Active Power Steering Market Report 2026

Active Power Steering Market Overview

• Active Power Steering market size has reached to $11.14 billion in 2025 • Expected to grow to $20.39 billion in 2030 at a compound annual growth rate (CAGR) of 12.8% • Growth Driver: The Increasing Demand For Electric Vehicles Is Fueling The Market Growth Due To Enhance Steering Integration And Efficiency • Market Trend: Nexteer Automotive Unveils High-Output Electric Power Steering System To Enhance Handling And Fuel Efficiency • North America was the largest region in 2025.

What Is Covered Under Active Power Steering Market?

Active power steering refers to an advanced vehicle steering system that dynamically adjusts the steering effort based on driving conditions such as speed, load, and road surface. It enhances driver control and comfort by using sensors and electronic controls to optimize steering response in real time. The main types of active power steering are electric power steering systems, hydraulic power steering systems, and electro-hydraulic power steering systems. An electric power steering (EPS) system refers to a vehicle steering system that uses an electric motor instead of a traditional hydraulic pump to assist the driver in turning the steering wheel. These systems are applicable to both passenger cars and commercial vehicles and are distributed through original equipment manufacturers (OEMs) and the aftermarket.

What Is The Active Power Steering Market Growth Forecast?

The active power steering market size is expected to see rapid growth in the next few years. It will grow to $20.39 billion in 2030 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to autonomous driving development, steer-by-wire adoption, electric vehicle production growth, software-driven vehicle architectures, advanced sensor integration. Major trends in the forecast period include increasing adoption of electric power steering, integration with adas systems, demand for enhanced driving comfort, growth in autonomous vehicle platforms, software-defined steering.

Global Active Power Steering Market Segmentation

1) By Type: Electric Power Steering System, Hydraulic Power Steering System, Electro-Hydraulic Power Steering System 2) By Application: Passenger Car, Commercial Vehicle 3) By Distribution Channel: Original Equipment Manufacturer, Aftermarket Subsegments: 1) By Electric Power Steering System: Column Type Electric Power Steering System, Pinion Type Electric Power Steering System, Rack Type Electric Power Steering System 2) By Hydraulic Power Steering System: Integral Hydraulic Power Steering, Linkage Hydraulic Power Steering 3) By Electro-Hydraulic Power Steering System: Belt-Driven Electro-Hydraulic Power Steering System, Electrically Assisted Hydraulic Steering

What Is The Driver Of The Active Power Steering Market?

The increasing demand for electric vehicles is expected to propel the growth of the active power steering market going forward. Electric vehicles (EVs) refer to vehicles that are powered entirely or partially by electricity, using electric motors and rechargeable battery packs instead of traditional internal combustion engines. Electric vehicles are rising due to advancements in battery technology, which have significantly improved driving range and reduced charging time. Active power steering enhances electric vehicles by optimizing steering response and energy efficiency, thereby improving vehicle handling, extending battery range, reducing driver fatigue, and enabling seamless integration with advanced driver assistance systems (ADAS) for a safer and more comfortable driving experience. For instance, according to the International Energy Agency, a France-based intergovernmental organization, global electric car sales rose from 14 million in 2023 to 17 million in 2024, reflecting strong year-on-year growth. Therefore, the increasing demand for electric vehicles is driving the growth of the active power steering industry.

What Is The Driver Of The Active Power Steering Market?

The increasing demand for electric vehicles is expected to propel the growth of the active power steering market going forward. Electric vehicles (EVs) refer to vehicles that are powered entirely or partially by electricity, using electric motors and rechargeable battery packs instead of traditional internal combustion engines. Electric vehicles are rising due to advancements in battery technology, which have significantly improved driving range and reduced charging time. Active power steering enhances electric vehicles by optimizing steering response and energy efficiency, thereby improving vehicle handling, extending battery range, reducing driver fatigue, and enabling seamless integration with advanced driver assistance systems (ADAS) for a safer and more comfortable driving experience. For instance, according to the International Energy Agency, a France-based intergovernmental organization, global electric car sales rose from 14 million in 2023 to 17 million in 2024, reflecting strong year-on-year growth. Therefore, the increasing demand for electric vehicles is driving the growth of the active power steering industry.

Global Active Power Steering Market Trends and Insights

Major companies operating in the active power steering market are focusing on developing innovative products, such as electric and hydraulic power steering systems, to enhance vehicle handling, improve fuel efficiency, and meet the growing demand for advanced driver-assistance technologies. Electric and hydraulic power steering systems refer to technologies used to assist drivers in steering vehicles with less effort. For instance, in April 2025, Nexteer Automotive, a US-based automotive industry company, introduced high-output column-assist electric power steering (HO CEPS), designed to deliver enhanced steering support for larger and heavier vehicles while improving energy efficiency and vehicle handling. This new system is uniquely engineered to deliver higher torque output, making it especially suitable for larger and heavier vehicles such as trucks and SUVs. By integrating advanced control algorithms and robust electric motors, HO CEPS enhances steering precision, reduces driver effort, and improves overall vehicle handling. It supports fuel efficiency and electric vehicle compatibility by reducing parasitic power loss compared to traditional hydraulic systems.

What Are Latest Mergers And Acquisitions In The Active Power Steering Market?

In March 2024, ZF Friedrichshafen AG, a Germany-based company that provides auto components, acquired a majority stake in Rane Steering Systems Private Limited for an undisclosed sum. With this acquisition, ZF aims to expand its passenger car and commercial vehicle business in the Indian market, leveraging enhanced cooperation with Rane Group to offer newer technologies, expedite product introductions, and localize operations in line with ZF’s Refresh India strategy. Rane Steering Systems Private Limited is an India-based company that manufactures active power steering systems, including both manual and electric power steering (EPS) columns.

Regional Outlook

North America was the largest region in the active power steering market in 2025. The regions covered in this market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Active Power Steering Market?

The active power steering market consists of sales of rack and pinion gear sets, steering actuators and electric motors, steering angle sensors, and steering control modules. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Active Power Steering Market Report 2026?

The active power steering market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the active power steering industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.