Automotive Steer-by-Wire System Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global car steering by wire system market is expected to grow at a steady rate. The current market size is estimated to be around $3.16 billion in 2024, and it is projected to reach $ 4.49 billion by 2032. The CAGR from 2024 to 2032 is 4.48%. The trend of electric and intelligent vehicles has been in place for a long time. The car steering by wire system has the advantages of easy installation, light weight, good controllability and high security. Therefore, it is an important direction for automobile manufacturers to develop. The development trend of the key technology, such as the integration of artificial intelligence and high-precision sensors, is also expected to drive the market. The market is dominated by industry leaders such as Bosch, ZF Friedrichshafen AG, and Nexteer Automotive. The company has established a number of cooperative relationships with many car companies to enhance its product offerings and expand its market. The cooperation between the automobile and the technology industry is a new trend in the development of car steering by wire. The next generation of steering by wire will play a more important role in the future of automobiles.

Regional Market Size

Regional Deep Dive

The market for steering by wire is experiencing a significant growth in various regions of the world, driven by technological advancements, increasing demand for electric vehicles, and a shift towards self-driving cars. Each region presents a unique market dynamic, influenced by the regulatory framework, consumers’ preferences, and technological innovations. North America leads the way with the adoption of new technology, Europe is the most regulated market, and Asia-Pacific is experiencing rapid industrialization and a growing automobile sector. Middle East and Africa are gradually embracing these new trends, and Latin America is catching up on modern vehicle solutions, albeit at a slower pace.

Europe

• The European Union's Green Deal and stringent emissions regulations are pushing automakers to innovate, with companies like Volkswagen and BMW investing heavily in steer-by-wire systems to meet sustainability goals.
• The European automobile suppliers' association (CLEPA) is promoting the development of digital steering systems and establishing a platform for a cooperative approach to improve the safety and efficiency of steer-by-wire systems.

Asia Pacific

• China's automotive market is rapidly adopting steer-by-wire systems, with companies like BYD and NIO leading the charge in integrating these technologies into their electric vehicles, driven by government incentives for EV adoption.
• Japan's automotive giants, including Toyota and Honda, are investing in research and development of steer-by-wire systems, focusing on enhancing vehicle control and safety features, which is expected to set new industry standards.

Latin America

• Brazil is seeing a gradual shift towards modern automotive technologies, with local manufacturers exploring steer-by-wire systems as part of their strategy to enhance vehicle safety and performance.
• Government initiatives aimed at promoting electric mobility in countries like Chile are encouraging automotive companies to consider steer-by-wire systems as a viable option for future vehicle designs.

North America

• The U.S. is witnessing a surge in investments from major automotive players like Tesla and General Motors, focusing on integrating steer-by-wire systems into their EV models, which is expected to enhance vehicle performance and safety.
• Recent regulatory changes in California have mandated the adoption of advanced driver-assistance systems (ADAS), which include steer-by-wire technologies, thereby accelerating the market's growth in the region.

Middle East And Africa

• The UAE is actively promoting smart mobility initiatives, with government-backed projects like the Dubai Autonomous Transportation Strategy, which aims to integrate steer-by-wire systems into public transport vehicles.
• Emerging markets in Africa are beginning to explore steer-by-wire technologies, with local startups and partnerships with international firms focusing on developing affordable electric vehicles equipped with advanced steering systems.

Did You Know?

“Did you know that steer-by-wire systems eliminate the need for traditional mechanical linkages, allowing for more flexible vehicle design and potentially reducing vehicle weight by up to 30%?” — Automotive Engineering International

Segmental Market Size

The steering by wire system is a major factor in the development of vehicle control systems and is presently experiencing significant growth, driven by the development of vehicle technology and the increased demand for a better driving experience. The main driving forces are the increasing automation of vehicles, the need for greater safety, and the development of electric and self-driving vehicles. At the forefront of this development are companies such as Tesla and Waymo, which are demonstrating the possibilities of steering by wire systems in their revolutionary vehicle designs. At present, steering by wire technology is in the initial stage of implementation, with a focus on the high-end electric vehicles and prototypes of companies such as Audi and BMW. In the future, the most important applications will be in self-driving vehicles, where precision and speed are paramount. The trend towards greater energy efficiency and the drive to reduce CO2 emissions are further encouraging the development of steering by wire systems. Also driving the development of the steering by wire system is the increased sophistication and reliability of the systems that will be possible with advances in sensor technology and artificial intelligence.

Future Outlook

The steering-by-wire market is expected to grow significantly from 2024 to 2032. It is expected to increase from $3.1 billion to $4.4 billion, at a compound annual growth rate (CAGR) of 4.48%. The growth is driven by the increasing popularity of ADAS and the ongoing shift towards electric vehicles, which requires more sophisticated steering systems. As automakers continue to look for ways to enhance vehicle performance and safety, steer-by-wire systems are increasingly becoming a crucial part of modern vehicle design, with benefits such as weight reduction, improved fuel economy and enhanced driving dynamics. In addition, the integration of machine learning and artificial intelligence in steering systems will increase the market penetration. Government policies to promote the electrification of vehicles and to increase their energy efficiency will also drive the market. The emergence of self-driving vehicles, which will require highly accurate and reliable steering systems, will also play a crucial role. In 2032, the steering-by-wire market is expected to represent a significant share of the total steering market. Steering-by-wire systems are expected to account for up to 25% of all new vehicle models. This reflects the growing trend towards more efficient and more innovative vehicle technology.