July 12, 2024
Drive by Wire Market
Ict

Drive by Wire Market Is Driven by Growing Demand for Safety and Convenience Features in Vehicles

Drive by wire market uses an electronic interface instead of conventional mechanical linkages to actuate vehicle control systems like throttle, brakes and steering. It has enabled automakers to offer safety and convenience features like electronic stability control, brake-by-wire, steer-by-wire and throttle-by-wire. These systems enhance vehicle dynamics, stability and comfort. Adoption of drive-by-wire technology has improved vehicle safety by reducing the effects of human errors. It has also paved way for introduction of autonomous vehicles which rely on sensors and computers for control operations.

The global Drive by Wire Market is estimated to be valued at US$ 24 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends driving the drive by wire market is growing demand for autonomous vehicles. Drive-by-wire systems are crucial for autonomous vehicles as they replace mechanical linkages with electronic control units allowing vehicles to operate without human intervention. Major OEMs are investing heavily in autonomous driving technologies and trials are being conducted globally. This is expected to boost demand for drive-by-wire components in coming years. Another factor fueling market growth is stringent safety regulations. Regulatory bodies worldwide are imposing strict safety norms to reduce accidents. Drive-by-wire technology improves vehicle handling and stability. This has made drive-by-wire system adoption mandatory in developed markets, propelling market expansion.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the drive by wire technology requires significant R&D investments and patents. However, new players can enter through acquisitions or partnerships.

Bargaining power of buyers: The bargaining power of buyers is high as drive by wire systems are now a standard feature in premium vehicles. Buyers can negotiate on price and technology features.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as major OEMs work with a limited number of tier-1 suppliers for critical drive by wire components. Suppliers also invest in R&D.

Threat of new substitutes: The threat of new substitutes is low as there are no cost-effective substitutes available for traditional mechanical control systems. Drive by wire is also becoming a baseline technology.

Competitive rivalry: The competitive rivalry is high among top automotive suppliers owing to technological capabilities and focus on software and platform solutions.

Key Takeaways

The Global Drive By Wire Market Demand is expected to witness high growth over the forecast period.

Regional Analysis: Europe currently dominates the market owing to stringent vehicle safety and emission regulations in the EU. Germany, UK, France, and Italy contribute significantly to the European drive by wire market.

The Asia Pacific region is expected to grow at the fastest pace during the forecast period. Countries like China, Japan, South Korea, and India are witnessing very high vehicle production which is translating into increased demand for drive by wire systems. Japanese and Korean OEMs also export vehicles globally thereby further augmenting regional adoption.

Key players operating in the drive by wire market are Bosch, Continental, ZF, Curtiss-Wright, Nexteer, CTS, Ficosa, Kongsberg Automotive, Orscheln Products, and Lokar. Major players are undertaking strategic initiatives like acquisitions, partnerships, and new product development to gain technologically and expand geographic footprint. For instance, in 2022, Nexteer partnered with Karuna to develop AI-based functionality for digital cockpits using drive by wire systems.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it