Automotive Steer-By-Wire System Market

Industry Insights

[219+ Pages Report] According to Facts & Factors, the global automotive steer-by-wire system market size was worth around USD 3.10 billion in 2023 and is predicted to grow to around USD 6.09 billion by 2032, with a compound annual growth rate (CAGR) of roughly 7.8% between 2024 and 2032.

Market Overview

The automotive steer-by-wire system is a vital vehicle technology that replaces conventional hydraulic and mechanical steering linkages with electric controls. It is reliant on electronic signals to regulate the car's steering. It comprises actuators, sensors, and motors to offer real-time advice to the driver, thus mimicking the feel of traditional steering.

The key advantages of steer-by-wire comprise reduced weight, the potential for enhanced convenience and safety features, such as advanced self-driving integration or customizable steering, and highly flexible interior design. The global automotive steer-by-wire system market is driven by growing technological improvements and rising demand for electric vehicles. The rise of autonomous and electric vehicles has notably boosted the demand for SBW or steer-by-wire systems.

Former steering systems that were dependent on hydraulic power and mechanical linkages are not suitable for modern vehicles that emphasize compact, lightweight, and electronic-based parts. Steer-by-wire systems match the new technological trends by providing precise control, higher flexibility, and fast response times in car design. Furthermore, the rising demand for electric vehicles owing to more convenient components and technologies is fueling the overall market growth.

However, the global automotive steer-by-wire system market is restrained by factors like high initial costs, trust issues, and consumer resistance. The SBW technology is relatively new and the development costs are much higher owing to the demand for more developed actuators, sensors, and strong electronic parts. This increases the overall costs, mainly for the mass-market automobiles.

Moreover, a larger number of consumers are familiar with conventional steering systems and may be doubtful of the new ones regarding safety and reliability. The notion of driving without bodily steering linkage may cause hesitation or reluctance, mainly for consumers who prefer mechanical reliability and safety. Yet, the global automotive steer-by-wire system industry is opportune to the improvements in hybrid and electric vehicles.

As the adoption of hybrid and electric vehicles is increasing, the demand for space-efficient and lightweight solutions is also rising. SBW technology allows auto manufacturers to improve automobile interior design, enhance battery range, and decrease overall vehicle weight. These advantages make the steer-by-wire technology appealing to the electric vehicle market.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive steer-by-wire system market is estimated to grow annually at a CAGR of around 7.8% over the forecast period (2024-2032)
• In terms of revenue, the global automotive steer-by-wire system market size was valued at around USD 3.10 billion in 2023 and is projected to reach USD 6.09 billion by 2032.
• The automotive steer-by-wire system market is projected to grow at a significant rate owing to the growing demand for electric vehicles, rising focus on automation, and increasing vehicle customization and improved driving experience.
• Based on the component, the steering actuator segment is holding the maximum share of the market, while the feedback motor segment is projected to witness a notable revenue over the estimated period.
• Based on propulsion type, the ICE segment is expected to lead the market as compared to the electric segment.
• Based on vehicle type, the passenger cars segment is expected to lead the market, while the commercial vehicles segment is projected to be the most lucrative segment.
• Based on region, North America is anticipated to dominate the global market over the forecast period, followed by Europe.

Growth Drivers

• Growing demand for space optimization and weight reduction impact the market growth

Optimizing interior space and reducing weight are some of the key aspects of the upcoming vehicles. SBW technology helps to fulfill these objectives by removing the need for heavy mechanical steering columns and steering linkages. This is mainly essential for EVs where reducing overall weight offers efficiency and enhanced range.

In 2023, the European Automobile Manufacturers Association (ACEA) made a study saying, that every 10% reduction in weight of the vehicle results in nearly 8% enhanced energy efficiency for EVs. Therefore, auto manufacturers are shifting towards SBW-like technologies to reduce the weight of vehicles without negotiating performance.

Mercedes-Benz, in 2023, launched 'EQS', a flagship electric vehicle that presents a ground-breaking interior with a flexible and more open design. By implementing the SBW system, the vehicle eliminates the need for a former steering column, offering extra space for passengers.

• Customization and enhanced driving experience fuel the industry's growth

The key attractive feature of SBW technology is the ability to offer a customized driving experience. The driver can easily control steering sensitivity, feel, and feedback, increasing its use for premium automobiles and ultimately impacting its demand. Nissan, in 2023, introduced its customizable SBW technology in its new vehicle models. This modernization enables drivers to change steering response controls on the basis of the road.

This offers a more personalized driving experience to drivers. This inclination along with the rising demand for personalized vehicle features is fueling the use of SBW systems. This encourages auto-makers to manufacture more customized and improved driving experiences for users. This factor is projected to significantly impact the automotive steer-by-wire system industry growth.

Restraints

• Trust issues and customer resistance to adversely impact the market growth

Despite improvements in the SBW technology, consumer resistance is still a concern. Most consumers are familiar with conventional mechanical steering and may be doubtful about using modern and improved steering technology due to concerns about safety and reliability. The lack of physical connection between the vehicle's wheels and the driver may also cause discomfort and nervousness.

General Motors, in 2024, launched a novel SBW feature in its upcoming vehicle models, responding to complaints reported by focus groups on driver trust and comfort. The company also stated that it will be educating customers and resolving reliability issues before it is completely launched.

The lack of consumer trust in completely electronic systems, mainly in terms of safety, may slow down the adoption of these systems. Building consumer trust and confidence via education and physical testing will be important to overcome this obstacle.

Opportunities

• Customization opportunities and improved vehicle design are lucrative to the market growth

SBW technology offers an opportunity for auto manufacturers to redesign interiors in new ways. Without needing a physical steering column, makers can widen cabin space, offer customized driving experiences, and create ergonomic designs. This mainly appeals to the premium and luxury segment, where consumers demand highly innovative features and personalized technology.

