includes features like lane-keeping assist, adaptive cruise control, and collision avoidance systems. This integration not only enhances vehicle safety but also paves the way for semi-autonomous and autonomous driving capabilities. Moreover, the electrification of the automotive industry has further fueled the demand for EPS systems. As the shift towards electric and hybrid vehicles gains momentum, EPS technology is at the forefront, offering energy-efficient and lightweight solutions that contribute to vehicle efficiency and performance. Consumers, seeking enhanced vehicle dynamics, are driving the demand for responsive and precise steering systems. EPS technology is responding with variable steering assistance, multiple driving modes, and improved handling to cater to these preferences. Furthermore, as environmental concerns continue to grow, the trend toward eco-friendly and sustainable driving practices is fostering the adoption of EPS systems. With an increasing focus on energy efficiency, sustainability, and regulatory compliance, EPS technology is aligning seamlessly with the evolving demands of the United States automotive market.

Key Market Drivers

Fuel Efficiency and Environmental Concerns

One of the primary drivers of the United States Electric Power Steering (EPS) market is the growing emphasis on fuel efficiency and environmental sustainability in the automotive industry. As concerns about carbon emissions and fuel consumption continue to rise, manufacturers and consumers alike are seeking solutions to reduce the environmental impact of vehicles. EPS offers several advantages in this context: EPS systems are more energy-efficient compared to traditional hydraulic power steering systems. By eliminating the need for a hydraulic pump, EPS reduces energy loss, leading to improved fuel efficiency. This is especially significant in a market where stricter fuel economy standards are in place to combat emissions. Electric power steering systems are lighter and more compact than hydraulic systems, contributing to overall vehicle weight reduction. Lighter vehicles consume less fuel, further enhancing fuel efficiency. Some EPS systems are designed to harness energy through regenerative steering, where energy is recovered during turning and returned to the vehicle's electrical system. This regenerative capability has the potential to improve fuel efficiency further, especially in hybrid and electric vehicles. As the automotive industry undergoes a shift toward electric and hybrid vehicles, EPS systems are well-suited to work in harmony with these powertrains, contributing to the overall efficiency of electrified vehicles. The United States has implemented stricter emissions standards in recent years, and these regulations are expected to become even more stringent in the future. To meet these standards, automakers are increasingly adopting EPS to help reduce vehicle emissions. In a market where consumers are demanding more environmentally responsible vehicles, the fuel efficiency and eco-friendly attributes of EPS systems make them a critical driver of market growth.

Safety and Advanced Driver Assistance Systems (ADAS)

Safety is a paramount concern in the automotive industry, and the integration of Advanced Driver Assistance Systems (ADAS) has become a significant driver of the United States Electric Power Steering market. These systems, which include features like adaptive cruise control, lane-keeping assist, and automated emergency braking, rely on accurate steering input and feedback. EPS plays a crucial role in the successful implementation of these safety technologies: EPS systems offer precise and rapid steering adjustments, ensuring quick response to sudden safety-related events. This enhances vehicle stability and helps mitigate accidents. Electric power steering is well-suited for integration with ADAS technologies. The feedback and control provided by EPS facilitate functions like lane-keeping assist and adaptive cruise control, improving driver assistance and enhancing overall vehicle safety. As autonomous driving technology advances, EPS systems are instrumental in providing the necessary steering control and feedback. They allow for seamless transitions between autonomous and manual driving modes, further enhancing vehicle safety. The ease of steering with EPS can reduce driver fatigue, making it easier for drivers to maintain focus and control over extended periods, contributing to improved safety. EPS systems enable more accurate and responsive steering adjustments for lane-keeping systems and collision avoidance features, enhancing their effectiveness. The United States market is increasingly influenced by safety-conscious consumers and evolving regulations, making EPS a critical driver in the integration of advanced safety technologies.

Enhanced Vehicle Dynamics and Performance

Vehicle dynamics, handling, and performance are fundamental aspects that influence consumer choices. The United States Electric Power Steering market has been driven by the quest to enhance vehicle dynamics and driving experience: EPS systems allow for variable steering assistance, meaning that steering effort can be adjusted based on vehicle speed. This feature enhances driving comfort and stability, particularly at higher speeds. Many EPS systems offer multiple driving modes, such as sport and comfort settings, that adjust the steering response to cater to driver preferences. This flexibility allows consumers to customize their driving experience. Some EPS systems are designed to simulate the feel of traditional hydraulic power steering, providing drivers with a more natural and engaging steering experience, particularly in high-performance and sports vehicles. The precision and responsiveness of EPS systems contribute to better vehicle handling and cornering. This is a key consideration for performance-oriented consumers and sports car enthusiasts. EPS systems can integrate with dynamic stability control systems to enhance vehicle stability, especially in challenging road conditions. This feature is highly sought after in regions with variable weather patterns. In a market where consumers place a significant emphasis on driving experience and performance, EPS has emerged as a driving force by enhancing vehicle dynamics and steering precision.

