Automotive Steer-By-Wire System Global Market Report 2025

The automotive steer-by-wire system market size has grown strongly in recent years. It will grow from $2.73 billion in 2024 to $2.96 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth during the historic period can be attributed to government support for EV infrastructure, the rise of automotive startups, increasing awareness of vehicle safety, growth in shared mobility models, and a growing demand for an enhanced driving experience.

The automotive steer-by-wire system market size is expected to see strong growth in the next few years. It will grow to $4.02 billion in 2029 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to the expansion of electric vehicles, increased focus on vehicle lightweighting, the development of urban transport networks, shorter vehicle development cycles, and rising fleet electrification by corporations. Key trends during this period include integration with advanced driver-assistance systems (ADAS) and autonomous driving technologies, advanced sensor integration, redundant system architectures, enhanced vehicle dynamics control, and the development of fail-operational systems.

The growing adoption of electric vehicles is expected to fuel the expansion of the automotive steer-by-wire system market going forward. Electric vehicles (EVs) are automobiles powered fully or partially by electricity stored in rechargeable batteries, instead of relying on internal combustion engines that use gasoline or diesel. The rise in EV adoption is largely driven by increasing environmental concerns, as these vehicles produce zero tailpipe emissions, helping to reduce air pollution and fight climate change. Automotive steer-by-wire systems are essential for electric vehicles because they eliminate mechanical linkages, supporting advanced vehicle architectures and enabling greater design flexibility alongside seamless integration with autonomous driving technologies. For example, in November 2023, the Energy Information Administration, a U.S.-based government agency, reported that in the third quarter of 2023, battery-electric vehicles (BEVs) accounted for 17.7% of new light-duty vehicle sales. BEVs made up 16% of all new vehicle sales in 2023, increasing from 12.5% in 2022 and 9% in 2021. Therefore, the increasing adoption of electric vehicles will drive the growth of the automotive steer-by-wire system market.

Key players in the automotive steer-by-wire system market are developing technologically advanced solutions, such as next-generation steering systems, to reduce vehicle wear and tear, which lowers maintenance costs and extends overall vehicle lifespan. Next-generation steering systems refer to cutting-edge technologies that improve precision, responsiveness, and safety by integrating innovative components and features. For instance, in September 2023, Titan Motorsport and Automotive Engineering, a UK-based automotive company, introduced a high-tech steer-by-wire system. Designed specifically for bespoke and low-volume manufacturers, this next-generation system incorporates a customized electric motor and electronic control system optimized for 48 volts. These systems provide superior performance and extensive tunability, while the scalable design addresses challenging packaging requirements. Titan applies its expertise in precision manufacturing to tailor systems from prototype development through full production, delivering exceptional quality even at lower volumes. Its strong history in designing and producing advanced electric steering systems positions Titan as a prime partner for next-generation vehicle manufacturers seeking flexible, innovative solutions.

In October 2022, ZF Friedrichshafen AG, a Germany-based automotive steer-by-wire system manufacturer, partnered with NIO Inc. to develop steer-by-wire (SBW) products. The collaboration aims to create and implement advanced SBW technology to improve vehicle safety, flexibility, and innovation in smart electric vehicles. Both companies also agreed to establish an instant information-sharing system to enhance communication and enable regular technical exchanges, working together on industry-leading processes and quality standards. NIO Inc. is an electric vehicle manufacturer based in China.

Major players in the automotive steer-by-wire system market are Nissan Motor Corporation, BYD Auto Co. Ltd., Denso Corporation, ZF Friedrichshafen AG, Thyssenkrupp AG, Continental AG, Hyundai Mobis Co. Ltd., Aptiv PLC, Schaeffler Group, Analog Devices Inc., JTEKT Corporation, Hella GmbH & Co. KGaA, NSK Ltd., Mando Corporation, Nexteer Automotive Group Limited, Robert Bosch GmbH, Hitachi Astemo Ltd., Canoo Inc., and Delphi Technologies PLC, REE Automotive Ltd.

Europe was the largest region in the automotive steer-by-wire system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in automotive steer-by-wire system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the automotive steer-by-wire system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An automotive steer-by-wire system is a vehicle steering mechanism that replaces traditional mechanical and hydraulic linkages with electronic controls. It transmits the driver’s steering inputs to the wheels through electrical signals, offering greater design flexibility and improved driving dynamics.

The main components of automotive steer-by-wire systems include electronic control units (ECUs), steering actuators, feedback motors, angular sensors, and others. Electronic control units (ECUs) are embedded systems that process sensor inputs and execute control commands within the steer-by-wire system. The technology can use both backup mechanical systems and purely electronic controls, and is applied in passenger cars, commercial vehicles, and electric vehicles. Key end users include original equipment manufacturers (OEMs) and the aftermarket.

The automotive steer-by-wire system market research report is one of a series of new reports that provides automotive steer-by-wire system market statistics, including automotive steer-by-wire system industry global market size, regional shares, competitors with a automotive steer-by-wire system market share, detailed automotive steer-by-wire system market segments, market trends and opportunities, and any further data you may need to thrive in the automotive steer-by-wire system industry. This automotive steer-by-wire system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive steer-by-wire system market consists of revenues earned by entities by providing services such as system design and engineering, integration services, simulation and testing, prototyping and validation. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive steer-by-wire system market also includes sales of redundant power supply units, calibration tools, and diagnostic equipment. 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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