Global Electric Power Steering (EPS) Sensor Market size was valued at US$ 1.92 billion in 2024 and is projected to reach US$ 3.46 billion by 2032, at a CAGR of 8.74% during the forecast period 2025-2032. The increasing adoption of fuel-efficient vehicles and stringent government regulations on vehicle emissions are key drivers propelling market growth.

EPS sensors are critical components in modern automotive steering systems that detect driver input torque and steering wheel position, enabling precise electric motor assistance. These sensors include Torque-Only Sensors (TOS) and Torque-Angle Sensors (TAS), which provide real-time data to control modules for optimized steering performance. The transition from hydraulic to electric power steering systems across passenger and commercial vehicles has significantly boosted sensor demand, with over 85% of new vehicles globally now equipped with EPS technology.

Market expansion is further supported by the automotive industry’s shift toward autonomous driving features, where EPS sensors play a vital role in advanced driver-assistance systems (ADAS). Leading manufacturers like Robert Bosch and Valeo are investing heavily in sensor miniaturization and reliability improvements to meet evolving OEM requirements. The Asia-Pacific region dominates the market, accounting for 48% of global EPS sensor demand in 2023, driven by rapid vehicle production in China, Japan, and India.

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Segment Analysis:

By Type

Torque Angle Sensor (TAS) Segment Leads the Market Due to Better Accuracy and Reliability

The market is segmented based on type into:

• Torque Only Sensor (TOS)
• Torque Angle Sensor (TAS)

By Application

Passenger Vehicle Segment Dominates Due to Increasing Demand for Fuel-Efficient Steering Systems

The market is segmented based on application into:

• Passenger Vehicle
  • Subtypes: Hatchbacks, Sedans, SUVs
• Commercial Vehicle
  • Subtypes: Light Commercial Vehicles, Heavy Commercial Vehicles

By Vehicle Type

Electric Vehicles Segment Shows Rapid Growth Due to Government Incentives and Environmental Regulations

The market is segmented based on vehicle type into:

• Internal Combustion Engine Vehicles
• Hybrid Electric Vehicles
• Battery Electric Vehicles

By Sales Channel

OEM Segment Holds Majority Share Due to Direct Integration in Vehicle Manufacturing Process

The market is segmented based on sales channel into:

• Original Equipment Manufacturers (OEM)
• Aftermarket

Regional Analysis: Global Electric Power Steering (EPS) Sensor Market

North America
The North American EPS sensor market is characterized by high technological adoption and stringent regulatory standards prioritizing vehicle safety and efficiency. The U.S. leads the region due to strong demand from OEMs and stringent fuel economy regulations (e.g., Corporate Average Fuel Economy standards). Canada and Mexico are witnessing gradual growth, supported by regional manufacturing expansions. Key players like Robert Bosch and Methode Electronics dominate the market, supplying advanced torque sensors compatible with autonomous driving systems. The shift toward electrification and Advanced Driver Assistance Systems (ADAS) is accelerating demand, with EPS sensors playing a critical role in steering precision.

Europe
Europe’s EPS sensor market is driven by strict emissions regulations (EU Euro 7 norms) and rapid electrification of vehicles. Germany remains the hub for innovation, hosting R&D centers of major automotive suppliers like HELLA and Valeo. The UK and France follow closely, with increasing investments in autonomous vehicle technologies. Eastern Europe is emerging as a cost-effective manufacturing base, attracting sensor suppliers. The dual focus on fuel efficiency and safety compliance positions EPS sensors as a key component, particularly in luxury and electric vehicles.

Asia-Pacific
As the largest automotive production hub globally, the Asia-Pacific region dominates EPS sensor adoption. China accounts for over 40% of global demand, fueled by its booming EV market and government mandates favoring EPS systems. Japan and South Korea contribute significantly due to their technologically advanced automotive sectors. India is a high-growth market, with cost-sensitive consumers gradually transitioning from hydraulic to EPS systems. Local players compete aggressively on price, though international brands maintain a stronghold in premium segments. The region’s focus on affordability and localized production shapes sensor design and sourcing strategies.

South America
The South American EPS sensor market faces challenges due to economic instability and fluctuating vehicle production volumes. Brazil is the largest market, though adoption rates lag behind global averages due to consumer preference for low-cost vehicles. Argentina and Colombia show potential, driven by urbanization and gradual automotive modernization. While foreign suppliers operate here, local manufacturing remains limited. The market’s growth hinges on economic recovery and reinvestment in the automotive sector.

Middle East & Africa
This region presents a nascent but opportunistic market for EPS sensors. The UAE and Saudi Arabia lead in luxury vehicle sales, driving demand for advanced steering systems. Africa’s automotive industry is fragmented, with South Africa acting as a regional hub for assembly plants. Challenges include low vehicle electrification rates and aftermarket dominance of hydraulic systems. However, infrastructure developments and urbanization are expected to gradually boost EPS adoption.

MARKET OPPORTUNITIES

Advancements in Non-Contact Sensing Technologies

Emerging magnetoelastic and optical sensing methods eliminate mechanical wear in EPS systems while improving measurement resolution below 0.1°. These technologies align with the automotive industry’s shift toward maintenance-free components, particularly in high-mileage commercial vehicles where traditional contact sensors show degradation after 200,000 operational cycles. Leading suppliers anticipate non-contact variants will capture 40% of the EPS sensor market within five years.