Weight Reduction and Packaging Efficiency

Weight reduction and efficient packaging are vital considerations for automotive manufacturers aiming to meet strict fuel efficiency standards and enhance vehicle design. EPS systems offer several advantages that drive their adoption in the quest for lightweight, efficient, and space-saving solutions: EPS systems are inherently lighter than traditional hydraulic power steering systems. Reducing vehicle weight is a critical factor in improving fuel efficiency and handling. With reduced weight, the engine has less work to do to move the vehicle. This leads to improved overall engine efficiency and better fuel economy. EPS systems take up less space within the vehicle compared to hydraulic power steering systems, allowing for more efficient packaging and design flexibility. This is particularly important in compact and electric vehicles where space is at a premium. EPS systems are well-suited for use in hybrid and electric vehicles, where weight reduction and packaging efficiency are essential to maximize battery range and overall efficiency. The weight distribution of a vehicle is influenced by the steering system. Lighter EPS systems can contribute to better weight distribution, enhancing vehicle control and stability. The United States market is influenced by the demand for efficient, lightweight vehicles, and EPS systems are a key driver in achieving these goals.

Integration with Electric and Autonomous Vehicles

The rapid growth of electric vehicles (EVs) and autonomous vehicles (AVs) in the United States has significantly impacted the Electric Power Steering market. Several factors contribute to the growing adoption of EPS in the context of electrification and autonomous driving: Electric power steering systems are highly compatible with EVs, as they complement the electrical architecture of these vehicles. Their energy-efficient design aligns well with the energy-saving goals of EVs, contributing to increased range and efficiency. Autonomous vehicles require precise steering control, especially during transitions between autonomous and manual driving modes. EPS systems offer the accuracy and responsiveness needed for seamless integration with AV technology. As AV technology advances, EPS systems play a crucial role in enhancing driver-assist features such as automated lane-keeping and parking assistance. EPS systems are integral components of drive-by-wire systems that replace traditional mechanical linkages with electronic controls.

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Key Market Challenges

Technical Complexity and Maintenance Challenges

The integration of Electric Power Steering (EPS) systems into modern vehicles has introduced technical complexities that present challenges for both automakers and consumers. These challenges include EPS systems are electronic and involve various components, including sensors, controllers, and electric motors. This complexity can make diagnosing and repairing EPS issues more challenging than traditional hydraulic power steering systems. Maintenance and repairs of EPS systems may require specialized equipment and expertise, which can increase service costs. These complexities can lead to longer service times and higher maintenance expenses. EPS systems often rely on software for optimal performance. As with other electronic components in vehicles, software updates may be necessary, requiring a visit to the dealership or service center for consumers. Any issues with EPS components can impact vehicle steering, which is a critical safety aspect. Ensuring the reliability of EPS systems is paramount, as unexpected failures could lead to accidents and safety concerns. Vehicle owners may have limited knowledge of EPS systems and how they operate. This can lead to a lack of awareness about the importance of EPS maintenance, potentially resulting in neglected upkeep. Automakers and service providers must invest in training and education to address these challenges and ensure that EPS systems are maintained and repaired correctly. In addition, the development of user-friendly diagnostic tools and standardized procedures for EPS maintenance can help alleviate these technical complexities.

Cost Considerations and Price Sensitivity

Cost considerations are a significant challenge for the United States Electric Power Steering Market. While EPS systems offer numerous advantages, their upfront cost, maintenance expenses, and repair costs can be a barrier for both automakers and consumers: Integrating EPS systems into vehicles adds to the initial production cost. For automakers, this can result in increased manufacturing expenses, which can be passed on to consumers in the form of higher vehicle prices. As mentioned earlier, EPS systems can be more expensive to maintain and repair due to their technical complexity. These costs can be burdensome for vehicle owners, especially if repairs are not covered by warranties. Many consumers are price-sensitive and prioritize affordability when purchasing vehicles. The added cost of EPS systems can deter budget-conscious buyers, especially in a competitive automotive market. When EPS components require replacement, the cost of parts can be significant. Replacing components like electric motors or sensors can be expensive, particularly if consumers choose original equipment manufacturer (OEM) parts. Consumers expect reliability and durability from their vehicles, and they may not be willing to compromise on safety and performance, even if it means paying a premium for EPS systems. Automakers and EPS component manufacturers must work to balance cost considerations with the benefits of EPS technology. This may involve exploring cost-effective manufacturing methods, creating more affordable maintenance options, and offering transparent pricing structures.

