Automotive Electronics Control Unit (ECU) Market Size By Capacity (16-bit, 32-bit, 64-bit), By Vehicle Type (Passenger Cars, Utility Vehicles, Commercial Vehicles), By Mode (Autonomous Vehicles, Conventional Vehicles, Semi-autonomous Vehicles), By Propulsion Type (BEVs, Hybrid Vehicles, ICE Vehicles), By Application (ADAS & Safety, Body Control & Comfort, Infotainment & Communication, Powertrain), Industry Analysis Report, Regional Outlook (U.S, Canada, Germany, UK, France, Italy, Spain, Benelux, Poland, Sweden, Russia, China, India, Japan, South Korea, Taiwan, Thailand, Indonesia, Malaysia, Australia, Brazil, Mexico, Colombia, Argentina, South Africa), Growth Potential, Competitive Market Share & Forecast, 2018 - 2024
Published Date: September 2018 | 430 Pages | Report ID: GMI109 Report Format: PDF
Automotive ECU Market size was valued at over USD 65 billion in 2017 growing at a CAGR of over 5.5% from 2018 - 2024. The global shipments are expected to surpass 9.5 billion units by 2024.
U.S. Automotive Electronics Control Unit (ECU) Market, By Propulsion Type, 2017 & 2024 (Million Units)
The rise in automotive production coupled with increasing safety standards across the globe is anticipated to propel the automotive ECU market growth over the forecast timeline. Various government institutions supporting the expansion of vehicle production and sales are providing an impetus to the industry demand. For instance, the Government of India has adopted its Automotive Mission Plan (AMP), 2016-2026 to improve and enhance the parts and vehicle manufacturing imbalance. The plan is developed in conjunction with the Make in India initiative that focuses on the development of the manufacturing sector in the region.
Increasing demand for energy-efficient cars coupled with the technological advancements in the electronics industry is further contributing to the automotive electronics control unit (ECU) market growth. Awareness about the environmental issues and controlling energy usage across the world are creating development opportunities for energy-efficient vehicles. For instance, in 2012, the Government of Mexico proposed a standard set that focused on the regulation and limits of carbon dioxide emission and fuel economy for advanced passenger vehicles.
Growing instances of control unit failures in several vehicle systems causing unwanted interruptions and serious accidents are hindering the automotive ECU market demand. Furthermore, high repair costs associated with the control units is expected to limit the industry demand. The repair services involve additional labor costs for programming and installing the repaired units in vehicle systems. Technically-advanced electronic control units incorporated into the modern vehicles cost substantially high as compared to the basic control modules.
Automotive ECU Market, By Capacity
The 32-bit controllers in the automotive ECU market are anticipated to grow at a CAGR of over 6.5% from 2018 to 2024. The growth can be attributed to the demand of these components in the due to benefits such as reduced design complexity and low-energy requirements. The high-performance offered by the 32-bit units have enhanced the deployment in the engine control systems, automotive power tools, and transmission control units. Growing awareness about ECU miniaturization and consolidation is driving the demand for 32-bit controller due to space saving and flexibility improvement benefits as compared to the conventional controllers.
However, 64-bit controller components are expected to witness growth in the automotive ECU market over the years due to the increased memory support and operating system performance. These components are deployed in advanced automated vehicle functions such as ADAS, traffic control systems, lane management systems, and other control unit functions such as fuel injection, engine control, and transmission control.
Automotive ECU Market, By Vehicle Type
The passenger cars segment dominated the automotive ECU market with more than 80% of the revenue share in 2017 due to the increased implementation of control units in these vehicles. Passenger cars including luxury vehicles have a high number of ECUs as compared to other vehicles due to advanced features offered in the vehicle management systems such as enhanced driver remote functions and vehicle software upgrading.
Additionally, the rising popularity of luxury vehicles across the globe due to rising consumer spending capabilities and improved lifestyles is driving the automotive electronics control unit market share. The commercial vehicle segment is expected to grow at over 3% CAGR in the industry due to their requirement in the telematics and IoT-controlled functions. These vehicles deploy high-end and robust ECUs that are easily programmable and offer varied safety measures for the engines and transmission systems.
Automotive ECU Market, By Mode
The autonomous vehicle segment in the automotive ECU market is expected to grow to reach over USD 7.5 billion by 2024. Due to the incorporation of enhanced features such as automated technologies that control the driving and safety systems, the popularity for autonomous vehicle segment is on the rise. Advanced systems developed by manufacturers for automated applications incur ADAS compatible features including the embedded controls platform and advanced situational sensors.
