Driver drowsiness is a major cause of fatal accidents throughout the world. Recently, some studies have investigated steering wheel grip force-based alternative methods for detecting driver drowsiness. In this study, a driver drowsiness detection system was developed by investigating the electromyography (EMG) signal of the muscles involved in steering wheel grip during driving. The EMG signal was measured from the forearm position of the driver during a one-hour interactive driving task. Additionally, the participant’s drowsiness level was also measured to investigate the relationship between muscle activity and driver’s drowsiness level. Frequency domain analysis was performed using the short-time Fourier transform (STFT) and spectrogram to assess the frequency response of the resultant signal. An EMG signal magnitude-based driver drowsiness detection and alertness algorithm is also proposed. The algorithm detects weak muscle activity by detecting the fall in EMG signal magnitude due to an increase in driver drowsiness. The previously presented microneedle electrode (MNE) was used to acquire the EMG signal and compared with the signal obtained using silver-silver chloride (Ag/AgCl) wet electrodes. The results indicated that during the driving task, participants’ drowsiness level increased while the activity of the muscles involved in steering wheel grip decreased concurrently over time. Frequency domain analysis showed that the frequency components shifted from the high to low-frequency spectrum during the one-hour driving task. The proposed algorithm showed good performance for the detection of low muscle activity in real time. MNE showed highly comparable results with dry Ag/AgCl electrodes, which confirm its use for EMG signal monitoring. The overall results indicate that the presented method has good potential to be used as a driver’s drowsiness detection and alertness system.