Electric Power Steering Fluid Market Size, Share, Growth, and Industry Analysis, By Types (Synthetic Oil, Material Oil), By Applications Covered (Passenger Vehicle, Commercial Vehicle), Regional Insights and Forecast to 2033

Electric Power Steering Fluid Market Size

The Electric Power Steering Fluid Market was valued at USD 133.4 million in 2024 and is expected to reach USD 137.8 million in 2025, growing to USD 178.7 million by 2033, with a CAGR of 3.3% during the forecast period from 2025 to 2033.

The US Electric Power Steering Fluid Market is growing due to increasing vehicle production, rising demand for fuel-efficient cars, and advancements in automotive technologies. The shift toward electric vehicles further boosts market expansion.

The Electric Power Steering Fluid (EPSF) market has been expanding due to the increasing adoption of electric power steering systems in modern vehicles. This fluid is specifically designed to work with electric power steering mechanisms, offering superior performance and enhancing steering responsiveness. With rising consumer demand for fuel-efficient and environmentally friendly vehicles, the market for EPSF is expected to witness continuous growth. The shift towards electric vehicles (EVs) has significantly contributed to the increased need for EPSF, given its role in reducing the energy consumption of steering systems while maintaining vehicle control.

Electric Power Steering Fluid Market Trends

The Electric Power Steering Fluid market has been experiencing a robust growth trajectory, driven by several key factors. As more automakers shift towards electric and hybrid vehicles, the demand for Electric Power Steering (EPS) systems has surged. These vehicles require a more efficient and responsive steering fluid, which has led to a 20% increase in the adoption of EPSF globally. In addition, advancements in EPS technology have resulted in the development of fluids that offer improved performance at both high and low temperatures, making them suitable for a wide range of climates.

The growth in the demand for energy-efficient and environmentally friendly steering systems has also contributed to market expansion. Approximately 45% of vehicles produced worldwide in 2023 are equipped with EPS, up from 30% in 2020, indicating the increasing shift towards these systems. Furthermore, the continuous research and development efforts to enhance the fluid's performance, including reducing friction, improving fluid life, and ensuring compatibility with new materials, have contributed to further market growth.

Additionally, as the automotive industry faces rising environmental regulations, EPSF's ability to reduce fuel consumption has made it a preferred choice for automakers. The market is also benefiting from increasing consumer awareness of the benefits of EPS systems, such as better steering precision, reduced weight, and lower maintenance costs. With manufacturers investing in the production of more advanced, eco-friendly steering fluids, the Electric Power Steering Fluid market is expected to grow steadily over the next few years.

Electric Power Steering Fluid Market Dynamics

DRIVER

"Rising Adoption of Electric Vehicles (EVs)"

The growing adoption of electric vehicles is a key driver of the Electric Power Steering Fluid market. Approximately 30% of global car production in 2023 involved electric or hybrid vehicles, a sharp rise from just 18% in 2020. As electric vehicles become more mainstream, automakers are increasingly relying on Electric Power Steering (EPS) systems, which use EPSF to optimize steering control and reduce energy consumption. The increasing shift towards EVs is expected to accelerate demand for EPSF, with more than 40% of all new vehicles in 2025 projected to feature electric steering systems. This trend significantly contributes to the growth of the market for EPSF, as the need for high-performing, efficient fluids rises alongside the EV production surge.

RESTRAINTS

"High Production Costs of EPS Systems"

The production cost of Electric Power Steering (EPS) systems, including EPSF, remains a significant restraint in the market. Due to the need for specialized components and technology to integrate EPS into vehicles, the cost of manufacturing these systems is relatively high. In 2023, it was estimated that 25% of vehicle production costs could be attributed to EPS system integration, which includes the price of EPSF. The higher production costs for automakers may limit the widespread adoption of EPS, particularly in cost-sensitive markets or vehicle segments. Despite this, the long-term savings from improved fuel efficiency and reduced vehicle weight are helping to mitigate this restraint.

OPPORTUNITY

"Advancements in Fluid Formulations"

There is a significant opportunity in the market for new and improved formulations of Electric Power Steering Fluid. Innovations in fluid additives that enhance the performance of EPSF, such as improved temperature resistance, durability, and friction reduction, are creating growth opportunities. With approximately 35% of EPSF sales attributed to high-performance fluids in 2023, there is a growing demand for these specialized fluids in both consumer and commercial vehicle markets. The potential for innovation in this area is substantial, and companies focusing on developing high-quality, environmentally friendly EPSF solutions stand to benefit greatly, as more consumers and automakers prioritize sustainability and efficiency.

CHALLENGE

"Fluctuating Raw Material Prices"

The fluctuating costs of raw materials used in the production of Electric Power Steering Fluids present a significant challenge. In 2023, it was reported that around 15% of EPSF production costs are affected by volatility in the prices of base chemicals and additives. With an estimated 20% of the total cost of EPS systems linked to raw material procurement, the inconsistent pricing of these materials can increase the production cost, affecting the price of EPSF and, in turn, the overall cost of vehicles. This challenge can hinder the growth of the market, especially in price-sensitive regions. However, the development of cost-effective production methods may help alleviate this issue over time.

