Automotive Electronic Control Unit (ECU) Market Analysis by Vehicle Type (Passenger Cars, and Commercial Vehicle); by Application (ADAS & Safety System, Body Electronics, Powertrain, Infotainment, and Others); and by Engine (Battery Powered, Hybrid, and Internal Combustion Engine) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive electric control unit (ECU) market is estimated to garner a revenue of ~USD 136 Billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 74 Billion in the year 2022. The growth of the market can be attributed to the increasing demand and sales of cars across the globe backed by the rising trend of adopting luxurious lifestyle. In the first half of 2022, nearly 30% of the worldwide population planned to buy a car. The boosted economy and increased average income has enhanced people’s lifestyle and have made them sufficient enough to afford a car.
In addition to these, factors that are believed to fuel the market growth of automotive electric control unit (ECU) include the increase in size of the population who are in favor of electric cars is expected to boost the growth of the automotive electronic control unit (ECU) market. The unit sales of electric cars are expected to reach around 16,000 by 2027. In 2022, more than 50% of the worldwide population is expected to buy electric cars. The alarming need to reduce the usage of natural fuels and regulations imposed by the government to curb fuel usage is likely to propel the market growth.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 74 Billion |
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Forecast Year Market Size (2033) |
~ USD 136 Billion |
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Regional Scope |
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Growth Drivers
Proactive Government Initiatives to Reduce Fuel Usage
Rising awareness to minimize the use of natural fuels has prompted government to put forward the rules and regulations for fuel reduction. In India, the government has proposed a mandatory guideline related to fuel consumption standards to be followed by medium and heavy duty motor vehicle from April 2023. Furthermore, in 2021, the American government announced the new plan to strengthen its Build Back Better investment policy to accelerate the future of electric vehicles and save fuel consumption.
Higher Number of Vehicle Connected to the Internet
ECU controls all the electronic features of the car that are also digitally connected nowadays. The integrated ECU system enables user to lock and start their vehicle by using their smartphone. Starting from 2021, in next two years, over 76 million units connected vehicles might be sold worldwide and about 70% of new cars and trucks are expected to have internet connectivity.
Rising Popularity of Electric Vehicles
EV vehicle are gaining attention across globe as they reduce the depletion of natural resources. Further, good investment in its batteries is resulting in its increased sales. Globally, around 6 million electric vehicles were sold in 2022, and in the first quarter of 2022, the unit sale of e-cars was around 2 million.
Increasing Demand for Luxurious Cars
Increase in average income of people and improved lifestyle has led to higher demand for luxury cars. The unit sale of luxury cars was over 2,000 in 2022, and it is predicted to be close to 202, 000 by 2026.
Surging Demand of Automotive Driver Assisted Systems (ADAS) Technology
An exclusive module called the ADAS ECU is in charge of ADAS operations in new cars More integrated ADAS controllers with centralized ECUs are replaced by scattered ADAS ECUs. On the account of the technological advancement, the popularity of ADAS is rising. Population’s demand for self-driving, smart brakes, and self-parking feature is soaring. Every 1 in 10 vehicles is expected to be installed with self-driving feature by 2030.
Challenges
The global automotive electronic control unit (ECU) market is segmented and analyzed for demand and supply by vehicle type into passenger cars and commercial vehicles. Out of two types, the passenger cars segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing sales of passenger cars. Increasing sales of passenger cars is driving the growth of the passenger car segment. In 2021, around 3 million passenger cars were sold in United States, nearly 56 million units were sold in China, and the Germany’s unit sale of passenger car was nearly 2 million. Moreover, the passenger segment holds the 70% share in the vehicle type segment.
The global automotive electronic control unit (ECU) market is also segmented and analyzed for demand and supply by application into ADAS & safety system, body electronics, powertrain, infotainment, and others. Amongst these five segments, the infotainment segment is expected to garner a significant share. The infotainment system is made up of a variety of parts, including an integrated head unit, a heads-up display, operating systems, digital signal processors (DSPs), and GPUs, as well as automotive sensors. The infotainment systems are built with the integration of various electric control units. The rising need for screens and other infotainment features in automobiles is expected to boost the segment’s growth. It’s possible that in the near future, each passenger in seven-passenger SUVs will have their own screen. Moreover, the number of screens in automobiles will increase substantially over the following few years, maybe reaching 12 per vehicle. Furthermore, around 93% of people are dependent on GPS and nearly 1 in 5 people use it every day.
Our in-depth analysis of the global automotive electronic control unit (ECU)market includes the following segments:
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By Vehicle Type |
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By Application |
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By Engine |
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The Asia Pacific automotive electronic control unit (ECU) market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the surging demand of luxury cars. In 2021, demand of luxury cars surged in China and about 840,000 BMW and Mini cars were imported to the China by German manufacturers. Further, in the India, nearly 24,000 luxury cars were sold in 12 months till March 2022. Moreover, rising popularity of electric cars is expected to the boost the market in Asia Pacific region. In 2020, over 1 million sale of electric car was reported in the Japan.
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In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Rising demand of cars with ADAS technology, increasing popularity of electric cars and luxurious cars and government mandates to reduce fuel usage are few factors which are expected to boost the market growth.
Ans: The market is anticipated to attain a CAGR of 6% over the forecast period, i.e., 2023 – 2033.
Ans: Technical failures of electronic control unit, rising complexity of automotive electronics unit and rising ECU users creating traffic in communication are few challenges faced by the market.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Robert Bosch GmbH, Autoliv Inc., Continental AG, ZF Friedrichshafen AG, Denso Corporation, Delphi Technologies, Panasonic Corporation Co., Ltd., HELLA GmbH & Co. KGaA, Hitachi Astemo Americas, Inc., and Hyundai Mobis.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by vehicle type, engines, application, and by region.
Ans: The passenger cars are anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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