EPS Steering Rack Assembly Market

EPS Steering Rack Assembly Market Forecast Outlook 2026 to 2036

The EPS steering rack assembly market is expected to reach USD 12.4 billion in 2026 and USD 18.7 billion by 2036, growing at a compound annual growth rate (CAGR) of 4.2%.

Key Takeaways from EPS Steering Rack Assembly Market

• EPS Steering Rack Assembly Market Value (2026): USD 12.4 billion
• EPS Steering Rack Assembly Market Forecast Value (2036): USD 18.7 billion
• EPS Steering Rack Assembly Market Forecast CAGR 2026 to 2036: 4.2%
• Leading Segment in EPS Steering Rack Assembly Market: 12V Voltage Architecture (69%)
• Key Growth Region in EPS Steering Rack Assembly Market: Asia Pacific
• Key Players in EPS Steering Rack Assembly Market: ZF Friedrichshafen AG, JTEKT Corporation, Nexteer Automotive, Robert Bosch GmbH, NSK Ltd., Mando Corporation, Hitachi Astemo Ltd., Schaeffler AG, Denso Corporation, thyssenkrupp AG

Growth quality in this market will be determined by application concentration and the dependence on specific end-use sectors, particularly in automotive manufacturing. As the automotive industry remains the primary driver, shifts in consumer demand for electric and autonomous vehicles will directly impact production volumes and innovation cycles.

High dependence on a few key applications may create market vulnerabilities, especially in regions with fluctuating vehicle production rates or changing regulatory landscapes. Maintaining volume stability will be essential to manage production costs and optimize profitability. Firms must navigate these dependencies by diversifying product offerings or expanding into emerging markets where demand for advanced steering systems is rising, balancing the need for specialization with broader market reach.

EPS Steering Rack Assembly Market

Category

Segmental Analysis

How is the 12V Architecture Dominating the EPS Steering Rack Assembly Market?

The 12V architecture leads the EPS steering rack assembly market with 69% of the market share in 2026. This dominance is driven by its mature supply chain and compatibility with existing lead-acid and Li-ion 12V auxiliary networks in ICE and entry-level EV models. Nexteer Automotive’s 12V Rack-Assist EPS (REPS) systems are used in 75% of North American full-size trucks, demonstrating the architecture's ability to manage significant loads. While 48V systems are gaining traction for Level 3 autonomous vehicles, the 12V system remains the benchmark for high-volume passenger cars due to its efficiency and established technology.

What is Driving the Popularity of Single Pinion EPS in the EPS Steering Rack Assembly Market?

Single Pinion EPS (SP-EPS) holds 57% of the market share in 2026, making it the preferred rack type for small to mid-sized passenger cars. The SP-EPS system is ideal for vehicles where packaging space and cost-efficiency are crucial. Nexteer’s Modular Pinion-Assist (mPEPS) system allows a 20% reduction in development time for vehicle platforms. JTEKT Corporation, Bosch, and ZF TRW dominate the market, with Bosch showcasing next-gen steering control units that use AI-driven "Vehicle Motion Management" for optimizing SP-EPS feedback. The Asia-Pacific region, particularly China and India, accounts for over 40% of SP-EPS demand, driven by the production of compact SUVs and sedans.

EPS Steering Rack Assembly Market — Drivers, Restraints & Trends

Analysis of the EPS Steering Rack Assembly Market by Key Country

The report covers an in-depth analysis of 40+ countries; top-performing countries are highlighted below.

What Drives Growth in the USA EPS Steering Rack Assembly Market?

The USA EPS steering rack assembly market is growing at 4.2% due to several factors. The NHTSA’s 2026 Safety Mandates favor vehicles equipped with active safety features that rely on EPS for automated lane centering. Additionally, the Inflation Reduction Act (IRA) continues to drive domestic EV production, with EPS being nearly standard in EVs to maximize battery range (as it consumes up to 90% less energy than hydraulic pumps). U.S.-based suppliers, such as Nexteer Automotive, are launching "High-Output" EPS systems in 2026 specifically designed for heavy electric pickups like the Ford F-150 Lightning and RAM 1500 REV, which require higher rack-force capabilities than standard passenger vehicles.

Why is the China EPS Steering Rack Assembly Market Projected to Expand at a 5.6% Rate?

The China EPS steering rack assembly market is projected to expand at 5.6%. This growth is driven by China’s position as the largest EV market in the world. The MIIT's 2025-2026 Automotive Industry Growth Plan prioritizes Intelligent Steering as a key technology in China’s Smart Vehicle Roadmap. With the mass adoption of Rack-Assist EPS (R-EPS) in mid-to-large SUVs, which are the most popular vehicle segment in China, domestic giants like BYD and Great Wall Motors are vertically integrating EPS production to reduce costs. This has made advanced steering technology accessible even in budget-friendly New Energy Vehicles (NEVs) for both domestic and export markets.

How Does the 6.8% Growth Reflect the India EPS Steering Rack Assembly Market Expansion?

India’s EPS steering rack assembly market is growing at 6.8%, the highest in this group. The expansion is driven by the premiumization of India’s passenger vehicle market, with annual sales surpassing 4 million. The Production Linked Incentive (PLI) Scheme has classified EPS motors and ECUs as Advanced Automotive Technology (AAT), providing financial rewards for localizing production. The introduction of stricter Bharat NCAP safety ratings in 2026 is prompting Indian OEMs like Tata and Mahindra to adopt EPS across their SUV portfolios to maintain competitive safety rankings. The increasing adoption of AMT and DCT gearboxes further fuels this growth in India.

What Supports the Growth for the Germany EPS Steering Rack Assembly Market?

