Automotive Electronic Control Unit Market Size, Share & Trends Analysis Report By Application Type (ADAS & Safety System, Powertrain), By Capacity Type, By Propulsion Type, By Vehicle Type, By Region, And Segment Forecasts 2023 - 2030

Report Overview

The global automotive electronic control unit market analysis market size was valued at USD 99.39 billion in 2022 and is anticipated to register a CAGR of 5.9% from 2023 to 2030. Factors such as growing demand for high-end vehicles and advancements in the electronics industry are driving the growth of the automotive electronic control unit (ECU) market. Other factors influencing the market expansion include a range of federal regulations to reduce fuel consumption and rising consumer demand for vehicles with improved fuel economy. The growing adoption of automotive driver-assisted system technology (ADAS), including parking guidance, adaptive cruise control (ACC), and automatic emergency braking (AEB) has been propelling the growth of the automotive electronic control unit market.

For instance, in November 2022 Continental Engineering Services collaborated with Sono Motors, an automobile company, for the production of the self-charging electric vehicle Sion, which will be manufactured in Finland in the second quarter of 2023. Latest series vehicles, for instance, will also come with an Automotive Driver-Assisted System (ADAS) and software for torque management, climate control, and energy, charging, and thermal protection of the powertrain.

However, government initiatives and the increasing disposable income of consumers have increased the automotive electronics control unit used vehicle; the COVID-19 pandemic negatively impacted its automotive electronic control unit market sales. The pandemic has interrupted China's export operations, leading to a shortage of parts needed to make electronic control units, which has hampered market expansion.

Additionally, the pandemic hampered assembly operations in the U.S. and European production facilities, which caused a considerable delay in delivery times and decreased revenue projections. The market gained impetus as a result of the lifting of lockup mandates, which caused a sharp increase in sales of commercial and passenger vehicles across all categories and allowed the global automobile market to resume operations. Thus, an upsurge in automobile sales had a cascading effect on the automotive electric control unit market.

The inclusion of control systems in automobiles has increased recently. Automotive electronic control units provide specific tasks including managing the drivetrain, infotainment systems, and ADAS, among others. They also help to improve the user experience. The rise of luxury offerings such as ambient lighting, ADAS, and body electronics offer a greater level of comfort and safety to drivers and passengers.

For instance, in July 2022, Renault partnered with Vitesco Technologies to work together to create the market's first power electronics concept, known as "One Box." Vitesco Technologies will provide its power electronics technologies and Renault will contribute its knowledge of hybrid and electric vehicles. The goal is to develop essential electronics that include the inverter, onboard charger, and DC-AC converter all in one box.

The integration of electronic control units by automobile manufacturers improves vehicle comfort and performance. For instance, in April 2022, DENSO Corporation partnered with United Semiconductor Japan Co., Ltd. (USJC), a semiconductor manufacturer, on USJC's 300mm fab's power semiconductor manufacturing to meet the expanding demand in the automobile sector.

The demand for semiconductors needed for vehicle electrification is rising quickly along with the development and uptake of electric vehicles amid global efforts to cut carbon emissions. IGBTs are key components of power cards and act as effective power switches in inverters, converting DC and AC currents to operate and regulate the motors of electric vehicles.

The increasing complexity and sophistication of electronic control units are major factors restraining the market growth within the forecast period. The ECU's software has code for a rising number of functions, which adds to the software's complexity. Major technical problems with automobiles are caused by a complex network structure and connectivity issues with the ECU caused by the increasing ECU count.

It is complicated to connect automotive electronic control units in commercial and passenger vehicles due to multiple ECU usage, especially in low-cost automobiles. Due to the interrelated nature of many ECUs, technical flaws in the automotive electronic control unit can also result in problems with the engine's fuel scheduling and setting, which have a negative impact on the vehicle's performance. These flaws may result in unintended acceleration, increased fuel consumption, unintended airbag deployment, and decreased vehicle performance.

Capacity Type Insights

The 32- Bit segment dominated the market accounting for over 41% of the revenue in 2022. The rise in demand for these components can be attributed to their beneficial qualities, such as reduced design intricacy and low energy use. Furthermore, the enhanced performance provided by these 32-Bit has increased their application in engine control systems, automotive power drills, and transmission control units.

The 64-Bit segment is expected to register the highest CAGR of 6.3% over the forecast period owing to the improved operating system and memory support. These parts are utilized in high-tech autonomous vehicle applications such as traffic control systems, lane management systems, and ADAS. Additionally, 64-bit ECU improves transmission, which necessitates using fewer ECU per car. Automotive electronic control unit consolidation saves vehicle weight and costs, therefore 64bit is a high-performance electronic control unit that is frequently employed to carry out the operations of several systems.

Vehicle Type Insights

The automotive electronic control unit market is further segmented into passenger cars and commercial vehicles. Amongst which passenger vehicles hold the significant market share. Due to the additional features provided by in-vehicle management systems, such as greater driver remote capabilities and vehicle software updates, passenger automobiles, even luxury vehicles, have a greater number of ECUs than other vehicles.

