The United States electric power steering market size reached USD 5.51 billion in 2023. The market is expected to grow at a CAGR of 3.9% between 2024 and 2032, reaching almost USD 7.78 billion by 2032. Electric power steering (EPS) has revolutionized the automotive industry, providing enhanced fuel efficiency, better vehicle handling, and an overall improved driving experience. This blog post delves into the detailed analysis of the EPS market in the United States, exploring market size and share, segmentation, regional analysis, market dynamics, and the competitive landscape.
Market Size and Share (2024-2032)
The electric power steering market in the United States is poised for steady growth over the next decade. As of 2023, the market size stands at USD 5.51 billion. Projections indicate that the market will grow at a CAGR of 3.9%, reaching nearly USD 7.78 billion by 2032. This growth is driven by several factors, including the increasing adoption of advanced automotive technologies, rising consumer demand for fuel-efficient vehicles, and stringent government regulations aimed at reducing vehicular emissions.
Market Segmentation
By Product Type
Rack Assist Type (REPS)
Rack assist type EPS systems provide assistance directly to the steering rack. This type is known for its precise control and is commonly used in various vehicle models. The market share of REPS is significant, with continuous growth driven by advancements in automotive technology and increased consumer preference for vehicles with superior handling capabilities.
Column Assist Type (CEPS)
Column assist type EPS systems provide assistance directly to the steering column. This type is widely adopted due to its simplicity and cost-effectiveness. CEPS holds a considerable market share and is expected to witness steady growth owing to its application in small to mid-sized vehicles.
Pinion Assist Type (PEPS)
Pinion assist type EPS systems provide assistance to the steering pinion. This type is gaining popularity due to its ability to offer a balanced combination of performance and cost. PEPS is expected to capture a growing market share as more manufacturers integrate this technology into their vehicle models.
By Component
Steering Rack/Column
The steering rack or column is a crucial component of EPS systems. The demand for advanced steering racks and columns is rising, driven by the need for improved vehicle performance and safety. Technological advancements in this area are expected to fuel market growth.
Sensors
Sensors play a vital role in EPS systems, providing essential data for the system to function effectively. The continuous development of sensor technology is contributing to the growth of this market segment. Sensors ensure precise control and responsiveness of the EPS system, enhancing the overall driving experience.
Electric Motor
The electric motor is a key component that provides the necessary power for the EPS system. Innovations in electric motor technology are driving market growth, offering improved efficiency and performance. The increasing adoption of electric and hybrid vehicles is further boosting the demand for advanced electric motors in EPS systems.
Others
Other components, such as control units and wiring harnesses, also contribute to the functionality of EPS systems. The demand for these components is expected to grow in line with the overall expansion of the EPS market.
By Vehicle Type
Passenger Vehicles
Passenger vehicles constitute the largest segment in the EPS market. The growing consumer preference for vehicles with enhanced safety features and better fuel efficiency is driving the demand for EPS systems in this segment. The adoption rate of EPS in passenger vehicles is expected to remain high, supporting market growth.
Commercial Vehicles
The commercial vehicle segment is also witnessing increased adoption of EPS systems. The need for better handling, improved fuel efficiency, and reduced maintenance costs are key factors driving the growth of EPS in commercial vehicles. This segment is expected to contribute significantly to the overall market expansion.
By Sales Channel
OEMs (Original Equipment Manufacturers)
OEMs are the primary sales channel for EPS systems. Major automotive manufacturers are increasingly integrating EPS into their vehicle models to meet consumer demand and regulatory requirements. The growth of the OEM segment is expected to be robust, driven by continuous technological advancements and the launch of new vehicle models.
Aftermarket
The aftermarket segment also plays a crucial role in the EPS market. Consumers are increasingly opting for aftermarket EPS systems to upgrade their vehicles with advanced steering technologies. The growth of the aftermarket segment is supported by the availability of a wide range of products and competitive pricing.
Regional Analysis
The regional distribution of the EPS market in the United States shows significant growth potential across various states. Key regions driving market growth include California, Texas, and Michigan, among others. These regions have a strong automotive industry presence and are witnessing increased adoption of advanced steering technologies. The regional market share and growth projections indicate a positive outlook for the EPS market across the United States.
Market Dynamics
Drivers
Several factors are fueling the growth of the EPS market. The increasing adoption of advanced automotive technologies, stringent government regulations aimed at reducing emissions, and rising consumer demand for fuel-efficient vehicles are key drivers. Additionally, technological advancements in EPS systems are enhancing their performance and reliability, further boosting market growth.
Restraints
Despite the positive outlook, the EPS market faces certain challenges. High initial costs associated with EPS systems and the complexity of integration into existing vehicle architectures are potential restraints. Additionally, the need for continuous technological upgrades poses a challenge for manufacturers.
Opportunities
Emerging trends and opportunities are expected to drive future growth in the EPS market. The development of autonomous and electric vehicles presents significant opportunities for EPS manufacturers. Additionally, advancements in sensor and motor technologies are expected to open new avenues for market expansion.
Competitive Landscape
The competitive landscape of the EPS market is characterized by the presence of several key players, including major automotive manufacturers and specialized EPS suppliers. Companies are focusing on strategic partnerships, mergers, and acquisitions to strengthen their market position. Continuous investment in research and development is a common strategy among leading players to stay competitive. A SWOT analysis of major competitors highlights their strengths, weaknesses, opportunities, and threats in the market.