By-wire steering and braking systems Market Outlook 2026–2035: Growth Drivers, Key Companies, Strategic Developments & Adoption Forecast — A Meticulous Next™ Foresight Brief

This Meticulous Next™ brief examines by-wire steering and braking systems, meaning steer-by-wire systems without a mechanical link to the wheels, steering feel and road wheel actuators, brake-by-wire actuators and control units, and the software and safety electronics that run them. It tests how quickly by-wire controls move from a few flagship vehicles to volume platforms and new cabin layouts.

Regulation has opened the largest market. China published the standard GB17675-2025 on 3 December 2025, which takes effect on 1 July 2026 and allows steer-by-wire systems with no mechanical backup, while combined electronic and mechanical systems remain permitted. The conclusion is that the largest vehicle market no longer requires a mechanical column, so Chinese programmes can move from flagships to volume models.

Series production has started at several suppliers. ZF began supplying steer-by-wire for the Nio ET9 in February 2025, Bosch developed a system through its Bosch Huayu joint venture that is in initial series production, and Nexteer announced the start of series production of its first steer-by-wire programme for a Chinese electric vehicle maker in April 2026, with ASIL D functional safety approval from DAkkS. The conclusion is that supplier readiness is no longer the limit, and approval and OEM programmes now set the pace.

Outside China the pace is slower. Tesla launched the Cybertruck with full steer-by-wire and no mechanical backup, Toyota offers steer-by-wire with a yoke on the bZ4X in some markets, Lexus offers it on the RZ in Europe, and Mercedes-Benz lists it as an option on the EQS in 2026. The conclusion is that by-wire steering is a premium option in Europe, Japan and the United States and has not yet reached volume models there.

The brief treats by-wire steering and braking systems as an emerging signal with a nine year horizon to 2035. It identifies which system types, vehicle segments and companies move first and what each means for automotive OEMs and suppliers. It is a focused 107-page decision brief that presents an indicative trajectory rather than a segmented market model.

A steer-by-wire system removes the mechanical link between the steering wheel and the road wheels. Driver input is read by a sensor in the steering wheel unit, a processor sets the road wheel angle through an actuator on the steering gear, and a motor in the wheel unit provides force feedback so that the driver feels the road.

Redundancy replaces the mechanical backup. Nexteer describes dual controllers, dual power supplies, multiple communication links and dual actuation paths, with a backup path that takes over within milliseconds after a single fault, and the Chinese standard allows redundancy through dual control units, dual sensors or dual power supplies. ZF supplies a steering wheel actuator, a redundant steering gear actuator and software for the Nio ET9. The conclusion is that every element of the control chain is duplicated, which sets cost.

Software sets the steering feel. ZF adjusts the steering ratio to speed and driving situation, Nexteer offers a software-defined road feel simulation and an open interface for driver assistance and automated driving, and the Chinese standard bases functional safety on UN Regulation 79 and ISO 26262. The conclusion is that the same hardware can be tuned by software for each vehicle, which suits software-defined vehicle programmes.

The product gives designers freedom. ZF cites smaller steering wheels that need no grip change when parking, a smaller steering wheel angle at low speeds and better crash safety without a steering column, and Toyota said the yoke and low instrument panel give the interior a more open feel. Easier switching between left-hand and right-hand drive is also cited.

Brake-by-wire follows the same logic. ZF announced an order for almost five million vehicles with brake-by-wire systems from a leading global manufacturer, and Nexteer lists brake-by-wire in its motion-by-wire portfolio with steer-by-wire and rear-wheel steering.

The limits are regulation outside China, the cost of full redundancy, driver acceptance of yokes and artificial feel, and the time needed to qualify safety concepts. The period turns on whether approval rules in Europe and the United States follow the Chinese standard.

The by-wire steering and braking systems market, covering steer-by-wire systems without mechanical backup, steering feel and road wheel actuators, brake-by-wire actuators and control units, and the software and safety electronics that run them, and excluding conventional and electric power steering with a mechanical column, hydraulic brakes with electric boosters, and rear-wheel steering without by-wire control, is valued at USD 1.2–2.0 billion in 2026 and is projected to reach USD 8.32–13.86 billion by 2035, at a CAGR of 24%.

