Market Introduction
The automotive manufacturing industry in SAM is witnessing growth owing to the presence of many OEMs and automakers in the region. Brazil benefits from a large domestic market potential with low vehicle ownership and a growing economy. The region has strong presence of leading commercial vehicle manufacturers such as Agrale S.A, Volkswagen, Mecedez-Benz, MAN, Volvo, Scania, Ford, and Iveco. Moreover, major automakers such as General Motors, Volkswagen, Hyundai, Ford, Toyota, Peugeot, and Renault have presence in the region. Various national regulatory bodies in the region are taking initiatives for encouraging the further development of the automotive sector in the respective countries. For instance, the Brazilian government has formulated favorable trade investment policies to encourage private investments. The government has also made provisions to give investors exemption from customs duties and other taxes on the purchase of certain infrastructure and capital goods. In 2017, Argentine President announced the “1 Million Plan” for the automotive industry. Under this plan, the country aims to attain the production capacities of 750,000 cars annually by 2019 and 1 million units annually by 2023. Therefore, the government initiatives to support the growth of the automotive sector would strengthen the automotive manufacturing industry in the region in the coming years, which is likely to support the growth of the automotive ECU market in SAM during the forecast period. The COVID-19 pandemic significantly affected the production and sales of vehicles in SAM in 2020, mainly due to the shutdown of production facilities, which, in turn, has restrained the growth of the automotive ECU market in the region.
In case of COVID-19, SAM is highly affected especially Brazil. In addition to Brazil, countries such as Colombia, Ecuador, Chile, Peru, and Argentina are witnessing the adverse effects of the COVID-19 pandemic across various industries. Governments of countries in SAM have taken significant actions to protect their citizens and contain COVID-19 spread. The automotive ECY market in SAM is anticipated to face a steep decline as the majority of stimulus package deployed by the government were focused on public healthcare and tax relief. In addition, the online as well as retail distribution channels will face tremors due to disruptions in supply chains and non-availability of raw materials. The sharp decline in business activities and product sales are expected to directly affect the growth of the automotive ECU market in this region for the next three to four quarters.
Market Overview and Dynamics
The SAM automotive ECU market is expected to grow from US$ 283.77 million in 2021 to US$ 365.24 million by 2028; it is estimated to grow at a CAGR of 3.7% from 2021 to 2028. The demand for automotive electronic control unit (ECU) is increasing at a notable rate in the SUVs segment of the automotive sector. The rising demand for SUVs is thus boosting the growth of automotive ECU market. The popularity of SUVs continues to grow in almost every market in the region. As the marketplace has experienced tremors due to trade tensions and a slowdown in the market, car manufacturers look for new ways to expand their presence. The shifting interest of customers from sedan or hatchbacks to SUVs started 7 years ago and is still progressing strong, which has encouraged vehicle manufacturers to focus on integrating advance automotive ECUs in these vehicles. GM keeps the lead but it squandered some of its market share to Toyota, Nissan, Ford, and Honda. FCA, the second-largest player, overtook shares on the back of its new offerings—Jeep Wrangler and Compass. VW Group, Hyundai-Kia, Mazda, Subaru, and BMW Group are among the other major SUV market shareholders in the region. Thus, the proliferation of SUV market is driving the demand and adoption of automotive ECUs in the SAM region.
Key Market Segments
In terms of application, the ADAS and Safety System segment accounted for the largest share of the SAM automotive ECU market in 2020. In terms of propulsion type, the ICE segment held a larger market share of the SAM automotive ECU market in 2020. In terms of ECU capacity, the 32-bit ECU segment held a larger market share of the SAM automotive ECU market in 2020. Further, the light duty segment held a larger share of the SAM automotive ECU market based on vehicle type in 2020.
Major Sources and Companies Listed
A few major primary and secondary sources referred to for preparing this report on the SAM automotive ECU market are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are Aptiv PLC; Continental AG; Denso Corporation; Hitachi, Ltd.; Mitsubishi Electric Corporation; Pektron; Robert Bosch GmbH; and ZF Friedrichshafen AG among others.
Reasons to buy report
SAM Automotive ECU Market Segmentation
SAM Automotive ECU Market - By Application
SAM Automotive ECU Market - By Propulsion Type
SAM Automotive ECU Market - By ECU Capacity
SAM Automotive ECU Market - By Vehicle Type
SAM Automotive ECU Market - By Country
SAM Automotive ECU Market - Company Profiles