The increasing strictness of vehicular emission laws, rapid development in autonomous vehicle technologies, and growth of the connected infrastructure are boosting the integration of drive by wire controls in vehicles. Due to all these factors, the global drive by wire market was valued at ~$23 billion in 2020.
The outbreak of COVID-19 has negatively impacted the drive by wire market. The manufacturing of vehicles was halted as most of the countries imposed a complete lockdown stretching for more than two months. The hampered supply chain led to further complications in the production cycle of vehicles. As a result, the dropping sales and shutdown of manufacturing units around the world have severely impacted the drive by wire market.
The market has been categorized into throttle by wire, brake by wire, shift by wire, steer by wire, and park by wire, based on application. Amongst these, the shift-by-wire category holds the largest share. The installation of the shift-by-wire system aids in a higher reduction in vehicle weight compared to conventional transmission systems. Moreover, it also diminishes the intensity of engine noise and renders high operational accuracy.
The drive by wire market is categorized into passenger vehicles and commercial vehicles, on the basis of vehicle type. Between these, the commercial vehicles category is set to witness the faster growth till 2030. This can be attributed to the increasing industrialization in developing countries, which calls for a high usage of off-highway vehicles, including construction and mining equipment, forklifts, and tractors. With such vehicles undergoing rapid technological advancements, the drive by wire market is growing.
Geographically, Asia-Pacific (APAC) held the largest share in the drive by wire market during the historical period (2015–2020). This can be attributed to the increasing disposable income of the middle-class population of the region and cost advantages experienced by original equipment manufacturers (OEMs) owing to the low cost of raw materials and labor. Furthermore, the availability of strict emission norms in the region and rising popularity of premium and luxury vehicles will support the growth of the APAC drive by wire market.
Drive by wire market players are actively engaging in product development to enhance their market presence. For instance, in October 2020, the next-generation AKC active rear-axle steering system with targeted technical developments was launched by ZF. A greater steering angle, of up to 10 degrees, increases the agility of long vehicles, and the steer-by-wire technology simplifies the integration of automated driving functions.
Similarly, in October 2019, Infineon Technologies AG established a trusted platform module (TPM) specifically for automotive applications. The new OPTIGA TPM 2.0 encrypts the communication between the car manufacturer and the car, thus acting like a computer on wheels. By utilizing it, car manufacturers can integrate sensitive security keys for assigning access rights, authentication, and data encryption in the car. The TPM can also be updated so that the level of security is maintained up to date throughout the service life of the vehicle.
Some of the major players operating in the global drive by wire market are Robert Bosch GmbH, Curtiss-Wright Corporation, TRW Automotive Holdings Corp., DENSO CORPORATION, Ficosa Internacional SA, Hitachi Automotive Systems Ltd., Infineon Technologies AG, Kongsberg Group, ZF Friedrichshafen AG, and Nissan Motor Corporation.