According to Ken Research Analysis, the Global Automotive Electronic Control Unit (ECU) Market is expected to record a positive CAGR of ~6% during the forecast period (2022-2028) and is expected to reach nearly US$ 75 billion by 2028, owing to the increasing features such as ADAS, traction control, parking assistance, electronic braking, and others.
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Key Growth Drivers
The Global Automotive Electronic Control Unit (ECU) market is driven by several factors including the rising trend of adopting integrated ECUs, growing demand for luxurious cars and innovation in the electric vehicle segment, and growing popularity of ADAS, parking assistance, AEB, and ACC features. Moreover, government mandates to reduce fuel usage also boost the automotive electronic control unit market growth.
- The automotive industry has witnessed tremendous growth as compared to a decade ago. Not only, the industry has seen new market entrants, but also developments in vehicle aesthetics from the existing players. Catering to a wider audience had been the primary goal of automotive companies, and the luxury vehicles segment is one of the major markets. Earlier the luxury vehicle segment was limited to Bentley, Rolls Royce, and Cadillac, but as consumers are getting more aware and demanding, some so many new entrants meet the growing demand. The number of features in a vehicle is directly proportional to the number of ECUs integrated and thus faces a huge demand.
- Moreover, with the introduction of electric vehicles, it has become easier for manufacturers to focus more on providing safety and luxury features. Electric vehicles also serve as a base for the development of autonomous vehicles, and thus the demand for ECUs is expected to reach unimagined heights.
The Global Automotive Electronic Control Unit (ECU) Market faces challenges due to increased design complexity and sophistication of ECUs, operation failure in ECU, and cost and quality trade-off.
- ECUs serve as the brain/heart of the vehicle and like other electronic devices/components, their failure can be catastrophic. Failure of ECU can be caused by several internal and external factors such as extreme temperature, excess voltage or current, and mechanical shock, among others. A faulty ECU won’t let the engine turn on or turn on several warning lights in the vehicles which become very challenging to get the vehicle repaired at that instant.
- The design and manufacturing of an ECU are highly technical and complex. The vehicles that are manufactured get OEM-fitted ECUs which tend to be costlier than aftermarket ECUs. Moreover, the aftermarket ECUs generally have a quality issue and sometimes are not fully compatible with the onboard system. All these factors pose challenges for manufacturers to procure highly technical labor, and the end-user to compromise on either quality or cost.
The COVID-19 pandemic had a negative impact on the growth of the Automotive Electronic Control Unit Market. The major factors responsible for the slowdown in the automotive industry during the pandemic are the shortage of semiconductor chips and disruption in the global supply chain. The imposition of lockdowns in several countries resulted in restrictions on travel, which further impacted the sales of vehicles. The decline in vehicle sales caused automobile manufacturers and OEMs to halt or reduce their production. Moreover, on the electronics & semiconductor industry side, the shelf life of electronic components was rising, which indirectly impacted in high cost of the components. However, as the automotive industry began to stabilize in early 2021, the Automotive Electronic Control Unit (ECU) Market also started to show progress.
Key Trends by Market Segment
By Capacity: The 32-bit segment dominated the market based on capacity in the Global Automotive Electronic Control Unit (ECU) Market in 2021.
- As the vehicles include more features, it also requires high-end processing, due to which 32-bit ECUs are preferred over 16-bit ECUs. As per the current passenger vehicle segment, the 32-bit ECUs tend to be widely used due to more processing capabilities, and less expensive than 64-bit. The 64-bit ECUs tend to have some specific applications in autonomous vehicles and thus are in lesser demand at present. Most of the auto component manufacturers and automotive electronics companies recommend upgrading from 16-bit ECU to 32-bit ECU.
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By Vehicle Type: Passenger vehicle segment held the largest market share in the Global Automotive Electronic Control Unit (ECU) market in 2021.
- Passenger vehicle manufacturers often face the demand for the inclusion of several safety features and comfort features. Some of the widely demanded features in passenger vehicles include electronic braking and ABS, airbag deployments, crash detection, parking assist and lane assist, hi-tech infotainment systems, automatic climate control, adaptive cruise control, and others. As the demand for these features increases in passenger vehicles, the demand, and integration of several ECUs in the vehicles is expected to increase. Moreover, the growing sales of EVs add subsequently to this demand.
By Application: The powertrain segment accounted for the largest market share in the Global Automotive Electronic Control Unit (ECU) in 2021 by applications.
- The powertrain segment is one of the essential ECUs that involves engine control, transmission control, and several other important factors for the error-free operation of a car. It is a basic ECU and is essential to be present in every vehicle produced. The powertrain ECU involves inputs from multiple sensors such as oxygen, air, temperature, and CO, among others. This segment is also expected to continue its dominance during the forecast period.
By Propulsion Type: Internal combustion engine (ICE) segment accounted for the largest market share by propulsion type in the Global Automotive Electronic Control Unit (ECU) Market in 2021.
- ICE vehicles hold a high proportion in terms of the number of vehicles on-road and current productions. Although the initiatives and development pace of electric vehicles has increased, it yet has enough time to equally compete with the ICE vehicles. Over the period of the next 10 years, the automotive industry is expected to go through major changes which also involve a decline in the production of ICE vehicles. The electric vehicles segment is expected to fastest-growing during the forecast period.
By Autonomous Level: Conventional vehicles held the largest market share in Global Automotive Electronic Control Unit (ECU) market in 2021.
