Automotive Electronic Control Unit Market Size, Sector / Industry Report & Analysis, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Automotive Electronic Control Unit Market


The global Automotive Electronic Control Unit market size is projected to reach US$ 89.76 billion by 2026, from US$ 69.32 billion in 2020, at a CAGR of 4.4% during 2021-2026. The sales of automotive electronic control units (ECUs) are expected to reach 3.29 billion units by 2025. Increasing adoption of autonomous driving technology in the form of driver-assisted technologies, such as Adaptive Cruise Control (ACC), Automatic Emergency Braking (AEB), blind spot detection, park assist, and Lane Departure Warning (LSW) systems, has been propelling the market growth. Growing consumer preference for fuel-efficient Electric Vehicles (EVs), self-driving cars, and vehicle-to-vehicle communication technology is also expected to boost the market growth over the forecast period.

Since an increasing number of electronic control units per vehicle reduces the efficiency, various automotive giants are collaborating with OEMs to consolidate ECUs without affecting the functionalities. This subsequently saves space and reduces the weight of the vehicle, hence, decreasing fuel consumption. In June 2017, Sasken Technologies Ltd. demonstrated its hypervisor-based consolidator that virtualizes infotainment and cluster systems. The key purpose of ECU consolidation is to converge various electronic control units into a single advanced ECU that can control multiple hardware functions.

Awareness among consumers regarding reduction in fuel consumption has led to substantial growth in demand for hybrid and battery electric vehicles. Hybrid electric vehicles are driven by multiple power sources that reduce the consumption of fuel and simultaneously gives consumer a positive, smooth, and quiet driving experience. Apart from passenger cars, there is substantial demand for mass transit electric vehicles owing to the evolving electric vehicle powertrain and battery management systems for electric vehicles.

Furthermore, regulatory bodies in various countries have laid down stringent regulations pertaining to fuel emission and increasing road safety. For instance, the European Commission and China launched the New Car Assessment Program (NCAP) that mandates the use of automatic emergency braking and lane departure warning systems, thereby ensuring wide-scale adoption of active safety systems. China and Europe have also imposed strict regulations to reduce their carbon footprint and encourage the use of electric vehicles as an alternative to conventional vehicles. These measures are anticipated to augment market growth in future.

Over the next decade, technologies such as artificial intelligence (AI), machine learning, and augmented reality (AR) are expected to completely transform the driving experience. The augmented reality dashboard has already been implemented in BMW vehicles. By 2020, almost 70% of the companys cars would be incorporated with AR dashboards to further enhance the human-machine interface. Furthermore, investments in development of these technologies for improved vehicle performance are predicted to boost market growth.

Growing focus on production of autonomous and semi-autonomous vehicles with advanced driver assistance systems and predictive vehicle technology is expected to increase demand for ECUs over the coming years. Additionally, rising consumer awareness about safety features of vehicles such as airbags and anti-lock braking systems (ABS) in emerging economies is driving demand for vehicles equipped with active and passive safety systems.

Market Segmentation, Outlook & Viewpoint: Global Automotive Electronic Control Unit Market

Capacity Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
16-Bit
  
32-Bit
  
64-Bit

Vehicle Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Passenger Cars
  
Commercial Vehicles

Application Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

ADAS & Safety Systems

  
Regional Analysis
  
Propulsion Type Analysis
  
Vehicle Type Analysis

Body Electronics

  
Regional Analysis
  
Propulsion Type Analysis
  
Vehicle Type Analysis

Powertrain

  
Regional Analysis
  
Propulsion Type Analysis
  
Vehicle Type Analysis

Infotainment

  
Regional Analysis
  
Propulsion Type Analysis
  
Vehicle Type Analysis

Others

  
Regional Analysis
  
Propulsion Type Analysis
  
Vehicle Type Analysis

Propulsion Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Battery Powered
  
Hybrid
  
Internal Combustion Engine (ICE)

Key Players, Recent Developments & Regional Insights: Global Automotive Electronic Control Unit Market

Automotive ECUs are used across various applications including ADAS and Safety System, chassis electronics, powertrain electronics, and infotainment systems. ADAS and safety systems segment led the market and accounted for a share of 33.7% of the overall revenue share in 2018. It includes control and monitoring features, such as ABS, LDW and AEB systems, blind spot detection, Tire Pressure Monitoring System (TPMS), and Electronic Stability Control (ESC).

It also comprises vision system that requires an extensive set of sensors to take input from the surroundings for immediate monitoring and feedback. Thus, increasing demand for these sensors and safety features are directly flourishing the demand for ECUs. Furthermore, key companies in the market are working towards additional ADAS features, such as prediction of loss of friction between the road and the tire for better stability, touch-free Human Machine Interface (HMI) systems for better driver interaction, voice-operated systems, and driver monitoring system using eye-tracking technologies.