The Germany EPS steering rack assembly market is growing at 3.6%, primarily due to the Euro 7 regulations set to be implemented in late 2026. These regulations emphasize vehicle energy efficiency, with EPS playing a critical role. German manufacturers like Bosch and ZF are leading the development of Steer-by-Wire (SbW) systems that replace the mechanical steering column with a digital connection, requiring precise and redundant EPS rack assemblies. This technology ensures fail-safe operation and remains in high demand in the global premium hybrid market, keeping German steering components highly sought after.

How Does Japan Achieve Growth in the EPS Steering Rack Assembly Market?

Japan’s EPS steering rack assembly market is growing at 3.1%. This growth is shaped by the METI Green Transformation (GX) 2040 Vision, which incentivizes the use of lightweight composite materials in hydraulic master cylinders to reduce vehicle weight. Suppliers like JTEKT and NSK focus on Miniaturized EPS for Japan’s massive hybrid and K-car segments. The shift to Dual-Pinion EPS (DPEPS) in hybrid crossovers is improving steering feel, which is critical for Japan’s export markets. Additionally, Japan is pioneering autonomous urban shuttles, which require redundant-architecture EPS racks that operate even if the primary circuit fails, leading to high-value R&D for the domestic market.

Why Does South Korea Exhibit Growth in EPS Steering Rack Assemblies?

South Korea’s EPS steering rack assembly market is growing at 4.0%. This growth is supported by the K-Mobility Strategy, with Hyundai Mobis playing a central role in developing Integrated Chassis Modules. South Korea is a leader in Rear-Wheel Steering (RWS) systems, which use a secondary EPS rack on the rear axle for improved maneuverability. The focus on Cyber-Secure Steering ECUs is crucial as steering systems become vulnerable to hacking in the era of connected and autonomous vehicles. The government’s emphasis on digital security and chassis integration ensures that South Korean steering systems remain competitive for global EV manufacturers.

How is the Mexico EPS Steering Rack Assembly Market Maintaining a 4.7% Rate?

The Mexico EPS steering rack assembly market is growing at 4.7%, driven by the USMCA’s 75% Regional Value Content (RVC) requirement. To qualify for tariff-free trade in the North American market, global steering manufacturers have moved entire EPS assembly lines to Mexican states like Querétaro and Guanajuato. Additionally, Mexico has become a hub for refurbished EPS for the North American aftermarket, leveraging its skilled labor force to remanufacture complex steering electronics. This combination of high-tech OEM manufacturing and a growing circular-economy aftermarket makes Mexico an indispensable part of the North American steering supply chain.

How Are Participants Competing in the EPS Steering Rack Market?

The EPS steering rack market is transitioning from mechanical assist to software-defined motion-by-wire systems, driven by hybrid and autonomous vehicle trends. As seen in the 2024-2025 period, ZF, Nexteer, and JTEKT are pivoting towards high-output EPS systems, with a focus on hybrid-specific applications and regional localization to meet the demands of Asian OEMs. The introduction of Steer-by-Wire systems, with ZF supplying Mercedes-Benz in 2026, marks the beginning of the "By-Wire" standard, enabling radically new cockpit designs and autonomous vehicle integration. As the market progresses, software-defined steering will transform physical components into virtual actuators, with predictive maintenance and cloud diagnostics becoming the cornerstone of vehicle operation. By 2027, companies that fail to adopt this software-driven approach risk being marginalized, while Master Integrators will secure high-margin positions by controlling data and safety loops in the evolving autonomous era.

Recent Industry Developments

• Patent (Mar 2023): A vehicle electric steering device focusing on an improved electric power steering assembly with bearing support and protection against shaft axial movement was filed (KR20240138239A), showing ongoing IP innovation in EPS rack and steering device technology.???? Patent - Electric steering device for vehicle (KR20240138239A): https://patents.google.com/patent/KR20240138239A/en?utm_source=chatgpt.com
• Product/Contract Development (May 2024): Nexteer Automotive secured a contract to supply rack-assist EPS systems to a leading European OEM for new electric vehicle models - a verified commercial deployment of steering rack assembly technology.???? Company announcement detail (press reference): reported launch and contract award (see industry summary) https://www.technavio.com/report/automotive-rack-and-pinion-steering-system-market-industry-analysis (scroll to radar summary for Nexteer EPS)(Technavio)
• Production Milestone (Dec 2023): Nexteer Automotive announced a global production milestone of 100 million electric power steering systems - highlighting massive deployment of EPS rack and motor assemblies in modern vehicles, underpinning steering rack assembly demand and scale.???? Nexteer Press Release - 100 million EPS systems milestone: https://www.nexteer.com/release/nexteer-achieves-global-production-milestone-of-100-million-electric-power-steering-systems-enabling-fuel-efficiency-advanced-safety-performance/ (nexteer.com)

Key Players of the EPS Steering Rack Assembly Market

• ZF Friedrichshafen AG
• JTEKT Corporation
• Nexteer Automotive
• Robert Bosch GmbH
• NSK Ltd.
• Mando Corporation
• Hitachi Astemo Ltd.
• Schaeffler AG
• Denso Corporation
• thyssenkrupp AG

Bibliographies

• International Organization for Standardization. (2023). ISO 26262: Road vehicles - Functional safety of electrical and electronic systems. ISO.
• United Nations Economic Commission for Europe (UNECE). (2024). UN Regulation No. 79 - Steering equipment and steering control systems. UNECE Transport Division.
• National Highway Traffic Safety Administration (NHTSA). (2023). Steering control performance and electronic power steering systems in passenger vehicles. U.S. Department of Transportation.
• Institute of Electrical and Electronics Engineers (IEEE). (2024). Motor control and actuator integration in electric power steering systems for autonomous vehicles. IEEE Xplore Digital Library.
• European Commission Joint Research Centre. (2024). Vehicle dynamics, steering response, and electronic control integration. JRC Technical Report.