Active Power Steering Market Size & Share, By Type (Electric Power Steering System, Hydraulic Power Steering System), Application (Passenger Car, Commercial Vehicle) - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Active Power Steering Market size is set to increase from USD 11.83 billion in 2024 to USD 40.87 billion by 2034, with a projected CAGR exceeding 13.2% from 2025 to 2034. The industry revenue for 2025 is anticipated to hit USD 13.27 billion.

• Base Year Value (2024): USD 11.83 billion
• CAGR (2025-2034): 13.2%
• Forecast Year Value (2034): USD 40.87 billion
• Historical Data Period: 2021-2034
• Largest Region: Asia Pacific
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities

The Active Power Steering market is witnessing significant growth driven by several key factors. One major driver is the increasing demand for enhanced driving comfort and vehicle stability. Modern consumers are looking for vehicles that provide superior handling and ease of maneuverability, which Active Power Steering systems are well-equipped to deliver. These systems can adjust the steering response based on the vehicle's speed and driving conditions, offering seamless control that appeals to a wide range of consumers.

Another crucial driver is the rising trend towards electric and hybrid vehicles. As the automotive industry shifts towards more sustainable technology, Active Power Steering systems are becoming increasingly relevant due to their compatibility with electric powertrains. These systems can be integrated with advanced electronic and software technologies, resulting in improved fuel efficiency and reduced emissions, thus attracting environmentally conscious consumers.

Moreover, the growing focus on vehicle safety is creating further opportunities for the Active Power Steering market. Advanced Driver Assistance Systems (ADAS) are gaining traction, and Active Power Steering plays a vital role in enhancing safety features such as lane keeping assistance and automatic emergency steering. By improving vehicle control during critical situations, these features contribute to the overall safety of the vehicle, making it a priority for manufacturers and consumers alike.

The increasing adoption of autonomous vehicles also presents substantial opportunities for the Active Power Steering market. As self-driving technology develops, precise steering control becomes crucial for the successful operation of these vehicles. Active Power Steering systems are capable of supporting the sophisticated algorithms needed for automated driving, making them an integral component of the future of mobility.

Report Scope

Report Coverage	Details
Segments Covered	Type, Application
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Ognibene Power SpA, Robert Bosch, Knorr-Bremse Commercial Vehicle Systems, AB Volvo, ZF Friedrichshafen AG, NSK., Nexteer Automotive, MAN, JTEKT, thyssenkrupp AG

Industry Restraints:

Despite its growth potential, the Active Power Steering market faces several

Report Scope

Report Coverage	Details
Segments Covered	Type, Application
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Ognibene Power SpA, Robert Bosch, Knorr-Bremse Commercial Vehicle Systems, AB Volvo, ZF Friedrichshafen AG, NSK., Nexteer Automotive, MAN, JTEKT, thyssenkrupp AG

Industry Restraints: that could impede its expansion. One significant challenge is the high cost associated with the implementation of these systems. The integration of advanced technologies and the need for precise engineering can lead to increased production costs, which may be passed on to consumers. This could limit market growth, particularly in price-sensitive segments.

Additionally, the complexity of Active Power Steering systems poses a reliability risk, which could deter manufacturers from investing heavily in this technology. As these systems are more advanced than traditional steering solutions, any malfunction could lead to severe safety issues, potentially harming the brand reputation of automotive manufacturers. This concern may lead some companies to hesitate in adopting Active Power Steering technology.

Furthermore, regulatory challenges can also act as a restraint. Different regions have varying safety and performance standards, and compliance with these regulations can be time-consuming and costly. Manufacturers may face hurdles in navigating the approval processes for new technologies, which can slow down innovation and market entry.

Lastly, the rapid pace of technological advancement in the automotive sector means that companies must stay ahead of trends and consumer expectations. The Active Power Steering market could be affected by shifts toward alternative steering technologies, such as steer-by-wire systems. If manufacturers fail to adapt quickly to these changes, they risk losing market share to competitors who are better able to innovate.

Regional Forecast:

North America

The North American market for Active Power Steering (APS) is poised to maintain a significant position due to the high penetration of advanced automotive technologies in the United States and Canada. The U.S. leads in terms of market size, driven by the presence of major automotive manufacturers and an increasing consumer preference for vehicles equipped with enhanced steering comfort and safety features. The growing emphasis on fuel efficiency and vehicle performance is also fuelling demand for APS systems, making it a crucial focus area for automotive innovation. Canada, while smaller in market size compared to the U.S., is also expected to see steady growth as manufacturers adopt APS technologies to meet rising consumer expectations and regulatory standards.

