Steer-by-Wire Market, Global, 2024–2031

Scope of Analysis

• Steer by wire (SbW) is experiencing slow adoption due to high maintenance costs, reliability concerns, and low consumer acceptance of road feedback and steering feel.
• Adoption has also been low due to the high initial development costs, raising concerns for OEMs regarding large investments.
• However, SbW offers various benefits, including reduced weight, design flexibility, and personalized steering, potentially providing more value to customers.
• The growing adoption of connected vehicles, ADAS, EVs, and future SDVs will expand opportunities for the technology.
• This study examines global trends, current outlook, and growth opportunities for market participants across different regions.

Scope

Questions This Study Will Answer

• What is SbW? What is the distribution channel structure?
• What are the primary drivers and restraints for this market?
• How will this market grow? What is the adoption trend among regions? Who are the technology companies?
• How do automotive SbW market sizes differ among the leading developed markets?
• What are the growth avenues for the global SbW market until 2031?

The Impact of the Top 3 Strategic Imperatives on the SbW Industry

Competitive Intensity

• Why:
  • The competitive landscape exerts significant pressure on OEMs to remain competitive to capture a large customer base.
  • Customers are constantly seeking new experiences with vehicles, essentially translating to value for money.
  • To lead in the SbW market, companies should focus on innovation and providing cost-effective solutions, especially those that can benefit from an early mover advantage.
• Frost Perspective:
  • SbW offers precise actuation, faster response times, and high-level intelligent driving by eliminating mechanical connections, bringing clear advantages in design flexibility, space layout, and cost reduction, which help alleviate the price pressure in the market.
  • Forming strategic partnerships with OEMs for SbW, co-innovation will enable faster time to market. In addition, strengthening after-sales support and demonstrating safety will help build trust with both OEMs and customers.

Internal Challenges

• Why:
  • It is common for employees and management to cling to the status quo during the emergence of new technologies, preferring familiar systems and processes.
  • An organizational culture that does not support technology-driven innovation can significantly hinder change efforts, ultimately impacting a company’s performance and long-term vision.
  • Companies often fear the uncertainties associated with investing in new technology, leading them to consider ROI from day one.
• Frost Perspective:
  • Companies should focus on aligning their goals with industry trends, such as the shift to a more digital, software-driven automotive ecosystem, including EVs and ADAS, where SbW integration is essential.
  • This alignment provides a competitive advantage, allowing companies to become more innovative by enhancing their products and user experiences, as well as potentially reducing production costs by eliminating redundant components.
  • Eventually, manufacturers must compel advancements by establishing common standards for collaboration.

Customer Value Chain Compression

• Why:
  • Traditional quality gate processes, lengthy development cycles, and in-house testing are no longer required.
  • Technologies such as SbW must be developed and deployed rapidly to meet customer demands for faster innovation and cutting-edge technology.
  • Cross-functional teams and platform-based vehicle development compress the value chain, pushing OEMs to require Tier I suppliers and software providers to deliver production-ready SbW faster.
• Frost Perspective:
  • Suppliers and OEMs must be agile, developing and offering solutions that can adapt to compressed development timelines to remain competitive in the race to dominate the new energy vehicle market.
  • Suppliers and OEMs should work together to drive advances and fostered solutions, fostering closer collaboration, faster time to market, and shared innovation.
  • SbW will become more powerful in enabling vendors, with suppliers becoming responsible for steering and safety functions, while OEMs focus on integration and user experience.

Key Competitors

Competitive Environment

Growth Drivers

• Adaptive Steering and Software Integration
• Weight Reduction and Mechanical Simplification
• Design Flexibility and Space Optimization
• Safety Standard Evolution
• Tailored Steering for Purpose-built Vehicles (PBVs)

Growth Restraints

• User Trust and Safety Perception
• High Initial System Cost
• Regulatory Complexities and Certification Barriers
• OEM Hesitance to Integrate SbW in the Mass Market
• Complex Redundancies and Cybersecurity Demands