China Electric Power Steering Market

The China Electric Power Steering Market Size is anticipated to grow from USD 15.69 billion in 2025 and is expected to reach around USD 52.94 billion by 2035. According to Decision Advisors, market insights point to electrification as the core force redefining China’s electric power steering sector, holding an estimated 55-60% share globally. JTEKT Corporation holds a leading position with nearly USD 11-12 Billion in annual revenue and a 21-25% China market share, impacting growth momentum and strategic orientation across the China market

Market Snapshot

• China Electric Power Steering Market Size (2025): USD 15.69 billion
• Projected China Electric Power Steering Market Size (2035): 52.94 billion
• China Electric Power Steering Market Compound Annual Growth Rate (CAGR): 12.93%
• Base Year: 2025
• Historical Period: 2021–2024
• Forecast Period: 2026–2035

Market Overview/Introduction

The China electric power steering system operates with a digital steering system that substitutes hydraulic power with energy-efficient electrical steering mechanisms to support the country's transition to smart low-emission transportation systems. The system operates in three main areas which include standard passenger cars and electric vehicle platforms and new autonomous vehicle systems that require both precise control and efficient energy use. The rising use of advanced driver-assistance systems and connected vehicle technologies in commercial vehicles shows how the automotive industry now views operational efficiency and lower maintenance expenses as essential business goals. The electric power steering market progresses through steer-by-wire systems and advanced sensor technology and specialized engineering for electric vehicle power systems. The software-defined steering systems create future development opportunities through their capability to adjust steering performance in real-time while allowing drivers to steer the vehicle themselves. The company establishes stronger supply resilience through its efforts to manufacture vital components which include alternatives to rare-earth materials. China plans to shift to smart vehicle systems through the development of lightweight energy-efficient vehicle designs and advanced safety features which enable broader system growth.

• In China’s GB 17675-2025 regulation is unlocking steer-by-wire adoption, attracting investments exceeding USD 5 Billion in advanced automotive electronics, thereby accelerating innovation and expanding the China electric power steering market through next-generation, software-defined vehicle architectures.

• In China’s dual-credit NEV policy is driving over USD 20 Billion in electrification investments, accelerating EPS adoption due to its fuel efficiency benefits, thereby strengthening the China electric power steering market through regulatory-led demand and automotive technology upgrades.

Notable Insights: -

1. By type, the column assist EPS (C-EPS) segment held a dominant position with 52.2% in terms of market share in 2025.
2. By component type, steering motor segment is the dominating accounting for over 38.1% of the China market share in 2025.
3. The compound annual growth rate of the China Electric Power Steering Market is 12.93%.
4. The market is likely to achieve a valuation of USD 52.94 billion by 2035.

What is role of technology in grooming the market?

The China Electric Power Steering market experiences a complete market transformation through technological advancements which transfer value creation from mechanical engineering to software-based control systems. The implementation of advanced sensors together with high-performance ECUs and real-time data processing capabilities brings about improvements in steering accuracy and safety measures and energy-saving performance. This transition supports China’s nationwide initiative to develop intelligent electric vehicles because EPS functions as the basic technology for ADAS and autonomous driving capabilities. The newest innovations in steer-by-wire technology and lightweight materials create simpler systems that enhance vehicle operational efficiency.

Market Drivers

The China electric power steering market is propelled by the main factors which include electrification, regulatory compliance, and changes in consumer value preferences. The new energy vehicle market is growing so quickly that it has become standard practice to use EPS systems as fundamental vehicle components while new fuel economy regulations and emission control standards force manufacturers to stop using hydraulic systems. The automotive manufacturing industry in China uses its competitive manufacturing scale to increase component production through continuous high-volume production processes. The combination of ADAS with safety technologies has transformed EPS from a basic mechanical system into an essential component for vehicle intelligence systems. The increasing income levels in society lead to changes in consumer preferences which now demand better driving comfort and precise vehicle handling and lower energy consumption. The combined effects of these factors drive the automotive industry in China to adopt EPS systems because they serve both regulatory compliance requirements and performance improvement needs in the country's changing automotive market.

Restrain

The China electric power steering market encounters fundamental limitations which result from its dual requirements of maintaining low costs while managing advanced technical systems. The entry-level vehicle market segment experiences severe profit reductions because of high sensor and electronic control unit integration expenses. The engineers and users face difficulties due to existing calibration methods and their restricted ability to measure steering feedback in new steer-by-wire systems. The aftermarket ecosystem also remains constrained high replacement and servicing costs prevent most people from using these services.

Strategies to Implement for Growth of the Market

The China electric power steering market needs to develop cost-effective innovations while establishing integrated ecosystems to achieve sustainable growth. The production costs of manufacturing companies will decrease, and their operational efficiency will increase when they adopt modular EPS systems and source their components locally. The companies that work together with electric vehicle and self-driving car developers will speed up the development of steer-by-wire technology. The development of new software functions together with remote update capabilities will create distinct product features which will extend product value throughout its entire duration.

