The global automotive electronic control unit market was surpassed at USD 94.81 billion in 2021 and is expected to hit around USD 156.35 billion by 2030, growing at a CAGR of 5.72% from 2022 to 2030.
Growing demand for less carbon-emitting and air combating commute is raising the sales of hybrid and battery-powered vehicles in the market. The rising deployment of infotainment, autonomous driving, ADAS, and other body electronics in hybrid, ICE, and battery-powered vehicles is creating demand for electronic controlling devices such as electronic control units in the market. In addition, the rising consumer preference for technologically advanced luxury vehicles is fueling the sales of automotive electronic control units in the market.
Moreover, governments across the world are taking various initiatives to improve road safety by mandating the installation of ADAS systems, adaptive cruise control, anti-lock braking system, adaptive front lighting, and others in passenger cars and heavy-duty vehicles. For instance, in April 2016, Europe's new car assessment program was introduced to reduce the possibility of road accidents, thus it was mandatory to integrate the anti-lock braking system during production. Increasing implementation of safety systems is creating demand for system-controlling devices; thus, to control these systems, there is an increase in the usage of an automotive electric control unit, which is fostering the growth of the market. Additionally, consumers' growing preference for luxury vehicles boosts spending on the research & development of automotive ECUs, which is expected to create new growth opportunities for the market.
The rising demand for personal vehicles and increasing disposable income of consumers based in the emerging nations of the world are encouraging automobile manufacturers to develop and integrate advanced systems in the vehicle. They are incorporating advanced automotive electronic systems for controlling and proper functioning of these systems, which is expected to fuel the growth of the market. However, the growth of the market is negatively affected due to an increase in the number of electronic control unit failures in the vehicle, which is creating unwanted disruptions and severe accidents. Besides, the market expansion is anticipated to be limited by the high costs of repair of electronic control units and the cost of programming and installation. These factors are expected to restrain the growth of the market.
Scope of The Report
|Market Size in 2021|
|Revenue Forecast by 2030||USD|
|Growth rate from 2022 to 2030||CAGR of%|
|Forecast Period||2022 to 2030|
|Segmentation||Capacity, vehicle, application, propulsion, region
The 32-Bit segment dominated the market with over 40.03% share in 2021. The growth can be ascribed to the increased demand for these components due to their advantageous features, such as decreased design complexity and low energy consumption. In addition, the improved performance offered by these 32-Bit ECUs has boosted their use in transmission control units, automotive power tools, and engine control systems. The capacity segment is bifurcated into 16-Bit, 32-Bit, and 64-Bit.
The 64-Bit segment is expected to register the highest CAGR of 6.5% over the forecast period owing to the upgraded memory support and operating system performance. These components are used in high-tech autonomous vehicle functions such as lane management systems, ADAS, and traffic control systems. Moreover, 64-bit ECU enhances transmission, which results in requiring a lesser number of ECU per vehicle. Consolidating ECUs decreases vehicle weight and reduces the expense; thus 64bit units are high-performance electronic control units that are widely used to execute the functions of several systems.
Passenger cars held the largest revenue share of over 60.11% in 2021. Passenger cars include luxury vehicles having a higher number of ECUs than other vehicles due to improved features given in vehicle management systems such as better driver remote functions and vehicle software upgrades. Additionally, the increased popularity of luxury vehicles, rise in disposable income, and improved lifestyle of consumers have been propelling the growth of the passenger cars segment. Moreover, the increasing deployment of electronic control units in a passenger vehicle is contributing to the high growth of the segment. The market is further segmented into passenger cars and commercial vehicles.
An increase in the paying capacity of consumers in the developing nations of the world is creating a high demand for luxury vehicles in the market. Luxury vehicles have high integration of automotive electronic systems and to control this technologically advanced system, there is a requirement for automotive electric control units. Autonomous driving, IoT-controlled functions, and telematics are creating a high demand for ECUs. Moreover, the ECUs are easily configurable and provide various engine and transmission safety features, which is driving the passenger cars segment.
The powertrain segment held the largest revenue share of over 25.05% in 2021. Powertrain electric control units are used to enhance the engine performance by controlling the spark timing, fuel injection, valve timings, warning lights, and others of the vehicle. In addition, the powertrain electric control modules have various advantageous features such as they are lightweight, compact, and easy to install; thus, these features increase their application in the vehicles, contributing to the segment growth. Based on application, the market has been divided into ADAS and safety system, body electronics, powertrain, infotainment, and others.
The ADAS and safety system segment is expected to register the highest CAGR of 6.6% over the forecast period. Rising awareness regarding driver and passenger safety and decreasing prices of the electronic safety equipment used in cars are majorly driving the segment. Additionally, the key automobile manufacturers are embracing the ADAS solutions by incorporating them to improve the safety rating of their automobiles and gain consumer traction, which is further fueling the demand for ADAS safety systems and ADAS controlling automotive electronic control units in the market.
The internal combustion engine segment dominated the market in 2021 and accounted for over 70.12% share due to the rising automobile manufacturing in emerging economies, such as India and China. For instance, the Indian government has made flex-fuel engine manufacturing mandatory for vehicle manufacturers in the country. Based on propulsion, the market has been further segmented into battery-powered, hybrid, and internal combustion engine.
The battery-powered vehicle segment is anticipated to register a lucrative CAGR of 8.6% during the forecast period owing to the growing awareness regarding energy-efficient automobiles, coupled with increased government initiatives to curb pollution. Additionally, the increased government incentives to promote the adoption of the electric vehicle, coupled with the investment to build EV charging and hydrogen fueling stations infrastructure, are propelling the growth of the battery-powered vehicle segment. The reducing prices of the batteries used in passenger cars and commercial vehicles are contributing to the higher growth of the segment.
Asia Pacific dominated the market with a revenue share of over 40.4% in 2021 owing to the rising demand for in-vehicle infotainment and communication apps in passenger vehicles. The rapid growth of the automotive industry in countries such as India, China, and South Korea offers ample opportunity to incorporate ECU into the new vehicle. Moreover, the rising demand for personal vehicles is fueling automobile production and creating new opportunities for market growth in this region.
North America is expected to exhibit the highest CAGR of 6.31% over the forecast period owing to the increase in the installation of electronic systems in light commercial vehicles, passenger cars, and SUVs. Furthermore, strict government mandates to curb carbon emissions and demand for energy-efficient vehicles are driving the market. Moreover, the rising demand for luxury cars contributes to the regional market growth.