Drive by Wire Market Size, Share & Industry 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, 2024-2032

The global drive by wire market size was valued at USD 14.57 billion in 2023. The market is projected to grow from USD 15.42 billion in 2024 to USD 26.04 billion by 2032, exhibiting a CAGR of 6.8% 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.

The COVID-19 pandemic significantly impacted the global drive by wire market, causing disruptions in production, supply chains, and consumer demand. Lockdown measures and economic uncertainties led to a temporary decline in vehicle sales, affecting the adoption of drive by wire systems. However, as the automotive industry recovered, the market recorded a rebound, leading to a gradual increase in the demand for advanced vehicle technologies.

Drive by Wire Market Trends

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

Introducing hybrid electric vehicles 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.

Drive by Wire Market Growth Factors

Rising Adoption of ADAS-Enabled Vehicles to Drive Market Growth

Advanced driver assistance systems (ADAS) and autonomous driving technologies rely heavily on drive by wire technology to enhance vehicle safety, performance, and comfort.

The rise of electric and autonomous vehicles is another significant driver for the market. Electric vehicles (EVs) and autonomous vehicles (AVs) utilize drive by wire technology to control critical functions such as steering, braking, and throttle without the need for traditional mechanical linkages. The global EV market has been experiencing quick growth, driven by government incentives, environmental regulations, and increasing consumer awareness of climate change. According to the International Energy Agency (IEA), global electric car sales reached a record high of 3.24 million units in 2020, representing a 41% increase compared to 2019.

Furthermore, the development and deployment of autonomous vehicles are expected to accelerate the adoption of drive by wire technology. Autonomous vehicles rely on these systems to enable precise control and coordination of vehicle functions, ensuring safe and efficient operation without human intervention. Several automotive manufacturers and technology companies are investing heavily in autonomous driving technologies, driving innovation and advancements in drive by wire systems. For example, companies such as Tesla, Waymo, and General Motors are actively developing autonomous vehicle platforms that rely on drive by wire technology for steering, braking, and acceleration.

Overall, the increasing demand for advanced driver assistance systems, electric vehicles, and autonomous driving technologies is driving the growth of the global market. As these trends continue to evolve, drive by wire technology is expected to play a crucial role in shaping the future of the automotive industry.

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.

Drive by Wire Market Segmentation Analysis

By Type Analysis

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 features 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

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 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.

List of Key Companies in Drive by Wire Market

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:

• February 2024 - Tesla contemplates incorporating their new steer-by-wire technology within their Model S and Model X vehicles. The unique yoke steering wheel design is set to facilitate this advancement, aiming to elevate the driving experience by eliminating hand-over-hand steering and providing a smoother ride.


• January 2024 - REE received its first U.S. certification for a vehicle fully controlled by electronics rather than mechanical connections. The “Powered by REE” P7-C medium-duty electric commercial truck is the first fully steer-by-wire, brake-by-wire and drive-by-wire vehicle certified by the U.S. Federal Motor Vehicle Safety Standards and Environmental Protection Agency.


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


• 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.


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

REPORT COVERAGE

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.

Report Scope & Segmentation