The replacement of hydraulic and mechanical systems in motor vehicles with electronic controls and systems. For example, instead of a mechanical linkage from the accelerator to the engine, the pedal operates a sensor that sends signals via the car's computer to an electronic engine throttle. Rather than a cable that actually rotates the dial in the speedometer, signals are sent to an electronic speedometer.

Drive-by-wire also refers to sensor-based systems that automatically try to avoid a collision when another vehicle comes too close. Various aspects of drive-by-wire are expected over the coming years. See embedded systems and CAN bus.