Automotive Electronic Control Units Market in India

Frost & Sullivan, December 2008, Pages: 104

Government Regulations on Emission and Safety Standards Propel the Automotive ECU Market in India Forward

The automotive ECU market in India is witnessing significant growth, spearheaded by factors such as strong consumer demand for enhanced safety features, requirement for compliance to emission regulations, and OEM efforts toward product differentiation. The availability of better highways and intra-city roads has facilitated quick access to destinations and customers are more inclined to owning fast, yet safe cars. Manufacturers are thus offered the opportunity to differentiate their products and are vying with each other to offer improved technology and features. Demand for new vehicles, and therefore, vehicle production, is cyclical. The passenger cars and utility vehicles market is expected to grow threefold in the near future. Newer models will be launched in these segments offering higher technology content, thereby driving the demand for ECUs.

Emission norms and safety regulations will also push penetration levels of ECUs. “Government regulations aimed at making the vehicle fleet safer and more environment friendly are expected to increase the number of ECUs installed on mid-level to economy level vehicles in India,” notes the analyst of this research service. “Introduction of BS IV in passenger and utility vehicles and BS III in commercial vehicles is expected to drastically drive the demand for ECUs after 2010.” Increased safety awareness among consumers is fueling the demand for anti-lock breaking systems (ABS) and airbags, while demand for convenience features is driving uptake of body control systems. The engine management system holds a major share in the ECU market, making huge inroads in the passenger vehicle segment. Automatic transmission and climate control are still in the fledgling stage and are expected to see a growth of 30.0 percent more in this market by 2012.

OEMs Preference for Fewer Suppliers Poses Major Hindrance to Market Expansion

With OEMs opting for fewer suppliers, market penetration is becoming increasingly difficult. Trends indicate that automakers prefer to limit the number of key suppliers, opting for suppliers that offer unparalleled products and services. Sourcing electronic components from a supplier that can offer a wider range of expertise and products is far easier and less costly. “In light of the sheer number of new electronic systems incorporated into vehicles, continuous restructuring of the R&D of supplier companies is necessitated,” explains the analyst. “Electronic systems suppliers are required to keep pace with the technological advancements and roll out smaller, lighter, and more intelligent systems to stay on top of the competition.”

As electronics contracts are worth millions of dollars, suppliers cannot afford to underestimate these criteria. ECU volumes supplied to OEMs tend to be large. By employing cost-cutting strategies, suppliers are targeting contracts on smaller margins as OEMs continually demand lower prices. Along with price, quality, delivery, and service are prerequisites for manufacturers to successfully garner contracts.

This Frost & Sullivan research service titled Automotive Electronic Control Units Market in India provides an insight into the electronic control units OEM market and estimates the future growth. In this research, Frost & Sullivan's expert analysts thoroughly examine the electronic control units (ECU) market for the following vehicle segments: passenger cars, utility vehicles, light commercial vehicles, medium commercial vehicles, and heavy commercial vehicles.

-1. Executive Summary

-2. Indian Automotive Market Overview

-3. Automotive Electronic Control Units Market
--3.1. Market Overview
--3.2. ECUs covered in this study
--3.3. Industry Challenges
--3.4. Market Drivers
--3.5. Market Restraint
--3.6. ECU Penetration Forecasts
--3.7. Total ECU Market Forecasts
--3.8. Market Segmentation by Application
--3.9. Key Conclusions

-4. ECU Applications
--4.1. Engine Management System
--4.2. Transmission Control System
--4.3. Anti-lock Braking System
--4.4. Power Steering System
--4.5. Climate Control System
--4.6. Airbag Restraint System
--4.7. Body Controls System

-5. Appendix

-6. Database of Key Industry Participants

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