Automotive Shift-by-Wire (SBW) Systems Market Report 2026

The automotive shift-by-wire (sbw) systems market size has grown strongly in recent years. It will grow from $1.85 billion in 2025 to $2.02 billion in 2026 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to adoption of automatic transmissions, drive-by-wire evolution, vehicle electronics growth, demand for smoother shifting, cockpit design changes.

The automotive shift-by-wire (sbw) systems market size is expected to see strong growth in the next few years. It will grow to $2.88 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to electric vehicle growth, autonomous driving development, software-defined vehicles, demand for space-efficient interiors, functional safety advancements. Major trends in the forecast period include shift toward electronic gear shifting, integration with advanced driver assistance systems, growth of ev-compatible sbw systems, adoption of compact control interfaces, focus on interior design flexibility.

The increasing production of electric vehicles (EVs) is expected to drive the growth of the automotive shift-by-wire (SBW) systems market. An electric vehicle is powered either fully or partially by electric motors that use energy stored in rechargeable batteries instead of internal combustion engines. This rise in EV production is primarily fueled by government incentives and stricter emissions regulations, which are encouraging automakers to transition to more sustainable alternatives. Shift-by-wire (SBW) systems are especially beneficial for electric vehicles, as they replace traditional mechanical linkages with electronic controls, reducing weight, optimizing space, enhancing design flexibility, and improving overall vehicle efficiency. For example, in December 2024, the U.S. Energy Information Administration reported that sales of battery electric vehicles (BEVs) continued to grow, with their market share rising from 7.4% of the U.S. light-duty vehicle (LDV) market in Q2 2024 to 8.9% in Q3. Similarly, hybrid vehicle sales also grew, reaching 10.6% of the U.S. LDV market in the same period. As a result, the rising production of electric vehicles is contributing to the growth of the automotive shift-by-wire (SBW) systems market.

The increasing adoption of advanced driver assistance systems (ADAS) is boosting the growth of the automotive shift-by-wire (SBW) systems market. ADAS technologies are designed to improve vehicle safety and driving comfort by assisting drivers with tasks such as braking, steering, and parking. As consumers become more safety-conscious and seek enhanced driving convenience, the demand for ADAS is rising. Automotive shift-by-wire systems improve ADAS by enabling electronic control of gear shifting, which facilitates smoother integration with autonomous driving features such as automated parking and adaptive cruise control. For instance, the National Safety Council (NSC) forecasted in April 2023 that by 2027, ADAS would be present in at least 50% of all registered vehicles. This would include features such as rearview cameras in 73% of vehicles, rear parking sensors in 63%, and front crash prevention systems in 51%. As ADAS continues to grow in popularity, it is driving the demand for automotive shift-by-wire (SBW) systems.

Major companies in the automotive shift-by-wire (SBW) systems market are focusing on the development of innovative solutions such as column-type shift-by-wire systems. Column-type SBW systems replace traditional mechanical linkages with electronic controls, offering greater design flexibility and operational efficiency. For instance, in January 2025, Hyundai Motor launched the Hyundai Creta Electric, which features a column-type shift-by-wire system. This advanced system replaces mechanical gear linkages with electronic controls, operated via a stalk positioned on the right side of the steering column. The design creates more space on the center console, freeing it up for cup holders and drive mode buttons, thus enhancing driver convenience and offering a more intuitive and futuristic driving experience. By eliminating the mechanical connection, the SBW system ensures smoother gear shifts and contributes to the Creta Electric's modern, user-friendly interior.

Major companies operating in the automotive shift-by-wire (sbw) systems market report include ZF Friedrichshafen AG, BorgWarner Inc., Eaton Corporation plc, Mitsubishi Electric Corporation, Leopold Kostal GmbH & Co. KG, Kongsberg Automotive ASA, GHSP Inc., JOPP Holding GmbH, Orscheln Products LLC, Dura Automotive Systems LLC, Stoneridge Inc., Sila Group S.p.A., Robert Bosch GmbH, Continental AG, Valeo S.A., Aptiv PLC, Schaeffler AG, Magna International Inc., NSK Ltd., Nidec Corporation.

Europe was the largest region in the automotive shift-by-wire (SBW) systems market in 2025. The regions covered in the automotive shift-by-wire (sbw) systems market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive shift-by-wire (sbw) systems market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive shift-by-wire (SBW) systems market consists of sales of position sensors, connectors, electronic gear selector modules, and transmission control modules (TCM). Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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