South America Electric Power Steering - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The South America electric power steering market was valued at USD 0.92 billion in 2025 and is projected to grow from USD 0.98 billion in 2026 to USD 1.32 billion by 2031, at a CAGR of 6.14% during the forecast period (2026-2031). This report is segmented by Type (Column Type, Pinion Type, and Dual Pinion Type), Component Type (Steering Rack/Column, Sensor, Steering Motor, and Other Components), Vehicle Type (Passenger Cars and Commercial Vehicles), and Country. The Market Forecasts are Provided in Terms of Value in USD and Volume in Units.

South America Electric Power Steering Market Trends and Insights

Platform Electrification and Hybrid EV Proliferation

Electric-car sales in South America exceeded 350,000 units in 2025, up 75% from 2024. Brazil accounted for the majority of that increase, with plug-in hybrids making up a large share of regional registrations. Plug-in hybrid platforms require full electric power steering systems while keeping familiar vehicle architectures and conventional body layouts. This makes their adoption less dependent on entirely new battery-electric platform cycles, which can take longer to design and industrialize. The electrified light-duty fleet in South America and the Caribbean reached 837,014 vehicles in the first quarter of 2026 and is expected to exceed 1 million by the end of 2026 . The larger installed fleet supports replacement demand and provides the South American electric power steering market with original-equipment demand, aftermarket demand, and a broader set of vehicle owners familiar with electronically assisted steering.

Mandatory ADAS Integration

Brazil requires new vehicle model codes registered from January 2026 to meet driver-assistance performance requirements, including automatic emergency braking, and mandates full fleet coverage from January 2029 . Automatic emergency braking and lane-support functions depend on reliable steering torque and position information, particularly when corrective steering inputs are needed. A sensor-capable electric power steering assembly, therefore, becomes a required component for vehicles designed to meet these functions. A proposal in Brazil's Chamber of Deputies would include automatic emergency braking in the national traffic code, strengthening the policy basis for automakers' planning. Brazilian universities and research institutes are developing radar sensors for automatic braking, which may strengthen domestic capability before the 2029 deadline. South NCAP's 2025 protocol evaluates active-safety performance, supports voluntary adoption in countries without comparable mandates, and broadens the technical requirements that suppliers in the South American electric power steering market must meet.

Higher Unit Costs Than Conventional Hydraulics

The price difference between electric and hydraulic steering remains important in price-sensitive vehicle categories across the region. The constraint is strongest in commercial vehicles, where high steering loads can preserve the upfront cost advantage of hydraulic systems. Die-casting improvements, automated assembly, and integrated electronic control units are reducing EPS production costs, but savings are not evenly distributed among suppliers. Companies with in-house motor and control-unit development can absorb cost pressure more easily than smaller manufacturers without comparable vertical integration. Brazil's large passenger-vehicle base shows how higher volumes can support wider adoption, but Colombia, Argentina, and smaller markets have not reached a similar scale. In those markets and heavier vehicle applications, the South American electric power steering market faces fleet buyers who may prioritize purchase cost over the efficiency, packaging, and driving benefits of EPS.

Other drivers and restraints analyzed in the detailed report include:

• Carbon Emission and Fuel-Efficiency Mandates
• OEM Supply-Chain Localization and Plant Investment
• Semiconductor and Raw-Material Supply-Chain Volatility

Segment Analysis

Column EPS represented 63.37% of the South America electric power steering market in 2025 and is projected to expand at a 7.11% CAGR through 2031. It is the preferred format in the region's compact and subcompact passenger-car fleet, which defines much of the region's automotive volume. The system places the motor and assist mechanism directly on the steering column. This arrangement uses less space in smaller engine bays, reduces installation complexity, and suits vehicle programs with tight cost targets. It also provides a cost-performance balance that supports high-volume passenger-vehicle programs without requiring extensive chassis changes. The South American electric power steering industry continues to rely on this configuration as electrification reaches mass-market models and suppliers seek scalable local production.

Pinion and dual-pinion systems are gaining use in SUVs and newer electric-vehicle platforms that need higher assist torque, more direct steering response, and more precise handling. Their layout can also support later progress toward steer-by-wire systems by aligning with the functional redundancy used in advanced steering designs.

Complete Report Scope:

• By Type
  • Column Type
  • Pinion Type
  • Dual Pinion Type
• By Component Type
  • Steering Rack/Column
  • Sensor
  • Steering Motor
  • Other Components
• By Vehicle Type
  • Passenger Cars
  • Commercial Vehicles
• By Country
  • Brazil
  • Argentina
  • Chile
  • Colombia
  • Rest of South America

List of Companies Covered in this Report:

• Hubei Henglong Auto System Group
• Denso Corporation
• GKN PLC
• JTEKT Corporation
• Mitsubishi Electric Corporation
• Nexteer Automotive
• NSK Ltd
• Robert Bosch GmbH
• Thyssenkrupp Presta AG
• ZF Friedrichshafen AG

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support