Automotive Steer-by-Wire (SBW) System Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Propulsion Type (ICE and Electric), By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle), By Component (Feedback Motors, Angular Sensors, Steering Actuators and Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.61 Billion
CAGR (2026-2031)	7.74%
Fastest Growing Segment	Passenger Cars
Largest Market	Asia Pacific
Market Size (2031)	USD 7.21 Billion

Market Overview

The Global Automotive Steer-by-Wire (SBW) System Market will grow from USD 4.61 Billion in 2025 to USD 7.21 Billion by 2031 at a 7.74% CAGR. Automotive Steer-by-Wire systems constitute a chassis technology where the physical connection between the steering wheel and the vehicle wheels is substituted by electronic control units and electromechanical actuators. The expansion of this market is fundamentally driven by the necessity for weight reduction to improve energy efficiency and the demand for flexible cabin configurations in modern electric vehicle architectures. These systems are also integral to the advancement of autonomous mobility as they enable precise computer controlled steering without mechanical interference.

However, the widespread deployment of this technology faces a significant impediment regarding the substantial costs required for redundant safety systems to prevent failure. This financial constraint becomes increasingly relevant as the industry accelerates its shift toward electrification and requires affordable component integration. According to the European Automobile Manufacturers’ Association, in 2024, battery electric vehicles achieved a 13.6% market share of new car registrations, which underscores the critical need for cost effective electronic steering solutions to support this growing vehicle segment.

Key Market Drivers

The Accelerated Transition to Modular Electric Vehicle Architectures is the primary force propelling the adoption of Steer-by-Wire (SBW) systems. As manufacturers migrate to skateboard chassis designs, the elimination of the mechanical steering column becomes crucial for optimizing cabin space and enabling flat-floor configurations. This decoupling allows for the placement of steering components anywhere in the vehicle, facilitating the production of left-hand and right-hand drive variants with minimal retooling. The industrial realization of this trend is evident; according to eeNews Europe, in February 2025, ZF commenced mass production of its steer-by-wire technology for NIO’s flagship ET9, marking a critical milestone in integrating this system into volume electric platforms. Such integration not only streamlines the assembly process by removing complex mechanical linkages but also supports the lightweighting imperatives essential for maximizing electric vehicle range.

Simultaneously, the Proliferation of Autonomous and Semi-Autonomous Vehicle Technologies necessitates the precise, redundant control that only electronic steering can offer. SBW systems serve as the digital interface required for advanced driver assistance systems (ADAS) to execute complex maneuvers with lower latency than mechanical counterparts. This capability is driving significant forward-looking procurement; according to Schaeffler, in July 2025, the company secured three additional customer nominations for its advanced chassis systems through 2027, reflecting the industry's preparation for next-generation automated mobility. Beyond individual supplier wins, the market is witnessing a broader consolidation of these technologies. According to Electric & Hybrid Vehicle Technology International, in January 2025, ZF secured a significant volume contract to supply chassis components including advanced steering systems to a global vehicle manufacturer, underscoring the growing market momentum toward fully electrified chassis control.

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Key Market Challenges

The primary impediment hindering the growth of the Global Automotive Steer-by-Wire (SBW) System Market is the substantial cost associated with implementing redundant fail-operational safety architectures. Unlike conventional steering which relies on mechanical linkages, SBW systems require complete hardware duplication—including backup motors, actuators, electronic control units (ECUs), and power supplies—to mitigate the risk of failure. This necessity significantly inflates the Bill of Materials (BOM) for manufacturers, making the technology economically unviable for cost-sensitive mass-market vehicle segments. Consequently, automakers are forced to restrict SBW integration primarily to low-volume luxury or premium electric models, stalling its expansion into the broader automotive market where pricing pressure is intense.

This cost barrier is further aggravated by the tightening financial margins within the automotive supply chain, which limits the capital available for developing cost-optimized electronic components. According to the European Association of Automotive Suppliers (CLEPA), in 2024, 65% of automotive suppliers struggled to maintain profit margins above the 5% threshold required for sustainable investments in future technologies. This financial strain on suppliers directly restricts the industry's ability to lower the production costs of complex steer-by-wire units, thereby perpetuating the high price point that blocks widespread adoption.

Key Market Trends

The Adoption of Variable Steering Ratios for Yoke and Joystick Interfaces is transforming driver-vehicle interaction by decoupling the steering wheel's physical position from the road wheels. Unlike mechanical systems with fixed ratios, steer-by-wire algorithms dynamically adjust steering sensitivity based on vehicle speed, enabling precise high-speed stability and effortless low-speed maneuvering. This capability allows manufacturers to replace traditional round wheels with yoke-style interfaces that improve instrument visibility and cabin ergonomics without compromising control. According to EV Powered, March 2025, in the 'Lexus RZ gets steer-by-wire and manual transmission for 2025' article, the updated Lexus RZ steer-by-wire system utilizes this technology to achieve a lock-to-lock rotation range of just 200 degrees, thereby eliminating the need for cumbersome hand-over-hand steering inputs during sharp turns.

