Market Trends of Automotive Electronic Control Unit Industry
Rising Electric Vehicle Sales to Boost Demand for ECUs
The demand for electric vehicles is growing rapidly across the world, and this is expected to augment the demand for ECU in these vehicles. In addition, favorable government subsidies and initiatives act as catalysts for boosting the growth of the ECU market. By 2040, nearly 54% of new car sales and 33% of the global car fleet will be electric.
The European government has already started various projects for building charging infrastructure across the regions to meet the electric vehicle sales target. This transformation in the automotive sector is expected to impact the automakers, electronic component manufacturers, aftermarkets, and the sector's supply chain.
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 increases. In the automotive diagnostics market, components, such as ECU for engine control and transmission would be replaced by ECUs for electrical architecture and battery management systems.
Moreover, the conventional diagnostic systems are anticipated to be replaced entirely by onboard diagnostic systems that would continually monitor the health of all the electric and mechanical components of the vehicle.
Asia-Pacific Anticipated to Dominate the ECU Market
Asia-Pacific dominates the automotive electronic control unit market 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.
Electrification in the Asia-Pacific region has witnessed a high penetration rate due to the presence of China and Japan, as China is the leading market for electric vehicles, and most automakers advancing in electric vehicle technology are from Japan. This development in electric vehicles can be correlated to the increased demand in the market for ECU in the region, which currently holds the highest market share in terms of both revenue and volume.
North America is also expected to witness growth in the automotive electronic control unit market due to increased demand for luxury cars, growing demand for energy-efficient vehicles, and strict government regulations to reduce carbon emissions in this region.
The European automotive ECU market is growing as infotainment & communication applications are experiencing high demand for their implementation in luxury & passenger vehicles. The growing focus on providing luxury and comfort features by leading automotive manufacturers present in European countries, including Germany, Italy, etc., is further creating opportunities for the market's growth.
