Automotive Steer-By-Wire Market To Hit $5.8 Billion By 2031 On Growing ADAS Integration

(MENAFN- EIN Presswire) Steer-by-wire turns steering into software, enabling EV packaging and ADAS while requiring strict safety and cybersecurity.

WILMINGTON, DE, UNITED STATES, September 9, 2025 /EINPresswire / -- According to a new report published by Allied Market Research, titled,“Automotive Steer-By-Wire System Market by Component (Steering Actuator, Feedback Motor, Angular Sensors, Others), by Propulsion Type (ICE, Electric), by Vehicle Type (Passenger Cars, Commercial Vehicles): Global Opportunity Analysis and Industry Forecast, 2021 - 2031" The global automotive steer-by-wire system market size was valued at $2.7 billion in 2021, and is projected to reach $5.8 billion by 2031, growing at a CAGR of 8.5% from 2022 to 2031.

Steer-by-wire (SbW) systems replace the mechanical steering column with electronic sensors, actuators and control units to transmit driver inputs to the road wheels, enabling lighter architectures, greater packaging freedom and native integration with ADAS and autonomous features. Growing EV adoption, demand for improved fuel efficiency and the push for higher vehicle automation are accelerating SbW development and pilot programs across OEMs and tier-1 suppliers, with the market expected to expand steadily through the decade.

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Market Dynamics
. Technology & integration as a growth engine. SbW's core value is its ability to decouple mechanical linkages and provide precise, software-defined steering control  a key enabler for lane-keeping, automated parking and Level-3+ automated driving platforms. Automakers favour electronic steering architectures because they simplify integration with ADAS stacks and allow innovations such as variable steering feel and configurable steering ratios.

. EVs and packaging / efficiency gains drive adoption. Electric vehicles benefit from SbW because it frees packaging space, reduces weight compared with legacy mechanical/hydraulic systems, and supports regenerative strategies and efficiency improvements across platforms - factors that encourage OEMs to specify SbW on new EV platforms. Market forecasts from multiple analysts show SbW demand correlating strongly with EV production growth.

. Safety, functional-safety and cybersecurity requirements raise the technical bar. Because SbW removes the mechanical fallback, suppliers must build robust redundancy, fault-tolerant control loops, validated fail-safe modes and secure in-vehicle communications -increasing development time, validation cost and certification complexity. These safety and cyber requirements slow near-term volume uptake but raise entry barriers that reward experienced tier-1 suppliers.

. Regulation and test-track validation influence regional rollouts. Regions with active ADAS/autonomy roadmaps and clearer regulatory paths (testing/regulatory guidance) tend to see earlier SbW deployments; conversely, markets tightening oversight after incidents may slow commercialization while raising required compliance steps for OEMs. Local rulemaking for driver monitoring and ADAS validation will therefore shape vendor roadmaps.

. Cost, supplier consolidation and partnerships. High unit costs and system complexity favour established auto suppliers and OEM-supplier joint development. Expect consolidation, multi-year awards for software + hardware stacks, and strategic partnerships (OEMs, software providers and tier-1s) as the fastest route to scale SbW across global vehicle lineups. This commercial dynamic both concentrates capability and accelerates standardized architectures.

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Segment Overview
The automotive steer-by-wire system market overview segments by component (ECUs/controllers, sensors, electric actuators, HMI/steering wheels, software & services), vehicle type (passenger EVs, BEVs/HEVs, commercial vehicles, premium ICE platforms) and level of redundancy (single channel, dual-channel, multi-redundant). Passenger EVs and premium segments lead initial adoption due to higher willingness to pay and the integration advantages for automated functions, while lower-cost segments follow as unit costs decline and validation cycles shorten.

Regional Analysis
.Asia-Pacific leads adoption and scale. APAC (notably China, Japan and South Korea) is the largest and fastest-growing region for SbW because of rapid EV penetration, local OEMs pushing advanced driver assistance packages, and a dense supplier base. Chinese policy emphasis on new energy vehicles plus aggressive OEM development programs make China a primary commercialization ground for steer-by-wire modules and pilot production.

.Europe & North America: regulation-led adoption and premium-segment traction. Europe emphasizes safety and stringent vehicle standards which, combined with a strong legacy of premium OEMs, drives SbW uptake in high-end and EV segments. North America sees targeted deployments tied to autonomous pilot fleets and EV platforms; regulatory developments at state and federal levels will shape timing and scale of broader rollouts.

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Competitive Analysis
Tier-1 suppliers dominate but newcomers chip in. Major automotive suppliers - including Continental, ZF, Robert Bosch, Nexteer, JTEKT, Hitachi Astemo and Mando - lead on validated hardware/software stacks, functional-safety know-how and multi-OEM contracts. These incumbents' experience with ECU development, validation rigs and safety certification gives them advantage in securing platform awards.

OEMs, software players and startups create ecosystem competition. Some OEMs (and new entrants) are pursuing captive or joint-venture approaches to retain control over steering-by-wire software and tuning; meanwhile startups and software specialists are supplying niche control algorithms, human-machine interfaces and cybersecurity modules, prompting partnerships and technology licensing deals rather than purely buy-off-the-shelf supply. Expect M&A and strategic partnerships as the market matures.

Key Findings of the Study
. SbW adoption is correlated strongly with EV and ADAS/autonomy program rollouts  EV platforms are the primary near-term growth driver.
. Functional-safety and cybersecurity requirements increase development cost but favor experienced tier-1 suppliers, raising barriers to entry.
. Asia-Pacific (especially China) will account for a leading share of early volumes due to rapid EV production and supportive industry programs.
. Market consolidation and multi-year platform awards are expected as OEMs prefer integrated software+hardware stacks from validated partners.
. Unit cost reduction through scale, standardization and validated redundancy architectures will determine when SbW moves from premium to mass segments.

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David Correa
Allied Market Research
+15038946022 ext.
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