In 2023, BMW launched the iX SUV which presents a partially SBW system that enables drivers to control steering features like response and stiffness. The system also allows spacious interiors with adjustable seating arrangements and presents potential for extra customizations in the upcoming models.

The rising demand for innovative features and customizable interiors in the luxury segment offers a lucrative opportunity for automotive steer-by-wire system market growth. Auto manufacturers can utilize this technology to provide exceptional driving experience and optimize vehicle cabins, presenting free space for premium characteristics and a customized steering feel.

Challenges

• Concerns with consumer adoption and acceptance challenge the industry's growth

One of the major challenges for SBW technology is consumer acceptance. Most consumers are familiar with the conventional hydraulic and mechanical steering systems, and shifting to fully automatic systems may raise questions about driving feel, safety, and reliability. Convincing drivers that SBW technology is enjoyable and safe during the dominance of traditional systems is a major hurdle.

In 2024, BMW introduced an awareness campaign to teach potential buyers about the SBW technology. The campaign comprised live test drives and demonstrations where consumers could witness the technology firsthand. The company then reported a 30% increase in potential buyers who considered vehicles equipped with the said technology.

Report Scope

Segmentation Analysis

The global automotive steer-by-wire system market is segmented based on component, propulsion type, vehicle type, and region.

Based on component, the global market is divided into steering actuators, feedback motors, angular sensors, and others. The steering actuator segment held a considerable share of the automotive steer-by-wire system market in 2023 and will continue its leadership in the future as well owing to its vital role in functionality and performance. The actuator is accountable for controlling the vehicle steering physically by translating electric signals into mechanical movements. This part plays a key role in the vehicle performance and functionality of the SBW systems, increasing its significance in the industry. As the said technology is completely dependent on electronic control, actuators are vital for assuring accurate and responsible steering with no conventional link.

Based on propulsion type, the global automotive steer-by-wire system industry is segmented as ICE and electric. The ICE segment is anticipated to register a substantial share of the market in the forecast period. Despite the speedy growth of EVs, the ICE vehicles segment is still holding its significance. As per the recent data, more than 90% of the vehicles retailed were equipped with internal combustion engines in 2023. This dominance denotes that ICE automobiles are the primary market for SBW technology, which is currently being integrated into the former as well as the upcoming vehicles. Several luxury and premium auto manufacturers are the first companies to integrate improved solutions like automotive steer-by-wire systems, mainly in their ICE models. These factors are the key reasons for the segmental growth.

Based on vehicle type, the global automotive steer-by-wire system market is segmented as passenger cars and commercial vehicles. The passenger cars segment will dominate the global market in the forthcoming years owing to its high adoption rate and design flexibility. Passenger cars, mainly the luxury and premium models are the key segment for the adoption of modernized technologies like SBW. Manufacturers are more interested in experimenting with innovative features in passenger cars, mainly in models that satisfy consumer demand like innovative and high-end driving experience. Brands like Mercedes, BMW, Audi, and more are incorporating SBW systems in their passenger vehicles to improve driving dynamics, comfort, and space efficiency.

Regional Analysis

• North America to hold significant growth during the estimated period

North America held a dominant share of the global automotive steer-by-wire system industry in 2023 and is projected to continue leading over the forecast period as well. The reasons for the regional growth comprise the strong presence of the automotive industry and the heavy adoption of autonomous and electric vehicles.

North America, mainly the United States is a hub for the leading auto manufacturers who are leading in the adoption of modernized auto technologies like steer-by-wire technology. Strong manufacturing base of the region is substantially impacting the demand for innovative vehicle systems.

Furthermore, the region has been a crucial market for autonomous driving technology and electric vehicles. As per the study in 2023, the United States accounted for approximately 20% of sales of EVs and the growth of self-driving cars increased the demand for SBW technology. This technology is suitable for EVs owing to their electronic control and flexible design.

Europe is projected to grow as the second-leading region due to its leadership in sustainability policies and major inclination for low-emission mobility and electric vehicles. The EU's rigorous targets for emission reduction and incentives for the adoption of electric vehicles are propelling the demand for efficient technologies and lightweight systems like SBW, which are the best choice for EVs.

Furthermore, the European Union has launched ambitious regulatory policies to aid green mobility. The European Commission's principles like 'Fit for 55' and 'Green Deal' initiatives are notably impacting auto manufacturers to use superior technologies like SBW to comply with these standards.

Competitive Analysis

The global automotive steer-by-wire system market is led by players like:

• Bosch
• ZF Friedrichshafen AG
• Nexteer Automotive
• Continental AG
• Thyssenkrupp AG
• Magna International
• Honeywell International Inc.
• Valeo SA
• Mando Corporation
• Delphi Technologies
• Daimler AG
• BMW Group
• Tesla Inc.
• Honda Motor Co. Ltd.
• Toyota Motor Corporation

Key Market Trends

• Integration with autonomous and electric vehicles:

Auto manufacturers are actively adopting steer-by-wire systems in EVs and self-driving cars. The spaciousness and flexibility advantages of SBW systems comply with the design needs of electric vehicles and autonomous cars, wherein conventional mechanical steering is not important.

• Emphasis on improved driving experience:

There is a rising demand for adaptive and customized steering feedback in SBW systems. Automakers are increasingly integrating improved feedback motors to offer personalized and natural driving experiences. This enables users to control the steering feel as per their preferences.

The global automotive steer-by-wire system market is segmented as follows:

 By Component Segment Analysis

• Steering Actuator
• Feedback Motor
• Angular Sensors
• Others

By Propulsion Type Segment Analysis

• ICE
• Electric

 By Vehicle Type Segment Analysis

• Passenger Cars
• Commercial Vehicles

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America