Italy Automotive Electro-Hydraulic Power Steering Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Italy Automotive Electro-Hydraulic Power Steering Market Trends and Insights

EV and Hybrid Platform Compatibility

Italy’s hybrid vehicle mix supports demand for the Italian electro-hydraulic power steering market. Hybrid systems can operate for extended periods without an engine-driven hydraulic pump. EHPS can provide hydraulic assist in those conditions on platforms that require higher steering loads. Hybrid-electric vehicles accounted for 44.1% of Italian new-car sales in H1 2025, establishing a large base for compatible steering fitment and future service demand. Plug-in hybrid registrations rose 86.6% in Italy in 2025 and increased 84.3% in the first half of 2026, supporting the shift toward electrified platforms ^{[1]“New Car Registrations 1.8% in 2025, Battery-Electric 17.4% Market Share,” ACEA, acea.auto}. This mix makes powertrain choice more important to EHPS demand than overall new-vehicle volume alone.

Stricter CO₂ and Fuel Efficiency Compliance

EU emissions regulation gives manufacturers a defined transition period to comply with fleet emissions rules. The regulation retains the carbon dioxide emissions target for passenger cars, keeping pressure on manufacturers to offer hybrid and other lower-emission powertrains. The European Commission’s automotive package also maintains the long-term direction toward a substantial reduction in tailpipe emissions. Commercial vehicle operators can also assess steering efficiency when comparing operating costs.

ADAS Ready Steering Assistance

Steering systems must increasingly exchange electronic commands with driver-assistance functions. Italy adopted a circular relating to Supplement 3 to the 01 series of amendments to UN Regulation No. 157 in April 2025 ^{[2]“Circolare Protocollo 10768/2025 Supplement 3 to Series 01 Amendments to UN Regulation No. 157,” MIT, mit.gov.it}. These approval frameworks raise the technical requirements for steering on vehicles equipped for more advanced automated functions. EHPS can combine hydraulic support with electronic control, unlike conventional hydraulic steering. ZF presented a commercial-vehicle safety architecture in Milan that combined ADAS, braking, and steering functions. This approach expands the role of controlled steering functions in commercial applications. It also increases the value of sensors, controllers, and calibration within the Italian electro-hydraulic power steering market.

Fleet Renewal and Commercial Vehicle Maneuverability

Italy committed funding under the National Recovery and Resilience Plan to renew its public bus fleet. The program supports electric and hybrid public transport vehicles, which require suitable steering architectures. Consip is expected to issue a major tender for electric buses. Italy is also expected to introduce incentives for CNG, hybrid, and electric freight vehicles above specified weight thresholds through the relevant decree. Commercial applications prioritize high rack load capacity and fail-safe operation, supporting the continued use of EHPS. These procurements create a more visible demand pipeline for buses and freight vehicles than for smaller passenger cars.

EPS Migration in Compact Passenger Cars

Compact passenger vehicles are shifting toward column-mounted EPS. EPS is lighter, does not use hydraulic fluid, and is less costly to calibrate for lower rack-load applications. This makes EHPS less viable for the small-vehicle platforms that remain important in Italy. JTEKT introduced its Syncusteer steer-by-wire brand in 2026, indicating continued movement beyond established EPS designs in passenger vehicles. Nexteer began series production of its steer-by-wire system in April 2026 after ASIL D certification, creating another benchmark for next-generation passenger steering. The transition reduces EHPS fitment rates in city-car and subcompact vehicle lines.

Higher System and Calibration Cost

EHPS carries a higher installed cost than conventional hydraulic steering. The system requires an electric motor, an integrated electronic control unit, and wiring for driver-assistance interfaces. ADAS-capable systems also require functional safety validation in line with relevant automotive safety standards. These requirements create a cost burden for smaller fleet operators and independent repair networks. Knorr-Bremse received a major commission to develop EPS systems for series production, highlighting the level of investment required for modern steering development. This cost structure can limit independent aftermarket adoption, even as OEM-linked replacement activity expands.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Vehicle Type: LCVs Gain Ground as Electrified Fleets Expand

Passenger cars accounted for 62.22% of the Italian electro-hydraulic power steering market share in 2025. Their position reflects the large Italian hybrid-vehicle mix, although EPS migration limits demand in the city-car and subcompact ranges. Medium and heavy commercial vehicles, buses, and coaches benefit from fleet electrification policies and public procurement. Off-road equipment continues to require hydraulic steering under heavy loads and demanding operating conditions. A recent AGCO patent covers an electro-hydraulic steering system with a variable steering ratio for agricultural vehicles. This activity indicates that specialized equipment remains relevant to the Italian electro-hydraulic power steering market, even as passenger car applications evolve.

Light commercial vehicles are the fastest-growing vehicle type in the Italian electro-hydraulic power steering market, with a forecast CAGR of 7.42% through 2031. Fleet decarbonization funding supports electric and hybrid van platforms that require steering assistance during low engine load or electric operation. Stellantis began production of the Cargo Box BEV at its Atessa plant. Stellantis Pro One and Iveco Group also agreed to supply a range of battery-electric van models, with a commercial launch planned in the near term. Italy's incentive framework for heavier commercial vehicles reinforces demand in commercial weight classes. The Italian electro-hydraulic power steering market benefits from hydraulic assistance remaining practical for heavier van applications.

