The brake-by-wire technology is a new automotive chassis system that allows standard braking operations by electronic components with lighter weights and faster response. The brake-by-wire units such as EMB (Electro-Mechanical Brake) are controlled by electronic sensors and actuators and, thus, the fault diagnosis is essential for implementation. In this study, a model-based fault diagnosis system is developed for the sensors based on the analytical redundancy method. The fault detection algorithm is verified in simulations for various faulty cases. A test bench is built including the EMB unit and the performance of the proposed fault diagnosis system is evaluated through the experiment.