Market Challenges And Opportunities

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- 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- 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.