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The automotive electronic control unit market share is expected to increase by USD 25.47 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 11.24%.
This automotive electronic control unit market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers automotive electronic control unit market segmentation by application (safety systems, chassis electronics, powertrain, communication and navigation, and entertainment) and geography (APAC, Europe, North America, South America, and MEA). The automotive electronic control unit market report also offers information on several market vendors, including Aptiv Plc, Autoliv Inc., Continental AG, DENSO Corp., Hitachi Ltd., Magna International Inc., MAHLE GmbH, Mitsubishi Electric Corp., Robert Bosch GmbH, and ZF Friedrichshafen AG among others.
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Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The declining price of sensors is notably driving the automotive electronic control unit market growth, although factors such as increasing cost pressure faced by OEMs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive electronic control unit industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Automotive Electronics Control Unit Market Driver
The declining price of sensors is a major driver fueling the automotive electronic control unit market growth. The price of sensors such as radar, camera, and LiDAR is falling continuously owing to their application in the automotive industry. The reduced pricing allows vendors to develop cost-effective ADAS technologies for customers. This is becoming a crucial driver for the growing demand for ECU in the automotive industry. Hardware cost remains a primary consideration for ECU manufacturers. ECU manufacturers can adopt new technologies in a cost-effective way by keeping a close eye on parallel industries such as consumer electronics. In addition, when any technology is adopted in consumer electronics, its volume grows, which drives down the prices in the market. The price of cameras reduced steadily due to the high adoption of smartphones. The price of LiDAR has been falling continuously in recent times, as its application is expected to increase in autonomous vehicles. Hence, the decline in sensor prices for ADAS technologies will drive the demand for automotive ECU further during the forecast period.
Key Automotive Electronics Control Unit Market Trend
Increased demand for vehicles that operate on alternative fuels is a major trend influencing the automotive electronic control unit market growth. The steady increase in the demand for automobiles around the globe has led to an exponential growth in the demand for non-renewable resources that help power automobiles. As non-renewable resources are limited, an imbalance is created between the demand and the supply of these resources. The increased awareness and concerns regarding the rapid depletion of non-renewable resources is a major factor that is leading automobile manufacturers and emerging start-ups to research alternative sources of energy, such as electric vehicles and hybrid vehicles, to power vehicles. Electric vehicles, biodiesel vehicles, CNG/LNG vehicles, and ethanol vehicles are slowly replacing gasoline and diesel vehicles. The market for commercial vehicles that operate on alternative sources of energy is growing at an exponential rate. The increase in investments and continuous support from various government bodies in countries such as China, India, South Korea, and Japan play a crucial role in increasing awareness and encouraging new players to enter the market. The vehicles that operate on alternative fuel use more ECUs as compared with the conventional internal combustion engine vehicles.
Key Automotive Electronics Control Unit Market Challenge
Increasing cost pressure faced by OEMs is a major hindrance to the automotive electronic control unit market growth. The OEMs usually distribute the cost pressure to the respective component manufacturers, including the risk of component failure and recall. This creates immense pressure on tier-1 suppliers and component manufacturers regarding benefits. OEMs are facing immense cost pressure due to dynamic regulations that were imposed on several components within a vehicle. The factors responsible for high-cost pressures faced by OEMs included stringent emission norms, massive investments in R&D, market competition, and evolving customer demands. OEMs must bear the increase in vehicle costs because of the competitive market and cannot pass such costs to the end consumers. As they need to limit the production cost to fulfill the demand side necessities and provide high-quality products simultaneously, they remain liable for any such product failures or recalls, which can impact the bottom line. The manufacturers catering to the automotive industry are exploring various ways to restrict production costs and maintain the quality standards simultaneously. For instance, outsourcing manufacturing to low-cost countries, including China, Taiwan, and South Korea. However, the cost of labor in such countries is increasing due to the shift of manufacturing hubs, which can be a challenge in maintaining low production costs.
This automotive electronic control unit market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global automotive electronic control unit (ECU) market as a part of the global automotive components and accessories market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the automotive electronic control unit market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the automotive electronic control unit market encompasses successful business strategies deployed by the key vendors. The automotive electronic control unit market is fragmented and the vendors are deploying various organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The automotive electronic control unit market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the automotive electronic control unit market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global automotive components and accessories market includes the following core components:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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