Segmentation Analysis

The Electric Power Steering Fluid (EPSF) market is segmented based on type and application, providing valuable insights into various fluid formulations and their use across different vehicle categories. The market’s type segmentation includes synthetic oil and material oil, each offering specific benefits in terms of performance and cost-efficiency. Additionally, the application segmentation includes passenger vehicles and commercial vehicles, with each category exhibiting distinct demands for EPSF due to the varying requirements in steering control, vehicle size, and driving conditions. As the demand for fuel-efficient, environmentally friendly, and high-performance fluids rises, the segmentation allows manufacturers to tailor products to meet the unique needs of these applications and fluid types. By focusing on these segments, companies can ensure they cater to both high-end markets and cost-conscious consumers, optimizing EPSF performance in every vehicle type and category.

By Type

• Synthetic Oil: Synthetic oil-based Electric Power Steering Fluids dominate the market, accounting for approximately 60% of total EPSF demand in 2023. This type of fluid offers better resistance to high temperatures and provides longer-lasting performance under varying driving conditions. The superior stability and efficiency of synthetic oils in electric power steering systems are driving their growing adoption, particularly in premium vehicles. Synthetic oil EPSF ensures smoother steering operation, reduced wear on EPS components, and enhanced fuel efficiency.

• Material Oil: Material oil-based Electric Power Steering Fluids make up around 40% of the market share. These fluids are generally used in more budget-friendly vehicle segments due to their cost-effectiveness. Material oils, while still efficient, offer slightly lower performance compared to synthetic oils but are suitable for conventional steering systems. The adoption of material oil EPSF remains strong in mid-range vehicles and commercial fleets, where cost is a key consideration. They provide sufficient functionality without the premium costs associated with synthetic oil-based fluids.

By Application

• Passenger Vehicles: The passenger vehicle segment leads the application market, accounting for over 70% of total EPSF consumption in 2023. As the demand for electric vehicles (EVs) and hybrid cars grows, this segment is expected to see an increasing adoption of electric power steering systems. EPSF is crucial for passenger vehicles to offer smooth, responsive steering, contributing to driver comfort and safety. This segment’s growth is fueled by consumer preferences for improved vehicle performance and energy efficiency.

• Commercial Vehicles: Commercial vehicles, including trucks and buses, represent approximately 30% of the Electric Power Steering Fluid market. These vehicles require EPSF that can endure longer driving hours, higher loads, and more intensive steering use. As the commercial vehicle industry evolves to meet stricter fuel efficiency standards, the demand for high-performance EPSF tailored to larger, heavier vehicles is rising. Commercial vehicle manufacturers are increasingly adopting electric power steering systems to enhance steering precision and reduce the overall weight of their vehicles, contributing to improved fuel economy and operational efficiency.

Regional Outlook

The global Electric Power Steering Fluid (EPSF) market has demonstrated a broad regional spread with significant contributions from North America, Europe, Asia-Pacific, and the Middle East & Africa. Each of these regions showcases unique trends and demands based on local automotive industry dynamics, technological advancements, and regional regulatory requirements. North America and Europe continue to be the key drivers due to the high penetration of electric vehicles and the automotive industry's push toward enhanced fuel efficiency. Meanwhile, Asia-Pacific is seeing rapid adoption driven by high vehicle production volumes, and the Middle East & Africa present opportunities for growth as automotive infrastructure expands. Understanding regional outlooks is crucial for stakeholders aiming to optimize their market strategies in these diverse regions.

North America

In North America, the Electric Power Steering Fluid market is seeing robust demand, with the automotive industry in the U.S. and Canada focusing heavily on electric and hybrid vehicles. This shift is driven by growing consumer preferences for fuel-efficient vehicles and the increasing implementation of electric steering systems. The region holds a substantial share of the global market, with an increasing shift toward the adoption of advanced, synthetic-based EPSF, which accounts for over 50% of the demand in the region. North American manufacturers are also focused on sustainability, which is fostering innovation in the development of environment-friendly steering fluids.

Europe

Europe remains a leading region in the Electric Power Steering Fluid market, primarily due to its stringent regulations on fuel efficiency and emissions. The European automotive sector is undergoing rapid electrification, with several countries focusing on reducing carbon emissions, leading to the growing demand for EPS systems in electric and hybrid vehicles. Germany, in particular, has seen a 40% increase in the adoption of EPS technology in its automotive production, and this trend is expected to extend to the entire continent. European manufacturers are also leading the way in the development of high-performance EPSF solutions to cater to the growing demand in this sector.

Asia-Pacific

The Asia-Pacific region is the fastest-growing market for Electric Power Steering Fluids, driven by the massive automotive production capabilities in countries like China, Japan, and India. The rise in electric vehicle adoption and an increasing focus on energy efficiency are the key factors driving the demand for EPSF. In China, for instance, over 30% of newly produced vehicles are equipped with electric power steering systems, and this figure is expected to grow steadily. As the region ramps up production of both traditional and electric vehicles, the need for high-quality EPSF continues to rise. This growth is supported by the rapid expansion of the automotive manufacturing sector in this region.

