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, primarily driven by the rise of autonomous and electric vehicles (EV). SbW technology is essential for autonomous vehicles, providing flexible and space-efficient steering solutions that enhance advanced driver-assistance systems (ADAS) and autonomous driving features.
 

For instance, according to the International Energy Agency (IEA), almost 14 million new electric cars were registered globally in 2023, bringing their total number on the roads to 40 million. Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase.
 

In EVs, SbW systems reduce weight and optimize interior space, which is crucial for improving battery efficiency and passenger comfort. The growing emphasis on reducing vehicle complexity, enhancing safety, and improving driving dynamics further accelerates the adoption of SbW systems in these rapidly expanding vehicle categories.
 

Moreover, increasing consumer demand for an enhanced driving experience significantly drives the automotive steer-by-wire (SbW) system market. SbW technology offers superior vehicle handling and precision, allowing for customized steering responses. This provides drivers with a smoother and more responsive experience.
 

As consumers seek advanced and intuitive driving features, SbW systems enable adaptive steering based on speed, road conditions, or driving mode. Additionally, SbW eliminates the traditional steering column, optimizing cabin space and enhancing interior design flexibility. This improved driving experience particularly appeals to buyers of luxury, electric, and autonomous vehicles, driving the adoption of SbW systems across various vehicle segments.
 

Automotive Steer-by-Wire System Market Trends

Automotive steer-by-wire systems are witnessing significant technological advancements in electronics and sensors. The evolution of electronic components, such as advanced sensors, feedback motors, and control units, has increased the reliability, efficiency, and cost-effectiveness of SbW systems. These enhancements enable precise detection and transmission of steering inputs, improving vehicle responsiveness and safety. Advanced sensors, including torque and position sensors, facilitate real-time adjustments to steering performance, resulting in a smoother and more dynamic driving experience.
 

Additionally, innovations in sensor fusion and electronics have enhanced the integration of SbW systems with other vehicle technologies, such as autonomous driving and advanced driver-assistance systems (ADAS). As these technologies advance, they support the broader adoption of SbW systems across a wider range of vehicles, driving market growth, particularly in the electric and autonomous vehicle segments.
 

For instance, in June 2024, Peugeot announced to revolutionize the driving experience with its innovative Hypersquare steering control system, which integrates steer-by-wire technology into its upcoming electric vehicles. This advancement was showcased in the INCEPTION CONCEPT, a fully electric model that highlights Peugeot's commitment to electric mobility and driver-centric design. The Hypersquare will be part of Peugeot's next-generation i-Cockpit, which includes the Stellantis STLA SmartCockpit technology platform. This integration supports features such as Level 4 autonomous driving, where the steering control can retract when the vehicle is operating autonomously.
 

High development and implementation costs pose a significant challenge in the automotive steer-by-wire (SbW) system market. These costs result from the advanced technologies and precision engineering required for SbW systems. Developing these systems demands substantial investment in research, testing, and the integration of complex electronic components, sensors, and actuators.
 

Additionally, automakers must modify existing vehicle architectures to accommodate these systems, further increasing costs. The high production expenses limit adoption, particularly in price-sensitive markets and mid-range vehicle segments. This financial challenge can delay the widespread implementation of SbW technology. Currently, OEMs focus on high-end or luxury models, where consumers are more willing to pay for advanced features, while cost-effective solutions are still in development.
 

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 market share and is expected to exceed USD 3.5 billion by 2034. ICE vehicles continue to dominate the global automotive market, representing the majority of vehicle production and sales, particularly in regions with well-established automotive industries like North America, Europe, and parts of Asia. Integrating SbW systems into ICE vehicles enhances driving comfort and precision, meeting the ongoing demand for advanced driving technologies.
 

Additionally, the existing infrastructure and consumer preference for ICE vehicles, especially in mid-to-premium segments, drive the adoption of innovative systems like SbW. While electric vehicles (EVs) are growing, the broader ICE vehicle fleet still presents the largest volume for implementing steer-by-wire systems in the near term, thus ensuring its leading 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. Passenger cars represent the largest category within the global automotive industry, with a growing emphasis on vehicle electrification and autonomous driving, both of which benefit from SbW technology. SbW systems enable precise steering control, reduce vehicle weight, and provide greater design flexibility, essential for modern passenger car designs.
 