Integration With Autonomous Driving Platforms

The evolution toward autonomous vehicles presents transformative potential for EPS sensor manufacturers. Level 3+ autonomy requires redundant sensor architectures with fail-operational capabilities, effectively doubling the sensor content per vehicle. Collaboration between steering system suppliers and autonomous tech developers has already resulted in prototype systems featuring triple-redundant torque sensing with cross-validation algorithms.

GLOBAL ELECTRIC POWER STEERING (EPS) SENSOR MARKET TRENDS

Rising Demand for Fuel-Efficient Vehicles to Drive EPS Sensor Adoption

The global automotive industry is witnessing a significant shift toward fuel-efficient and lightweight vehicles, directly influencing the demand for Electric Power Steering (EPS) sensors. EPS systems reduce mechanical complexity while improving fuel efficiency by approximately 3-6% compared to hydraulic steering systems. These sensors play a crucial role in detecting driver input and adjusting steering assist accordingly. Governments worldwide are implementing stringent fuel economy regulations, such as the Corporate Average Fuel Economy (CAFE) standards, accelerating OEM adoption of EPS technology. With passenger vehicles accounting for nearly 75% of EPS sensor installations, automakers are integrating advanced torque and angle sensors to meet both regulatory and consumer demands.

Other Trends

Automotive Electrification Surge

The rapid expansion of electric vehicle (EV) production is reshaping the EPS sensor landscape. Unlike internal combustion engine vehicles, EVs rely entirely on electrically assisted systems for steering, creating a 100% penetration rate for EPS in this segment. Major markets like China and Europe are leading this transition, with China contributing over 50% of global EV sales. Sensor manufacturers are responding by developing ruggedized designs capable of handling high-voltage environments alongside improved noise immunity. Hybrid vehicles also present growth opportunities, as they require seamless integration between electric and mechanical steering components.

Advancements in Autonomous Driving Technologies

The development of autonomous vehicles (AVs) is pushing EPS sensors toward higher precision and reliability standards. Modern driver-assistance systems (ADAS) such as lane-keeping assist and automated parking require real-time steering feedback with near-zero latency. This has spurred innovations in non-contact sensor technologies like magnetostrictive torque sensors, which outperform traditional contact designs in durability and resolution. Industry leaders are now focused on achieving ASIL-D functional safety certification for EPS components, critical for Level 3+ autonomous applications. The ADAS market is projected to maintain double-digit growth, further validating investments in next-generation EPS sensing solutions.

COMPETITIVE LANDSCAPE

Key Industry Players

Strategic Innovation Defines Competition in the EPS Sensor Segment

The global Electric Power Steering (EPS) sensor market exhibits a moderately consolidated structure, dominated by established automotive suppliers with strong technological expertise and global manufacturing footprints. Robert Bosch GmbH leads the market with an estimated 25% revenue share in 2024, owing to its comprehensive EPS solutions integrating torque and angle sensors with advanced steering control units. The company’s dual focus on OE partnerships and aftermarket distribution ensures continuous market penetration.

HELLA GmbH & Co. KGaA maintains a robust position through its specialized steering sensor division, contributing approximately 18% of global EPS sensor revenues. Their recent development of contactless torque sensors for heavy-duty vehicles demonstrates strategic vertical expansion. Similarly, Valeo SA has strengthened its market position through the 2023 acquisition of a Japanese sensor manufacturer, enhancing its Asia-Pacific production capabilities.

Meanwhile, LG Innotek has emerged as a disruptive force, leveraging its electronics expertise to introduce cost-competitive EPS components. The company’s 2023 joint venture with a major Chinese automaker exemplifies the growing East-West technology collaborations reshaping the competitive dynamic. Smaller innovators like Methode Electronics compete through patented sensor technologies, particularly in the premium vehicle segment.

Product refinement remains the primary battleground, with companies investing heavily in:

• Miniaturization of sensor components
• Enhanced signal processing algorithms
• Integration with ADAS functionalities

The shift toward steer-by-wire systems is prompting accelerated R&D across all market participants.

List of Key Electric Power Steering (EPS) Sensor Companies Profiled

• Robert Bosch GmbH (Germany)
• HELLA GmbH & Co. KGaA (Germany)
• LG Innotek (South Korea)
• Valeo SA (France)
• Methode Electronics, Inc. (U.S.)
• Denso Corporation (Japan)
• Continental AG (Germany)
• TT Electronics plc (UK)
• Infineon Technologies AG (Germany)

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FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Electric Power Steering (EPS) Sensor Market?

-> Electric Power Steering (EPS) Sensor Market size was valued at US$ 1.92 billion in 2024 and is projected to reach US$ 3.46 billion by 2032, at a CAGR of 8.74% during the forecast period 2025-2032.

Which key companies operate in Global EPS Sensor Market?

-> Key players include Robert Bosch, HELLA, Valeo, LG, Methode Electronics, and Infineon Technologies, among others.

What are the key growth drivers?

-> Growth drivers include increasing vehicle production, rising demand for fuel-efficient systems, and government mandates for vehicle safety standards.

Which region dominates the market?

-> Asia-Pacific holds the largest market share (45% in 2023), driven by automotive production in China, Japan and South Korea.

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