For instance, In January 2023, NVIDIA Corporation partnered with Foxconn, a manufacturing company, to create platforms for autonomous vehicles at the CES in 2023. Foxconn will produce automotive electronic control units for vehicles based on Nvidia's DRIVE Orin chip and DRIVE Hyperion sensors for autonomous vehicles. The chip was specifically developed for networked autonomous vehicles. Additionally, the growing demand for luxury vehicles, rising disposable income, and consumers' improved lifestyles have all been contributing to the expansion of the passenger vehicle market.

The automotive electronic control unit market is experiencing increased demand for high-end vehicles due to consumers' rising purchasing power in the world's developing countries. High levels of automotive electronic system integration are present in luxury automobiles, and automotive electric control units are necessary to operate this highly developed system. Additionally, the need for ECUs is increasing due to autonomous driving, IoT-controlled functions, and telematics; these factors together with the ECUs' ease of configuration and availability of a variety of engine and transmission safety features are driving the passenger car market to develop.

Application Type Insights

The powertrain held a major market share of over 21% in 2022. Powertrain electronic control unit is utilized to improve engine performance by managing the vehicle's warning lights, fuel injection, valve timing, and spark timing. In addition, the powertrain electric control components also offer a number of beneficial qualities, such as being lightweight, small, and simple to install; as a result, these qualities promote their application in the cars and contribute to the high segment share.

The ADAS & safety system segment is expected to register the highest CAGR of 6.5% over the forecast period. Growing consumer awareness of the need for driver and passenger safety, along with declining prices for in-car electronic safety systems, is propelling the segment's expansion. The need for ADAS safety systems and associated regulations in the automotive electronic control unit market is further fueled by the fact that the major auto manufacturers are embracing ADAS solutions by adding them to raise the safety rating of their vehicles and attract consumers.

Propulsion Type Insights

The internal combustion engine segment accounted for the largest share of over 72% in 2022, due to the rising automobile manufacturing in emerging economies, such as India and China. For instance, in December 2022, Stellantis NV partnered with Qinomic, a manufacturing company, to develop an e-drivetrain retrofit solution for converting light commercial vehicles with internal combustion engines to electric drivetrains while enhancing OEM quality and requirements, such as safety, longevity, and type approval. With an economical option that satisfies customers' desires to prolong the life of their vehicles and maintain business operations while entering Low Emissions Zones (LEZ) in localities, the electric retrofit solution strives to protect freedom of mobility.

The battery-powered vehicle segment in automotive electronic control units is anticipated to witness a CAGR of 8.5% during the forecast period owing to the increased government efforts to reduce pollution along with the increasing acceptance of vehicles that use less energy. The development of battery-powered vehicles is also being fueled by rising government incentives to encourage the use of electric vehicles together with infrastructure investments to establish EV charging and hydrogen fueling stations. Lower battery costs for both personal and commercial vehicles are driving the automotive electronic control unit market to rapidly expand.

Regional Insights

Asia Pacific region dominates the automotive ECU market with a revenue share of over 49% in 2022, owing to the increase in demand for passenger-car entertainment and communication apps. The automobile industry is expanding rapidly in countries such as South Korea, India, and China which creates several opportunities to integrate ECU into the new car. Moreover, rising demand for personal vehicles is fueling automobile production and creating new opportunities for automotive electronic control unit market growth in this region.  

North America automotive ECU market is expected to exhibit the highest CAGR of 6.1% over the forecast period, owing to the increase in the installation of electronic systems in light commercial vehicles, passenger cars, and SUVs. The demand for energy-efficient automobiles and stringent government regulations to reduce carbon emissions are also propelling the growth of the automotive electronics industry. Moreover, the rising demand for luxury cars also contributes to regional market growth.

Key Companies & Market Share Insights

The market can be described as a competitive market, including Denso Corporation, Continental AG, Robert Bosch GmbH, Delphi Technologies, and Hella KGaA Hueck & Co. (HELLA) among others. These major businesses have implemented a variety of strategies to increase their clientele globally. Additionally, businesses are utilizing a plethora of advanced technologies and spending a significant amount on research and development to launch new items and expand existing product lines.

For instance, in March 2022, Renesas Electronics Corporation, a semiconductor manufacturer, collaborated with Honda in the area of advanced driver-assistance systems. The Honda SENSING Elite system included in the legend uses Renesas' R-Car automobile system on a chip (SoC) and RH850 automobile MCU. Additionally, Honda chose the R-Car S4 as the primary SoC within ECU, the center of the ADAS, in the next-generation Honda SENSING 360 system.

Moreover, to increase revenues and solidify their market position, these businesses use a variety of growth tactics, including mergers, acquisitions, collaboration, and partnerships. For instance, in February 2022, NXP Semiconductors, a semiconductor manufacturer, partnered with Green Hills Software, an embedded platform, focused on ADAS and autonomous driving solutions at the industrial level. The collaboration and the inclusion of Green Hills' "INTEGRITY" RTOS could broaden the ecosystem that is developing around NXP's S32 lineup for ADAS and centralized computing systems. 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 Electric Control Unit Market Report Scope

Global Automotive Electronic Control Unit Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends 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 type, vehicle type, application type, propulsion type, and region:

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

  • 16-Bit

  • 32-Bit

  • 64-Bit

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

  • Passenger Car

  • Commercial Vehicle

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

  • ADAS & Safety System

  • Body Electronics

  • Powertrain

  • Infotainment

  • Others

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

  • Battery Powered

  • Hybrid

  • Internal Combustion Engine

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • Middle East & Africa