The global automotive electronic control unit market size was estimated at USD 38.40 billion in 2018 and is projected to expand at a CAGR of 6.7% from 2019 to 2025. Increasing adoption of autonomous driving technology in the form of driver-assisted technologies, such as Adaptive Cruise Control (ACC), Automatic Emergency Braking (AEB), blind spot detection, park assist, and Lane Departure Warning (LSW) systems, has been propelling the automotive ECU market growth. Growing consumer preference for fuel-efficient Electric Vehicles (EVs), self-driving cars, and vehicle-to-vehicle communication technology is also expected to boost the market growth over the forecast period.
Technological advancements in the automotive market have led to an increased use of ECUs in vehicles. These advancements have made automobiles smarter and more efficient. Therefore, to meet the growing demand for technologically advanced vehicles, the manufacturers have started integrating more number of ECUs to support the increasing electronic content per car. Rising consumer awareness regarding fuel-efficiency has led to a substantial growth in demand for hybrid and EVs. Hybrid EVs are driven by multiple power sources that reduce fuel consumption and simultaneously enhance the driving experience. All these factors are also boosting the product demand.
Apart from passenger cars, there is enormous demand for mass transit EVs owing to the evolving EV powertrain and battery management system. Furthermore, regulatory bodies of various countries have laid down stringent regulations pertaining to fuel emission and increasing road safety. For instance, the European Commission and China launched New Car Assessment Program (NCAP), which mandates the use of AEB and LDW systems, thereby, implementing the wide-scale adoption of active safety systems. Likewise, China and Europe have imposed strict regulations to reduce carbon footprint and encouraging the use of EVs as an alternative.
Hence, it is anticipated to propel the market growth in near future. The Asia Pacific region held the largest share of the market in 2018 and is expected to continue the dominance throughout the forecast period. This is owing to growing preference for high-end luxury vehicles along with a focus on production of autonomous and semi-autonomous vehicles with Advanced Driver Assistance System (ADAS) and predictive vehicle technology. Moreover, rising consumer awareness about vehicle safety features is likely to drive the regional market further.
Automotive ECUs are used across various applications including ADAS and Safety System, chassis electronics, powertrain electronics, and infotainment systems. ADAS and safety systems segment led the market and accounted for a share of 27.2% of the overall revenue share in 2018. It includes control and monitoring features, such as ABS, LDW and AEB systems, blind spot detection, Tire Pressure Monitoring System (TPMS), and Electronic Stability Control (ESC).
It also comprises vision system that requires an extensive set of sensors to take input from the surroundings for immediate monitoring and feedback. Thus, increasing demand for these sensors and safety features are directly flourishing the demand for ECUs. Furthermore, key companies in the market are working towards additional ADAS features, such as prediction of loss of friction between the road and the tire for better stability, touch-free Human Machine Interface (HMI) systems for better driver interaction, voice-operated systems, and driver monitoring system using eye-tracking technologies.
Such advancements are further expected to propel the market over the coming years. The infotainment application is estimated to be the fastest-growing segment registering a CAGR of 9.1% from 2019 to 2025. Additionally, with the growing demand for luxurious and smart vehicles, automotive manufacturers are using the possibilities of ECUs to create connected car systems, which provide a combination of entertainment and information for an enhanced in-vehicle experience.
In the coming decade, technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and Augmented Reality (AR) are expected to completely transform the driving experience. Augmented reality dashboards, is however already a reality for BMW vehicles. By 2020, almost 70% of its cars will be incorporated with AR dashboards to further enhance the HMI. Furthermore, investments in the development of these technologies for improved vehicle performance are predicted to impel the market growth.
Asia Pacific led the market and accounted for 41.7% of the global share in 2018. The growth can be accredited to the increasing demand for in-vehicle infotainment and communication applications in passenger vehicles. Moreover, rapidly expanding automobile market in China will provide many growth opportunities for the development of automotive ECU market. Increasing disposable income levels and population in the region are driving the automobile production, which further creates opportunities for the automotive electronic control unit market.
Europe is expected to register the fastest CAGR of 7.2 % from 2019 to 2025 owing to the presence of several major automobile manufacturers in Germany, France, and Italy. Moreover, high demand for energy-efficient vehicles, strict government regulations to reduce carbon emission, and increasing disposable income in the region are also contributing to the market growth.
The market is consolidated in nature owing to the presence of limited number of manufacturers. Some of the key industry competitors include Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Denso Corporation, and Delphi Technologies. These companies are investing more in R&D for the development of highly advanced ECUs. The companies are also adopting alliances and collaborations with ECU component providers and software developers across the value chain to establish a strong foothold in the global market.
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Attribute |
Details |
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Base year for estimation |
2018 |
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Actual estimates/Historical data |
2015 - 2017 |
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Forecast period |
2019 - 2025 |
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Market representation |
Revenue in USD Million and CAGR from 2019 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, and Rest of the World |
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Country scope |
U.S., Canada, Mexico, Germany, U.K., France, Rest of Europe, China, Japan, India, South Korea, Rest of Asia Pacific, and Brazil |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive electronic control unit market report on the basis of application and region:
Application Outlook (Revenue, USD Million, 2015 - 2025)
ADAS & Safety Systems
Chassis Electronics
Powertrain
Infotainment
Others
Regional Outlook (Revenue, USD Million, 2015 - 2025)
North America
U.S.
Mexico
Canada
Europe
U.K.
Germany
France
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Rest of Asia Pacific
Rest of the World
Brazil
Others
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