Increasing complexities of modern vehicles when compared to traditional vehicles, the steady expansion of alternative vehicle options such as hybrid and pure electric automobiles in developed countries have contributed significantly to the automotive electronics control unit market, which is projected to reach $ 68.33 billion by 2027.
According to the latest report by Valuates Reports on the global automotive Electronic Control Unit (ECU), market size is projected to grow at a CAGR of 5.8% during 2021-2027, growing from $ 44.56 billion in 2020.
Customer demand for low maintenance, driver safety, and security concerns are also driving the growth of the automotive ECU market, the report said. The market is predicted to increase due to the acceptance of improved safety systems and assisted driver assistance functions, such as blind-spot recognition and automatic emergency braking, at lower costs.
Another key element driving the market's high growth is government restrictions to lower fuel consumption and public demand for better vehicle efficiency.
Some of the companies in the automotive electronic control unit market includeContinental, Denso, Robert Bosch, Delphi Automotive, Hyundai Mobis, Panasonic Corporation, Lear Corporation, Hitachi Automotive Systems, Magneti Marelli and Pektron Group.
Influencing Trends
The use of cellphones that are connected to the vehicle and provide the driver with real-time information about the vehicle's condition has been a popular trend in recent years. These modern ECU systems, which can readily interact with smartphones, may increase the expansion of ECU systems.
The need for electric vehicles is expanding rapidly worldwide, increasing the demand for automotive ECUs in these vehicles. The automobile industry's shift towards electric vehicles is predicted to influence automakers, electronic component manufacturers, and the industry's supply chain. As a result, companies that solely made parts and components for IC engines earlier are now branching out into the electric vehicle market. As the market for electric vehicles grows, so does the demand for them. Components such as ECUs for engine control and transmission would be replaced by ECUs for electrical architecture and battery management systems in the automotive diagnostics industry. This, in turn, is expected to drive the market's growth.
Many car manufacturers do not optimise their vehicles' performance. Engine performance can be improved with turbocharged engines. Because the turbocharger's power may be boosted by remapping, these turbocharged vehicles perform well. It can enhance vehicle fuel economy in addition to providing superb performance. The remapping of the control units can help improve the vehicle's mileage by allowing for more precise management of the fuel flow. This trend will help to grow the automotive electronic control unit market size in the forecast periods, Valuates Reports said.
Market Share Analysis
Asia-Pacific is expected to be the most lucrative region due to a rise in the demand for in-vehicle infotainment and communication applications in passenger vehicles, increased disposable income, and a rise in automobile production in this region. The powertrain system is expected to be the most lucrative segment based on type, the research firm added.
Courtesy: Valuates Reports. NB: Photo is representational; courtesy: Bosch.