Automotive Electronic Control Unit Market Size, Share & Trends Analysis Report By Application (Powertrain, ADAS & Safety System), By Propulsion, By Capacity, By Vehicle, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global automotive electronic control unit market size was valued at USD 94.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2022 to 2030. The rising demand for luxurious cars, coupled with innovations in the electronics sector, is driving the market. Several government mandates to reduce fuel usage and rising demand for better mileage of automobiles among consumers are other factors driving the market for automotive electronic control units (ECUs). The growing popularity of Automotive Driver-Assisted System (ADAS) technology, including parking assistance, Automatic Emergency Braking (AEB), and Adaptive Cruise Control (ACC), has been fueling the growth of the market. Additionally, the shifting consumer preference towards alternative vehicle options in developed countries, such as hybrid and battery electric vehicles, has contributed considerably to the growth of the ECU market. Moreover, ease of driving, security concerns, drivers' safety, and low maintenance are some of the factors propelling the growth of the ECU market.

Government initiatives and increasing consumer disposable income have increased the electronic control units used per vehicle, however, the COVID-19 negatively impacted the market sales. The pandemic has disrupted the export operations in China, causing a shortage of components used for making electronic control units, which affected the market growth. In addition, the pandemic hindered manufacturing processes in Europe and assembly operations in the U.S., which led to a significant delay in the delivery timeline and decreases in revenue forecasts. The market regained momentum due to the upliftment of lockdown mandates, prompting a rapid surge in the sales of passenger and commercial vehicles across all segments and enabling the automobile market to resume its operations worldwide. Thus, increasing automobile sales have a cascading effect on the market.

Recently, the integration of control units in automotive has witnessed a surge. Electric control units perform specified functions such as controlling the powertrain, infotainment systems, and ADAS and also enhance the user experience. The growth of luxury offerings such as ADAS, ambient lighting, and body electronics provide a high level of safety and comfort to drivers and passengers. For instance, DENSO Corporation has manufactured advanced driving systems and incorporated them in Lexus LS and Mirai. The advanced systems include the LiDAR, extension electronic control unit, and advanced drive system ECU, which accurately identifies, tracks, and controls the vehicle position. The two control unit offerings have speed processing for information deliveries. The ECU used in ADAS processes information from the LIDAR sensor and cameras for monitoring the external vehicle environment.

The automotive manufacturers are also integrating ECU, which offers enhanced vehicle performance and comfort. For instance, in February 2021, Magma introduced cameras and electronic control units in luxury cars, which provide the benefit of 3D-view. This multi-camera system offers a 360-degree view surrounding the vehicle and excellent quality and low cost, the technology incorporated aids in parking and provides a higher degree of comfort and ease. Additionally, it enhances the functioning of car systems like emergency braking and identifying and alerting the driver in case of any obstruction on camera due to ice, dirt, or rains. This on-the-road experience is necessary for level-3 to level-5 of autonomous driving, demanding improved 360-degree camera performance and system integration.

The increasing complexity and sophistication of electronic control units are major factors restraining the market growth. The software used in the ECU has an increased code count for various functions, which increases its complexity. The increasing number of ECU results in a complex network structure and communication problems with the ECU leading to serious technical faults in vehicles. The problems posed by the usage of multiple ECU hinder the integration of ECU in commercial and passenger vehicles, especially in low-cost vehicles. The technical faults in the ECU can also cause issues in the engine's fuel timing and setting, which negatively affects the vehicle performance as many ECUs are interconnected to each other. These faults have the potential to cause unwanted acceleration, increase fuel usage, trigger unwanted airbag deployment, and reduction in vehicle performance. Therefore, it can prove fatal if the multiple ECUs installed in the vehicles fail to function together.

Capacity Insights

The 32-Bit segment dominated the market with over 40.0% 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 6.2% 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.

Vehicle Insights

Passenger cars held the largest revenue share of over 60.0% 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.

Application Insights

The powertrain segment held the largest revenue share of over 25.0% 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 6.4% 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.

Propulsion Insights

The internal combustion engine segment dominated the market in 2021 and accounted for over 70.0% 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 8.4% 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.

Regional Insights

Asia Pacific dominated the market with a revenue share of over 40.0% 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 6.0% 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.

Key Companies & Market Share Insights

The market can be described as a competitive market. The key companies have adopted several strategies to broaden their customer base worldwide. Furthermore, companies are adopting various innovative technologies and are investing a hefty amount in research and development to introduce new products to enhance their product offerings. For instance, in January 2021, Aptiv PLC launched the next-generation ADAS Platform for electric vehicles and automated cars. The software-defined vehicle is enabled by Smart Vehicle Architecture, which minimizes complexity and decreases overall system costs.

Moreover, the companies adopt various growth strategies such as mergers, acquisitions, collaboration, and partnerships to gain profits and strengthen their industry presence. For instance, in October 2021, Motherson collaborated with Marelli automotive lightning to create a new tool room in India dedicated to a particular lighting application. This partnership was strategically planned to enhance the local capability to develop technologically advanced and high-precision products. Some prominent players in the global automotive electronic control unit market include:

• Robert Bosch GmbH

• ZF Friedrichshafen AG

• Autoliv Inc.

• Continental AG

• Delphi Technologies

• Denso Corporation

• Hella KGaA Hueck & Co. (Hella)

• Panasonic Corporation

• Hitachi Automotive Systems, Ltd.

Automotive Electronic Control Unit Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global automotive electronic control unit market report based on capacity, vehicle, application, propulsion, and region:

• Capacity Outlook (Revenue, USD Billion, 2018 - 2030)

  • 16-Bit

  • 32-Bit

  • 64-Bit

• Vehicle Outlook (Revenue, USD Billion, 2018 - 2030)

  • Passenger Cars

  • Commercial Vehicle

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • ADAS & Safety System

  • Body Electronics

  • Powertrain

  • Infotainment

  • Others

• Propulsion Outlook (Revenue, USD Billion, 2018 - 2030)

  • Battery Powered

  • Hybrid

  • Internal Combustion Engine (ICE)

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA