The global automotive engine management system market size was valued at USD 144 billion in 2018 and is expected to reach USD 260 billion by 2026 with an anticipated CAGR of 7.7% during the forecast period, 2019–2026.
An automotive engine management system consists of a fuel pump, an engine control unit, and sensors, among other components. These components are essential for the efficient working of the engine and transfer the engine performance to the engine management system.
|Market Size||USD 260 billion|
|Fastest Growing Market||North America|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The global market for automotive engine management systems is growing at a considerable rate and is expected to retain the momentum during the forecast period. The increasing number of vehicles and preference for safety and luxury are among the key factors responsible for the growth of the global automotive engine management system market. The growing rental industry and increasing average time spent in vehicles have laid the foundation for the automotive engine management system market to prosper. In today’s world, people spend more time on the road traveling in their private vehicles or by other means of public transport. Therefore, the increasing amount of time spent on traveling by people is driving the growth of the global automotive engine management system market.
The increasing popularity of private vehicles over public transport is also expected to boost market growth. The implementation of stringent regulations associated to emission control by several government institutions such as European Commission (EU) and the U.S. Environment Protection Association (EPA) around the globe is expected to propel the market for engine management systems.
The worldwide automobile engine management system market divided into Asia Pacific, North America, Europe, and Latin America and the Middle East & Africa.
Asia-Pacific is likely to hold the largest share in the global engine management system market, followed by North America and Europe, during the forecast period. Increasing vehicle production and demand from developing countries such as China, India, and Japan drive market growth in Asia-Pacific. Growth of population and domestic production in India and China are also expected to contribute to the region’s growth momentum. Steadfast growth of the region’s automotive sector further reinforces the growth of the automotive engine management system market. According to the China Association of Automobile Manufacturers, the production of cars in China increased to 2,024,800 Units in September from 1,705,200 Units in August 2018.
Economic recovery and increasing income levels in North America promise a positive outlook for the region’s automotive engine management system market during the forecast period. Sophisticated automotive technology in countries such as the U.S. and Mexico further supplements the regional market growth. In Europe, the presence of prominent players is shaping the growth of the automotive engine management system market.
Latin America is expected to witness significant market growth during the forecast period, due to the increasing production and sales of vehicles and government initiatives for the development of the automotive engine management system industry, especially in Brazil. According to the Brazilian Association of Automobile Manufacturers (ANFAVEA), the production of the automotive industry increased by 6.2% in 2017. The Middle East & Africa region is experiencing a steady growth rate, hindered by low disposable income and poor technological development in the region.
Diesel and gasoline are the two key engine types. The low maintenance requirement and superior performance associated with gasoline-based engines drive the growth of the segment.
Based on components, the automotive engine management system can be segmented into engine control unit (ECU) and sensors.
By vehicle type, the market has been classified into passenger cars and commercial vehicles. Increasing sales, high demand, and strict emission norms in developed and developing economies drive the growth of the passenger vehicle type segment.