Automotive Electro-Hydraulic Power Steering Market Size to Uplift USD 30.78 Bn by 2034 | Experts Analysis

According to Towards Automotive analysts, the global automotive electro-hydraulic power steering market size to upgrade from USD 20.45 billion in 2025 to gain USD 30.78 billion by 2034, growing at a CAGR of 4.65% from 2024 to 2034.

/EIN News/ -- Ottawa, April 16, 2025 (GLOBE NEWSWIRE) -- The global automotive electro-hydraulic power steering market size was valued at USD 19.54 billion in 2024 and is predicted to hit around USD 30.78 billion by 2034, a study published by Towards Automotive, a sister firm of Precedence Research.

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Market Overview:

The global automotive electro-hydraulic power steering market is witnessing significant growth due to the rising need for advanced driver-assistance systems, enhanced vehicle efficiency, and lower emissions. Electro-hydraulic power steering (EHPS) systems use an electric motor to drive a hydraulic pump, delivering better fuel efficiency, decreasing engine load, and reducing maintenance requirements. The movement toward electrifying vehicles and the growing emphasis on safety and driver comfort are further propelling the uptake of EHPS systems. EHPS provides improved precision, adaptability, and simplified integration with contemporary automotive electronics, establishing it as a vital part of both electric and internal combustion engine vehicles.

The increasing consumer demand for smoother and more responsive steering experiences continues to influence product innovation. The automotive sector’s drive for lightweight solutions and the necessity of adhering to strict environmental regulations also facilitate the implementation of EHPS across various types of vehicles. With ongoing advancements in automotive electronics and control mechanisms, EHPS technology is set for continuous development and broader market acceptance.

Key Trends in the Automotive Electro-Hydraulic Power Steering Market:

• Combining ADAS with EHPS Systems: The growing integration of ADAS functionalities in vehicles promotes the combination of EHPS systems with sensors and control units to support features such as lane-changing assistance and automated parking.
• Vehicle Electrification: The current move toward electric vehicles is increasing the demand for EHPS systems because of their suitability with electric drivetrains and their ability to function better with hydraulic power assistance.
• Implementation of Steer-by-Wire Technology: Automakers are progressively investigating steer-by-wire systems that eliminate mechanical linkages in Favor of electronic controls, allowing for greater design flexibility, reduced weight, and the introduction of advanced autonomous driving features.
  

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Limitations & Challenges in the Automotive Electro-Hydraulic Power Steering Market:

• Elevated Initial Development Expenses: The high initial costs of developing sophisticated EHPS systems involve considerable R&D investment and integration expenses, which may deter adoption, particularly among budget-conscious manufacturers and in developing markets with financial limitations.
• Issues with Complexity and Reliability: The complexity and reliability issues related to EHPS systems arise from their electronic design, making them susceptible to software errors and electronic malfunctions, which raises reliability concerns, especially in challenging driving conditions or during prolonged use.
• Reduced Steering Feedback: EHPS may provide less steering feedback than electro-power steering systems, which affects the driving experience and necessitates advanced calibration to mimic the natural feel of the road.
  

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Exploring the Future Market Growth Opportunities

The most significant opportunity for the automotive electro-hydraulic power steering market is found in the swift adoption of autonomous and electric vehicles, which heavily depend on electronically controlled systems. As the automotive field pivots toward electrification and advanced driving technologies, EHPS emerges as a fundamental element because of its compatibility with electronic designs, energy efficiency, and flexibility in accommodating advanced driver-assistance systems. Additionally, increasing regulatory backing for safer, more fuel-efficient vehicles and mounting consumer interest in enhanced driving comfort further boost the attractiveness of EHPS. These combined trends create vast opportunities for innovation, market growth, and strategic partnerships within the EHPS landscape.

Regional Analysis:

What to Expect from Asia Pacific Countries till 2030?

Asia Pacific dominated the automotive electro-hydraulic power steering market with the largest share in 2024 and is expected to sustain its position in the coming years. This is mainly due to the region's thriving automotive manufacturing sector and the significant presence of key original equipment manufacturers. Major vehicle production and technological innovation centers in countries like China, Japan, and South Korea are driving the demand for advanced steering technologies. The rapid urbanization, rising disposable incomes, and an expanding middle-class population are accelerating vehicle ownership, especially in developing nations. Furthermore, government programs promoting electric vehicles and stricter fuel efficiency standards are prompting the adoption of EHPS systems, which enhance energy efficiency and support hybrid and electric powertrains. The region's strong supply chain, growing automotive infrastructure, and an increasing emphasis on vehicle electrification and automation support regional market growth.