Technical Standardization and Compatibility

Technical standardization and compatibility are critical challenges in the United States Electric Power Steering Market. EPS technology needs to be standardized to ensure that components from various manufacturers can work together seamlessly. These challenges include: Some automakers use proprietary EPS systems, making it difficult for third-party service providers and independent repair shops to work on these systems. This can limit consumer choices for maintenance and repair services. Compatibility issues may arise when trying to integrate EPS systems with other vehicle components, such as advanced driver assistance systems (ADAS) or autonomous driving technology. Ensuring compatibility is essential for seamless vehicle integration. Software plays a crucial role in EPS systems. Compatibility challenges can emerge when software updates are required, and different software versions are not easily compatible with one another. Standardized diagnostic tools and software are essential for effective maintenance and troubleshooting. The lack of standardization can lead to confusion and inefficiencies when diagnosing and repairing EPS issues. As vehicles become more connected and dependent on electronic systems, interoperability between EPS and other vehicle systems becomes increasingly important to ensure seamless functionality. Standardization and compatibility are essential for ensuring that EPS systems are not only effective but also easy to service and maintain. A lack of standardization can result in confusion and inefficiencies, increasing costs and reducing consumer choices.

Supply Chain Disruptions and Material Costs

Supply chain disruptions and material costs are challenges that have been magnified in recent years, impacting the Electric Power Steering Market. These challenges include: The automotive industry relies on complex global supply chains. Disruptions, such as those caused by the COVID-19 pandemic, can lead to delays in production and a shortage of critical components for EPS systems. The cost of materials, including metals and electronic components, can fluctuate due to factors like trade tariffs, supply and demand, and geopolitical events. These cost fluctuations can impact the overall cost of EPS systems. Some materials used in EPS systems, such as rare earth elements and specialized sensors, may have limited supply, which can drive up material costs and create potential shortages. The manufacturing process for EPS components can be complex, and bottlenecks or constraints in the production process can result in supply shortages. Supply chain disruptions and material cost fluctuations can lead to increased lead times for EPS component production and delivery, affecting the automotive manufacturing schedule.

Integration with Autonomous Driving Technology

The integration of Electric Power Steering (EPS) with autonomous driving technology presents a significant challenge in the United States Electric Power Steering Market. While EPS systems play a crucial role in enabling autonomous driving, they must meet the high standards of safety and reliability required for autonomous vehicles: Autonomous vehicles require redundant systems to ensure safety in the event of component failures. EPS systems must be designed with fail-safe mechanisms to guarantee that steering control can be maintained in case of a malfunction. Autonomous driving systems rely on precise steering input to navigate and make driving decisions. The accuracy and responsiveness of EPS systems are critical for the success of autonomous driving technology. Autonomous vehicles are equipped with various sensors, such as lidar, radar, and cameras. EPS systems must seamlessly integrate with these sensors to provide accurate steering input based on the vehicle's surroundings. Autonomous vehicles require constant connectivity and communication between various vehicle systems. EPS systems need to maintain this connectivity to ensure that the steering input aligns with the vehicle's automated driving decisions. The integration of EPS with autonomous technology is subject to rigorous safety regulations and standards. Complying with these regulations is crucial, as non-compliance can result in safety risks and regulatory challenges.

Key Market Trends

Integration with Advanced Driver Assistance Systems (ADAS)

The integration of Electric Power Steering (EPS) with Advanced Driver Assistance Systems (ADAS) is a prominent trend in the United States automotive market. ADAS encompasses a wide range of safety and driver-assist features, including adaptive cruise control, lane-keeping assist, automated emergency braking, and more. EPS plays a vital role in enabling the accurate and responsive steering control required for these advanced systems. EPS systems work in conjunction with lane-keeping assist systems to help drivers maintain their vehicles within their lane. EPS provides steering input to gently guide the vehicle back into the lane if it starts to drift, enhancing vehicle stability and safety. Adaptive cruise control systems rely on EPS for steering control adjustments. EPS ensures that the vehicle smoothly follows the speed of the vehicle ahead, maintaining a safe following distance. This enhances the overall effectiveness and safety of adaptive cruise control. EPS technology contributes to the effectiveness of collision avoidance systems. When these systems detect an impending collision, EPS can swiftly and accurately adjust the steering angle to help the driver maneuver and avoid the collision. Many modern vehicles come equipped with parking assistance systems that use EPS for precise steering control during parallel parking and perpendicular parking maneuvers. EPS technology simplifies parking and enhances driver convenience. As autonomous driving technology advances, EPS systems play a pivotal role in providing accurate steering input, allowing for seamless transitions between autonomous and manual driving modes. EPS systems are key components in ensuring safe and precise steering during autonomous operation. The integration of EPS with ADAS not only enhances vehicle safety but also contributes to the development of semi-autonomous and autonomous driving capabilities. As the demand for advanced safety features and autonomous technology continues to grow, this trend is expected to shape the future of the EPS market.

Electrification of the Automotive Industry

The electrification of the automotive industry is a transformative trend that is deeply influencing the United States Electric Power Steering Market. Electrification includes a shift towards electric vehicles (EVs), hybrid vehicles, and the integration of electric powertrains with traditional internal combustion engines. EPS technology aligns seamlessly with electrified vehicles and is contributing to their efficiency and performance. EPS systems are well-suited for hybrid and electric vehicles. Their energy-efficient design complements the goals of electrified powertrains, contributing to increased range and efficiency in hybrid and electric vehicles. Some EPS systems incorporate regenerative steering technology, which recovers energy during turning and feeds it back into the vehicle's electrical system. This regenerative capability contributes to the energy efficiency of electric vehicles. Weight reduction is critical in electric and hybrid vehicles, as it directly impacts energy consumption and range. EPS systems, being lighter than traditional hydraulic power steering systems, contribute to weight savings in these vehicles. EPS technology can integrate seamlessly with electric vehicle features such as torque vectoring, which provides precise control of power distribution to individual wheels. This enhances vehicle performance and stability, especially in all-wheel-drive electric vehicles. As automakers develop electric platforms for their vehicles, EPS technology is easily adaptable and compatible with these platforms, allowing for a streamlined integration process. The trend towards vehicle electrification is expected to accelerate in the United States, driven by stricter emissions regulations and consumer demand for cleaner and more efficient transportation. As electric and hybrid vehicles become more prevalent, EPS technology will continue to play a significant role in supporting their performance and efficiency.

Enhanced Vehicle Dynamics and Steering Control

Improved vehicle dynamics and steering control are integral aspects of the Electric Power Steering Market in the United States. Consumers increasingly prioritize responsive and precise steering, as well as enhanced handling and driving experience. Automakers and EPS manufacturers are responding to this demand with advanced EPS technology: EPS systems offer variable steering assistance, allowing steering effort to be adjusted based on vehicle speed. This feature enhances driving comfort and stability, particularly at higher speeds. Many modern vehicles equipped with EPS systems provide multiple driving modes, such as sport and comfort settings. These modes adjust the steering response to cater to driver preferences, allowing for a customized driving experience. Some EPS systems are engineered to simulate the feel of traditional hydraulic power steering, providing drivers with a more natural and engaging steering experience, particularly in high-performance and sports vehicles. The precision and responsiveness of EPS systems contribute to better vehicle handling and cornering. This is a key consideration for performance-oriented consumers and sports car enthusiasts. EPS systems can integrate with dynamic stability control systems to enhance vehicle stability, especially in challenging road conditions. This feature is highly sought after in regions with variable weather patterns. The demand for enhanced vehicle dynamics and steering control is driven by consumers who seek an engaging and enjoyable driving experience. As automakers continue to refine EPS technology and develop advanced steering systems, this trend will be instrumental in shaping the market.

Eco-Friendly and Sustainable Driving

The growing emphasis on eco-friendly and sustainable driving practices is a trend that significantly impacts the United States Electric Power Steering Market. Consumers are increasingly concerned about the environmental impact of their vehicles and are seeking technologies that align with sustainability goals: EPS technology is inherently energy-efficient, as it eliminates the need for a hydraulic pump. The reduction in energy consumption contributes to improved fuel efficiency and lower greenhouse gas emissions. Some EPS systems incorporate sustainable materials and manufacturing processes to reduce their environmental footprint. This includes the use of bio-based compounds and recycled materials. Manufacturers often include eco-friendly driving modes in vehicles equipped with EPS systems. These modes adjust the steering and other vehicle parameters to optimize fuel efficiency and reduce emissions. To meet environmental regulations and emissions standards, automakers are increasingly adopting EPS technology. Compliance with these standards requires technologies that enhance fuel efficiency and reduce emissions. As consumer awareness of environmental issues grows, eco-friendly features, including EPS technology, are becoming significant selling points for vehicles. Many consumers are willing to invest in environmentally responsible vehicles. The trend towards eco-friendly and sustainable driving is expected to intensify in the United States as emissions standards become stricter, and consumers increasingly prioritize environmentally responsible transportation. EPS technology, with its energy efficiency and potential for sustainability, is well-positioned to contribute to this trend.

Segmental Insights

Vehicle Type Insights

The Passenger Car market dominate the market. Compact and subcompact cars are known for their fuel efficiency and affordability. In these segments, EPS is highly favored due to its lightweight design and energy efficiency. Drivers of these vehicles appreciate the reduced fuel consumption and nimble steering that EPS provides. Midsize and full-size sedans, often used for daily commuting and long-distance driving, benefit from the comfort and stability offered by EPS. The variable steering assistance of EPS systems ensures a smooth and effortless driving experience. Luxury cars prioritize a balance between performance and comfort. EPS technology is commonly integrated into luxury vehicles, allowing manufacturers to provide a responsive, sporty driving experience while maintaining a luxurious feel. Crossover vehicles, which combine the features of both passenger cars and SUVs, benefit from the versatility of EPS systems. The ability to adjust steering effort based on speed suits the varied needs of crossover owners who may use their vehicles for daily commuting and occasional off-road adventures. SUVs and off-road vehicles demand robust steering systems to handle diverse terrains. EPS technology enhances off-road performance and flexibility, making it suitable for these vehicles.

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Regional Insights

The western region dominates the market. California is known for its strict environmental regulations and preference for eco-friendly technologies. In this region, EPS technology is embraced for its contribution to reduced emissions and improved fuel efficiency. The prevalence of electric and hybrid vehicles in California further drives the demand for EPS. The Northeast has a mix of urban and suburban environments, making compact and midsize vehicles popular. EPS technology is favored for its lightweight design and fuel efficiency, catering to the needs of daily commuters. Luxury cars with EPS systems are also well-received in this region. The Midwest region has a strong automotive manufacturing presence. EPS technology is widely integrated into vehicles produced in this area, supporting the trend toward lighter and more fuel-efficient cars and trucks. Full-size trucks with EPS systems are favored for their fuel-saving benefits. The Southern U.S. is characterized by diverse terrains and a preference for SUVs and trucks. EPS systems are common in these vehicles to enhance off-road performance and accommodate towing and hauling needs.

Recent Developments

• ZF Friedrichshafen AG purchased WABCO in a USD 7 billion agreement in May 2020. Now that WABCO is part of ZF's Commercial Vehicle Control Systems Division, ZF and WABCO will work together to create a global integrated system for commercial vehicle technology. For the development of solutions like Evasive Maneuver Assist for commercial vehicle collision mitigation, WABCO and ZF previously cooperated.
• Toyota Motor Corporation sold its Yutaka Seimitsu Kogyo Ltd. stock to JTEKT in January 2020. Yutaka produces vehicle parts and distributes gears for various machinery. The agreement aims to increase the core driveline activities of Toyota and JTEKT's competitiveness. All future Yutaka operations involving drive components will be moved from Toyota to JTEKT.

Key Market Players

• Nexteer
• Robert Bosch
• Hyundai Mobis
• Delphi
• Mitsubishi Electric
• Showa Corporation
• ZF Friedrichshafen AG
•  JTEKT Corporation
•  Federal Mogul

In this report, the United States Electric Power Steering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Electric Power Steering Market, By Type:   

o   C-EPS

o   P-EPS

o   R-EPS

• United States Electric Power Steering Market, By Component Type:  

o   Steering Column

o   Steering Wheel

o   Sensors

o   Electronic Control Unit

o   Electric Motor and Bearings

• United States Electric Power Steering Market, By Vehicle Type:  

o   Passenger Cars

o   Medium & Heavy Commercial Vehicles

o   Light Commercial Vehicles

o   Off-the-Road Vehicles

• United States Electric Power Steering Market, By Mechanism Type:  

o   Collapsible EPS

o   Rigid EPS

• United States Electric Power Steering Market, By Region:   

o   South

o   West

o   Mid-West

o   Northeast

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United States Electric Power Steering Market.

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