DRIVE BY WIRE MARKET ANALYSIS

Global Drive by Wire Market size was valued at US$ 22.7 Bn in 2022, exhibiting a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030.

Drive by Wire or DbW technology is an advanced technology used in the automotive industry. The DbW technology makes use of electro-mechanical systems to perform various vehicle functions that were traditionally performed by mechanical linkages. The application of DbW technology in the automotive industry can be traced in the concepts like power steering, electronic throttle control, engine start/stop button, electronic handbrakes, etc. These technologies replace the traditional mechanical parts like pedals and conventional steering.  These technologies provide several benefits to the automotive manufacturers by improving the performance of vehicles by reducing weight, better responsiveness of the mechanical parts, etc. These benefits are expected to boost the market growth rate for global drive-by wire market during the forecast period. Moreover, the increasing regulations by governments across the world in terms of improved safety of the vehicles is leading to the growth of the drive-by wire market as more and more functions of the vehicles are performed via electronic signals.

Global Drive by Wire Market- Regional Analysis North America held a dominant position in the Global Drive by Wire market in 2022, followed by the Europe and Asia Pacific.

Figure 1. Global Drive by Wire Market Share (%), By Region, 2022

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North America held a dominant position in the Global Drive by Wire market in 2022, owing to increasing adoption of autonomous vehicles by individual customers, businesses as well as the U.S. military is leading to an unprecedented growth in demand for autonomous or self-driving vehicles. These autonomous vehicles are highly advanced and make use of a lot of electronic components to carry out various functions. Moreover the region comes under the developed economies where the population has enough disposable income to spend on non-essential items like cars. These factors are expected to boost the growth of drive-by wire market in the North American region.

Asia Pacific is another emerging market for global drive-by wire market. The region has a presence of several developing economies which are witnessing an unprecedented economic growth. The automotive industry is thriving in the region with presence of big global players who are constantly focused on developing their offerings. The region is highly populous with a huge demand for automotive solutions in individual as well as business application. Moreover, the consumers in the region are demanding vehicles with improved functionality and better features, which would increase the demand for drive-by wire technologies in the region. These factors are expected to boost the growth of drive-by wire market in the Asia Pacific region.

Global Drive by Wire Market- Segmentation

The Global Drive by Wire market is classified into following segments based on application, vehicle type and components.

The passenger car segment in the Global Drive by Wire market held the dominant position in the year 2022. The increasing demand for cars in the developing economies like India, Bangladesh, Brazil and other countries in Africa is the primary reason for the growth of passenger car segment. The population is rapidly rising in these developing economies with improving standard of living of the people, majority of the population is able to afford passenger car which is expanding the segment even further.

Based on the component, the Electronic Control Unit (ECU) segment holds a dominant market share over other components. The ECU is a small device installed in a vehicle which is responsible to control various mechanical functions that are to be carried out through electronic signals. The ECU is operational in functions like power windows, deployment of airbags, lighting of the vehicle and majority of the electronic components of the vehicle. As various drive-by wire functions become industry standard, installing the ECU would become increasingly critical for all the vehicle manufacturers. These factors would have a positive impact on the ECU segment and lead to its expansion in drive-by wire segment.  

Figure 2. Global Drive by Wire Market Share (%) Analysis and Forecast, By Vehicle Type, 2022

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Global Drive by Wire market was valued at US$ 22,785.2 Billion in 2022 and is expected to reach US$   37,602.4 Billion by 2030, exhibiting a CAGR of 6.6% between 2023 and 2030.

Global Drive by Wire Market- Key Competitors

Major players operating in the Global Drive by Wire market include Continental AG, Robert Bosch GmBH, ZF Friedrichshafen AG, Nissan Motor Co., Ltd., Kongsberg Automotive, Ficosa Internacional SA, Curtiss-Wright Corporation, Hitachi Ltd. and Others.

