Electronic Stability Control System Market (By Vehicle Type: Passenger Cars, Light Commercial Vehicles (LCVs),Heavy Commercial Vehicles (HCVs); By Component: Hydraulic Units, Sensors, Electronic Control Unit (ECU), Others) - Global Industry Analysis, Market Size, Opportunities And Forecast 2020 - 2027

The global electronic stability control systems market is expected to grow at a CAGR of around 9.7% from 2020 to 2027 and expected to reach the market value of around US$ 40.4 Bn by 2027.

Electronic stability control systems is the new influx of technology that assist drivers to maintain control of the vehicle during extreme steering maneuvers by keeping the vehicle headed in the driver's intended direction. The systems work successfully even when the vehicle nears or exceeds the limits of road traction. Electronic stability control systems work effectively when the car's anti-lock braking system is working effectively.

Market Drivers

Technologically advanced vehicles uplift the overall market growth

Rising production of technologically advanced vehicle best supports the growth of electronic stability control systems market. According to the National Safety Council, a series of sensors are attached that helps to maintain the car on track. The technology behind it supports such that the sensors attached detects the car momentum going off-track. The electronic stability control systems help to get car on-track by adjusting the speed and selectively braking one or more wheels.

Growing investments in R&D in automotive industry stimulate the growth of electronic stability control systems market

As per the Center for Automotive Research, automakers announced investment project totaling roughly US$ 4.8 Bn throughout North America. Additionally, automakers announced 34 new investments in 2018. The top ten largest auto manufacturers announced more than US$ 4.4 Bn or 92 percent investments in 2018. Companies involved in substantial investments in 2018 involve Ford, FCA, GM, Hyundai, Toyota, Volkswagen, and Nissan. Moreover, UK Government announced US$ 5943.14 Mn investments for manufacturing and strengthening electric vehicle supply chain that opens new gateway for a UK Gigafactory and drives forward green economic recovery.

High government involvement drives the growth of electronic stability control system market

According to the estimates by the National Highway Traffic Safety Administration (NHTSA), to reduce risk of rollover crashes and the risk associated with the death and serious injury in those crashes provoked establishment of new rule. Further, to avoid crashes, The Federal Motor Vehicle Safety Standard (FMVSS) No. 126 came into existence. The new rule proposed require electronic stability control (ESC) systems for passenger vehicles, buses, and trucks having a gross vehicle weight rating of 4,536 Kg (10,000 pounds) or less. NHTSA estimates that ESC will reduce single-vehicle crashes of passenger cars by 34% and single vehicle crashes of sport utility vehicles (SUVs) by 59% with a much greater reduction of rollover crashes. Moreover, ESC would save 5,300 to 9,600 lives and prevent 156,000 to 238,000 injuries in all types of crashes annually once all light vehicles on the road are equipped with ESC.

Segmental Outlooks

The global electronic stability control systems market is segmented based on vehicle type and component. Vehicle type is segmented as passenger cars, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs). Based on components, the electronic stability control systems market is segregated as hydraulic units, sensors, electronic control unit (ECU), and others.

Based on vehicle type, passenger vehicle is dominating the electronic stability control systems market. Electronic systems and features have become more prominent in passenger cars due to rising demand for safety in developed nations specifically in North America and Europe. The passenger cars have witnessed remarkable sales over the years in developing nations, fuelling the demand globally. As per the European Automobile Manufacturer Association, it has been witnessed that more than 80 million passenger cars were manufactured in 2017.

By components, sensors play a vital role for the electronic stability control systems market. This is attributed by applications associated by installation of sensors in the vehicles. As sensors play a vital role for stability in vehicles and measurement related parameters such as speed and direction of rotation of wheels, brake force required to prevent skidding of vehicle, and among others. This is well supported by the wheel sensors manufactured by Robert Bosch GmbH. The company developed Hall technology for generating an alternative voltage that creates a digital output signal. The sensor is capable of detecting very low wheel speed such as 0.1 km/h. The component supplier in the electronic stability control system market focuses on development of more reliable and durable products that can be easily incorporated with other safety systems on the vehicle.

Europe is one of the prominent regions for recording largest market share for global electronic stability control systems market

Europe acts as one of the key regions contributing the growth of electronic stability control systems market. This is well suited owing to strong advancements in automotive industry and large pool of prominent players including BMW, Audi, Mercedes-Benz, Maserati, and among others. According to the European Automobile Manufacturers Association, vehicle manufacturing is a strategic industry in the EU, contributing 18.5 million cars, vans, trucks, and buses manufactured every year. The European auto industry is a global player delivering quality "Made in Europe" products worldwide and generating revenue of US$89 Bn trade surplus for the EU.

On the other hand, Europe is predicted to be one of the prominent regions in the forthcoming years for driving the regional growth of the electronic stability control systems market. Presence of key players or manufacturers and a strong focus on innovation are the factors that contribute to the fullest for the European regional market growth of the electronic stability control system market. Additionally, Europe also implements stringent regulations for the implementation of electronic stability control systems in cars and light commercial vehicles, resulting in demand for electronic stability control systems market growth in European markets. Asia-Pacific is projected to grow rapidly in the forthcoming years by recording 40% share in the vehicle assist system market. This is highly supported by rising economic developments in the region resulting in growth of the automotive industry.

As per the estimates released by the International Organization of Motor Vehicle Manufacturer, in 2018, Thailand and Malaysia witnessed 9% and 12.2% growth in automotive production respectively. According to the International Organization of Motor Vehicle Manufacturers, in 2018, Thailand and Malaysia witnessed 9% and 12.2% growth in automotive production respectively. Manufacturers are implementing stability control features in lower-priced mid-range cars, such as Maruti Suzuki Ciaz, Ford Figo Titanium, Datsun Go+, Hyundai Venue, and Volkswagen Polo.

Competitive Landscape

Key companies profiled in this report involve Robert Bosch GmbH, Johnson Electric, TRW Automotive Holdings Corp., Continental AG, Delphi Automotive, Autoliv Inc., Toyoda Gosei Co. Ltd, WABCO Holdings, Inc., Murata Manufacturing Co., Ltd., and others.

Market Segmentation

Market By Vehicle Type

Passenger cars
Light commercial vehicles (LCVs)
Heavy commercial vehicles (HCVs)

Market By Component

Hydraulic units
Sensors
Electronic Control Unit (ECU)
Others

Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa