Automotive Electronic Control Unit (ECU) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Automotive Electronic Control Unit (ECU) Market was valued at USD 44 billion in 2020 and is expected to reach USD 67 billion in 2026 by registering a CAGR of around 6% during the forecast period (2021 - 2026).

The Impact of the COVID-19 pandemic on the automotive electronic control unit market is inevitable due to shut down of automotive manufacturing units and lock downs. However, market is expected to regain its momentum owing to the swiftly escalating year-on-year adoption rate of electric vehicles across the world.

Government regulations to reduce fuel usage and increasing demand for better mileage of the vehicles by the general public is another major factor leading to high growth of ECU market in the automotive industry.

The steady growth of alternative vehicle choices such has the hybrid and pure electric cars in the developed nations has contributed significantly to the ECU market due to high complexities of these vehicles over conventional vehicles. Driver safety, security concerns, ease of driving, low maintenance demanded by the customers are also some of the factors driving the growth of ECU market.

The involvement of smartphones connected to the vehicle providing the driver with real time information about the state of vehicle is a major trend in recent times. These advanced ECU systems with the provision to connect with the smartphones easily can lead to an improvement in the growth of ECU systems.

Asia-Pacific region followed by North America and Europe anticipated to witness significant growth during the forecast period owing to growing demand for electric vehicles in the region. Moreover, Increased demand for technologically advanced vehicles like hybrid vehicles in the developed and developing countries to drive the growth of ECU market.

Scope of the Report

Automotive Electronic Control Unit is a family of computer systems that controls and maintains the entirety of electronic, electrical and mechanical systems of a vehicle. Automotive functions ranging from the movement of the windows to the amount of air-fuel mixture required for each engine cylinder has an ECU system embedded with it which is recorded, analyzed and stored in the microcontroller.

The Scope of the report covers segmentation based on Propulsion type, Application type, ECU type, Autonomous type, Vehicle type and Geography. By Propulsion Type, the market is segmented into Internal Combustion Engine, Hybrid, and Battery Electric Vehicles. 

By Application Type, the market is segmented into ADAS and Safety System, Body Control and Comfort System, Infotainment and Communication System, and Powertrain System. By ECU Type, the market is segmented into 16-Bit-ECU, 32-Bit-ECU, and 64-Bit-ECU.

By Autonomous Type, the market is segmented into Conventional Vehicle, Semi-autonomous Vehicle, and Autonomous Vehicles. By Vehicle Type, the market is segmented into Passenger Cars and Commercial Vehicles. By Geography, the market is segmented into North America, Europe, Asia-Pacific and Rest of the World. For each segment, market sizing and forecast have been done on basis of value (USD billion).

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Key Market Trends

Rising Electric Vehicle Sales to Boost Demand for ECUs

The demand for Electric Vehicles is growing rapidly across the world, and this in turn to augment demand for ECU in these vehicles. In addition, favorable government subsidies and initiatives to act as catalyst boosting the growth of ECU market. By 2040, nearly 54% of the new car sales and 33% of the global car fleet will be electric. 

To meet the electric vehicle sales target, the European government has already started various projects for building charging infrastructure across the regions. This transformation in the automotive industry is expected to have an impact on the automakers, electronic component manufacturers, aftermarkets, and supply chain of the industry itself. 

As a result, manufacturers of parts and components only pertaining to IC engine vehicles are now expanding their business into the electric vehicle domain. As the demand for and sale of electric vehicles are increasing. In the automotive diagnostics market, components, such as ECU for engine control and transmission, would be replaced by ECUs for the electrical architecture and the battery management systems. 

Moreover, the conventional diagnostic systems are anticipated to be completely replaced by the onboard diagnostic systems that would continually monitor the health of all the electric and mechanical components of the vehicle.

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