The 2026 base rests on steer-by-wire systems, steering feel and road wheel actuators, and brake-by-wire units for passenger vehicles, mainly in China, Europe and North America. Growth then follows the Chinese standard, new supplier programmes and the spread of by-wire controls to volume models.

The forecast is sensitive to regulation outside China, redundancy cost and driver acceptance. Regionally, Asia Pacific holds the largest base, followed by Europe and North America.

The base case assumes China sets the pace and other regions adopt similar rules, bringing the inflection to about 2030. An accelerated case assumes rapid approval outside China and falling system cost, bringing the inflection to 2028 and lifting the 2035 value to the top of the range. A delayed case assumes regulators outside China keep requirements for mechanical backup, moving the inflection to 2033 and holding growth at the bottom of the range.

Growth drivers

• Removal of the steering column.
• Variable steering ratio and software-defined feel.
• Readiness for automated driving.
• Adoption by Chinese OEMs.

Enablers

• Updated steering standards.
• Functional safety certification.
• Modular actuators.
• Open interfaces for driver assistance.

Restraints and barriers

• Regulation outside China.
• Cost of full redundancy.
• Driver acceptance of yokes and artificial feel.
• Qualification time.

The direction of by-wire steering and braking systems is set by regulatory approval, cabin layout freedom, functional safety certification, software-defined vehicle programmes and supplier readiness.

The key participants in by-wire steering and braking systems include ZF Friedrichshafen AG, Robert Bosch GmbH, Nexteer Automotive Group Limited, Schaeffler AG, Huawei Technologies Co., Ltd., NIO Inc., Tesla, Inc., Toyota Motor Corporation, Mercedes-Benz Group AG, Nissan Motor Co., Ltd., Li Auto Inc., Continental AG, Hitachi Astemo, Ltd., Brembo S.p.A., HL Mando Corporation, JTEKT Corporation, NSK Ltd., Hyundai Mobis Co., Ltd., Advics Co., Ltd., DENSO Corporation, Yubei Steering, BYD Company Limited, Geely Holding Group Co., Ltd., XPeng Inc., Volkswagen AG, Bayerische Motoren Werke Aktiengesellschaft, General Motors Company, Ford Motor Company, Stellantis N.V., Honda Motor Co., Ltd., Hyundai Motor Company, Infineon Technologies AG, NXP Semiconductors N.V., STMicroelectronics N.V., Renesas Electronics Corporation, Texas Instruments Incorporated, Aptiv PLC, Lear Corporation, Magna International Inc., Standardization Administration of China, United Nations Economic Commission for Europe and Deutsche Akkreditierungsstelle GmbH.

The brief profiles representative participants in each archetype and assesses which are positioned to lead as by-wire controls reach volume models.

ZF, Bosch and Nexteer lead among steering suppliers in series production, ZF, Bosch, Continental and Brembo lead among brake suppliers, and Tesla, Nio, Toyota and Mercedes-Benz lead among OEMs with by-wire models. Competitive intensity is moderate, with a small number of suppliers holding certified safety concepts.

Where value migrates.

In 2026 value sits with actuators and steering and brake units sold to the first series programmes. By 2031 it moves toward software and safety concepts, because redundancy, failover and steering feel are set by software and certified once per platform. By 2035 it settles with chassis control platforms, where suppliers that combine steering, braking and software for drive-by-wire chassis hold the margin. Margins hold for suppliers with certified safety concepts and narrow for makers of single actuators.

The signals converge on a technology moving from flagship options to supplier series programmes under new rules. A Chinese standard, series production at ZF and Nexteer, a large brake-by-wire order and certified redundancy support growth, while regulation outside China, redundancy cost and driver acceptance hold back volume.

Structural limits show where progress could slow: approval rules, redundancy cost, driver feel and qualification time. The brief therefore tracks four indicators: vehicles in series with by-wire steering, regions allowing no mechanical backup, system cost per vehicle and suppliers with ASIL D certified systems.

Chinese flagships first, then Chinese volume models and premium vehicles in Europe and the United States, then combined steering and braking drive-by-wire chassis is the expected order of adoption.