According to a recent report published by Allied Market Research, titled, " Drive by Wire Market by Application, Vehicle Type, and Component: Global Opportunity Analysis and Industry Forecast, 2019–2026," the global drive by wire market size was valued at $18.76 billion in 2018, and is projected to reach $35.18 billion by 2026, registering a CAGR of 8.3% from 2019 to 2026.
Asia-Pacific dominates the market, followed by Europe, North America, and LAMEA. China dominated the Asia-Pacific drive by wire market share in 2018 and is expected to grow at a significant rate during the forecast period.
Autonomous vehicles have several advantages over traditional vehicles from improved safety to reduction in fuel and traffic congestion and emissions. An autonomous vehicle is installed with a number of sensors including LiDAR, RADAR, camera, GPS, and drive by wire system. These sensors are short range (providing details of moving objects near the vehicle) as well as long range (providing details of high-speed oncoming vehicles) to help the vehicle sense any object or obstacle in its way, thus eliminating the chances of accidents. Whereas, drive by system electronically controls the functions of vehicle rather than traditional mechanical linkages.
Autonomous vehicles can also help reduce traffic congestion. Based on a study by University of Illinois, it was proved that one autonomous car stuck in a traffic congestion with 20 other human driven cars, can ease the congestion by controlling its pace and hence speed of all the other cars in the jam. However, rise in focus on development of autonomous vehicle is anticipated to propel the growth of the drive by wire market size.
The transportation infrastructure around the globe is evolving remarkably owing to the rapid adoption of Internet of Things (IoT). Companies such as Cisco and IBM have created digital platforms, which can automate street and traffic lights, optimize trash pickup, and augment surveillance. For instance, installation of IoT sensors in Las Vegas streets has managed to control traffic congestion and solve environmental issues. Connected infrastructure includes car parks, toll booths, and Smart Street and traffic lights, which in turn boosts the growth of the autonomous vehicle market and eventually DbW market. Thus, growth of connected infrastructure creates favorable conditions for adoption of autonomous vehicle, which in turn drives the drive by wire market growth.
Top home security manufactures are launching new home security systems with IoT and wireless technologies that allow users to remotely access home security. Addition of such technologies in home security systems result in emergence of new range of smarter home security systems with improved intrusion detection quality. However, adoption of artificial intelligence and deep learning in security systems is expected to deliver advanced level of security and comfort to the customer. Thus, adoption of deep learning and artificial intelligence in home security system is anticipated to provide potential growth opportunities for the players operating in the drive by wire market.
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 used 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 technology 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. Thus, high price associated with drive by wire system is anticipated to hinder the growth of the market.
Rise in development of autonomous vehicles drives the growth of the drive by wire market. In addition, growth of connected infrastructure is anticipated boost the growth of the market. However, high cost of drive by wire system and threat of data hacking and malfunctioning is expected to hinder the drive by wire market share. Furthermore, development of smart cities present remarkable growth opportunities for the key players operating in the market.
Key Findings of the Drive by Wire Market:
- Based on application, the park by wire segment is anticipated to grow at a remarkable growth rate during the forecast period.
- Based on vehicle type, the passenger car segment was the highest revenue contributor in 2018.
- Based on component, actuator is the largest segment in terms of revenue in 2018, and is anticipated to maintain its lead during the forecast period.
- Based on region, Asia-Pacific contributed the highest drive by wire market revenue in 2018, followed by Europe, North America, and LAMEA.
The key players analyzed in this drive by wire market report are Continental AG, Robert Bosch GmbH, ZF Friedrichshafen, Nissan Motor Corporation, DENSO Corporation, NEXTEER AUTOMOTIVE GROUP LIMITED, Kongsberg Automotive, Ficosa Corporation (Panasonic Corporation), Curtiss-Wright Corporation, Hitachi Automotive, and others.