Automotive Steer-by-Wire System Market Size - By Component, By Propulsion, By Vehicle, By Sales Channel, Analysis, Share, Growth Forecast, 2025 - 2034

Automotive Steer-by-Wire System Market Size

The global automotive steer-by-wire system market size was valued at USD 3.3 billion in 2024 and is projected to grow at a CAGR of 7.5% between 2025 and 2034. Development in the steer-by-wire technology for automobile vehicle control has expanded remarkably because of the proliferation in the number of electric vehicles and autonomously driven cars. The number of passengers in an electric vehicle car has increased exponentially. The International Energy Agency has confirmed that there was a doubling in the number of registrations of electric cars as compared to the previous year. Currently, over 40 million electric vehicles are in use across the globe.
 

The change of focus towards improving battery performance and greater passenger satisfaction has become the prime aim in the design of EV interiors. The steer-by-wire technology has an efficiency advantage in weight and space requirements. Thus, this technology becomes a prerequisite in the steering mechanism of cars manufactured with this configuration. This also positively correlates with the improvement in driving dynamics.
 

The growing consumer needs to augment the steer-by-wire (SBW) system market in the automotive sector. With SBW technology, the vehicle is much easier to handle and control as the steering can be set to a certain sensitivity level. Drivers benefit as a result from a more pleasant and user-friendly experience during the drive. In response to the overwhelming desire of users for advanced and intuitive steering controls, SBW systems have been developed to provide functional responses to speed, road situations, or active driving modes.

Moreover, the SbW technology removes the steering column completely, leading to better design and ergonomics of a vehicle's cabin space. The shift in focus towards improving customer experience especially attracts the buyers of luxury, electric, and independently driven cars, hence increasing the adoption of system among various types of vehicles.
 

Automotive Steer-by-Wire System Market Trends

The automotive industry is undergoing major developments in steer-by-wire technology and its associated parts such as electronics, sensors, and the like. Development in components such as advanced control units, feedback motors, and sensors has enhanced the vitality, dependability, and cost efficiency of steering systems. These improvements integrate the steering commands and their corresponding signals at a very close range, optimizing both vehicle maneuverability and safety.
 

 Advanced driving experience is also augmented due to the real-time adjustments made possible by modern torque and position sensors. Additionally, the advancement of sensor fusion along with the SBW system integration with other vehicle technologies such as autonomous driving and driver assistance systems (ADAS) greatly improves the performance of these systems. These advances enable the systems to be adopted in more types of vehicles, which in turn facilitates the expansion of the automotive steer-by-wire system market in electric and autonomous cars.
 

Just in June 2024, Peugeot announced that they are going to create a revolution in the world of driving by incorporating their developed steer-by-wire technology control system known as Hypersquare into their new electric vehicles. This development was later featured in the INCEPTION CONCEPT, which is a fully electric vehicle model and proves Peugeot’s severe focus on electric vehicles and the mobility patterns along with emphasis on the advancement of the vehicle itself.
 

Hypersquare will be included in the next generation I-Cockpit of Peugeot, which integrates the Stellantis STLA smart Cockpit technology platform. This integration supports features such as Level 4 autonomous driving, where the steering control can retract when the vehicle is operating autonomously.
 

One of the issues hindering the growth of the automotive SbW systems market is the high development and implementation costs that come into play. These costs are associated with state-of-the-art technologies and the precise design required in the SbW systems. Development of these systems entails a significant amount of investment in research, development, testing, and assembly of the intricately designed electronics, sensors, and actuators. Furthermore, car manufacturers need to revise the frameworks of their current vehicles to fit these systems, which adds to the production costs.
 

The costs of production are further aggravating the situation since they inhibit penetration into midrange vehicles and other price-sensitive regions within the market. This financial hurdle may prove to prolong the implementation of SBW technology. At the moment, the primary target of OEMs is that of high-end or luxury vehicle as that is where some consumers can pay for advanced features while effective solutions are still being developed.
 

