Automotive Engine Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Automotive Engine Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The automotive engine management system market was valued at USD 61.36 Billion and is projected to grow to USD 78.54 Billion by 2027, registering a CAGR of 4.2% in terms of revenue during the forecast period.

The COVID-19 pandemic had a swift and negative impact on the globally integrated automotive industry. For the year 2020, vehicle sales declined significantly, which in turn hampered the demand for the automotive engine management system market. However, post-2021, the automotive industry started witnessing growth and recovered considerably in the year 2021. the growth of the automotive industry is expected to continue during the forecast period, which is likely to drive the market in focus during the forecast period.

Over the long term, the growing consumer trend toward fuel-efficient vehicles has promoted manufacturers to develop advanced components that control engine operation. An enactment of stringent emission norms across the globe owing to an increase in the level of greenhouse gases is likely to witness significant growth for the market.

Factors, such as rigid fuel economy, regulatory norms, and growing demand for technologically advanced powered engines for the better performance of vehicles, are expected to augment the demand in the market. For instance, Robert Bosch GmbH has developed an engine management system that will see FI technology replace the carburetors that can reduce fuel consumption by up to 16%. This is likely to witness major growth for the market during the forecast period.

North America is the largest automotive engine management systems market in the world. However, due to the more significant automotive sales, especially in China and India, the automotive engine management systems in Asia-pacific are anticipated to experience the fastest growth. Customers in India and China are becoming more aware of enhancing their vehicles' performance, which will boost the automotive engine management system market.

Key Market TrendsConsumer Demand for Efficient Transmission Modes Is Driving the Market

An increase in customer awareness towards growing emission and pollution levels pushes automotive engine management system manufacturers to improve fuel economy and keep emissions levels by keeping the NOx and CO2 in control. Engine management systems ensure precise amounts of fuel being combusted from the engine control unit with sensors fixed on the vehicle.

Advancement and steady demand for automobiles result in the sale of passenger cars and commercial vehicles equipped with engine management systems. Lower emissions and improved performance in today's automobile engines are being delivered with the advancements in electronics that can manage everything from ignition to fuel delivery in every aspect of emissions control. As a result, the automotive engine management system market will experience significant growth during the forecast period.

For instance, companies such as Robert Bosch, which derives a large revenue by catering to the diesel vehicle segment, face regulatory challenges amid a crackdown on air pollution. However, they are also benefiting from the emerging opportunities in the market for emission-reducing products and support due to its strong parent company, which is known globally for advanced auto technology. As a result, Bosch's technological advantage in delivering efficient engines will maintain an edge over rivals.

Customers’ inclination towards environment-friendly and government institutions enforcing more stringent laws and norms to ensure heightened performance will continue pushing the automotive engine management systems

Asia-Pacific is leading the Market

China is leading the global market share in the engine management system (EMS) segment, supplying fuel pumps and injectors. New emission norms for diesel engines could mean additional opportunities for Chinese engine management companies. China put into effect the Emission Standard VI in 2019, raising higher requirements for engines.

Since then, companies such as Cherry have launched its third generation ACTECO 1.6TGDI engine, which also won China's top 10 Engines for 2019 after passing several professional tests. Chery ACTECO 1.6TGDI engine is the first engine model that uses Chery's five core technologies: iHEC combustion system, rapid heating thermal management system, fast-responding supercharging technology, friction-reducing technology, and lightweight technology, to avoid the engine oil problem.

The Indian government stipulated new emission norms, such as the Bharat Stage (BS) IV, in April 2017. With BS-VI effective from April 2020, vehicle manufacturers have to reduce harmful particulate matter, NOX, and CO2 levels. Suppliers of exhaust gas treatment products such as petrol and diesel particulate filters and selective catalytic converters will be among the new norms' biggest beneficiaries, further driving the Asia Pacific Engine Management System market.

Japan holds 15th position in the world vehicles per capita criteria, with nearly 591 vehicles per 1,000 people. Japan is regarded as one of the major markets for luxury cars in the Asia-Pacific region. Also, some of the most well-known global automobile brands, such as Toyota, Honda, and Nissan, are from Japan. These brands sell a considerable number of vehicles in their home country, which in turn is likely to increase the demand for the engine management system.

Competitive Landscape

The Automotive Engine Management System Market is dominated by various international and regional players such as Bosch, Continental, BorgWarner, Denso, and Valeo. Although to have an edge over their competitors, the major players focus on strategies like joint ventures, expansion, and partnerships to launch newer products. For instance,

• In April 2022, Continental AG opened a Greenfield plant in Pune, India. The Greenfield plant is dedicated to various drivetrain products, including engine management systems, sensors, and actuators as fuel and exhaust management components for passenger cars and commercial vehicles. The company has invested an amount of around INR 2 Billion for this plant.
• In March 2022, MAHLE Aftermarket is expanding its engine management portfolio. By constantly extending its engine management product range, MAHLE Aftermarket is making it easier for workshops to generate new business.
• In February 2021, DENSO Malaysia is a subsidiary of Denso Corporation expanding its production capacity in Selangor, Malaysia. The production facility is responsible for producing air conditioning systems, electric power steering, airbag electronic control units, and engine control units.

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