This paper presents ZF's digital development approach for the Steer-by-Wire (SbW) system. The introduction of SbW technology in the automotive industry creates a new architecture of steering systems that poses a unique set of challenges, particularly in the design of proper steering feel, and functionalities beyond those of conventional Electric Power Steering (EPS) systems due to the missing mechanical connection between the steering wheel and rack. Virtual product development and digital twins are essential from the initial development to optimize the system design before physical prototypes are built. This paper presents three exemplary use cases that demonstrate how ZF uses virtual development methods and digital twins in the development of SbW systems. The paper explains how ZF uses digital twins to optimize the design of the Torque Feedback Unit (TFU) for robust steering feel, the dynamic performance of the Front Axle Actuator (FAA) and the functional safety at the vehicle level. The results show that by leveraging digital twins, ZF has been able to accelerate the development process and ensure a high-quality product that meets the demands of the automotive industry.