Market Trends of United States X By Wire Systems Industry
This section covers the major market trends shaping the US X-by-Wire Systems Market according to our research experts:
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.
