Passenger Cars Power Steering Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Passenger Cars Power Steering Market is projected to expand from USD 17.39 billion in 2025 to USD 27.33 billion by 2031, reflecting a compound annual growth rate of 7.83%. This sector is defined by the engineering and distribution of hydraulic or electric systems designed to minimize the physical effort needed to maneuver vehicles. Growth is primarily driven by rising global vehicle production rates and strict government mandates concerning fuel economy and safety, which compel manufacturers to adopt efficient steering technologies to reduce engine load, while rapid urbanization fuels the need for vehicles that are easier to navigate in congested areas.

However, market expansion faces significant hurdles due to supply chain volatility and the high costs of semiconductor components required for modern electric steering systems, creating production bottlenecks during shortages. The magnitude of demand for these components is illustrated by data from the China Association of Automobile Manufacturers, which reported domestic passenger car sales of 22.61 million units in 2024. Such substantial production figures underscore the immense pressure placed on supply chains to maintain the consistent delivery of steering assemblies amidst logistical constraints.

Market Drivers

The rapid electrification of the passenger vehicle fleet acts as a primary growth engine, fundamentally shifting the technological landscape from hydraulic to Electric Power Steering (EPS). Because electric vehicles lack the pulley-driven pumps used in internal combustion engines, EPS is an essential component of the EV powertrain architecture, further favored for its compatibility with energy-efficient designs that extend range. This transition is highlighted by the European Automobile Manufacturers’ Association (ACEA) in its March 2025 report, which noted that battery-electric cars captured a 13.6% market share of new registrations in the European Union in 2024, directly correlating to increased procurement of advanced electric steering assemblies.

Additionally, the rising global production and sales of passenger cars drive sustained demand for steering components across all vehicle segments as manufacturers boost output for post-pandemic recovery and emerging market needs. According to an ACEA report from September 2025, global car production increased by 3.5% to reach 37.7 million units in the first half of 2025, placing significant pressure on suppliers to deliver consistent volumes. The scale of this requirement is further evidenced by the Faist Group, which reported in 2025 that global new car registrations reached 74.6 million units in the preceding year, underscoring the massive annual need for steering systems.

Market Challenges

A primary impediment to market growth is the combination of supply chain instability and the escalating costs of semiconductor components, which are increasingly vital as the industry transitions to electric power steering (EPS) systems. Because these assemblies rely heavily on advanced microchips, any fluctuation in semiconductor availability causes immediate production bottlenecks that prevent manufacturers from completing units on schedule. This dependency not only delays vehicle assembly but also drives up manufacturing costs, thereby compressing profit margins and limiting the ability of suppliers to scale their operations efficiently.

The impact of these constraints is exacerbated by the substantial volume of global vehicle demand competing for scarce electronic components, placing immense strain on fragile logistics networks. For instance, the European Automobile Manufacturers’ Association (ACEA) reported that new car registrations in the European Union reached approximately 10.6 million units in 2024, highlighting the scale of output dependent on these supply chains. When essential chips are unavailable, the delivery of steering systems for millions of vehicles is disrupted, which directly stalls revenue realization and slows overall market expansion.

Market Trends

The commercialization of Steer-by-Wire (SbW) technology is reshaping the market by replacing mechanical linkages with electronic actuators and digital algorithms, allowing for infinitely customizable steering ratios and retractable columns essential for next-generation cockpit designs. Manufacturers are rapidly moving this technology from research concepts to volume production to differentiate their software-defined platforms. This shift is illustrated by Nexteer Automotive’s March 2025 report, which announced $6.0 billion in total bookings for the 2024 fiscal year, prominently featuring its first volume production contract for a Steer-by-Wire system with a major Chinese Original Equipment Manufacturer.

Simultaneously, the integration of steering systems with Advanced Driver Assistance Systems (ADAS) is transforming these units into intelligent, active safety nodes capable of executing complex automated maneuvers like lane centering and traffic jam assist. Modern steering architectures must now incorporate redundant electronic control units and fail-operational designs to ensure control during system faults, driving significant contract activity for high-level automation. For example, ZF Friedrichshafen AG announced in January 2025 that it had finalized a major supply agreement for advanced steering systems specifically engineered to enable Level 2+ automated driving features for a global vehicle manufacturer.

Key Players Profiled in the Passenger Cars Power Steering Market

• JTEKT Corporation
• Nexteer Automotive
• Robert Bosch GmbH
• ZF Friedrichshafen AG
• NSK Ltd.
• Mando Corporation
• Hyundai Mobis
• Thyssenkrupp Presta
• Hitachi Astemo Ltd.
• Sona Corporation

Report Scope

In this report, the Global Passenger Cars Power Steering Market has been segmented into the following categories:

Passenger Cars Power Steering Market, by Mechanism:

• Electronic power steering (EPS)
• Hydraulic power steering (HPS)
• Electro-Hydraulic Power Steering

Passenger Cars Power Steering Market, by Component:

• Hydraulic Pump
• Sensors
• Electric Motor
• other components

Passenger Cars Power Steering Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Passenger Cars Power Steering Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

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

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