Automotive Steer-by-Wire System Market Analysis

Based on propulsion, the market is segmented into ICE and electric vehicles. In 2024, the ICE segment accounted for over 60% of the automotive steer-by-wire system market share and is expected to exceed USD 3.5 billion by 2034.
 

• The reason for the growth of that segment is the domination in production and sales of vehicles globally, especially in ICE cars, in North America, Europe and certain areas of Asia where connections to the automotive industry are well developed.
   
• The integration of SBW system into ICE vehicles improves the accuracy of car control and the comfort of driving, which is in line with the maturing market requirements of more advanced driving aids.
   
• Furthermore, the ICE vehicle construction systems and fortified marketing strategies of the mid to premium versions result in a smooth transition to new innovations such as SBW.
   
• The increase in the number of electric vehicles (EV) on the road is welcomed, but the existing ICE vehicle fleet offers the greatest opportunity to install steer-by-wire systems in the short term, and therefore, retains the most significant market share.
   

Based on the vehicle, the automotive steer-by-wire system market is divided into passenger cars, and commercial vehicles. The passenger cars segment held around 72% of the market share in 2024.
 

• Within the global motor vehicle industry, passenger cars dominate as a category, and there is an increasing focus on vehicle electrification and self-driving vehicles, both of which benefit from SBW.
   
• SBW system enables accurate steering, vehicle weight reduction, and design improvement. These factors are indispensable in the design of a modern passenger car.
   
• There is also an increasing market for luxury, electric, and autonomous vehicles that are well integrated with new technologies. The increase in the level of automation in these vehicles drives the adoption of steer-by-wire systems. The prospects of increased driving dynamics, space savings, and optimized safety features provide greater advantages for passenger cars.
   
• This is especially true in the case of high-end and electric vehicles, where because of these benefits, SBW has a greater competitive advantage. These positive aspects of SBW make it favorable for manufacturers specializing in the consumer vehicles market.
   

In 2024, the Asia Pacific automotive steer-by-wire system market accounted for over 40% revenue share and is expected to exceed USD 2.5 billion by 2034. China leads the market in the Asia Pacific region and is expected to exceed USD 600 million by 2034.
 

• This lead of China is supported by the country’s ever-growing automotive market alongside the expanding adoption of electric vehicles and self-driving cars in the country. Thus, China’s SBW system market persists as the biggest player in the automotive steer-by-wire (SBW) system industry; however, the strong government incentives for sustainable technologies further boost the adaptation of SbW systems.
   
• In turn, major automobile manufacturers in China such as BYD and Geely have started focusing their funding on advanced steering systems engineering for next-generation models. Furthermore, the continuous push for steer-by-wire systems makes China a key growth region due to the focus on smart manufacturing and rapid growth in self-driving technologies.
• The market for SbW systems in electrified and autonomous cars has already received a major boost in Europe which, according to recent developments, is dominated by countries like Germany, France, and the UK.
   
• Major companies including Volkswagen and BMW are investing heavily in advanced steering techniques which are expected to yield positive results. The growing concern regarding environmental issues as well as the adoption of more expensive luxury vehicles equipped with advanced electronics is adding to the market expansion in Europe.
   
• Moreover, the need for lightweight vehicles is increasing the integration of SbW systems. With these major shifts in the industry, the adoption of luxury cars equipped with SbW technology and research and development in automotive electronics is in high demand.
   
• Utility modeling of SbW systems including energy requirements of mission-defined vehicles will help address the most critical vehicle weight issues in the different vehicle models on a mission. Enabling mechanisms and other components necessary to implement SbW will at the same time contribute to higher stability and civil use levels of robotics systems.
   
• In the Middle Eastern and African markets, the automotive steer-by-wire (SbW) system is increasing in popularity owing to the rising demand for luxury cars and electric vehicles (EVs) available in regions including the UAE and Saudi Arabia.
   
• Similarly, the automotive technologies market in Latin America is maturing with growth focused in Brazil and Mexico, though the economic landscape and infrastructure of the region inhibit growth tremendously.
   

