Two-Wheeler Electronic Control Unit Market Size 2024-2028

The two-wheeler electronic control unit (ECU) market size is forecast to increase by USD 16.7 billion, at a CAGR of 4.28% between 2023 and 2028. Market growth hinges on various factors, including the rising electrification of mechanical components, heightened demand for fuel-efficient motorcycles, and a growing emphasis on safety and stability within the motorcycle industry. These elements collectively drive market expansion, reflecting broader industry trends toward sustainability and innovation. The increased electrification of mechanical components signifies a shift towards cleaner and more efficient propulsion systems, driving technological advancements and market competitiveness. Additionally, the growing demand for fuel-efficient motorcycles addresses environmental concerns and consumer preferences for cost-effective transportation solutions. Moreover, the heightened focus on safety and stability underscores industry efforts to enhance rider experience and road safety, shaping market dynamics and driving innovation in motorcycle design and engineering.  It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is experiencing a surge in demand, fueled by advancements in telematics and the rising popularity of electric motorcycles. As Android infotainment systems become standard features, automotive engineers are integrating sophisticated engine immobilizers and antitheft alarms into vehicle ECUs. These ECUs, including body control units and powertrain motors, manage critical functions such as CAN network communication and DC conversion for efficient performance. From monitoring fuel level to battery management, these units ensure optimal engine parameters and provide advanced diagnostics for enthusiasts. As the market evolves, compatibility with emerging electronics and battery systems remains essential, driving innovation in motor control and enhancing the overall riding experience for two-wheeler enthusiasts.

Key Market Driver

Growing focus on safety and stability in motorcycles is the key factor driving the growth of the market. Electronic control units (ECUs) play an important role in improving safety in two-wheeler vehicles. They manage and coordinate necessary safety systems such as Anti-Lock Braking Systems (ABS) and Traction Control Systems (TCS). In addition, ECUs also enable the implementation of electronic stability control (ESC), a feature increasingly present in high-end two-wheeled models. ESC helps the driver to maintain stability when turning and making sudden movements.

Additionally, the ECU is an integral part of the functioning of passive safety devices such as airbags, which are being researched in the two-wheeler industry to minimize the impact of accidents. Therefore, increased focus on the safety and stability of motorcycles is anticipated to propel the growth of the global two-wheeler electronic control unit (ECU) market during the forecast period.

Key Market Trends

The availability of affordable EMS is the primary trend shaping the growth of the market. Major two-wheeler electronic control unit market players believe that implementing ABS (anti-lock braking system), EFI (electronic fuel injection), and  EMS (Electronic management system) into a single unit will be more beneficial for manufacturers in emerging markets such as India, Thailand, and Indonesia due to a lack of adequate road infrastructure. These markets are dominated by two-wheelers, and therefore increased safety will lead to fewer accidents. However, these packages increase the overall cost of the two-wheeler.

Moreover, leading two-wheeler electronic control unit (ECU) market players are exploring the combination of affordable EMS with traction control systems to serve emerging two-wheeler electronic control unit markets. Leading ECU suppliers such as Bosch are working to introduce cost-effective EMS to emerging markets. It is estimated that EMS can lower fuel consumption by up to 16%. Therefore, the availability of affordable EMS is expected to drive the growth of the global two-wheeler electronic control unit (ECU) market during the forecast period.

Key Market Challenge

Managing the increasing complexity and number of ECUs in vehicles is a challenge that affects the growth of the market. The ECU is a device that controls and manages all the steering and safety functions of a two-wheeled vehicle with one hand. As the application of ECUs increases, the various components used in them, such as controllers, main units, and associated wiring, become more and more complex in design. Higher-end EMS are complex and compact, making repairs and maintenance difficult.

Additionally, all the advanced chips, sensors, and other components make ECU installation more complex and complicated for the end user. Space constraints are other issues facing OEMs. OEMs try to keep their motorcycles as light as possible, so integrating these parts together and making the system work becomes tedious. This may impede the growth of the market during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Bajaj Auto Ltd.: The company offers two wheeler electronic control unit such as Electronic management ECUs for enhanced vehicle performance.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• BorgWarner Inc.
• Continental AG
• DENSO Corp.
• dSPACE GmbH
• Honda Motor Co. Ltd.
• Infineon Technologies AG
• Kawasaki Heavy Industries Ltd.
• Marelli Holdings Co. Ltd.
• Mikuni Corp.
• Mitsubishi Electric Corp.
• Nikki Co. Ltd.
• NXP Semiconductors NV
• Robert Bosch GmbH
• S and S Cycle Inc.
• SEDEMAC Mechatronics Pvt. Ltd.
• Shindengen Electric Manufacturing Co. Ltd.
• Suzuki Motor Corp.
• Volkswagen AG
• ZF Friedrichshafen AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation 

The computer segment is estimated to witness significant growth during the forecast period. The demand for safety features like ABS on commuter two-wheelers is increasing due to the imposition of laws mandating the installation of safety systems on these vehicles. As the number of traffic accidents increases, consumer preference for safety features also increases. Therefore, the demand for active and passive safety systems on two-wheeled vehicles is increasing.

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The computer segment was the largest segment and was valued at USD 49 billion in 2018. The strong growth of this segment is due to demand in the APAC region. The two-wheeler market in emerging countries like India and China is expected to grow at a healthy pace. Additionally, India is currently the largest market for commuter motorbikes, followed by China. Leading OEMs in the Indian two-wheeler industry such as Hero MotoCorp, Bajaj, TVS Motors, and Honda are equipping these features as standard in their premium models. Therefore, these factors will drive the two-wheeler electronic control unit market growth in the commuter segment during the forecast period.

Regional Analysis

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South America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to market players is APAC. Growing adoption of two-wheelers, rising awareness about the performance of two-wheelers, technological advancement, the rapid growth of OEMs supplying various parts for two-wheelers with Low costs, and the presence of global and regional market players are key factors contributing to the growth of the two-wheeler ECU market in the region.

Additionally, major OEMs in the region are making efforts to provide premium two-wheeler ECUs and other components at competitive prices, thereby increasing the availability of premium two-wheeler ECUs in this region. In addition, increasing urbanization and economic stability due to increasing disposable income have increased the demand for premium and luxury vehicles. ECUs are mainly used in high-end vehicles to combat the heat generated. Therefore, the growing demand for premium two-wheelers will drive the growth of the two-wheeler ECU market in this region during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• End-user Outlook 
  • Commuter
  • Mid-premium
  • Premium

• Vehicle Type Outlook 
  • Mopeds
  • Motorcycles
  • Scooters

• Region Outlook 
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview:

The market is witnessing significant growth, driven by the increasing adoption of electric cars and the demand for advanced features in motorcycles. As automotive engineer focus on enhancing security, antitheft alarms integrated into body control units play a crucial role. These units, along with powertrain motor and battery management systems (BMS), regulate key functions like engine management and controlling engine functions for optimal efficiency and performance. From ignition timing to throttle position, precise control is essential for meeting stricter emission standards while optimizing fueling and idle speed. The integration of sensor inputs and data logging capabilities enables continuous improvement and innovation, catering to the evolving needs of the two-wheeler customer base with new technologies and functionalities. Also, automotive engineer are integrating sophisticated antitheft alarm systems into the body control unit, ensuring the security of powertrain motor and battery system in modern vehicles.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market across APAC, South America, North America, Europe, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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