Market Segmentation

The China electric power steering market share is classified into type, component, and vehicle type

• The column assist EPS (C-EPS) segment dominated the market in 2024, and is projected to grow at a substantial CAGR of approximately 6.2% during the forecast period.

Based on the type, the electric power steering market is divided into column assist EPS (C-EPS), pinion assist EPS (P-EPS), rack assist EPS (R-EPS), dual pinion EPS. Among these, the column assist EPS (C-EPS) segment dominated the market in 2024, and is projected to grow at a substantial CAGR of approximately 6.2% during the forecast period. It is due to the system achieves cost efficiency while it meets requirements of mass-produced passenger vehicles.

• The steering motor segment accounted for the largest share in 2024, and is anticipated to grow at a significant CAGR of approximately 11.3% during the forecast period.

Based on the component type, the electric power steering market is divided into steering column, steering motor, sensors, electronic control unit (ECU), others. Among these, the steering motor segment accounted for the largest share in 2024, and is anticipated to grow at a significant CAGR of approximately 11.3% during the forecast period.  It is dominating because the rising EV production and higher demand for efficient steering solutions, torque generation is the pivot of EV design and system performance.

• The passenger Cars segment dominated the market in 2024, and is projected to grow at a substantial CAGR during the forecast period.

Based on the vehicle type, the electric power steering market is divided into passenger cars, commercial vehicles. Among these, the passenger Cars segment dominated the market in 2024, and is projected to grow at a substantial CAGR during the forecast period. The high vehicle production volumes and fast EV adoption together with increasing customer demand for comfort and safety features, which create EPS systems as the main solution for manufacturers.

Recent Development

• In February 2025, In China, ZF Friedrichshafen began series production of steer-by-wire for NIO ET9, attracting investments exceeding USD 3 billion and accelerating the China electric power steering market through next-generation, software-driven steering systems.

• In December 2025, China Automotive Systems Inc. advanced China’s electric power steering market, valued at nearly USD 8.8 billion, as Hyoseong’s Wuhan facility, backed by USD 79 million investment, commenced 115-platform motor production, strengthening domestic EPS capacity and commercialization

Competitive Analysis

The report offers the appropriate analysis of the key organisations/companies involved within the China electric power steering market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

Top Key Companies in China Electric Power Steering Market

1. Denso Corporation
2. JTEKT Corporation
3. Nexteer Automotive
4. Robert Bosch GmbH
5. ZF Friedrichshafen AG
6. NSK Ltd.
7. Hyundai Mobis
8. Hitachi Astemo
9. Mitsubishi Electric Corporation
10. Thyssenkrupp Presta AG

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the China, regional, and country levels from 2020 to 2035. Decision Advisors has segmented the China electric power steering market based on the below-mentioned segments

China Electric Power Steering Market, By Type

• Column Assist EPS (C-EPS)
• Pinion Assist EPS (P-EPS)
• Rack Assist EPS (R-EPS)
• Dual Pinion EPS

China Electric Power Steering Market, By ComponentType

• Steering Column
• Steering Motor
• Sensors
• Electronic Control Unit (ECU)
• Others

China Electric Power Steering Market, By Vehicle Type

• Passenger Cars
• Commercial Vehicles

Frequently Asked Questions (FAQ)

Q. How are domestic suppliers reshaping competitive dynamics in the EPS ecosystem?

A. The local manufacturers are closing technology gaps through their practice of vertical integration and their achievement of cost efficiencies. Chinese companies use their OEM partnerships to create competitive advantages while expanding their smart steering technology investments.

Q. What role does policy and regulation play in EPS adoption in China?

A. The government requirements for emissions cuts together with the energy efficiency standards create an unintentional boost for EPS technology adoption. Automakers are now required to implement EPS technology because regulatory bodies have established intelligent driving system standards together with vehicle safety requirements which make EPS technology essential for their compliance needs.

Q. What is driving structural growth in China’s Electric Power Steering (EPS) market?

A. China's EPS market experiences growth because vehicle electrification increases and fuel efficiency regulations become stricter and ADAS technology adoption advances. The automotive industry adopts EPS technology as a replacement for hydraulic systems because it enables them to decrease power use and achieve precise control and develop vehicles that operate through software-defined systems.

Q. What investment trends are shaping the future of China’s EPS market?

A. The companies are directing major capital investments toward local manufacturing and research development of steer-by-wire systems and intelligent manufacturing plants. Automotive manufacturing facilities in essential market areas are experiencing capacity growth from both local and international companies because they anticipate ongoing demand which electric vehicles will create and because China leads the world in automotive technology advancements.