Automotive Electric Control Unit

Automotive Electric Control Unit

The term ECU denotes electronic control unit, and it is a compact electrical device that plays a crucial role in controlling specific functions within a vehicle. Modern vehicles contain over 80 ECUs which manage everything from crucial functions such as power steering, braking, or engine control to comfort features like seat, wipers, or window adjustments. ECUs are also tasked to control the security and access features of the vehicle, like airbags, braking, or keyless entries. ECUs go in every vehicle of today and are an integral part of the operation and safety of the modern vehicle, ensuring a safe, efficient, and comfortable journey.

The automotive electronic control unit market is expected to grow at a strong CAGR of around 7% during the forecast period owing to the explosive growth in vehicle demand. Furthermore, strong innovations that is undergoing in the automotive industry with the introduction of technologically advanced functions and features in the vehicle has increased the usage of ECUs in the vehicles. In addition, advanced features like passive safety features such as airbags and smart braking, immersive user experience, infotainment, and connectivity are further boosting the demand for electronic control units in the industry. Going forward, with the prevalence of self-driving feature in vehicles, autonomous driving electronic unit (AD-ECU) are in high demand, as to achieve this large amount of real-time data processing and controlling is required of all the installed equipment such as cameras, infrareds, LiDAR, and numerous sensors and actuators. with the growing demand, the industry is also acting accordingly in terms of partnerships and product launches in the automotive space. For instance, In January 2023, NVIDIA and Hon Hai Technology Group, commonly known as Foxconn, announced a strategic partnership to co-produce automated and autonomous vehicle platforms. As per the agreement, Foxconn would be a manufacturer producing electronic control units (ECUs) based on NVIDIA DRIVE Orin™ for the global automotive market. Foxconn-manufactured electric vehicles (EVs) would feature DRIVE Orin ECUs and DRIVE Hyperion™ sensors for highly automated driving capabilities.

• Based on ECU type, the market is segmented into below 16-bit ECU, 32-bit ECU, and 64-bit ECU. The 64-bit ECU is anticipated to show significant growth in CAGR terms. The primary factors that will be driving this growth are the shift of vehicles from almost no autonomy to some level of autonomy and then further to fully autonomous vehicle. And the computing power that is required to achieve any level of autonomy can only be performed efficiently by the 64-bit ECUs.
• Based on the application, the market is segmented into ADAS and safety systems, body control and comfort system, infotainment, and communication system, powertrain system, chassis system, and HVAC systems. The powertrain control unit holds a significant share of the market. The primary reason attributed to this domination in market share is the primary usage of ECUs for controlling and managing the powertrain system, which includes the engine, transmission, and drivetrain components. Furthermore, The PCU continuously monitors and adjusts the engine's parameters, such as fuel injection timing, ignition timing, and air-fuel mixture, to optimize power output and fuel efficiency. Moreover, The PCU is critical in integrating and coordinating the engine, transmission, and drivetrain components. It ensures seamless operation and synchronization of the drivetrains and optimizes their performance and efficiency. Additionally, as the automotive industry advances, the PCU becomes increasingly important for integrating future technologies. It enables the implementation of hybrid and electric powertrains and the development of advanced driver-assistance systems (ADAS) and autonomous driving features.
• Based on propulsion type, the market is segmented into ICE, Hybrid, and BEV. The BEV segment is anticipated to witness significant growth in CAGR terms during the forecasted period. The driving factor for BEV is urbanization where more than 50% of the global population is projected to be living in the cities by the year 2030, where driving distances are much shorter hence making BEV an ideal choice. Moreover, businesses and governments worldwide are aiming at reducing GHG (greenhouse gas) emissions, reducing noise pollution, and increasing efficiency by focusing more on making EVs mainstream. In addition to this, governments are offering tax credits and incentives for EV purchases, making them more accessible for mass adoption and boosting the demand for electric vehicles, which is also getting reflected in the sales data. For instance, according to the International Energy Agency (IEA), consumers spent USD 120 billion on electric car purchases in 2020, a 50% increase from 2019, which breaks down to a 41% increase in sales and a 6% rise in average prices.
• For a better understanding of the market adoption of the automotive electronic control unit, the market is analyzed based on its worldwide presence in the countries such as North America (The U.S., Canada, and the Rest of North America), Europe (Germany, The U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific), Rest of World. The Asia Pacific region holds the majority of the market share and is also poised to witness significant growth in the CAGR terms during the forecasted period. The Asia Pacific region has witnessed rapid growth in the automotive industry, with countries like China, India, Japan, and South Korea being major automotive manufacturing hubs. As vehicle production increases in the region, the demand for automotive electronic control units rises in order to be installed for enabling advanced features that the automakers are providing in these vehicles as per the consumer demand needs. Furthermore, rising incomes, urbanization, and a growing middle class in many Asia Pacific countries have led to increased vehicle ownership. As more people purchase cars, the demand for automotive electronic control units also expands. For instance, in January 2023, as per CARS24, Indians’ average car buying budget increased an impressive 30 percent in 2022 from USD 5,483 to USD 7,310. Moreover, with rising demand for electric vehicles, the electronic control unit market is also growing, where Asian countries are projected to produce almost 13 million electric vehicles in the year 2023, whereas, in 2022, China sold roughly 52% of the total EVs produced in the world which amounts to almost 3.5 million units, for India the number is currently at one-third of a million units and was 168% growth from the previous year. Furthermore, emerging economies are also one of the largest markets due to their huge population with gradually increasing per capita GDP, and with the rising awareness, governments support, and great offerings from OEMs in terms of price and product is further developing a high growth environment for the electric vehicle segment in the APAC region. For instance, China (from a previous 2020 expiration date) extended its NEV (New Energy Vehicle) subsidy program through the end of 2022, albeit it has started to reduce basic subsidy amounts by 10%, 20%, and 30% on a yearly basis, between 2020 and 2022. Through the end of 2023, it also extended the exemption from purchase taxes for NEVs.
• Some of the major players operating in the market include DENSO CORPORATION; STMicroelectronics; Lear; NIDEC CORPORATION; Robert Bosch GmbH; Aptiv; Infineon Technologies AG; KOSTAL; Continental AG; and ZF Friedrichshafen AG