Infotainment is estimated to emerge as the fastest-growing segment over the forecast period. It is anticipated to exhibit a CAGR of 4.9% from 2019 to 2025 in terms of volume. Rising preference for in-vehicle infotainment systems is one of the key factors behind segment growth. Additionally, with the rising demand for luxurious and smart vehicles, automotive manufacturers are using ECUs to create connected car systems, which provides a combination of entertainment and information for an enhanced in-vehicle experience.

Capacity Insights

Based on capacity, the 32-bit ECU segment held the largest market share in 2018 owing to the increasing demand for advanced electronics, such as infotainment & navigation units, ADAS, windshield HUDs, and so on. The high performance offered by 32-bit ECUs has enhanced their deployment in automotive power tools, transmission control units, and engine control systems.

On the other hand, the 64-bit ECU segment is projected to grow at a highest CAGR over the forecast period owing to the increasing demand for improved performance of operating systems. These ECUs are deployed in systems that require quick real-time processing and high calibration. Over the past decade, the number of ECUs installed in vehicles has almost doubled. This has necessitated the consolidation of ECUs by using central control units. ECU consolidation reduces the vehicles weight and cost; however, it requires a high-performance electronic control unit to execute the functions of several systems. Subsequently, the demand for 64-bit ECUs is anticipated to increase over the coming years.

Vehicle Type Insights

Based on vehicle type, the passenger cars segment dominated the automotive electronic control units market and projected to expand at a highest CAGR over the forecast period. The segment accounted for a share of 86.9% of the overall revenue in 2018. Over the past five years, the automotive industry has witnessed an average growth of more than 3%. This is due to the growing consumer preference for luxury and hybrid vehicles with advanced electronic and safety systems. Moreover, the increasing deployment of electronic control units in passenger cars is expected to drive the growth of the automotive ECUs market over the forecast period.

Luxury passenger vehicles witness a high implementation of electronic control units as compared to other vehicles owing to the advanced features offered in their vehicle management systems.  Currently, a standard car comprises around 15-20 ECUs on an average whereas a premium luxury car cross 100. Additionally, the increasing popularity of luxury vehicles owing to improved lifestyles and the rising purchasing power of consumers are driving the market growth.

Propulsion Type Insights

Based on the propulsion type, the Internal Combustion Engine (ICE) vehicles dominated the automotive ECU market and accounted for a share of 96.3% of the overall revenue in 2018. The ICE segment is estimated to dominate the market over the forecast period owing to the increasing production of vehicles across emerging economies, such as China and India, among others. However, it is estimated to grow at a minimal CAGR due to the increasing demand for electric vehicles in emerging countries. Additionally, the Indian government has initiated several schemes such as the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) to promote electric mobility.

The hybrid vehicles segment is growing at a considerable CAGR as these vehicles offer better fuel efficiency, low emission levels, and an extended driving range. On the other hand, the Battery powered segment is estimated to emerge as the fastest-growing segment owing to increasing government initiatives to reduce pollution coupled with rising consumer awareness about energy-efficient vehicles. Europe is a major adopter of vehicles using alternative fuels due to stringent government policies and initiatives.

Regional Insights

Asia Pacific dominated the automotive ECU market in 2018 and projected to expand at a highest CAGR over the forecast period. In 2018, the market in Asia Pacific was valued at USD 35.22 billion, accounting for a 55.4% share of the overall market revenue. The growth can be accredited to the increasing demand for in-vehicle infotainment and communication applications in passenger vehicles. In China, the demand for automotive ECUs is mainly driven by the rapid growth of the countrys automotive industry, which provides opportunities for the development of the automotive ECU market in the country. The growing population in the Asia Pacific region and an increasing disposable income are some of the factors responsible for the rise in the automobile production, thus generating lucrative opportunities for market growth.

North America is expected to grow at a CAGR of 1.8% over the forecast period and is expected to reach USD 12.77 billion by 2025. This is attributed to the increasing demand for luxury cars in the region. Moreover, the growing demand for energy-efficient vehicles and strict government regulations to reduce carbon emissions are driving the overall market demand. The growing preference for connected cars is also contributing toward the regional market growth.

Automotive Electronic Control Unit Market Share Insights

The key industry competitors include Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Denso Corporation, and Delphi Technologies among others. The prominent companies accounted for the maximum share of the global market in 2018. Other automotive component manufacturers are also undertaking alliances and collaborations with ECU component providers and software developers across the value chain to establish a strong foothold in the market.

The increasing awareness of vehicle safety and a rise in the production of autonomous and hybrid vehicles are crucial factors leading to the creation of several growth opportunities in the market. The growing demand for improved vehicle safety and comfort has driven the need for the implementation of ECUs in the vehicles. The market is consolidated owing to the presence of a limited number of manufacturers. Thus, to maintain their key positions, companies are significantly investing in R&D and the development of highly advanced ECUs.

Key Insights Covered: Global Automotive Electronic Control Unit Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Automotive Electronic Control Unit industry.
2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Automotive Electronic Control Unit industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Automotive Electronic Control Unit industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Automotive Electronic Control Unit industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Automotive Electronic Control Unit industry.

Research Methodology: Global Automotive Electronic Control Unit Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other