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Potential for Reduced Component Costs Across the Company Value Chain to Support Uptake of X-by-wire Systems - New analysis from Frost & Sullivan, Strategic Analysis of European Market for X-by-wire Systems, finds that the market earned revenues of €1.38 billion in 2007 and estimates this to reach €6.61 billion in 2015
Potential for Reduced Component Costs Across the Company Value Chain to Support Uptake of X-by-wire Systems

 

PRZOOM - /newswire/ - London, United Kingdom, 2008/04/07 - New analysis from Frost & Sullivan, Strategic Analysis of European Market for X-by-wire Systems, finds that the market earned revenues of €1.38 billion in 2007 and estimates this to reach €6.61 billion in 2015.

   
 
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The European X-by-wire market, comprising brake-by-wire and shift-by-wire systems, is expected to witness considerable growth post 2010 mainly driven by benefits in company’s value chain, considerable reduction in vehicle weight and cost savings in production process.

New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of European Market for X-by-wire Systems, finds that the market earned revenues of €1.38 billion in 2007 and estimates this to reach €6.61 billion in 2015.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the investment analysis and growth opportunities in the European market for X-by-wire systems, then send an email to Anna Anlauft, Corporate Communications, at anna.anlauft[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

“Reduction in the cost of components across the company value chain will be a key driver for the European X-by-wire market”, notes Frost & Sullivan Research Analyst Karthik Manivachagam. “Market development will be spurred by the growing need to cut component and packaging costs and optimise the design of chassis systems.”

X-by-wire technologies will offer the best cost-performance potential when assessed on a complete value chain basis. The elimination of hydraulic components is anticipated to cut assembly costs and time by up to 10 minutes for the assembly and filling of brake systems. This is also likely to reduce the overall weight by up to 10 kilograms and offer space savings of approximately 22 litres.

At present, however, vehicle manufacturers and suppliers have adopted a cautious approach towards the development of brake-by-wire systems, particularly after the failure and recall of Daimler’s electro hydraulic braking system. There are high expectations to be met in terms of reliability and safety of the system with the focus on technologies that do not jeopardize the safety of car passengers.

Another challenge relates to customer perceptions; consumers feel that there are no visible benefits offered by this technology and its added costs are unjustified. Therefore, unless manufacturers are able to convince consumers of the superior performance and safety of advanced technologies, a poor uptake rate is expected for brake-by-wire systems in the future.

“Currently, conventional braking systems are still preferred to advanced braking systems”, explains Manivachagam. “Cost and reliability are major concerns for OEMs in adapting brake-by-wire systems in their upcoming models.”

Creating awareness about their cost benefits on a complete value chain basis as well as their contribution to cost savings during the production process will boost the penetration rates of brake-by-wire systems. Increasing their reliability and convincing customers about their enhanced safety and performance features will be critical to increasing the market share of brake-by-wire systems.

Strategic Analysis of European Market for X-by-wire Systems is part of the European Automotive & Transportation Growth Partnership Service Programme, which also includes research in the following markets: Strategic Analysis of the European Market for Advanced Braking and Stability Control Systems, Strategic Assessment and Capability Analysis of European Suspension System Suppliers and Analysis of the European Suspension Systems Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

Strategic Analysis of European Market for X-by-wire Systems M0FF

 
 
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Potential for Reduced Component Costs Across the Company Value Chain to Support Uptake of X-by-wire Systems

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Frost & Sullivan |
Contact: Anna Anlauft 
+49 (0) 69 770 33 12 anna.anlauft[.]frost.com
 
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