Global Drive by Wire Market- Recent Developments

1. In December 2022, Robert Bosch GmBH, a European engineering company, announced that it is undertaking research & development efforts in the 6G mobility field which is expected to be the next generation wireless mobility technology. The technology is developed on such a framework that enables better integration of communication and sensor-based environment that will improve road safety and vehicle efficiency.
2. On June 19, 2023, Konsberg Automotive AS, a Switzerland based global manufacturer of automotive components entered into a non-bidding agreement with Chasis Autonomy SBA AB, a Swedish company that manufactures various drive-by wire technologies for automotive industry to acquire 20% of equity stake in the company. This would enable the companies to share resources for steer-by-wire and brake-by-wire technologies.
3. In September 2020, Denso Corporation, a Japanese manufacturer of automotive components announced the launch of new Electric-Power Steering Motor Control Unit (EPS-MCU) that is expected to deliver better handling and provide safety to the vehicles. This new unit would be installed in upcoming cars from Toyota Motor Corporation, a Japan based global automotive manufacturer.

Global Drive by Wire Market- Drivers:

Rise in development of autonomous vehicles:

Autonomous vehicles is an emerging phenomenon that refers to self-driving cars. These cars have the ability to run without human interference. This technology makes use of several motion sensors, cameras and other electronic devices to get the situational awareness of the environment and then send signals top different parts in the vehicle. The rise of autonomous vehicles especially in the developed countries like USA, UK, Germany, etc. is increasing the demand for several drive-by wire components for functions like smart steering, lane assist, acceleration, baking, etc. For instance, In June 2023, Tesla, an American multinational company that manufactures electric cars with self-driving capability is set to hit record quarterly sales in China. This shows that the demand for autonomous vehicles is rising even in developing countries like China. This is expected to boost the growth of global drive-by wire market during the forecast period.   

Growth of connected infrastructure:

Due to rapid adoption of Internet of Things (IoT), the transportation infrastructure across the globe is evolving quickly. Companies such as Cisco and IBM have created digital platforms, which can automate street and traffic lights, optimize trash pickup, and augment surveillance. The IoT capabilities are growing in the automotive industry where the cars are getting connected to communication networks to incorporate features like voice assist and others. For instance, Quectel Wireless Solutions, a global supplier of IoT and automotive communication modules, has announced that it would collaborate with Marelli, a global independent suppliers to the automotive sector. This collaboration between major players in the market point out towards the potential growth that the IoT capabilities can bring in the automotive market. Hence, the growth of connected infrastructure is expected to boost the growth of global drive-by wire market during the forecast period.

Global Drive by Wire Market- Restraint

High cost of drive by wire system:

Adoption of drive by wire systems began about 20 years ago, first in military, and later in commercial aircrafts and now in ground transportation sector. Traditional vehicles use hydraulic pressure, cables, and other ways to provide driver with direct and physical control over the direction and speed of the vehicle. Whereas, drive by wire component uses electronics control to carry out the functioning of brakes, steering, and operate other systems. In addition, the cost of designing, manufacturing, and installing drive by wire system is costly and adds up to the cost of vehicle.

Global Drive by Wire Market- Opportunity

Development of smart cities:

Smart cities experience considerable growth across the globe. Emergence of disruptive technologies such as IoT and connected devices also lead to the development of smart transportation in smart cities. These new systems of transportation would work efficiently with interconnected cars which have smart features and that use several drive-by wire technologies like Electronic Control Unit (ECU). For instance, In February 2023, Vehant Technologies, an Artificial Intelligence based security company, announced the deployment of Intelligent Traffic Management and Surveillance System in Jammu. This system would make use of advanced technology to develop a network of connected cars and manage the traffic systems in the city efficiently. Such developments would increase the demand for drive by wire components in automotive industry that support smart features in the vehicles. Hence, the development of smart cities can prove to be a major opportunity for the companies offering drive-by wire technologies to expand the market even further.

Global Drive by Wire Market- Impact of COVID-19:

The Covid-19 induced country-wide lockdowns and strict social distancing norms across the world. This affected the entire business world. The supply side experienced a massive hurdle as the trade between the countries was halted, majority of the manufacturers had to stop their operations either due to the shortage of supplies or due to the regulatory norms. The global drive-by wire market that is an ancillary unit to the automotive sector experienced the challenge of stagnancy in the market as the sales of cars and commercial vehicles saw a massive decrease across the world during the pandemic period. This was coupled by the challenges in manufacturing the drive-by wire components arising due to unavailability of supplies and halting of production activities in several parts of globe. Hence, the supply-side of the global drive-by market was negatively impacted due to the covid-19 pandemic.

*Definition: Drive by Wire or DbW technology is an advanced technology used in the automotive industry. The DbW technology makes use of electro-mechanical systems to perform various vehicle functions that were traditionally performed by mechanical linkages.