Asia Pacific

The Asia Pacific region is anticipated to be the fastest-growing market for Active Power Steering, driven primarily by countries like China, Japan, and South Korea. China stands out due to its enormous automotive market and rapid urbanization, which accelerate the demand for advanced steering systems as new car sales increase. Japanese automakers, recognized for their technological leadership, continue to innovate in APS technology, contributing significantly to market advancements. South Korea, with its strong automotive manufacturing base, is also expected to showcase robust growth as local and international brands invest in integrating APS for competitive differentiation. Overall, the region is characterized by a strong push toward electric and hybrid vehicles, which further propels the market for Active Power Steering systems.

Europe

In Europe, the Active Power Steering market is primarily led by countries such as Germany, the UK, and France, which are renowned for their automotive industry heritage and innovation. Germany is the largest market in Europe due to its concentration of automotive giants like Volkswagen, BMW, and Daimler, all of whom are at the forefront of implementing advanced steering technologies to enhance vehicle dynamics. The UK and France are also witnessing rising demand, driven by increasing consumer expectations for safety features and energy efficiency in vehicles. The European Union's stringent regulations regarding emissions and fuel economy are further encouraging the transition to APS technologies, resulting in a favorable environment for market growth across the region.

Segmentation Analysis:

In terms of segmentation, the global Active Power Steering market is analyzed on the basis of Type, Application.

Active Power Steering Market Analysis

Type Segmentation

The active power steering market is primarily divided into two types: electric power steering (EPS) and hydraulic power steering (HPS). Among these, electric power steering is gaining significant traction due to its enhanced fuel efficiency and reduced weight compared to hydraulic systems. EPS offers advantages such as variable assist, which adjusts based on speed and driving conditions, leading to improved driver comfort and safety. As the automotive industry shifts towards electrification, EPS is expected to dominate the market in both size and growth potential. In contrast, hydraulic power steering, though traditionally popular due to its reliability and strong performance, is witnessing a decline in growth as manufacturers increasingly opt for electric systems to align with sustainability goals.

Application Segmentation

In terms of applications, the active power steering market encompasses passenger vehicles and commercial vehicles. The passenger vehicle segment represents the largest share of the market, driven by increasing consumer demand for advanced driving assistance systems and the growing prevalence of electric vehicles, which often feature EPS technology. Additionally, as safety regulations become more stringent and automotive technologies continue to evolve, the integration of active power steering in passenger vehicles is expected to propel significant market growth. Conversely, the commercial vehicle segment, while smaller, shows considerable growth potential due to the rising demand for enhanced maneuverability and improved vehicle handling in commercial applications, including delivery and logistics. Technologies that support autonomous driving capabilities in commercial fleets are likely to accelerate the adoption of active power steering systems in this segment.

Regional Insights

Regionally, the active power steering market is segmented into North America, Europe, Asia Pacific, and the rest of the world. The Asia Pacific region is anticipated to witness the fastest growth, fueled by the booming automotive industry in countries like China, Japan, and India. The rapid urbanization and increasing disposable income in these regions contribute to higher vehicle production and sales, driving demand for advanced steering technologies. Furthermore, Europe remains a strong market due to its longstanding automotive legacy and stringent safety regulations requiring advanced driver assistance systems, including active power steering. North America, while mature, is experiencing steady growth driven by innovation and a shift towards electric vehicles, compelling manufacturers to integrate EPS systems in their new models.

Market Trends and Challenges

Key trends in the active power steering market include the development of advanced steering technologies, such as steer-by-wire systems, which offer enhanced connectivity and responsiveness. The increasing focus on vehicle electrification is pushing manufacturers to invest in research and development of next-generation electric power steering solutions. However, challenges such as high development costs and the need for robust infrastructure to support these technologies could hinder growth in certain areas. Despite these challenges, the overall outlook for the active power steering market remains optimistic, with substantial opportunities driven by the ongoing transformation of the automotive industry towards electrification and automation.

Competitive Landscape:

The active power steering market is characterized by rapid technological advancements and increasing demand for enhanced vehicle performance and safety features. Key players are focusing on innovation to develop electric power steering systems that provide improved fuel efficiency and driving comfort. The competitive landscape is shaped by mergers and acquisitions as companies strive to expand their product portfolios and gain a competitive edge. Additionally, the rise of electric and hybrid vehicles is steering investments toward lightweight and energy-efficient steering systems. As regulations around vehicle emissions become stricter, manufacturers are innovating to meet these new standards while also enhancing driver experience.

Top Market Players

1. ZF Friedrichshafen AG

2. JTEKT Corporation

3. Nexteer Automotive

4. Bosch Group

5. Hyundai Mobis

6. Mitsubishi Electric Corporation

7. GKN Automotive

8. Thyssenkrupp AG

9. Valeo SA

10. Tenneco Inc.