By Component Type: Sensors and Torque Modules Drive System Intelligence Upgrade

Steering column and rack interface components led with 32.51% of the Italian electro-hydraulic power steering market in 2025. These components remain the structural mounting and load-bearing base for the system. Electric motors and hydraulic pumps benefit from standardization across vehicle platform families. ECU and controller content rise as manufacturers place speed-sensitive and ADAS-compatible logic within the steering unit. Reservoirs, hoses, and related parts continue to support both original fitment and replacement demand. Bosch announced new commercial-vehicle workshop products and diagnostic solutions in 2026, reflecting continuing service support for steering systems.

Sensors and torque modules are the fastest-growing component category, with a 7.22% CAGR through 2031. Their growth reflects greater use of real-time torque feedback, variable-assist control, and interfaces for driver-assistance functions. Advanced control requirements are driving demand for electronic sensing components in both new fitment and retrofit applications. Active disturbance rejection control can improve the precision of EHPS angle tracking under dynamic loads. This supports investment in more responsive steering control systems. Higher electronic content is shifting part of the system's value from mechanical assemblies toward sensors and control functions.

By Technology: Advanced EHPS Consolidates Its Leading Position

Advanced EHPS held 55.65% of the Italian electro-hydraulic power steering market in 2025 and is forecast to grow at a 6.23% CAGR through 2031. It combines hydraulic fail-safe behavior with variable electronic assistance and support for ADAS integration. This combination suits commercial vehicles and higher-load hybrid platforms. Advanced EHPS also provides a step between conventional hydraulic systems and full steer-by-wire designs. 

Conventional EHPS continues to serve legacy replacement needs and off-road applications with limited electronic requirements. Compact EHPS is relevant to smaller commercial vehicles, where packaging favors integrated pump-and-motor units. Rack-assist and pinion-assist configurations address vehicle-specific steering feel and ADAS calibration needs. The shift from conventional to advanced formats increases diagnostic and calibration requirements for workshops. thyssenkrupp Presta and L&T Technology Services recently established a software development partnership for ADAS-grade and steer-by-wire steering software, reflecting the growing importance of software capability in steering system development.

By Sales Channel: Aftermarket Accelerates as Legacy Parc Matures

OEM supply accounted for 90.19% of the Italian electro-hydraulic power steering market in 2025. The channel remains dominant because modern EHPS requires precise fitment and established supply agreements between vehicle manufacturers and Tier 1 suppliers. Aftermarket replacement is forecast to grow at a 6.88% CAGR through 2031. Early EHPS units fitted to mild-hybrid vehicles are reaching the point where pumps, motors, and sensors may require replacement. This creates demand that is not fully tied to current vehicle production. It also raises the importance of product availability and service capability.

Aftermarket demand is dispersed more widely than OEM supply. OEM activity is concentrated around northern Italian assembly facilities, while replacement demand reaches independent workshops across southern Italy and the islands. Older commercial fleets and slower renewal cycles support this geographic spread. Bosch’s 2026 commercial-vehicle workshop update shows that global suppliers continue to refresh aftermarket support. Modern EHPS requires diagnostic tools and calibration knowledge, favoring trained service networks. The channel offers suppliers a route to balance uneven local OEM production with recurring parts demand.

Geography Analysis

Northern Italy accounts for the principal concentration of the Italian electro-hydraulic power steering market because it contains the main automotive production and engineering clusters. Piedmont includes Turin-based vehicle operations and steering-related engineering activity. Emilia-Romagna is home to performance-vehicle manufacturers and a dense supplier base. Lombardy contributes engineering, logistics, and service capabilities. These regions also host much of the country’s chassis and steering research capacity.

Italian automotive production fell 19.8% in 2025, leaving passenger-car output at 238,000 units according to preliminary ANFIA figures^{[3]“Calo a Doppia Cifra per la Produzione di Auto in Italia nel 2025,” Assofond, assofond.it}. This decline demonstrated the exposure of OEM demand to a limited group of domestic producers. First-quarter 2026 Italian vehicle output rose 9.5% year over year to 120,366 units, providing some support for the northern and Abruzzo supply corridors. Italy’s plug-in hybrid registrations increased by 84.3% in the first half of 2026. This hybrid mix gives the Italian electro-hydraulic power steering market a more compatible platform profile than markets with deeper battery-electric adoption. Southern Italy and the islands retain a larger replacement opportunity because fleet renewal is slower and the vehicle base is older.

Public transport adds a separate regional demand layer to the Italian electro-hydraulic power steering market size. The PNRR commitment and the Consip electric-bus tender support procurement across Rome, Milan, Naples, Turin, Palermo, and Bologna. The 2025 Italian bus market recorded more than 4,100 new registrations, with electric buses accounting for 30% of the total. These programs create bus-specific steering demand in major urban networks. Freight incentives further extend commercial-vehicle activity outside the main passenger-car production regions.