Drive by Wire Market size is estimated at USD 25.5 billion in 2024 and is expected to surpass USD 69.3 billion by the end of 2037, rising at a CAGR of 8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of drive by wire is assessed at USD 27.5 billion.
Due to the increase in demand for advanced safety and control systems in vehicles, the market of drive by wire is experiencing a rapid surge. The strategic movement toward electric and autonomous vehicles is a reason behind the prevalence of these systems as they provide better integration and further functionality with modern automotive needs. The environmental benefits of reducing the number of mechanical linkages and the potential improvement in fuel efficiency are other important drivers. The increasing demand for better driving experiences on the part of consumers and continuous innovative efforts on the part of the automotive industry further create lucrative opportunities for market growth.
Governments around the world undertake various initiatives and regulations to encourage the installation of drive by wire systems. In January 2024, REE received its first U.S. certification for a fully electronic-controlled vehicle in a report by the U.S. Federal Motor Vehicle Safety Standards (FMVSS) and Environmental Protection Agency (EPA). Such regulatory clearance has significance for market growth, since newly developed technologies are found to be compliant with stringent standards related to the safety and protection of the environment. Further, multiple government-funded R&D projects are being executed to extend the capability and reliability of drive by wire systems.
Growth Drivers:
Challenges:
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8% |
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Base Year Market Size (2024) |
USD 25.5 billion |
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Forecast Year Market Size (2037) |
USD 69.3 billion |
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Regional Scope |
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Component (Vehicle Electronic Control Unit, Actuator, Engine Control Module, Electronic Transmission Control Unit, Feedback Motor, Sensors, and Others)
The electronic transmission control units segment in the drive by wire market is projected to gain about 37% share through 2037. Growing demand for proper and effective transmission systems in modern cars and vehicles shall propel market growth. The electronic transmission control unit is vital to provide improved performance and fuel economy in a vehicle. An indication of the rise in the usage of top-of-the-line control units from the industry is the first order received by ZF Friedrichshafen AG for steer-by-wire systems in July 2023. This milestone highlights the growing demand for advanced control technologies, especially in modern vehicles.
Solution (Brake by Wire, Steer by Wire, Throttle by Wire, Shift by Wire, and Others)
Based on the solution, the shift by wire segment in the drive by wire market is likely to hold a 45% share during the forecast period. Growing penetration of automatic transmission in vehicles with requirements for smooth and efficient gear shifting is more likely to provide a thrust to this segment. Shift-by-wire technology avoids the presence of mechanical linkages, hence offering better integration with cutting-edge architecture for modern vehicles. A major highlight within the segment is the announcement by the CNXMotion-Nexteer Automotive and Continental Automotive joint venture in May 2022 to introduce new software features to its BtS technology, thus enhancing the overall functionality of the SbW systems.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Solution |
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Asia Pacific Market Analysis
The Asia Pacific is expected to lead the drive by wire market with a share of 48.5% during the forecast period, owing to the rapid adoption of electric and autonomous vehicles from countries such as China and Japan. A growing focus on vehicle safety and efficiency, along with substantial investments in automotive technology R&D, is expected to drive this market. Due to this move toward mass production of self-driving vehicles, the drive by wire system adoption is anticipated to rise during the forecast period.
The dominant country in Asia Pacific market is China, due to huge investments in electric and autonomous vehicle technologies. Supportive policies by the government and financial incentives regarding electric vehicles drive the growth of the market. Hence, China has become a vital force in the drive by wire industry. Taking advantage of the first move, multiple international giants like ZF, Bosch, and Continental, which have established a presence in China have begun developing drive by wire systems, further supporting the market growth.
India is coming into prominence within the drive by wire market, whereby the government has been putting in efforts to push electric vehicles and smart mobility solutions. In this regard, the FAME scheme by the government has served as a catalyst. Robert Bosch GmBH announced in December 2022 that it was working on R&D aspects concerning 6G mobility technology, which, in the future, could be helpful for the Indian automotive sector in enhancing vehicle connectivity along with safety features.
North America Market Analysis
North America is expected to experience a stable CAGR during the forecast period due to the rising adoption of sophisticated technologies among automobiles and a sharp focus on the safety and efficiency of vehicles. A few of the major drivers for the drive by wire market include key automotive manufacturers present in the region, along with substantial R&D investments.
With strict safety regulations and a surge in demand for advanced features inside the vehicle, the U.S. is anticipated to be one of the leading application markets for drive by wire technology. In January 2024, REE received U.S. certification for a vehicle completely controlled electronically, which further shows that the country is on track to adopt pioneering automotive innovations. Automation R&D support in the U.S., influenced by the government and key players of technology companies are other factors fueling market growth in this country.
Canada is also addressing the market, initiating sustainable and innovative automotive solutions. The government has recently been investing in smart mobility and greening technologies to align its environmental objectives. In 2023, the Canadian Automotive Partnership Council reported that drive by wire systems were part of these objectives and hence, updated the regulations. Canada's supportive regulatory environment and investment in automotive technology R&D are driving factors for this market.
The drive by wire market is highly competitive, with a number of players competing for a decent market share. Some leading companies include Robert Bosch GmBH, ZF Friedrichshafen AG, Denso Corporation, and Nexteer Automotive. Companies are investing aggressively in R&D and strategic partnerships to be competent enough in the competitive landscape. The nature of the market is such that continuous technological advancements are observed, together with demands for improved vehicle safety and efficiency.
One of the major developments in the market is the signing of the strategic cooperation agreement between ZF Friedrichshafen AG and NIO in October 2022 for developing Steer-by-Wire products along with other advanced automotive technologies. Such partnerships are likely to further drive innovation and widen the reach of the market. In fact, all major participants that provide such systems continuously develop and implement advanced drive by wire systems, with the market being highly dynamic and competitive.
Here are some leading players in the drive by wire market:
Author Credits: Saima Khursheed
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