The Global Automotive Electro-Hydraulic Steering Market is expected to grow from USD 11.7 billion in 2025 to USD 13.7 billion in 2030, at a CAGR of 3.2%.
This growth is attributed to the growing demand for better and more convenient steering systems which make the driving experience safer and more efficient.
Power steering systems are systems that provide assistance in steering to the driver, making it easier. The Electro-hydraulic power steering system is abbreviated as EHPS and is also known as a hybrid system because they use the same mechanism as the hydraulic power steering system but instead of the power coming from a pump which is driven by the engine, the pump is driven by the electric motor whose speed varies the amount of hydraulic pressure and is controlled by the ECU. The system uses valves to control the flow to the cylinder. The force the driver applies to the steering column is equal to the amount of force exerted by the fluid through the valves on the steered wheels. To measure the torque applied to the wheels, a torque sensor is used which is fixed on the steering column. When the steering wheel starts to rotate, in turn, the steering column also rotates, thus rotating the torsion bar, which then twists according to the torque provided to it, this torque sensor sends the information to the ECU which then according to the steering angles, vehicle speed, and steering force, controls and operates the electric motor, which provides the hydraulic power thus assisting in steering.
At low speeds, the power supplied by the hydraulic pump is increased to assist in turning and steering operations, whereas at high speeds it is reduced as much assistance is not required. There are key players who are involved in making investments and improvements in electro-hydraulic steering to make them more efficient. For example, Nikola Motor unveiled two hydrogen-electric tractors in April 2019, with electric and hydraulic power steering and high-performance LED lighting. The company's goal is to achieve a zero-emission future.
Due to exertion while driving, the need for more advanced and safer driving and steering systems is increasing, as technological advancements are happening the industry is moving towards making driving less tedious. These factors are driving the market for electro-hydraulic steering.
By Vehicle Type
On the basis of vehicle type, the global automotive electro-hydraulic steering market is segmented into passenger vehicles, light commercial vehicles, heavy commercial vehicles, and others. Passenger vehicles hold a significant share of the market owing to the fact that their production and demand are greater than other vehicles.
By Sales Channel
On the basis of the sales channel, the global automotive electro-hydraulic steering market can be segmented as OEMs and aftermarkets. OEMs hold a notable amount of market share due to the fact that many cars that are produced these days come with electro-hydraulic power steering.
By Geography
By geography, the global automotive electro-hydraulic steering market is segmented into North America, Europe, Middle East & Africa, Asia-Pacific, and South America. Asia-Pacific is estimated to hold a good amount of market share. As regions like China and India are good producers of automobiles, and as the demand for more automobiles is rising, the demand for electro-hydraulic power steering is also increasing due to the need for better steering systems.
The global automotive electro-hydraulic steering market is competitive owing to the presence of well-diversified international, regional, and local players. The competitive landscape details strategies, products, and investments being made by key players in different technologies and companies to boost their market presence.
December 2025 (Regulatory Milestone for 2026): China approved steer-by-wire systems without mechanical backup, effective July 2026, accelerating the adoption of electronic and hybrid steering technologies across next-generation vehicles.
November 2025: ZF Friedrichshafen AG expanded its partnership with Kodiak AI to supply 100 redundant steering systems for autonomous trucks, supporting fail-safe electronic steering deployment in commercial vehicles.
September 2025: ZF Friedrichshafen AG showcased production-ready by-wire steering systems at IAA Mobility 2025, securing global series orders from automakers and advancing software-defined chassis technologies.
February 2025: ZF Friedrichshafen AG began series production of its steer-by-wire steering system for NIO’s ET9 electric flagship, eliminating mechanical linkage and advancing electronically controlled steering architectures.
January 2025: Rane Group and ZF Friedrichshafen AG expanded their joint venture (ZF Rane Automotive India) to introduce rack-drive electric power steering and licensed column-drive EPS technology for localized production.
| Report Metric | Details |
|---|---|
| Total Market Size in 2025 | USD 11.7 billion |
| Total Market Size in 2030 | USD 13.7 billion |
| Forecast Unit | Billion |
| Growth Rate | 3.2% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Segmentation | Component, Vehicle Type, Sales Channel, Geography |
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
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