Additionally, the rising demand for luxury, electric, and autonomous vehicles, increasingly equipped with advanced technologies, drives the adoption of steer-by-wire systems. The potential for enhanced driving dynamics, space optimization, and improved safety features further contributes to SbW's dominance in passenger cars, particularly in high-end and electric vehicle segments. These benefits make SbW the preferred choice for manufacturers targeting consumer vehicles.
 

Asia Pacific automotive steer-by-wire system market accounted for 40% of the revenue share in 2024 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. China's robust automotive industry, coupled with the increasing adoption of electric and autonomous vehicles, secures its leading position in the market. The nation's strong focus on EV production, supported by government incentives for sustainable technologies, accelerates the integration of SbW systems.
 

Major Chinese automakers, such as BYD and Geely, are heavily investing in advanced steering systems for their next-generation models. Additionally, China's push for smart manufacturing and the rapid development of autonomous driving technologies further boost the demand for steer-by-wire systems, positioning it as a key growth region.
 

The North American automotive steer-by-wire (SbW) system market holds a significant share, driven by major automotive manufacturers in the U.S. and Canada, such as General Motors, Ford, and Tesla, who are increasingly adopting advanced SbW technologies. The rising demand for electric and autonomous vehicles in North America accelerates the adoption of steer-by-wire systems, offering benefits like reduced vehicle weight, improved design flexibility, and enhanced driving experiences. Furthermore, stringent regulations promoting vehicle safety and innovation contribute to the market's growth in the region.
 

The automotive SbW system market in Europe is experiencing significant growth, driven by the rising demand for electric and autonomous vehicles. European countries, particularly Germany, France, and the UK, lead in automotive innovation. Major manufacturers such as Volkswagen, BMW, and Mercedes-Benz are heavily investing in advanced steering technologies. Stringent environmental regulations and efforts to reduce vehicle weight further support the adoption of SbW systems. Additionally, the trend towards luxury and premium vehicles equipped with SbW technology, along with strong research and development in automotive electronics, is propelling the market's growth in Europe.
 

In the MEA (Middle East & Africa) region, the demand for luxury vehicles and the growing interest in electric vehicles (EVs) are driving the adoption of automotive steer-by-wire (SbW) systems, particularly in markets such as the UAE and Saudi Arabia. In Latin America, the market is evolving with increasing investments in automotive technologies, especially in Brazil and Mexico. However, adoption remains slower compared to other regions due to economic factors and limited infrastructure.
 

Automotive Steer-by-Wire System Company 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 advancing its steer-by-wire (SbW) systems through the use of advanced software and electronic control units (ECUs). The company focuses on safety, driving performance, and customization, integrating SbW with advanced driver assistance systems (ADAS) and autonomous vehicle technology. Additionally, Nexteer collaborates with OEMs to deliver scalable solutions that reduce weight, enhance fuel efficiency, and improve vehicle maneuverability.
 

JTEKT is progressing its steer-by-wire technology by emphasizing reliability and safety, aiming to replace traditional mechanical linkages with electronic controls. The company integrates its SbW systems with ADAS to improve autonomous capabilities. JTEKT is also investing in R&D to optimize system response times, ensuring enhanced vehicle stability and precision while reducing overall weight for better fuel efficiency.
 

Robert Bosch is developing robust and flexible steer-by-wire solutions that prioritize safety and redundancy. The company integrates its SbW systems with AI and ADAS to support autonomous driving. Bosch leverages its expertise in electronics and software to enhance steering response and vehicle agility, while partnering with OEMs to customize SbW systems for electric and automated vehicles, aiming for widespread adoption.
 

Automotive Steer-by-Wire System Market Companies

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

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

Automotive Steer-by-Wire System Industry News

• In October 2024, Parker Hannifin introduced the LORD Force Feedback Device (FFD), representing the next evolution in steer-by-wire (SbW) feedback technology. This integrated solution combines a steering sensor, a magnetically responsive variable brake, and an electric motor, providing enhanced steering feel and operator feedback for modern vehicles.
   
• In July 2024, Vector Informatik and MdynamiX partnered to develop advanced test benches specifically designed for steer-by-wire and conventional steering systems. This collaboration combines Vector's expertise in vehicle dynamics simulation and real-time hardware with MdynamiX's precision components to enhance the testing process for steering technologies. The new steer-by-wire test system is designed to be compact and modular, allowing it to fit on a tabletop while meeting a variety of testing requirements.
   

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 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