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The automotive steer-by-wire system market is forecast to increase by USD 264.43 million and is estimated to grow at a CAGR of 10.27% between 2023 and 2028. Market growth hinges on various factors, notably the advantages offered by the SBW system, the increasing electrification of vehicles, and the rise of autonomous vehicles. These elements collectively fuel innovation and demand in the automotive industry. The SBW system, known for enhancing steering control and responsiveness, has become a pivotal feature in modern vehicles.
The automotive industry is undergoing a significant transformation, driven by the twin trends of electrification and autonomous driving. The growing concern for the environment has fueled the demand for electric vehicles (EVs), which aligns with the push towards cleaner transportation solutions. Simultaneously, the rapid advancement of autonomous driving technologies is reshaping the automotive landscape, offering safer and more efficient transportation options.
Automotive manufacturers are responding to these trends by innovating in various areas, including brake-by-wire systems and steering gearboxes. Automotive brake-by-wire systems replace the traditional mechanical linkage between the brake pedal and the brakes with an electrical connection. This technology enables more precise and responsive braking, as well as the integration of advanced safety features. On the other hand, steering gearboxes are essential components of the vehicle's steering system. They convert the rotational motion of the steering wheel into the linear motion required to turn the wheels. With the advent of autonomous driving, automotive steering gearboxes are being redesigned to accommodate the demands of self-driving vehicles, such as high precision and responsiveness.
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This 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.
The Automotive Steer-by-wire System is driven by its potential to revolutionize vehicle steering. Key drivers include advancements in electronic systems like the SBW system, enhancing steering functionality and safety. Trends show adoption in electric vehicles, promoting fuel efficiency and an enhanced driving experience. However, challenges such as high maintenance costs and concerns about vehicle safety lead to reluctance in adoption. Overcoming these hurdles while showcasing the system's benefits at auto shows is crucial for its continued growth in the automotive industry. 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 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. In automotive engineering, the integration of advanced power steering gears has significantly enhanced driving comfort. Automotive power steering gears eliminate mechanical linkages between the steering wheel and the road wheels.
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 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.
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 market research and growth 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 Automotive Steer-by-wire System represents a revolutionary leap in vehicle technology, particularly with its adoption in electric vehicles. This system fundamentally alters steering functionality through modular architecture, showcasing its capabilities at auto shows worldwide. A steer by wire system eliminates the need for mechanical linkages, focusing on electrically controlled motors and steering modules to control the direction of the wheels. This not only enhances the driving experience but also prioritizes safety with advanced features like active steering systems and lane control systems. One of the main advantages is fuel efficiency, a critical factor in today's automotive landscape. However, concerns about vehicle safety and high maintenance costs have led to some reluctance in adoption.
The backup mechanical segment is estimated to witness significant growth during the forecast period. The backup mechanical segment of the global 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 companies 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 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments
The automotive steer-by-wire system represents a revolutionary advancement in vehicle technology. Instead of traditional mechanical linkages, this system utilizes an electrically controlled motor to maneuver the wheels based on inputs from the steering wheel and other sensors. One of its key benefits is the potential for modifiability, offering a more personalized driving experience. Moreover, it enhances traction control systems and driving safety, mitigating risks like oversteer.
However, challenges such as high maintenance costs and initial reluctance in adoption among consumers and manufacturers persist. Despite this, the allure of an enhanced driving experience and the potential for advanced and efficient steering continue to drive interest, especially among disabled and elderly people seeking easier vehicle operation. Innovations like electric power steering (EPS) further improve vehicle efficiency by reducing weight and emissions. Yet, regulatory factors, including stringent emissions standards, and safety concerns pose hurdles, necessitating compliance and approval from governing bodies. The automotive steer-by-wire system's evolution underscores a paradigm shift in vehicle safety and design flexibility, promising a future where advanced steering systems redefine performance and sustainability in the automotive sector.
Furthermore, the automotive steer-by-wire system is at the forefront of driving innovation in the automotive industry. Unlike traditional mechanical steering systems, a steer by wire system relies on electronic control mechanisms, such as the steering module, to determine the direction of the wheels. This cutting-edge approach opens up possibilities for diverse designs and propulsion methods, particularly in the realm of electric vehicles. However, as with any new technology, there are concerns about vehicle safety that must be addressed to facilitate widespread adoption. Manufacturers are actively integrating steer-by-wire technology into their offerings, especially in passenger cars and commercial vehicles, leveraging advanced driver assistance features for improved vehicle performance and safety. The integration of vehicle sensors, navigation, and precision engineering ensures weight reduction and emissions reduction, vital for sustainability goals. For heavy-duty trucks and fleet operators, steer-by-wire systems enhance vehicle responsiveness while optimizing vehicle space requirements.
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Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.27% |
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Market Growth 2024-2028 |
USD 264.43 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
9.01 |
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Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
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Performing market contribution |
APAC at 53% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, market growth analysis, Market forecasting, 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. |
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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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