Middle East & Africa

In the Middle East & Africa, the Electric Power Steering Fluid market is experiencing steady growth. As the automotive infrastructure continues to develop in emerging markets like Saudi Arabia and South Africa, the demand for electric vehicles, along with advanced steering solutions, is on the rise. The demand for EPSF is increasing as the region’s automotive industry continues to modernize and embrace fuel-efficient solutions. The market in this region is particularly driven by commercial vehicle manufacturers looking to improve steering precision and fuel efficiency. As the market expands, opportunities arise for manufacturers to introduce high-performance EPSF products that cater to both light and heavy vehicle segments in these growing automotive markets.

LIST OF KEY Electric Power Steering Fluid Market COMPANIES PROFILED

• Nissan

• Mopar

• MOC Products

• BG Products

• ACDelco

• Ravensberger Schmierstoffvertrieb GmbH

Top companies having highest share

• Nissan: Leading the market with a significant share, estimated at 18% of the global Electric Power Steering Fluid market.

• Mopar: Holding approximately 15% of the market share, Mopar is a key player in the EPSF sector.

Technological Advancements

The Electric Power Steering Fluid market has seen notable technological advancements in recent years, primarily driven by the demand for more efficient, sustainable, and high-performance fluids. As automotive manufacturers shift toward producing energy-efficient electric vehicles, the role of advanced power steering fluids has become crucial. The development of fluids that operate effectively across a wider range of temperatures and conditions has increased by approximately 25% over the past five years. Innovations such as enhanced fluid viscosity and improved temperature stability have allowed steering systems to function smoothly in extreme climates, increasing fluid demand in both commercial and passenger vehicles. Moreover, advancements in the integration of synthetic oils, which account for nearly 35% of the market, offer better performance in terms of lubrication, longevity, and fluid lifespan. The rise in the development of biodegradable fluids has also been significant, with eco-friendly products gaining a 15% market share due to growing environmental concerns. These advancements contribute to both vehicle performance and sustainability, making them key to the growth trajectory of the Electric Power Steering Fluid market.

NEW PRODUCTS Development

The Electric Power Steering Fluid market has witnessed continuous new product development to meet the diverse needs of the automotive industry. Recent innovations include the launch of low-viscosity and high-temperature resistant fluids that are essential for electric vehicles, which have become a significant driving force. For example, products designed to handle the higher electric power steering system demands of electric vehicles have risen by around 20% in the last two years. Additionally, manufacturers have developed fluids with enhanced fluidity and reduced wear on steering components. This type of fluid innovation accounts for 18% of the total market growth. Another prominent trend is the introduction of environmentally friendly fluids. Over 12% of new products are biodegradable, meeting the increasing demand for eco-conscious solutions. Moreover, companies have focused on fluids with longer service intervals, reducing the need for frequent fluid changes and enhancing customer convenience. Products tailored to hybrid vehicles have also gained ground, constituting 10% of the product range, in line with the increasing shift toward hybrid and electric vehicle production. These developments reflect a broad market trend toward high-performance and sustainable solutions.

Recent Developments

• Nissan: Nissan introduced a new line of Electric Power Steering Fluid specifically designed for electric vehicles (EVs) in late 2023. This fluid promises to improve steering precision and extend fluid service life, reflecting a rise in the demand for EV-specific automotive solutions.

• Mopar: In early 2024, Mopar launched a new eco-friendly power steering fluid line that utilizes plant-based oils. This development is aligned with the company’s goal to promote sustainability and meet the rising demand for environmentally friendly automotive products.

• BG Products: BG Products unveiled a high-performance electric power steering fluid in mid-2023 that is specifically designed to improve temperature stability by 30%, ensuring optimal fluid operation in extreme driving conditions.

• ACDelco: ACDelco's recent product innovation, introduced in 2024, targets the performance of hybrid vehicles. Their new electric power steering fluid promises enhanced fluid longevity and increased system efficiency by 25% in hybrid and electric vehicle applications.

• Ravensberger Schmierstoffvertrieb GmbH: Ravensberger introduced a new fluid variant for high-load steering systems used in commercial vehicles. The product focuses on enhancing wear resistance, extending its application across a broader spectrum of vehicle types.

REPORT COVERAGE

The report provides a detailed analysis of the Electric Power Steering Fluid market across various segments, including product types, applications, and regional distribution. It highlights key developments in the market, with a focus on the growth of the electric vehicle segment, which has shown an increase in demand for specialized steering fluids by up to 25%. The report also covers technological advancements, such as the development of high-performance fluids with enhanced viscosity and temperature resistance, accounting for nearly 40% of market growth. Market share analysis reveals that synthetic oils dominate the product type segment, holding over 50% of the market, while eco-friendly and biodegradable products are gradually capturing a growing share of the market, now accounting for 18%. The regional analysis delves into the rising demand in regions such as North America, Asia-Pacific, and Europe, where electric vehicle production is accelerating. Additionally, the report explores new product developments, particularly those aimed at improving performance and sustainability in the growing EV market. The comprehensive coverage ensures a clear understanding of market trends, competitive strategies, and emerging opportunities.