- The current status of autonomous vehicles has only been reached by level 2 of automation, however, there has been consistent progress yet the concern for safety remains. On the other hand, conventional vehicles including ICE and electric variants are being currently used in large numbers and are capable of housing multiple ECUs to meet the present market demand.
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By End-user: OEM segment accounted for the largest market share in the Global Automotive Electronic Control Unit (ECU) market in 2021.
- Auto parts OEMs are directly associated with the vehicle manufacturers in supplying the original equipment as per the design standards and compatibility. The OEM automotive ECUs tend to be highly compatible as compared to aftermarket products because the OEMs form an agreement to supply their products for a specific vehicle model and even for all of the vehicle models of automotive manufacturers. Although OEM ECUs are expensive as compared to aftermarket ones, most vehicle manufacturers and service centers recommend using OEM parts as standard. This also helps in violating any warranty-related issues.
By Geography: Asia-Pacific region accounted for the largest share of the Global Automotive Electronic Control Unit (ECU) in 2021.
- Asia Pacific region has been witnessing a huge demand for hi-tech in-vehicle infotainment and communication services. Several emerging economies in the region including China, India, South Korea, Indonesia, and Thailand, are expected to witness huge opportunities in the automotive sector owing to a large population, increasing disposable income, and rising demand for safety features and luxury vehicles.
- Japan, China, and India among other countries have already initiated the production of electric vehicles, which is further expected to fuel the market growth in the region. The rise in the production of electric vehicles is further backed up by stringent governmental and environmental mandates to reduce carbon emissions levels.
Competitive Landscape
The Global Automotive Electronic Control Unit (ECU) Market is highly competitive with ~100 players that include globally diversified players, regional players as well as country-niche players. Regional players comprise ~55% of the competitors, while the global players comprise the second highest of the total number of competitors. Some of the major players in the market include Veoneer Inc, Asentec Co Ltd, Robert Bosch GmbH, ZF Friedrichshafen AG, Continental AG, Denso Corporation, Hella KGaA Hueck & Co. (HELLA), Sensata Technologies, Mitsubishi Electric, Sumitomo Electric Industries Ltd, Magneti Marelli, and Aptiv, among others.
The leading automotive electronic control unit (ECU) companies such as Denso Corporation, Mitsubishi Electric, and Veoneer Inc are highly focused on strategic developments related to automotive ECUs such as product launches, technical product development, collaboration, acquisition, and others to hold their position in the market.
Recent Developments Related to Major Players
- In November 2021, Robert Bosch invested Euro 400 million to expand its wafer fabrication facilities in Germany and its semiconductor operations in Malaysia. This investment is aimed to lower the shortage of semiconductor chips that the automotive industry has been recently facing.
- In August 2020, Veoneer, Inc, and Qualcomm Technologies, Inc collaborated to deliver the highly scalable ADAS, collaborative and autonomous driving-based solutions to auto manufacturers using Veoneer’s next-generation perception and driving policy software stack and Qualcomm’s Snapdragon Ride ADAS/AD of SoC’s and accelerators.
- In January 2019, ZF Friedrichshafen AG, a Germany-based auto parts supplier launched an ECU comprising self-driving capabilities that are using the chips made by Xilinx Inc. Its ECU caters to transmission and is mostly targeted to traditional automakers and ride-hailing companies.
Conclusion
The Global Automotive Electronic Control Unit (ECU) Market is forecasted to continue a positive growth, primarily driven by the rising trend of adopting integrated ECUs, growing demand for luxurious cars and innovation in the electric vehicle segment, and growing popularity of ADAS, parking assistance, AEB, and ACC features. APAC is expected to remain the dominant region throughout the forecast period owing to the emerging automotive hub in terms of production as well as consumption. Though the market is highly competitive with ~100 participants, global players control the dominant market share.
Note: This is a Planned/On-Demand report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for pre-booking clients, and the report delivered within a maximum of two working weeks.
Ken Research has recently published report titled, Global Automotive Electronic Control Unit (ECU) Market Size, Segments, Outlook, and Revenue Forecast 2022-2028, market is segmented by capacity, vehicle type, application, propulsion type, autonomous level, and end-user. In addition, the report also covers market size and forecasts for the four region’s Automotive Electronic Control Unit (ECU) Market. The revenue used to size and forecast the market for each segment is US$ billion.
Market Taxonomy
By Capacity
- 16-bit
- 32-bit
- 64-bit
By Vehicle Type
- Passenger Vehicle
- Commercial Vehicles (Light Commercial Vehicles, Heavy Commercial Vehicles)
By Application
- ADAS & Safety Systems
- Body Electronics
- Powertrain
- Infotainment
- Others
By Propulsion Type
- Electric
- Hybrid
- ICE
By Autonomous Level
- Autonomous Vehicles
- Conventional Vehicles
- Semi-autonomous Vehicles
By End-user
- OEM
- Aftermarket
By Geography
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Sweden, Italy)
- Asia-Pacific (China, Japan, South Korea, India, Indonesia, Australia)
- LAMEA (Latin America, Middle East, Africa)
Key Players
- Veoneer Inc
- Asentec Co Ltd
- Robert Bosch GmbH
- ZF Friedrichshafen AG
- Continental AG
- Denso Corporation
- Hella KGaA Hueck & Co. (HELLA)
- Sensata Technologies
- Mitsubishi Electric
- Sumitomo Electric Industries Ltd
- Magneti Marelli
- Aptiv
