Key Market Trends and Insights
- Saudi Arabia dominated the market in 2025 and is projected to grow at a CAGR of 5.1% over the 2025 to 2035 forecast period, driven by record vehicle sales exceeding 826,000 units in 2024 and ambitious automotive manufacturing initiatives under Vision 2030.
- By Component Type, the Sensors segment is projected to witness a CAGR of 5.3% over the 2025 to 2035 forecast period, driven by the integration of advanced torque and angle sensors required for ADAS-equipped vehicles and next-generation steer-by-wire technologies.
- By Vehicle Type, the Passenger Cars segment is expected to register 4.7% CAGR over the 2025 to 2035 forecast period due to rising middle-class purchasing power, increasing female driver participation in Saudi Arabia, and growing preference for vehicles with enhanced safety and comfort features across the region.
Market Size & Forecast
- Market Size in 2025: USD 1.24 billion
- Projected Market Size in 2035: USD 1.82 billion
- CAGR from 2026-2035: 4.5%
- Fastest-Growing Country Market: Saudi Arabia
The shift from hydraulic to electric power steering is being accelerated by stricter fuel economy regulations, the growing penetration of electric and hybrid vehicles, and the integration of ADAS features such as lane keeping assist and adaptive cruise control that require precise electronic steering control. South Africa, as the continent's largest vehicle manufacturer producing approximately 598,000 units in 2022 according to the National Association of Automobile Manufacturers of South Africa (Naamsa), serves as a significant market for EPS adoption. Key global Tier-1 suppliers including Robert Bosch, ZF Friedrichshafen, JTEKT, Nexteer Automotive, and NSK maintain distribution and technical support networks across the region, competing to supply both local assemblers and imported vehicle programmes.
Key Takeaways
Key Takeaway 1: Saudi Arabia's vehicle sales reached 826,580 units in 2024, with EV sales surging to approximately 24,092 units, signalling the growing role of EPS-equipped vehicles in the Kingdom's automotive landscape.Key Takeaway 2: Nexteer Automotive achieved a milestone of producing 100 million EPS systems globally in December 2023, underscoring the technology's maturation and cost competitiveness for emerging markets.
Key Takeaway 3: South Africa's Enviro Automotive launched the Dayun Yuehu S5 electric SUV in July 2024 featuring electronic power steering as standard, demonstrating EPS adoption in the African EV segment.
Table of Contents
Companies Mentioned
- Robert Bosch GmbH (Germany)
- ZF Friedrichshafen AG (Germany)
- Nexteer Automotive (USA)
- NSK Ltd (Japan)
- JTEKT (Japan)