Major applications of these control units in the automated vehicle technology include ADAS owing to the requirement in controlling driving operations. However, the conventional vehicles segment in the automotive ECU market deploys several control units to control the basic engine and fuel injection systems. These vehicles are experiencing a high adoption owing to the growing demand from emerging economies followed by the affordability and price variance by several manufacturers, boosting the adoption of these vehicles.
Automotive ECU Market, By Propulsion Type
The battery electric vehicles (BEVs) in the automotive ECU market accounted for over USD 20 billion in 2017. BEVs are witnessing a high demand in the automotive sector due to the growing consumer awareness levels for energy-efficient vehicles coupled with government initiatives to reduce pollution. The government policies and initiatives have been the strongest in Europe, which is a major adopter of vehicles with alternative fuel solutions. For instance, the European Commission published the strategy and long-term objectives for low-emission mobility.
Moreover, the hybrid vehicle segment is gaining a rapid popularity and are predicted to witness growth in the automotive ECU market over the forecast timeline. These vehicles offer a long driving range, better fuel efficiency, and low emission levels, driving the demand in several countries. For instance, the Government of China offers tax rebate on the purchase of these vehicles for promoting the adoption of energy-efficient solutions.
Automotive ECU Market, By Application
Advanced driver assistance systems (ADAS) & safety applications have created several growth opportunities for the automotive ECU market. The ADAS segment is anticipated to grow at 6.9% CAGR from 2018 to 2024. They provide highly-automated driving specifications, intelligent tire control functions, and telemetry data analysis in the autonomous and semi-autonomous vehicles. Additionally, favorable government initiatives coupled with the reduction of carbon emissions are driving the consumption. For instance, in May 2018, BMW won the self-driving car testing permit in China. The permit allowed BMW to test its BMW 7 Series autonomous vehicles in Shanghai on the test site spanning 5.6 km.
Moreover, infotainment and communication applications are growing in popularity in the passenger vehicles, further driving the automotive ECU market. These systems comprise control units that provide enhanced internet and vehicle bus system connection to enable improved communication between the vehicle, driver, and the outside world.
Automotive ECU Market, By Region
The U.S. automotive ECU market was over USD 7 billion in 2017. The country is experiencing high demand due to the increasing customer preferences for luxury and hybrid vehicles. The strong presence of global players in the U.S. manufacturing these systems is contributing to the industrial demand. The luxurious vehicle segment is experiencing a high adoption in the U.S. owing to the rise in living standards and increased consumer purchasing power. Moreover, early technological adoption in the region is also a factor responsible for the automotive electronics control unit market growth.
In the Asia Pacific automotive ECU market is expected to gain traction due to increasing penetration of automobile manufacturers in countries China and India. Increasing sales of BEVs and Plug-in Hybrid Electric Vehicles (PHEV) in China are expected to drive the adoption of ECUs in the automotive sector. Additionally, government support and initiatives for carrying out innovative manufacturing processes and permits for driver-less vehicle testing in China are contributing to the industry growth.
Competitive Market Share
Prominent players in the automotive ECU market include Delphi Technologies, Bosch Group, Continental AG, Denso Corporation, Hitachi Automotive Systems, ZF Friedrichshafen, Hyundai MOBIS, Johnson Control, Lear Corporation, and Mitsubishi Electric Corporation. Key participants are adopting product development and production process innovation strategies to provide highly-efficient control solutions for OEMs. To achieve the targeted profit margins, companies are adopting innovative business models focusing on the value creation and provision, long-term supplier & customer partnerships, and leading technology solutions.
Increasing awareness related to the vehicle safety to prevent road accidents and unwanted transport interruptions is driving the automotive ECU industry. Additionally, the rise in the production of autonomous and semi-autonomous cars is a key factor creating several growth opportunities in the industry. Rising popularity of driverless and semi-autonomous vehicles due to the advantages offered such as increased safety & efficiency and low energy consumption, is compelling the companies to develop highly advanced control units. For instance, in 2018, General Motors announced the design of its new Cruise AV without steering wheel, pedals, and driver control.
Automotive ECU Industry Background
The automotive ECU market is highly fragmented due to the presence of several major and small players across the globe. The growing awareness for road safety and comfortable & luxurious automobile functions has driven the demand for these products. The automotive electronics control unit market needs to comply with stringent government regulations and standards related to the unit production process and controlling carbon emissions. The industry players are investing highly on R&D to develop technically-equipped products in areas related to infotainment, powertrain, chassis, and related technologies.
Established players and OEMs in the automotive ECU marketplace possess significant purchasing power, allowing them to purchase control unit systems in large number, negotiate favorable pricing, warranty, and other terms with vendors. The industry dynamics is characterized by high competition with the presence of major players with operating facilities in major regional markets, sales force strength, and efficient distribution channels.
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