Drive by Wire Market Size, Share & COVID-19 Impact Analysis, By Type (Throttle-By-Wire, Brake-By-Wire, Shift-By-Wire, Steer-By-Wire), By Vehicle Type (Passenger Cars, Commercial Vehicles), and Regional Forecasts, 2023-2030

The global Drive by Wire Market size was valued at USD 13.79 billion in 2022. The market is projected to grow from USD 14.57 billion in 2023 to USD 22.59 billion by 2030, exhibiting a CAGR of 6.5% during the forecast period.

Drive-by-wire systems, also known as X-by-wire systems, involve the electronic replacement of traditional mechanical linkages with several electronic systems. These systems control a vehicle’s steering, braking, acceleration, and other functions. In conventional vehicles, these functions are typically managed by hydraulic or mechanical components. However, these mechanical components are prone to wear, leading to a decline in their efficiency over time. To overcome these challenges, major key players have developed drive-by-wire technology.

Drive-by-wire is an emerging technology that is gaining traction in the automotive industry. It has replaced mechanical systems with high-end electronic control systems. For example, the sensor detects the driver's movement instead of a physical link from the accelerator to the engine. It sends a signal to the actuator, which actuates the throttle and turns the wheel. This replacement of mechanical components has resulted in the development of lightweight and fuel-efficient vehicles.

COVID-19 IMPACT

COVID-19 Pandemic Hampered Supply Dynamics Associated with the Automotive Industry

The coronavirus outbreak has forced several governments to adopt stringent policies, including nationwide lockdowns, social distancing, and sanitation facilities, severely affecting economic activities. Stringent regulations led to the temporary closure of the manufacturing and service industries. The pandemic affected personal behaviors related to travel, work style, and consumer buying preferences. Trade between countries was also restricted, hindering the supply chain management industry. Similarly, economic conditions and civilization as a whole were also greatly affected.

During the pandemic, the automobile market was significantly affected, facing various challenges. The sales and production of vehicles experienced a sharp decline as many automotive companies were shut down due to stringent regulations on cross-border trade and implementation of complete lockdown measures. These trends hindered the global Drive by Wire Market growth in 2020.

• For example, the Government of India announced nationwide lockdown from 24^th March 2020 till 31^st May. According to the statistics released by the Society of Indian Automobile Manufacturers (SIAM), the sale of passenger cars fell by 51% in March y-o-y to 85,229 units. The SUVs segment fell by 45% y-o-y to 51,569 units. The sales of commercial vehicles declined up to 88% in March, including light and heavy commercial vehicles.

Several automobile companies were compelled to revise their investment plans to recover from the losses and prioritize essential requirements. Consumer behavior shifted toward fulfilling basic needs rather than luxury products. Thus, the demand for drive-by-wire faced a decline in the interim period.

LATEST TRENDS

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Increasing Adoption of Vehicle Electrification is a Positive Trend for Market Growth 

Introducing hybrid electric vehicle has triggered a technological revolution in the automotive industry. Factors such as tax benefits and growing environmental awareness have fueled the demand for hybrid electric vehicles. To enhance efficiency, key Original Equipment Manufacturers (OEMs) have developed electrification processes. For instance, hybrid electric vehicles employ a start-stop system where the engine automatically turns off when the vehicle is idling or parked. This approach reduces fuel consumption compared to conventional systems that require the engine to remain running. By using an electric motor in the start-stop system, engine load is reduced, leading to improved fuel efficiency. Consequently, vehicle electrification has emerged as one of the significant trends in this market.

DRIVING FACTORS

Rising Adoption of Autonomous Vehicles to Drive Market Growth

Autonomous vehicles have various advantages over conventional vehicles. These driverless vehicles offer enhanced passenger safety and contribute to the reduction of vehicular emissions. They are equipped with various sensors such as GPS, LiDAR, cameras, RADAR, and drive-by-wire systems. These sensors help detect any obstacle nearing the vehicle, reducing the chances of road accidents. Moreover, autonomous vehicles incorporate sensors in the electric fuel pump, allowing control of fuel flow to the tank and optimize fuel efficiency. Such advancements in autonomous vehicles will positively influence the market in future.

Stringent Emission Norms by Governments & Ruling Bodies to Boost Market Growth

Governments and ruling bodies across the globe have imposed stringent emission norms on automotive manufacturers. These regulations have forced manufacturers to increase the use of lightweight materials such as composite materials, plastics, lightweight metals, and electronic components that replace conventional mechanical linkages. The use of these lightweight electronic components reduces the fuel consumption. Due to their lighter weight, these components consume less energy during acceleration.

