Automotive X-By-Wire Systems Global Market Report 2025

The automotive x-by-wire systems market size has grown rapidly in recent years. It will grow from $20.34 billion in 2024 to $23.08 billion in 2025 at a compound annual growth rate (CAGR) of 13.5%. The growth in the historic period can be attributed to the increasing adoption of advanced driver assistance systems, rising demand for enhanced vehicle performance, stricter government regulations on safety and emissions, growing popularity of electric power steering and braking systems, and the increased use of lightweight materials in automotive design.

The automotive x-by-wire systems market size is expected to see rapid growth in the next few years. It will grow to $37.83 billion in 2029 at a compound annual growth rate (CAGR) of 13.1%. The growth in the forecast period can be attributed to increasing demand for vehicle automation, a rising emphasis on reducing vehicle weight, a growing focus on enhancing vehicle safety, rising consumer demand for advanced user interfaces, and increased investment in research and development. Major trends during this period include technological advancements in electronic control systems, integration of X-by-wire systems with autonomous driving technologies, developments in lightweight materials, advancements in connectivity and vehicle-to-everything (V2X) communication, and innovations in electronic braking and steering systems.

The growing demand for electric vehicles is expected to drive the expansion of the automotive X-by-wire systems market in the coming years. Electric vehicles are powered entirely or primarily by electricity stored in rechargeable batteries, rather than relying on traditional internal combustion engines. The increase in electric vehicle adoption is primarily due to rising environmental concerns, as these vehicles produce no tailpipe emissions, helping to reduce air pollution and mitigate climate change. Automotive X-by-wire systems are advantageous for electric vehicles as they reduce mechanical complexity, allowing for lighter and more efficient designs that improve energy efficiency and support advanced driving capabilities. For example, in November 2023, the Energy Information Administration, a US-based government agency, reported that battery-electric vehicles (BEVs) made up 17.7% of new light-duty vehicle sales in the third quarter of 2023. BEVs accounted for 16% of all new vehicle sales in 2023, an increase from 12.5% in 2022 and 9% in 2021. Therefore, the rising demand for electric vehicles is contributing to the growth of the automotive X-by-wire systems market.

Leading companies in the automotive X-by-wire systems market are developing innovative braking technologies, such as electro-mechanical brake systems, to improve vehicle safety and braking performance. Electro-mechanical brake systems eliminate traditional hydraulic components and use electric actuators and mechanical linkages, with electronic control systems enabling precise braking. This design reduces vehicle weight and enhances overall efficiency. For instance, in November 2023, ZF Friedrichshafen AG, a Germany-based technology company, introduced a 'dry' brake-by-wire system. This system ensures safety through redundant connections and components for data transmission, processing, and motor power. It can reduce stopping distances by up to 9 meters during automatic emergency braking at 100 km/h and increase electric vehicle range by up to 17% due to enhanced brake energy recuperation. Additionally, the system reduces brake particle emissions by minimizing residual drag torques and eliminates the need for brake fluid changes, lowering maintenance demands.

In December 2023, Robert Bosch GmbH, a Germany-based manufacturer of automotive X-by-wire systems, formed a partnership with Arnold NextG to develop steer-by-wire systems. The goal of this collaboration is to accelerate the development and mass production of reliable and safe steer-by-wire systems to support advanced vehicle automation and allow for more flexible vehicle design. The partnership aims to scale up the production of these systems for widespread commercial use. Arnold NextG is a Germany-based company specializing in drive-by-wire technology.

Major players in the automotive x-by-wire systems market are Robert Bosch GmbH, Nissan Motor Co. Ltd., BYD Auto Co. Ltd, Denso Corporation, ZF Friedrichshafen AG, Continental AG, Hyundai Mobis Co. Ltd., Texas Instruments Incorporated, Aptiv PLC, Infineon Technologies AG, NXP Semiconductors N.V., HELLA GmbH & Co. KGaA, Rheinmetall AG, Mando Corporation, Curtiss-Wright Corporation, Veoneer Inc., BeijingWest Industries Co. Ltd., CTS Corporation, Hitachi Astemo Ltd, Magneti Marelli S.p.A., and Orscheln Products L.L.C.

North America was the largest region in the automotive x-by-wire systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in automotive X-by-wire systems report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the automotive X-by-wire systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Automotive X-by-wire systems refer to the replacement of traditional mechanical and hydraulic control systems in vehicles with electronic controls. These systems transmit driver input signals, such as steering, braking, or acceleration, through electronic means rather than physical linkages. This allows for improved precision, faster response times, reduced vehicle weight, and greater design flexibility.

The main types of automotive x-by-wire systems include throttle-by-wire systems, shift-by-wire systems, brake-by-wire systems, park-by-wire systems, steer-by-wire systems, and others. A throttle-by-wire system electronically controls the engine throttle by transmitting accelerator pedal input through sensors and control units instead of a mechanical linkage. Their functionalities cover a wide range, including vehicle safety and control, performance optimization, driver assistance, comfort features, and support for autonomous driving. They are used across different vehicle categories, such as passenger cars, commercial vehicles, off-highway vehicles, and two-wheelers, by various end users, such as original equipment manufacturers, aftermarket players, fleet owners, automobile enthusiasts, and mobility and ride-sharing service providers.

The automotive x-by-wire systems market research report is one of a series of new reports that provides automotive x-by-wire systems market statistics, including the automotive x-by-wire systems industry's global market size, regional shares, competitors with the automotive x-by-wire systems market share, detailed automotive x-by-wire systems market segments, market trends and opportunities, and any further data you may need to thrive in the automotive x-by-wire systems market. This automotive x-by-wire systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The automotive X-by-wire systems market consists of sales of wireless diagnostic tools, thermal management systems, simulation and testing equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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