The automotive engine management system market size was valued at USD 63.2 billion by 2025 and is expected to reach USD 58.8 billion in 2020, at a CAGR of 1.5% during the forecast period. The demand for automotive engine management system is driven by the implementation of stringent emission norms, fuel efficiency regulations, growing vehicle production around the globe. The rising demand for improved engine performance across all vehicle segments and developments in ECU, sensor, and lightweight components are expected to further boost the market. Asia-Pacific remains the key market for automotive engine management system, though the demand is also increasing in Europe, and North America.
Stringent emission and fuel economy standards
Increasing levels of greenhouse gases and decreasing deposits of conventional fuel globally have forced legislative bodies of different countries to implement emission and fuel economy standards. Vehicle emissions contribute to the air pollution in the environment. According to a study carried out at the Massachusetts Institute of Technology, approximately 53,000 early deaths occur every year in the US due to harmful vehicle emissions. According to the US EPA, vehicles account for 56% (up to 95% in cities) of carbon monoxide emissions in the country. Governments across the world have implemented stringent fuel emission and fuel economy norms and duty-bound OEMs are mandated to meet these standards. In April 2020, US National Highway Traffic Safety Administration and Environmental Protection agency mandated the greenhouse gas emission and Corporate Average Fuel Economy (CAFE) standards for passenger cars & light trucks and established new less stringent standards, model years 2017 to 2025 in phase 2. The launching of this mandate will further act as a major driver for the adoption of engine control systems technology.
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Replacement of ECUs due to increasing average life of vehicles
An automobile is made of complex components, each of which has its own life span and longevity characteristics. Car longevity is an important aspect and depends on several factors such as maximum service life and relationship of components to this lifespan. With the advancements in technology, lifespan of vehicles is increasing. Studies reveal that the average life of light vehicles on the road stood at a record high of 12 years in 2018. It is up from 11.2 years in 2012, and 10.9 years in 2010. With this, the replacement cycle of an engine management ECU repeats itself and it becomes necessary for the consumer to make this replacement.
The price of the engine control module in the replacement market or aftermarket proves to be a strong revenue pocket globally. Therefore, the aftermarket has many players expanding their businesses and leveraging opportunities.
Asia Pacific is estimated to be the largest geographical segment of the automotive engine management system market
The upcoming emission norms in Asia Pacific are the most prominent driving forces for the engine management system market for automotive. For instance, China implemented China 6a & 6b, India implemented BS VI norms in 2020. Also, At the same time, the demand for luxury cars has increased considerably. The increase in demand for vehicles, especially premium passenger cars, has accentuated the need for better emission technologies and better engine performance. Thus, the market for automotive engine management systems in the region is expected to grow significantly in the coming years.
China is estimated to dominate the Asia-Pacific automotive engine management system market during the forecast period. China is the world’s largest vehicle manufacturer and has presence of key OEMs and engine suppliers. For instance, Chery’s ACTECO 1.6TGDI engine is the first engine model that uses Chery’s five core technologies i.e iHEC combustion system, thermal management system, fast-responding supercharging technology, friction-reducing technology, and lightweight technology, to avoid the engine oil problem. Such developments by the key OEMs of China helps the EMS market to grow in the Asia Pacific region.
Key Market Players
The automotive engine management system market is dominated by global players and comprises several regional players as well. The key players in the market are Robert Bosch (Germany), Continental AG (Germany), Denso (Japan), BorgWarner (US), and Hitachi Automotive (Japan).
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