Automotive Steer-by-Wire System Market Report 2026

The automotive steer-by-wire system market size has grown strongly in recent years. It will grow from $2.96 billion in 2025 to $3.2 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to advancement in electronic control systems, early autonomous vehicle testing, electric steering adoption, drive-by-wire research.

The automotive steer-by-wire system market size is expected to see strong growth in the next few years. It will grow to $4.32 billion in 2030 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to level 3 and level 4 autonomy development, electric vehicle platform growth, software-centric vehicle architectures, safety regulation evolution. Major trends in the forecast period include development of fully electronic steering systems, integration with autonomous driving platforms, demand for redundant safety architectures, growth in electric vehicle adoption, software-defined steering.

The increasing adoption of electric vehicles is expected to drive the growth of the automotive steer-by-wire system market in the coming years. Electric vehicles are automobiles powered fully or partially by electricity stored in rechargeable batteries, rather than relying on internal combustion engines fueled by gasoline or diesel. The rise of electric vehicles is primarily driven by growing environmental concerns, as they produce zero tailpipe emissions, helping reduce air pollution and combat climate change. Automotive steer-by-wire systems are essential for electric vehicles, as they support advanced vehicle architectures by removing mechanical linkages, allowing greater design flexibility and seamless integration with autonomous driving technologies. For instance, in May 2025, according to a report published by the US Energy Information Administration, a US-based government organisation, electric vehicles accounted for 23% of total luxury vehicle sales in the first quarter of 2025. Electric vehicles had made up more than one-third of luxury sales in 2023 and 2024 before Ward's reclassified the Tesla Model 3 as non-luxury in late 2024. Therefore, the increasing adoption of electric vehicles will drive the growth of the automotive steer-by-wire system market.

Major companies operating in the automotive steer-by-wire system market are focusing on developing technologically advanced solutions, such as state-of-the-art steering systems, to reduce vehicle wear and tear, leading to lower maintenance costs and improved overall vehicle longevity. State-of-the-art steering systems refer to advanced, innovative technologies in vehicle steering that enhance 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, launched the high-tech steer-by-wire system. Designed for bespoke and lower-volume manufacturers, the next-generation steer-by-wire system integrates a customized electric motor and electronic control system optimized for 48 volts. These systems ensure superior performance and endless tunability, while the scalable design meets challenging packaging requirements. Titan leverages its expertise in precision manufacturing to tailor systems from initial prototypes to full production runs, delivering exceptional quality even at lower volumes. Its strong track record in designing and manufacturing advanced electric steering systems makes Titan the ideal partner for next-generation vehicle manufacturers seeking flexible and innovative solutions.

In August 2025, Kongsberg Automotive Holding ASA, a Norway-based automotive technology and components manufacturer, acquired Chassis Autonomy SBA AB for an undisclosed amount. Through this acquisition, Kongsberg Automotive aims to capture a significant share of the rapidly growing steer-by-wire market and strengthen its position in electric and autonomous vehicle systems by expanding its technological capabilities and advanced chassis control product portfolio. Chassis Autonomy SBA AB is a Sweden-based automotive technology company specialising in steer-by-wire road wheel actuators and related by-wire steering solutions for highly automated and fully autonomous vehicles.

Major companies operating in the automotive steer-by-wire system market report include 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., Delphi Technologies PLC, REE Automotive Ltd.

Europe was the largest region in the automotive steer-by-wire system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive steer-by-wire system 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 steer-by-wire system market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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