Europe Automotive EPS (2026-2031) - Growth Driven by Rising Electric Vehicle Adoption and Demand for Fuel-Efficient Steering Systems
Dublin, Aug. 21, 2026 (GLOBE NEWSWIRE) -- The "Europe Automotive EPS - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" report has been added to ResearchAndMarkets.com's offering.
European Electric Power Steering Market to Reach USD 10.74 Billion by 2031
The European electric power steering market was valued at USD 7.76 billion in 2025 and is projected to increase from USD 8.16 billion in 2026 to USD 10.74 billion by 2031. The market is expected to register a compound annual growth rate of 5.65% during the 2026-2031 forecast period, supported by vehicle electrification, stricter safety requirements and the expanding use of advanced driver-assistance systems.
Advanced Driver-Assistance Systems Accelerate EPS Adoption
Rising adoption of advanced driver-assistance systems is a key growth driver for the European electric power steering market. Technologies such as lane-keeping assist, pedestrian avoidance and traffic-jam assist depend on precise electronic steering corrections and continuous feedback. These capabilities are encouraging automakers to replace conventional hydraulic steering with electronically controlled systems across a broader range of vehicle platforms.
European vehicle safety regulations are reinforcing this transition. Regulation (EU) 2019/2144 requires specified safety technologies for new vehicle types, supporting steering architectures that can integrate with automated driving functions. Euro NCAP's 2026 assessment protocol also gives greater attention to safe driving, crash avoidance, crash protection and automated intervention. As a result, manufacturers are extending ADAS-compatible electric power steering beyond premium vehicles and into higher-volume market segments.
Vehicle Electrification Creates Long-Term Market Opportunities
The continued electrification of passenger cars and commercial vehicles is strengthening demand for automotive electric power steering in Europe. Battery electric vehicle registrations increased 35% year over year during the first half of 2026 and represented 22% of new vehicle registrations across the region. Electric power steering aligns with electrified vehicle architectures by reducing dependence on engine-driven hydraulic systems and enabling greater integration with electronic controls.
Electric trucks and buses also present an important long-term opportunity. These vehicles require higher steering torque than passenger cars, and hydraulic steering remains common in many heavy-duty applications. As higher-capacity electric steering technologies mature, commercial vehicles are expected to make a stronger contribution to European electric power steering market growth during the later years of the forecast period.
System Costs Remain a Market Restraint
Higher component costs continue to limit adoption in some price-sensitive vehicles. At comparable torque levels, electric power steering can carry a higher bill of materials than hydraulic or electrohydraulic alternatives. The cost difference is especially important for value-oriented vehicle platforms in Southern and Eastern Europe and for commercial vehicle programs where manufacturers prioritize lower upfront expenditure.
Redundant sensors, advanced electronic control units and dual-channel actuators add further costs to ADAS-grade steering systems. Although large-scale production is helping suppliers reduce unit expenses, fail-operational and safety-rated steering architectures are likely to retain a premium. Semiconductor availability, sensor supply and exposure to rare-earth materials used in permanent-magnet motors may also affect production costs and supply-chain resilience.
Column-Type Systems Maintain Market Leadership
Column-type electric power steering accounted for 60.15% of the European market in 2025. Its leadership reflects lower cost, straightforward integration and compatibility with front-wheel-drive vehicle packaging. These advantages make column-type systems particularly suitable for high-volume passenger cars.
Pinion-type electric power steering serves mid-torque applications where column packaging is less practical, including larger passenger vehicles and light commercial vehicles. Dual-pinion systems are forecast to record the fastest growth, with a CAGR of 9.48% from 2026 to 2031. Their ability to provide primary and redundant steering torque supports advanced automation and ASIL-D-rated safety applications. UNECE R79 requirements are also increasing the importance of fail-operational steering for vehicles equipped with higher levels of automation.
European investment in steer-by-wire and redundant steering technologies further supports this segment. ZF's series-production steer-by-wire system for Mercedes-Benz demonstrates the direction of premium vehicle development, while Thyssenkrupp Presta is advancing electromechanical steering actuators and column assemblies for next-generation platforms.
Sensors and Software Emerge as High-Growth Components
Steering rack and column components represented 40.33% of the market in 2025, reflecting the significant cost contribution of the mechanical actuator assembly. Steering motors are also evolving as brushless permanent-magnet designs replace earlier brushed technologies, delivering lower noise and greater torque density while increasing exposure to rare-earth material supply.
Sensors are projected to grow at a CAGR of 8.12% through 2031. Torque, steering-angle and road-surface sensing technologies increasingly generate multi-axis data for both steering control and driver-assistance functions. Solutions such as Nexteer's MotionIQ platform use sensor data for road-surface detection and hands-off detection, increasing the value of integrated sensor and software capabilities.
Demand for ISO 26262-certified sensor-fusion software is expected to rise as automakers prioritize functional safety and automated driving. Redundancy requirements may also increase the number of sensors installed in each electric power steering unit, supporting component demand even as individual sensor prices decline through higher production volumes.
Overall, the European electric power steering market is positioned for steady expansion as vehicle manufacturers adopt electrified powertrains, software-defined steering functions and advanced safety systems. Regulatory support, ADAS integration and innovation in redundant steering architectures are expected to remain central to market development through 2031.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Advanced Driver-Assistance Systems
4.2.2 Increasing Electrification of Passenger and Commercial Vehicles
4.2.3 Stricter European Vehicle Safety and Emissions Requirements
4.2.4 Growing Demand for Software-Defined Steering Functions
4.2.5 Integration of Steering Systems With Vehicle Motion-Control Architectures
4.2.6 Increasing Deployment of Steer-by-Wire-Ready Architectures
4.3 Market Restraints
4.3.1 High System Cost Compared With Hydraulic and Electrohydraulic Alternatives
4.3.2 Semiconductor, Sensor, and Rare-Earth Component Supply Exposure
4.3.3 Functional-Safety and Cybersecurity Validation Complexity
4.3.4 Limited Repairability and High Replacement Costs After Electronic or Motor Failures
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers/Consumers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitute Products
4.7.5 Intensity of Competitive Rivalry
5 Market Size and Growth Forecasts (Value (USD) and Volume (Units))
5.1 By Type
5.1.1 Column Type
5.1.2 Pinion Type
5.1.3 Dual Pinion Type
5.2 By Component Type
5.2.1 Steering Rack/Column
5.2.2 Sensor
5.2.3 Steering Motor
5.2.4 Other Component Types
5.3 By Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.4 By Propulsion Type
5.4.1 Internal Combustion Engine Vehicles
5.4.2 Hybrid Vehicles
5.4.3 Battery Electric Vehicles
5.5 By Country
5.5.1 Germany
5.5.2 United Kingdom
5.5.3 France
5.5.4 Italy
5.5.5 Russia
5.5.6 Rest of Europe
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, SWOT Analysis, and Recent Developments)
6.4.1 JTEKT Corporation
6.4.2 Robert Bosch GmbH
6.4.3 Nexteer Automotive
6.4.4 ZF Friedrichshafen AG
6.4.5 Denso Corporation
6.4.6 NSK Ltd.
6.4.7 Hyundai Mobis Co. Ltd.
6.4.8 Thyssenkrupp Presta AG
6.4.9 Continental AG
6.4.10 Knorr-Bremse AG
6.4.11 HL Mando Corporation
6.4.12 Mitsubishi Electric Corporation
6.4.13 Astemo Ltd.
7 Market Opportunities and Future Outlook
7.1 White-space and Unmet-need Assessment
For more information about this report visit https://www.researchandmarkets.com/r/d7zri4
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