Top Asia Pacific Countries for Automotive Electro-Hydraulic Power Steering Production

• China: Being the largest automotive producer and consumer globally, China plays a key role in the automotive electro-hydraulic power steering market. The country's emphasis on boosting electric vehicle production and favorable government policies significantly contribute to the demand for advanced steering systems.
• Japan: Known for its technological advancements and high levels of vehicle production, Japan commands a considerable share of the market. The presence of leading automotive brands and ongoing developments in automotive technologies strengthen its position.
• India: India's rapidly expanding automotive industry and growing acceptance of electric vehicles solidify its position in the market. Government efforts aimed at promoting fuel efficiency and reducing emissions further boost the demand for EHPS systems.
  

Europe to Witness Significant Growth

Europe is expected to witness significant growth during the forecast period. The growth of the market in Europe can be attributed to its proactive shift toward electrification and sustainability in the automotive industry. The increasing need for fuel-efficient and lightweight steering systems aligns with the strict emission reduction targets established by the European Union.

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Major Factors for the Market’s Expansion in Europe:

• The European Union's regulations for lowering vehicle emissions are encouraging automakers to implement EHPS systems, which boost fuel efficiency and reduce emissions.
• The growing interest in electric vehicles across Europe creates a need for EHPS systems, as they are better suited for electric drivetrains and enhance overall vehicle efficiency.
• The progression of autonomous and semi-autonomous vehicles necessitates accurate and dependable steering systems, leading to greater integration of EHPS to support advanced driver-assistance systems.
• The rising adoption of electric and hybrid vehicles and advancements in autonomous driving technologies are boosting the demand for EHPS systems in both passenger and commercial vehicles.

Segment Outlook

Vehicle Type Insights

The passenger cars segment dominated the market with the largest share in 2024. This is mainly due to the increased global production of personal vehicles and higher consumer demand for fuel-efficient, lightweight, and responsive steering systems. Technological progress and the incorporation of EHPS in both luxury and compact cars further propelled segment growth. Additionally, government mandates promoting safer and more efficient vehicle handling have made EHPS a standard feature in many contemporary passenger vehicles.

The commercial vehicles segment is projected to grow at a significant rate during the forecast period due to the growing implementation of advanced steering technologies in heavy-duty trucks and light commercial fleets. Fleet operators are looking for enhanced fuel efficiency and driver comfort, both of which are improved by electro-power steering. Moreover, the growth in e-commerce and logistics led to an increase in commercial vehicle deployment, hastening the transition toward integrating modern EHPS.

Component Type Insights

The sensors segment dominated the automotive electro-hydraulic power steering market in 2024 due to their vital function in EHPS systems. These sensors gauge the torque applied by the driver while tracking wheel positioning, allowing for real-time modifications to ensure optimal control. Their rising utilization in contemporary safety features and ADAS functionalities has rendered them essential in EHPS. Continuous improvements in sensor precision and their integration with electronic control units further enhance the prominence of this segment.

The steering motors segment is projected to expand to a significant CAGR during the projection period. The growth of the segment can be attributed to the increasing adoption of electric vehicles and the demand for energy-efficient steering systems. The lightweight and compact nature of EHPS makes them suitable for integration into smaller vehicle models. Advancements in brushless DC motor technology are further propelling the adoption of EHPS in various types of vehicles.

Sales Channel Insights

The OEMs segment dominated the automotive electro-hydraulic power steering market in 2024 owing to their early-stage incorporation of EHPS systems into new vehicle designs. Automakers typically prefer to obtain EHPS components directly from system manufacturers to guarantee compatibility, performance consistency, and adherence to evolving regulations. Additionally, the growing implementation of EHPS in standard vehicle configurations has reinforced the dominance of OEMs in market distribution. Their collaborations with tier-1 suppliers facilitate streamlined production and supply of cutting-edge steering technologies.

The aftermarket segment is likely to witness the fastest growth during the forecast period, as vehicle owners look to modernize or replace traditional steering systems with contemporary EHPS units. Heightened awareness of the advantages of EHPS, such as improved fuel efficiency, lower maintenance, and enhanced maneuverability, is propelling the adoption. Furthermore, as more EHPS-equipped vehicles age, the need for component replacements like sensors and motors increases, driving segmental growth.

Recent Breakthroughs in Global Automotive Electro-Hydraulic Power Steering Market:

• In April 2023, Nexteer Automotive introduced the Modular Rack-Assist Electric Power Steering (mREPS) system, enhancing the company’s cost-efficient, modular EPS offerings. mREPS is designed to adapt effectively to meet the varied requirements of OEMs for advanced steering systems in heavier vehicles, including EVs and light commercial vehicles.
• In January 2025, Rane Group and ZF announced a major collaboration to unveil advanced electric power steering systems in India via their joint venture, ZF Rane Automotive India. This partnership aims to launch rack drive electric power steering systems in the Indian market, responding to the rising demand for innovative automotive technologies.

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Segments Covered in the Report

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Component Type

• Steering Motors
• Sensors
• Others (Pumps, Hoses, etc.)
  

By Sales Channel

• Original Equipment Manufacturer (OEM)
• Aftermarket

By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

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