Automotive Steer-by-wire System Market Share

Nexteer Automotive Group, JTEKT Corporation, and Robert Bosch collectively held a substantial market share of over 14% in the automotive steer-by-wire system industry in 2024.
 

• Nexteer is focused on improvement and thoroughly integrating with advanced self-driving technologies, ADAS integration, and furthering our steer-by-wire SbW systems with intelligent software and advanced electronic control units (ECU).
   
• Further, Nexteer works with OEMs on cost-effective solutions that also reduce weight, fuel consumption, and increase vehicle agility.
   
• JTEKT is paving its way into steer-by-wire technology by marking the focus on reliability and safety with the aim of replacing older mechanical linkages with electronic controls. The company provides its SbW systems' integration with ADASs to make the large autonomous driving functionalities much better.
   
• JTEKT is also putting money into new developments to improve the speed of the system reaction in order to increase vehicle stability and precision while affording to increase weight and broaden fuel economy.
   
• Robert Bosch creates multifunctional steer-by-wire systems that are firmly focused on safety and redundancy. The company implements its SbW systems together with artificial intelligence and ADAS systems to make autonomous driving possible.
   
• Targeting mass adoption, Bosch uses its deep knowledge of electronics and software to achieve improvements in steering response and vehicle dynamics, together with OEMs, to create SbW systems for electric and automated vehicles.
   

Automotive Steer-by-wire System Market Companies

Major players operating in the automotive steer-by-wire system industry are:

• Continental
• Denso
• Hitachi Astemo
• JTEKT
• Magna International
• Nexteer Automotive
• Robert Bosch
• ThyssenKrupp
• Valeo
• ZF Friedrichshafen
   

The automotive steer-by-wire system market has some great competition owing to the various companies trying to capture a stronghold in the market. The market is expanding due to the increased demand for light and accurately flexible steering systems that enhance vehicle performance and support the trends towards vehicle electrification and autonomy.
 

Currently, the market is supported by the combined trends of innovation, sustainability, and safety requirements. This competitive and fast-growing market favors companies that can provide affordable, reliable, and next-generation solutions while forming alliances and enhancing technological capabilities.
 

Steer-by-wire systems are regarded as a key area in advanced vehicle functionalities, boosting the market with the growing demand for electric and autonomous vehicles. The systems inherent characteristics of higher integration into the vehicular electronic architecture entails that drawing synergy from steer by wire systems suppliers and OEMs has become more common in North America, Europe and Asia Pacific advanced automotive technology zones.
 

Automotive Steer-by-wire System Industry News

• In October 2024, the advancement of steer-by-wire (SbW) feedback technology began with Parker Hannifin’s introduction of the LORD Force Feedback Device (FFD). The FFD depicts the latest advancement in steering SbW feedback technology. An integrated solution for new vehicles comprising a steering sensor, a magnetically controllable variable brake, and an electric motor, FFD improves the steering texture and the operator feedback.
   
• In July 2024, New test benches for steer-by-wire and traditional steering systems were created by Vector Informatik together with MdynamiX. These innovations will synergistically combine Vector's simulation and real-time hardware and components from MdynamiX, significantly improving the steering technology testing process. The new tabletop steer-by-wire test system is aimed at being compact and modular for multiple testing purposes and is anticipated to expand the engineering capabilities of the company.
   

The automotive steer-by-wire system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Component

• Electronic Control Units (ECUs)
• Steering actuators
• Feedback motors
• Angular sensors
• Others

Market, By Propulsion

• ICE
• Electric vehicles 
  • Battery Electric Vehicles (BEV)
  • Plug-in Hybrid Electric Vehicles (PHEV)
  • Hybrid Electric Vehicles (HEV)

Market, By Vehicle

• Passenger cars 
  • Hatchback
  • Sedan
  • SUV
• Commercial vehicles 
  • Light Commercial Vehicles (LCV)
  • Heavy Commercial Vehicles (HCV)

Market, By Sales Channel

• OEMs
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa