The United States x-by-wire system market is anticipated to register a CAGR of about 10% during the forecast period (2020 - 2025).
- X-by-wire or drive-by-wire system is the use of electromechanical technology in cars to replace mechanical linkages. There are different types of x-by-wire technologies in the marketplace like throttle-by-wire systems, brake-by-wire systems, steer-by-wire systems, and park-by-wire systems. At present, this technology is implemented separately in the engine control, braking, or steering system.
- The x-by-wire technology has been in use in aerospace and is now finding its application in the automotive industry. One of the major factors helping the automotive manufacturers to incorporate this feature in vehicles is the availability of a variety of semiconductor ICs that are cheap and can meet the cost targets to provide the control, power, and communications required for these systems.
- Growing environmental concerns, along with the enactment of stringent emission regulations, the demand for and adoption of electric vehicles have been continually increasing, which in turn, is propelling the demand for x-by-wire systems in the country.
- Among x-by-wire systems, steer-by-wire and brake-by-wire systems are expected to witness the highest growth rates during the forecast period, owing to continuous technological advancements, coupled with new product developments by major players
Key Market Trends
Autonomous Vehicle will Drive the Growth of the Market
The reduction of mechanical parts on account of replacement by electrical systems also contributes to making vehicles lightweight, thereby improving fuel-efficiency of cars a condition that has been mandatory in most developed and several developing countries in the world. It is clear that going forward, as these technologies become more efficient and affordable and fuel-efficiency laws become more comprehensive and stringent globally, the market for x-by-wire systems is bound to grow. The car manufacturers who implement this will also enjoy substantial per vehicle cost savings to boot.
In future autonomous and semi-autonomous vehicles will not have any mechanical linkage between the steering wheel and the steering gear. Many auto technology companies are launching their new technology for autonomous vehicles for staying ahead of their competitors. For instance,
JTEKT displayed its steering systems, driveline components, and bearing solutions in the AUTOMOBILI-D hall at the 2019 North American International Auto Show. The company has showcased its technological achievements, such as recently developed lithium-ion capacitor, which can operate in extremely high and low temperatures, as well as JTEKT’s advanced driver assist system (ADAS) and steer-by-wire technologies.
Decline in vehicle production will hinder the Market Growth
As a result, to combat the spread of the coronavirus in the United States, the government closed factories, shops, schools from March and asked everyone to stay at home to help curb the outbreak. The automotive industry of the whole North America has seen its sharpest decline after the Second World War due to this pandemic. The automotive sector accounts for 6% of the United States economy and employs around 835,000 Americans. Stopping the production line is a very costly affair for the automakers for instance, Volkswagen AG estimates that total halting its production line will cost around USD 2.2 billion per week.
In mid-May, the country started easing some restrictions such as allowing shops to reopen while factories are restarting their production lines, in addition to that huge fiscal support is announced by the United States government. President Donald Trump passed a USD 2.2 trillion virus relief package against the financial effect of Covid-19. The major measures included in the package are one-off payments of up to USD 1,200 for the majority of Americans.
This all measures will help to bring the automotive sector of the United States back into the track as factories will open gradually and production will start which is a good sign for the X-by-wire system market in the country.
The United States x-by-wire systems market is consolidated and majorly dominated by few players, such as General Motors, Nexteer Automotive, and ZF Friedrichshafen AG. To provide a lightweight and efficient alternative to the customers, major x-by-wire systems manufacturers are developing new technology for future vehicles. For instance,
- In 2019, General Motors has applied for a patent for the electronic braking system (EBS) or brake-by-wire system. The patent comprised of three major parts, an explanation of the design and implementation of the brake-by-wire system, descriptions, and definitions of the vehicle equipped with the system, and last a collection of images. The patent is aimed to reduce the number of mechanical components and vehicle weight of the vehicle.
- In 2019, TomTom launched its autonomous test vehicle capable of full level 5 autonomy, in partnership with Volvo to improve its various mapping technologies aimed at the burgeoning driverless car industry. The autonomous vehicle is a customized Volvo XC90 along with its drive-by-wire system.
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