What Key Growth Drivers Are Shaping The Automotive Shift-By-Wire (SBW) Systems Market Forecast Toward $2.64 Billion?
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What Is The Present And Forecasted Size Of The Automotive Shift-By-Wire (SBW) Systems Market?
The market size for shift-by-wire (sbw) systems in the automotive sector has seen robust growth of late. The market is projected to expand from $1.71 billion in 2024 to $1.85 billion in 2025, marking a compound annual growth rate (CAGR) of 8.7%. The past growth is accounted to the mounting demand for electric vehicles (EVs), consumers’ inclination towards improved driving experience, the auto industry’s emphasis on reducing vehicle weight, regulatory measures for safer vehicles and the rise in autonomous vehicle production.
The market for shift-by-wire (sbw) systems in the automotive industry is projected to experience robust growth in the coming years. It is forecasted to reach a size of $2.64 billion in 2029, expanding at a compound annual growth rate (CAGR) of 9.2%. Factors contributing to this growth during the projected period include the amplified production of electric and hybrid vehicles, enhanced cost efficiency of the systems, a rise in consumer preference for easy-to-use interfaces, a growing acceptance of ADAS, and a budding demand for tailored vehicle experiences. Key trends for the same period include progression in software and connectivity, integration with progressive driver assistance systems (ADAS), advances in vehicle network and communication protocols, forward strides in sensor and actuator technology, and the introduction of cloud connectivity and vehicle-to-everything (V2X) communication.
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What Core Drivers Are Expected To Influence The Automotive Shift-By-Wire (SBW) Systems Market?
The augmenting manufacturing of electric vehicles is evidently catalyzing the expansion of the automotive shift-by-wire (SBW) systems market. An electric vehicle, either wholly or partially, relies on electric motors for propulsion by utilizing energy garnered from rechargeable batteries, dismissing the need for internal combustion engines. The government’s incentives and stringent emission norms primarily contribute to the mounting production of electric vehicles, motivating vehicle manufacturers to deviate towards greener solutions. The automotive shift-by-wire (SBW) systems, which replace conventional mechanical connections with electronic controls, are beneficial for electric vehicles. They assist in lessening weight, maximizing space, augmenting design malleability, simultaneously enhancing the vehicle’s overall efficiency. To illustrate, as per the U.S. Energy Information Administration, a non-profit organization based in the U.S, the sales of battery electric vehicles (BEVs) have witnessed a consistent rise. Their market share amplified from 7.4% of the U.S light-duty vehicle (LDV) market in 2024’s second quarter to 8.9% in the third quarter. Likewise, the market share of hybrid vehicle sales also underwent an expansion, attaining 10.6% of the U.S. LDV market in 2024’s third quarter. Consequently, the escalating manufacturing of electric vehicles is the driving force behind the growth of the automotive shift-by-wire (SBW) systems market.
Which Segments Define The Structure Of The Automotive Shift-By-Wire (SBW) Systems Market?
The automotive shift-by-wire (sbw) systemsmarket covered in this report is segmented –
1) By Component: Electronic Control Unit (ECU), Sensors, Actuators, Wiring harness, Other Components
2) By Vehicle: Passenger Vehicles, Commercial Vehicles, Electric Vehicles
3) By Design Type: Joystick, Rotatory, Lever, Buttons, Other Design Types
4) By Technology: Electro-Mechanical, Fully electronic
Subsegments:
1) By Electronic Control Unit (ECU): Power Control Unit (PCU), Signal Processing Unit
2) By Sensors: Position Sensors, Torque Sensors, Pressure Sensors
3) By Actuators: Electric Actuators, Hydraulic Actuators
4) By Wiring Harness: High-Voltage Wiring Harness, Low-Voltage Wiring Harness
5) By Other Components: Connectors, Relay Modules, Switches
What Strategic Shifts And Innovations Are Influencing The Automotive Shift-By-Wire (SBW) Systems Market?
Major corporations in the vehicle shift-by-wire (SBW) systems industry are concentrating on the creation of technologically superior solutions like column-type shift-by-wire (SBW) systems. This aids in the enhancement of vehicle interior design versatility, ameliorating user experience, and amplifies operational efficiency. Column-type shift-by-wire (SBW) systems is a term for a kind of electronic gear-shifting technology in vehicles, replacing ordinary mechanical connections with electronic control setups. Hyundai Motor, a car manufacturer based in South Korea, for example, introduced Hyundai Creta Electric, equipped with a column-type shift-by-wire (SBW) system, in January 2025. The sophisticated system substitutes old school mechanical gear connections with electronic controllers, maneuvered through a stalk on the right of the steering column. This design feature liberates central console space, allowing for cup holders and drive mode switches, all the while enhancing driver comfort and providing a more innovative and futuristic driving encounter. The SBW system, by eliminating the mechanical link, facilitates smoother gear shifts and makes a significant contribution to the Creta Electric’s contemporary and user-adapted interior.
Who Are The Primary Market Leaders In The Automotive Shift-By-Wire (SBW) Systems Market?
Major companies operating in the automotive shift-by-wire (SBW) systems market are ZF Friedrichshafen AG, Denso Corporation, Hyundai Mobis, Mitsubishi Electric Corporation, Eaton Corporation plc, BorgWarner Inc., Tokai Rika Co. Ltd., Leopold Kostal GmbH & Co. KG, Ficosa International S.A., Curtiss-Wright Corporation, Eissmann Automotive Deutschland GmbH, Dura Automotive Systems LLC, Stoneridge Inc., Kongsberg Automotive ASA, GHSP Inc., Atsumitec Co. Ltd., JOPP Holding GmbH, Kuester Automotive GmbH, Sila Group S.p.A., JATCO Ltd., Küster Holding GmbH, Orscheln Products LLC.
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What Regional Factors Are Accelerating Growth In The Automotive Shift-By-Wire (SBW) Systems Market?
Europe was the largest region in the automotive shift-by-wire (SBW) systems market in 2024. The regions covered in the automotive shift-by-wire (SBW) systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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