Report Highlights

U.S. Electric Power Steering: Market Overview

The U.S. electric power steering market differs from the global norm because it is driven by truck and SUV mix rather than small-car volume. Light trucks and SUVs account for roughly three-quarters of U.S. light-vehicle sales, and these platforms specify higher-torque rack-assist units instead of the column-assist systems common in compact cars across Asia and Europe. Consequently, dollar content per vehicle runs well above the global average. Production concentrates in Michigan, Ohio, Tennessee and Texas, where OEM assembly plants sit alongside tier-one steering suppliers.

Market size reflects that mix. The segment was valued at USD 6.8 billion in 2024 and is forecast to reach USD 10.9 billion by 2032, a CAGR of 6.1%. Growth outpaces U.S. light-vehicle unit growth, which runs near 1 percent annually, because content per vehicle rises as steer-by-wire-ready architectures and advanced driver assistance integration spread. Aftermarket demand adds a steadier base, since the average U.S. vehicle now exceeds 12 years in service.

Growth Drivers in U.S. Electric Power Steering

Three country-specific drivers sustain demand. First, NHTSA's final rule under FMVSS 127, finalised in April 2024, requires automatic emergency braking on nearly all light vehicles by September 2029, and AEB-linked lane-keeping depends on precise electric steering torque control. Second, the NHTSA Corporate Average Fuel Economy standards for model years 2027 to 2031 push OEMs toward electric assist, which draws power only on demand and saves fuel compared with hydraulic systems.

Third, the CHIPS and Science Act's Section 48D credit offers a 25% investment tax credit for qualifying semiconductor manufacturing, encouraging domestic microcontroller supply for steering ECUs. Demographic factors reinforce this. Replacement demand stays high because the average light vehicle is more than 12 years old, according to S&P Global Mobility data, keeping aftermarket EPS module sales resilient.

Market Restraints and Entry Barriers

Entry barriers begin with USMCA rules of origin. The agreement requires a 75% regional value content threshold for passenger vehicles and light trucks, so a steering assembly built with imported Chinese motors or electronics faces tariff exposure and calculation penalties. Section 301 duties on Chinese semiconductors, raised to 50% under USTR action, add further cost pressure on ECU chips.

Incumbent advantage is equally severe. Nexteer, JTEKT and ZF hold multi-year platform awards with GM, Ford and Stellantis, and steering validation under ISO 26262 functional safety typically takes 24 to 36 months. New entrants also face Section 232 tariffs of 25% on steel and aluminium, which raise the cost of column and rack housings, and must compete on price against established Michigan-based producers.

Market Opportunities in the U.S. Steering Sector

Near-term opportunities sit in steer-by-wire development for battery electric pickups. Electric truck programmes at GM and Ford require redundant steering architectures, and an addressable pool of roughly USD 1.2 billion in U.S. pickup and heavy-truck steering content by 2028 is open to qualified Tier-2 suppliers of motors, sensors and ECU firmware.

A second opportunity is aftermarket remanufacturing. With the average vehicle age above 12 years, independent remanufacturers can capture replacement demand for EPS modules on popular half-ton pickups, where OEM parts carry premium pricing. A regional remanufacturing hub in Ohio or Indiana could address roughly USD 400 million of annual replacement value while cutting lead times to under five days.

Market at a Glance

Leading Market Participants

• Nexteer Automotive
• JTEKT Corporation
• ZF Friedrichshafen
• NSK Ltd.
• Robert Bosch LLC
• thyssenkrupp Presta
• Hyundai Mobis
• Mitsubishi Electric
• Hitachi Astemo
• Mando Corporation

Regulatory and Policy Environment

NHTSA regulates steering performance through the Federal Motor Vehicle Safety Standards. FMVSS 127 mandates automatic emergency braking with lane-keeping interaction, with compliance required by September 2029. The Commerce Department's Bureau of Industry and Security connected vehicle final rule, published in January 2025, restricts covered software from model year 2027 and covered hardware from model year 2030, forcing ECU supply-chain audits across the steering sector.

Trade policy adds cost. Section 232 tariffs of 25% apply to steel and aluminium, and Section 301 duties of 50% apply to Chinese semiconductors. The CHIPS and Science Act provides a 25% investment tax credit under Section 48D, while the USMCA joint review in July 2026 will determine whether 75% regional value content thresholds tighten. Suppliers should track U.S. Customs and Border Protection rulings on HTS classifications for EPS modules.

Long-Term Outlook for U.S. Electric Power Steering

By 2032, U.S. electric power steering will be dominated by dual-redundant rack-assist systems on pickups and SUVs, with steer-by-wire penetration reaching roughly 8% of new light-vehicle units. Market value will approach USD 10.9 billion, with electronics content per unit rising faster than mechanical components, reshaping supplier margins across the value chain.

Michigan, Ohio and Tennessee will remain core production hubs, with Nexteer and JTEKT expanding motor and ECU capacity to meet USMCA thresholds. Entrants that secure domestic semiconductor sourcing and redundant-architecture qualifications will hold the most durable positions. Suppliers dependent on imported Chinese electronics will face sustained margin erosion.