RESTRAINING FACTORS

High Cost of Electronic Components & Systems May Restrain Market Growth

Some challenges hindering the growth of this market are the high costs and risk of failure of electronic components, especially in extreme rainfall. The high replacement and maintenance of electronic components also restrain the market's growth over the forecast period. The process of installation, manufacturing, and designing of the x-by-wire technology is costly, which ultimately adds to the overall vehicle cost.

SEGMENTATION

By Type Analysis

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Throttle-By-Wire Dominates the Market owing to Easy Adaptability and Low Cost

Based on type, the market is segmented into throttle-by-wire, brake-by-wire, shift-by-wire, and steer-by-wire. Throttle-by-wire is the most common form of x-by-wire used in the automotive industry. It uses a series of electronic sensors and actuators instead of mechanical cables. Throttle sensors are used in vehicles. In this system, the gas pedal transmits a signal that prompts the electromechanical actuator to open the throttle. This technology is foolproof and incorporates a fail-safe design.

The shift-by-wire segment is anticipated to increase over the forecast period. It is a system that utilizes an electronic device to change the gearbox mode. This system helps to eliminate the mechanical linkage between the gearbox and the lever. Shift-by-wire offers an effortless shifting of gears through a push button. Proper gear shifting helps to maintain the fuel efficiency of the vehicle.

By Vehicle Type Analysis

Passenger Cars Segment Holds Maximum Share Backed by its Rising Sales & Production

By vehicle type, the market is bifurcated into passenger cars and commercial vehicles. The passenger cars segment holds the maximum market share. The rising sales of passenger cars are anticipated to result in the dominance of this segment in the market. Government tax benefits offered on the purchase of hybrid & electric vehicles are likely to surge the demand for passenger cars over the forecast period. Additionally, stringent safety norms imposed by the governments have forced manufacturers to incorporate standard features such as traction control, airbags, and seat belt warning alerts across all vehicle segments. This inclusion of enhanced safety feature is, in turn, creating high traction for passenger cars.

The commercial vehicles segment will grow well over the forecast period. In recent years, commercial vehicles have been equipped with technologically advanced electronic systems such as throttle by wire, shift by wire, and other similar components. These electronic components contribute to reducing the overall weight of commercial vehicles, subsequently enhancing their fuel efficiency. Commercial vehicles with lightweight electronic systems are expected to maintain strong growth in the market.

REGIONAL INSIGHTS

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Asia Pacific is anticipated to spearhead the market growth during the forecast period owing to consumers’ rising inclination toward enhanced safety and fuel-efficient vehicles. Stringent emission norms imposed by developing countries in this region are resulting in the increased sales and production of electric vehicles, which, in turn, is anticipated to help the drive-by-wire technology to gain traction.

Europe holds a considerable drive by wire market share within the forecast period. The region’s early adoption of advanced technology, facilitated by the presence of major manufacturers and stringent emission norms imposed by the government, is anticipated to maintain robust growth in the future.

North America is expected to grow in this market over the forecast period. Key OEMs in this region invest in Research & Development (R&D) to meet emission standards and develop cost-effective drive-by-wire systems for commercial vehicles.

KEY INDUSTRY PLAYERS

High Degree of Competition is Evident amongst Drive-By-Wire Manufacturers to Remain Competitive in the Market

The global market is expected to grow rapidly due to continuous technological developments in the industry. Key players in the industry are adopting various strategies such as product differentiation & development, strategic partnerships, collaborative mergers, and the expansion of sales & distribution networks to gain competitive advantage. These market players are heavily investing in R&D activities to create a strong foothold.

LIST OF KEY COMPANIES PROFILED:

• ZF Friedrichshafen AG (Germany)


• Nexteer (U.S.)


• Robert Bosch GmbH (Germany)


• Danfoss (Denmark)


• Ficosa International S.A. (Spain)


• The Curtiss-Wright Corporation (U.S.)


• Continental AG (Germany)


• Nissan Motor Co., Ltd. (Japan)


• Kongsberg Automotive (Switzerland)


• Hitachi, Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 – ZF Friedrichshafen AG received the first customer order of steer-by-wire systems for passenger cars.


• October 2022 – ZF Friedrichshafen AG signed a strategic cooperation agreement with NIO to work on the development of Steer-by-Wire (SBW) products and other fields.


• November 2022 – Nexteer’s steer-by-wire system with a stowable steering column won SAA innovation award.


• June 2023 – Bosch established a partnership with Arnold NextG for the commercial production of steer-by-wire systems.

REPORT COVERAGE

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The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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