Automotive Electronics Control Unit (ECU) Market Analysis

Automotive Electronics Control Unit Market Analysis

The 32-bit controllers in the market will witness growth of over 6.5% through 2024. The growth can be attributed to the demand of these components on account of 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 driven by 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.
 

The passenger cars segment dominated the market share with more than 80% in 2017 owing to 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 led by rising consumer spending capabilities and improved lifestyles is driving the market value.
 

The commercial vehicle segment is expected to expand at 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.
 

The autonomous vehicle segment of the automotive ECU market is set to reach USD 7.5 billion by 2024. Due to 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 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.
 

The battery electric vehicles in the automotive electronics control unit (ECU) industry accounted for over USD 20 billion in 2017. BEVs are witnessing a high demand in the automotive sector impelled by 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.
 

Moreover, the hybrid vehicle segment is gaining a rapid popularity and is predicted to witness growth in the market. These vehicles offer a long driving range, better fuel efficiency, and low emission levels, driving the demand in several countries.
 

Advanced driver assistance systems (ADAS) & safety applications have created several growth opportunities for the automotive ECU market. The ADAS segment is slated 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 need for reduction of carbon emissions are driving the consumption.
 

Moreover, infotainment and communication applications are growing in popularity in the passenger vehicles, further driving the market revenue. 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.
 

The U.S. automotive ECU market size was over USD 7 billion in 2017. The country is experiencing high demand propelled by 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 market growth.
 

Asia Pacific automotive electronics control unit market is expected to gain traction during the next few years due to increasing penetration of automobile manufacturers in countries like 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 size.