According to recent industry analysis from Market Research Future, the automotive rack and pinion steering system market was valued at USD 16.72 billion in 2024 and is projected to reach USD 20.7 billion by 2035, at a CAGR of 1.96%. A primary driver of this growth is the widespread adoption of automotive rack pinion steering system electric power steering (EPS), which is rapidly becoming the dominant technology in modern vehicles. The shift from traditional hydraulic systems to EPS is driven by the need for improved fuel efficiency, reduced emissions, and enhanced integration with advanced driver-assistance systems (ADAS) .
EPS replaces the hydraulic pump, fluid, and hoses of a conventional system with an electric motor that provides steering assistance. Sensors detect the steering wheel's position and the torque being applied, relaying this data to an EPS module which adjusts the motor's speed and torque based on driving conditions . This design offers several key advantages. By eliminating the constantly running hydraulic pump, EPS reduces parasitic engine loads, resulting in better fuel economy . It also removes the need for hydraulic fluid and periodic maintenance, simplifying vehicle design and reducing overall weight . The EPS segment is projected to be a major growth area, with the global market expected to reach USD 39.56 billion by 2030 .
The EPS segment accounted for the largest market revenue share in 2023 and is forecast to achieve a 4.5% CAGR through 2032 . This growth is fueled by the technology's critical role in supporting ADAS features like lane-keeping assist, automatic lane centering, and adaptive cruise control . As vehicles become more connected and autonomous, the rack and pinion mechanism is evolving from a purely mechanical component into a foundational platform for digital steering innovation, enabling over-the-air updates and more precise, software-defined control . The rising consumer preference for enhanced driving comfort and safety is a key driver for the adoption of advanced EPS systems .
As the automotive industry continues its transition toward electrification and increased vehicle intelligence, the adoption of EPS will remain a central trend. The integration of these systems is essential for the development of next-generation vehicles that are safer, more efficient, and more responsive to driver inputs . The automotive rack pinion steering system market continues to prioritize electric power steering technology for enhanced vehicle efficiency and advanced driver-assistance capabilities.
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