Drive by Wire Market Trends

Growth Drivers:

• Technological advances: Technological advancement in automotive electronics continues to be one of the major factors contributing to the growth of the drive by wire market. The introduction of multi-redundant systems and the integration of advanced sensors are increasing the reliability and safety of the systems. For example, in June 2023, Bosch partnered with Arnold NextG for commercial steer-by-wire production, with a special view toward multi-redundant systems. These steps are considered important for the adoption of drive by wire technologies in the development of autonomous vehicles.

• Increasing demand for electric vehicles: Another key driver is the increasing demand for electric vehicles. EVs prove to be a good match for drive by wire systems as they can enhance vehicle efficiency and reduce mechanical components. In September 2023, Titan launched a new steer-by-wire system targeting low-volume electric vehicles, including trucks and supercars. This shows how closely drive by wire technology is increasingly associated with the EV market.
• Improved vehicle safety and control: The rise in demand for drive by wire systems with enhanced vehicle safety and control is fueling market growth. These systems provide greater precision and reliability-things crucial for modern standards of safety and automation. In September 2020, for instance, Denso Corporation unveiled its newly developed Electric-Power Steering Motor Control Unit (EPS-MCU) to enable cornering with better handling and improved safety. It is this emphasis on safety and control, that helps accelerate the market's growth.

Challenges:

• Regulatory hurdles: One of the major challenges for companies in the drive by wire industry is sorting out regulatory issues. Meeting strict safety and environmental regulations can be very complicated and time-consuming. Such regulatory challenges may cause delays in launching products and increase development costs.

• Integration with existing infrastructure: Integrating drive by wire systems with current vehicle infrastructures is a key challenge for the market. Compatibility with legacy systems and mechanical components could result in extensive modifications and redesigns. A report by the European Commission in 2023 estimated a call for protocols that are standardized to ensure seamless integration. The challenge thus further iterates the need for cooperation within the industry and standardization to facilitate smoother transitions toward drive by wire systems.