by Increasing demand for enhanced driving experience and advanced safety features is driving the growth of the drive by wire market. The global drive by wire market is estimated to be valued at US$ 22.7 Bn in 2022 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023-2030, according to a new report published by Coherent Market Insights.
Market Overview: Drive by wire technology replaces traditional mechanical and hydraulic systems with electronic control systems, resulting in improved vehicle performance and fuel efficiency. Drive by wire systems offer advantages such as reduced weight, precise control, and flexibility in vehicle design. With increasing consumer demand for advanced driver assistance systems and autonomous vehicles, the need for drive by wire technology is expected to grow significantly.
Market key trends: One key trend in the drive by wire market is the integration of drive by wire technology in electric vehicles (EVs). As the demand for EVs continues to rise, automakers are exploring advanced technologies to enhance their performance and efficiency. Drive by wire technology allows for better control and integration of various vehicle components in EVs, leading to improved acceleration, regenerative braking, and overall driving experience. The integration of drive by wire technology in EVs is expected to drive the growth of the drive by wire market in the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the drive-by-wire market is low. The high capital requirements, technological expertise, and extensive research and development required to enter the market act as entry barriers. Additionally, established players have strong brand recognition and customer loyalty, making it difficult for new entrants to gain market share.
Bargaining power of buyers: The bargaining power of buyers in the drive-by-wire market is moderate. Buyers have the option to choose from a range of suppliers, which provides them with some negotiating power. However, the dependency on drive-by-wire technology and the limited number of suppliers limit their bargaining power to some extent.
Bargaining power of suppliers: The bargaining power of suppliers in the drive-by-wire market is moderate. The presence of several suppliers and the availability of substitute components provide buyers with alternative sourcing options. However, suppliers with unique and differentiated products have an advantage and can exert some bargaining power.
Threat of new substitutes: The threat of new substitutes in the drive-by-wire market is low. Drive-by-wire technology offers significant advantages such as enhanced safety, improved fuel efficiency, and better vehicle control. The development of alternative technologies that can match these benefits is limited, reducing the threat of substitutes.
Competitive rivalry: The competitive rivalry in the drive-by-wire market is intense. Established players such as Continental AG, Robert Bosch GmBH, and ZF Friedrichshafen AG dominate the market. These companies compete based on factors such as product quality, innovation, and pricing. The presence of multiple players with similar offerings intensifies the competition in the market.
Key Takeaways
The global Drive by Wire Market Size is expected to witness high growth, exhibiting a CAGR of 6.6% over the forecast period (2023-2030). This growth can be attributed to increasing vehicle electrification, rising demand for advanced driver-assistance systems, and the need for improved vehicle safety.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the drive-by-wire market. This can be attributed to the high sales of electric vehicles in countries like China and the increasing adoption of advanced vehicle technologies in the region.
Key players operating in the drive-by-wire market include Continental AG, Robert Bosch GmBH, ZF Friedrichshafen AG, Nissan Motor Co., Ltd., Kongsberg Automotive, Ficosa Internacional SA, Curtiss-Wright Corporation, Hitachi Ltd., and others. These players have a strong market presence and are focusing on developing innovative products to gain a competitive edge.
In conclusion, the drive-by-wire market is poised for significant growth due to factors such as increasing vehicle electrification, demand for advanced driver-assistance systems, and the need for improved vehicle safety. The market is highly competitive, with established players dominating the industry. The Asia Pacific region is expected to be the fastest-growing and dominating region, fueled by the high sales of electric vehicles and the adoption of advanced vehicle technologies.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