Simultaneously, the Convergence of Steering into Centralized Chassis Motion Controllers is reshaping the electronic architecture of modern vehicles. Manufacturers are moving away from isolated steering control units toward integrated software-defined chassis domains where steering, braking, and suspension are coordinated by a single high-performance computer to optimize vehicle dynamics in real-time. This integration reduces hardware complexity and allows for the rapid deployment of advanced handling features through a unified digital platform. The commercial viability of this centralized approach is evident in the market; according to InsideEVs, January 2025, in the 'The Tesla Cybertruck Was A Hit In 2024' article, Tesla sold 38,965 units of the Cybertruck in 2024, a vehicle that pioneered the use of a fully integrated 48V steer-by-wire architecture within a centralized zonal control network.

Segmental Insights

The Passenger Cars segment represents the fastest growing category within the Global Automotive Steer-by-Wire (SBW) System Market. This surge is primarily driven by the rapid transition toward electric mobility, where SBW technology enables significant weight reduction and optimizes energy efficiency by eliminating heavy mechanical linkages. Furthermore, the technology is essential for facilitating high-level autonomous driving features and Advanced Driver Assistance Systems (ADAS) in premium vehicles. Automakers utilize this digital steering interface to create spacious, flexible cabin designs and deliver precise handling, ensuring compliance with increasingly rigorous safety expectations across the global automotive industry.

Regional Insights

Asia Pacific dominates the Global Automotive Steer-by-Wire (SBW) System Market, driven by progressive regulatory frameworks and extensive electric vehicle manufacturing in China and Japan. China serves as a key accelerator, where the Ministry of Industry and Information Technology updated national standard GB 17675-2025 to remove the requirement for mechanical steering linkages, directly facilitating full by-wire adoption. Concurrently, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) supports the sector by granting approvals for advanced autonomous driving systems that utilize these technologies. This conducive legal environment, combined with substantial investment from regional manufacturers, secures the region's leading position.

Recent Developments

• In October 2025, Nexteer Automotive announced the launch of its Direct Drive Hand Wheel Actuator (DD-HWA), a significant advancement in its steer-by-wire technology portfolio. The new component is designed to offer premium steering feel and improved system integration, compatible with both 12-volt and 48-volt vehicle architectures. By replacing the mechanical steering connection with digital control, the actuator provides automakers with unprecedented flexibility in vehicle packaging and cabin design. The technology supports the industry's shift toward software-defined vehicles and facilitates various levels of assisted and automated driving.
• In July 2025, ZF Friedrichshafen AG announced a strategic collaboration to supply Mercedes-Benz with its steer-by-wire technology, marking the system's introduction to the European passenger car market. The partnership involves the development of a specific application for the automaker, with series production scheduled to commence in 2026. The system replaces the fixed mechanical steering column with a variable software-based connection, enabling precise maneuvering and enhanced safety. This agreement signifies a major step in the adoption of software-defined vehicle architectures by established premium automotive manufacturers.
• In December 2024, NIO announced that its flagship sedan, the ET9, received official mass-production approval from the Ministry of Industry and Information Technology in China for its steer-by-wire technology. This regulatory milestone made the vehicle one of the first in the global market to incorporate a fully powered steering system that replaces the traditional mechanical linkage with electronic signal transmission. The approved system allows for integrated chassis control and serves as a core component for higher levels of autonomous driving, delivering improvements in precision, stability, and overall driving dynamics.
• In October 2024, Schaeffler Vehicle Lifetime Solutions showcased its expanded product portfolio at the AAPEX event in Las Vegas, featuring its innovative Force Feedback Actuator. This steer-by-wire solution was demonstrated to highlight its ability to adapt to different driving styles and preferences by providing real-time feedback from the road to the driver. The technology eliminates the mechanical connection between the steering wheel and the steering gear, which supports the development of advanced safety and control systems. The showcase emphasized how the system ensures a personalized driving experience while enabling new possibilities for vehicle interior design.

Key Market Players

• Nissan Motor Company Ltd
• ZF Friedrichshafen AG
• JTEKT Corporation
• Thyssenkrupp AG
• Paravan GmbH
• Nexteer Automotive
• Danfoss Power Solutions, Inc.
• AB SKF
• LORD Corporation
• Eaton Corporation

By Propulsion Type	By Vehicle Type	By Component	By Region
ICE and Electric	Passenger Car Light Commercial Vehicle Heavy Commercial Vehicle	Feedback Motors Angular Sensors Steering Actuators and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Steer-by-Wire (SBW) System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Steer-by-Wire (SBW) System Market, By Propulsion Type:

• ICE and Electric

• Automotive Steer-by-Wire (SBW) System Market, By Vehicle Type:

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

• Automotive Steer-by-Wire (SBW) System Market, By Component:

• Feedback Motors
• Angular Sensors
• Steering Actuators and Others

• Automotive Steer-by-Wire (SBW) System Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE