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The automotive steer-by-wire system market size is estimated to grow at a CAGR of 10.27% between 2023 and 2028. The market size is forecast to increase by USD 264.43 million. The growth of the market depends on several factors such as the benefits of the SBW system, the electrification of vehicles, and the emergence of autonomous vehicles.
This automotive steer-by-wire system market report extensively covers market segmentation by technology (backup mechanical and pure electronic), vehicle type (ICE and electric vehicle), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The benefits of the SBW system are notable driving the market growth. The global automotive steer-by-wire system market is growing in line with the growing volume of sales of luxury vehicles. SBW system is an electronic system with enhanced functional accuracy. The major advantage associated with equipping vehicles with SBW systems is that it reduces the weight of the vehicle, which results in increased fuel efficiency. The SBW system enhances the vehicle's safety by reducing the crash impact owing to reduced mechanical linkages and components. Furthermore, the elimination of mechanical linkages minimizes road vibrations transmitted through the steering column, leading to a smoother and more comfortable drive.
Moreover, with growing advancements, modular design of SBW systems may become possible, which would lead to faster production. The incorporation of an active steering system in SBW may lead to vehicle handling optimization and further improve the car's active lane control system. Such benefits of the SBW system are expected to drive the growth of the global automotive steer-by-wire system market during the forecast period.
Increased funding for the R&D of autonomous vehicles is an emerging trend shaping market growth. The development of automotive AI requires a significant amount of funding. Automakers are racing to be the first to develop fully-functioning autonomous vehicles and capture the market. Companies, namely Delphi, Intel, Mercedes-Benz, and Ford, are the major players that have invested heavily in the development of automotive AI. Automakers are investing in technology companies that specialize in technologies relating to AI.
For instance, in January 2021, Microsoft Corp. partnered with Cruise, a self-driving car manufacturer. Microsoft Corp. made an equity investment of USD2 billion in Cruise. Previously, Honda and General Motors also invested in Cruise. Such developments are expected to drive the growth of the market during the forecast period.
Accidents involving autonomous vehicle prototypes are a significant challenge hindering market growth. Safety is one of the biggest concerns that is challenging connected and automated vehicle technologies. Tesla's self-driving cars are not fully accident-proof. According to the National Highway Traffic Safety Administration, Tesla's autopilot has been involved in 12 accidents till August 2021. The lack of safety guidelines to certify a new technology as safest or "safe enough" may cause apprehensions among potential buyers of such technology systems. An SBW system serves as a stepping stone to autonomous cars in the future.
However, the SBW system is expected to be an integral part of autonomous vehicles in the future. Hence, increasing on-road collisions involving autonomous cars question the reliability of such cars and the systems therein, which can be a hindrance to the growth of the market in focus during the forecast period
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Steer-by-wire System Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB SKF - The company offers automotive steer-by-wire systems such as Bertone-SKF which replaces traditional hydraulic and mechanical systems in vehicles.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The backup mechanical segment is estimated to witness significant growth during the forecast period. The backup mechanical segment of the global automotive steer-by-wire system market is expected to grow at a moderate pace. High-volume sales of automobiles with the SBW system equipped with the backup mechanical system are driving the growth of the market in focus. The emergency benefits associated with having a backup mechanical system, in case of malfunction of the SBW system, are pushing automakers to adopt such systems.
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The backup mechanical segment was the largest segment and was valued at USD 298.48 million in 2018. In the last ten years, a large number of recalls involving SBW systems have highlighted the importance of a mechanical connection if any failure is detected. For instance, Infiniti Motor Co., a subsidiary of Nissan Motor Co., Ltd., witnessed a large number (more than 60,000) of vehicle recalls due to faults in the SBW system. However, a failure in SBW systems can delay the deployment of a mechanical backup, which is still a major challenge for the vendors operating in the market and can negatively impact segment growth during the forecast period.
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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The automotive steer-by-wire system market in APAC accounted for the second-highest market share in the market in focus. The emerging economies of APAC are driving the growth of the regional market. In addition, developed automotive markets, such as Japan, South Korea, and Australia, are also contributing to the growth of the market. The sales of INFINITI's vehicles in APAC nations, such as Japan, South Korea, China, and Australia, are acting as a market enabler for the growth of the market in focus in the region. We expect INFINITI to enter other markets of APAC, which would further act as a market enabler. Japan introduced fleets of autonomous taxis, buses, trucks, and private vehicles in the Tokyo Olympics and Paralympic in 2021.
For instance, Toyota Motor Corp launched the e-Palette, a fully autonomous vehicle for the Tokyo Olympics. Apart from Japanese companies, Chinese companies are increasingly investing in automotive AI for semi-autonomous vehicles. The project named Apollo will basically be a software platform that will enable the company's automotive and software partners to develop their distinct driving systems. Such factors are expected to drive market growth in the region during the forecast period.
The COVID-19 pandemic led to the temporary shutdown of the automotive industry in several countries across APAC, which led to a decline in the production of automobiles and related components in 2020. However, the initiation of mass vaccination drives helped the regional market recover in 2021. Additionally, future growth is expected to be supported by escalating technological advancements and rising consumer demand for safer and more practical vehicles. Hence, owing to such growth trends, the regional market is expected to witness moderate growth during the forecast period.
The automotive steer-by-wire system market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Automotive Steer-by-wire System Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.27% |
Market Growth 2024-2028 |
USD 264.43 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.01 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB SKF, Autoliv Inc., BWI Group, China Automotive Systems Inc., Danfoss AS, Eaton Corp. Plc, GKN Automotive Ltd., Hitachi Ltd., Hyundai Motor Co., Infineon Technologies AG, JTEKT Corp., Knorr Bremse AG, KYB Corp., Mando Corp., Nexteer Automotive Group Ltd., Nissan Motor Co. Ltd., NSK Ltd., PARAVAN GmbH, Parker Hannifin Corp., Robert Bosch GmbH, Schaeffler AG, thyssenkrupp AG, and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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