Automotive Engine Management System Market Projected to grow to USD 63.2 billion by 2025

Automotive Engine Management System Market

The Automotive Engine Management System Market is projected to grow to USD 63.2 billion by 2025 from USD 58.8 billion in 2020, at a CAGR of 1.5% during the forecast period. The demand for engine management system is primarily driven by stringent emission norms, coupled with increasing vehicle production.

The engine management system industry is expected to be positively impacted by growing vehicle production across the globe as every ICE engine equipped vehicle is equipped with engine management system. The decreased emission limits and increased demand for fuel efficiency requirements have increased the focus on improvement in engine performance, which, in turn, is expected to have a significant impact on the global automotive engine management system market. For instance, Diesel passenger cars which emit more NOx as compare to gasoline powered vehicle will be witness drop in production owing to fleet level emission standards by the various governments. Hence, growth in gasoline powered vehicle production may result into the growth of automotive engine management system market in the coming years.

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Sensor segment will hold the largest share of the engine management system market

Increase in demand for better engine performance has propelled the growth of the engine sensors market. Today, almost all the vehicles that are manufactured are equipped with an engine ECU and sensors. Thus, there is tough competition between automakers to provide optimum engine performance while keeping tab on emission. This competition has increased pressure on OEMs to deliver technologically advanced automotive engine management systems. Also, the stringency in emission norms, have increased the demand for oxygen, pressure, temperature and knock sensors connected to engines. Thus, the increasing demand for stringent emission norms has also driven the growth of sensors and is expected to grow further in coming years.

Gasoline is the fastest-growing segment for engine management system as it is witnessing increasing demand in passenger car segment

The Gasoline engine management system market segment is estimated to grow at the fastest CAGR during the forecast period. In addition, the implementation of Euro 6 and EPA Tier 3 norms, have forced OEMs to decrease the production of diesel powered passenger cars. Alternatively, the adoption of EV is facing challenges such as limited battery range and higher charging time. Owing to which, the gasoline passenger cars is witnessing growth mainly North America and Europe region.

Moreover, similar trend can be seen in Asia Pacific region owing to upcoming regulations like China 6 a and 6b and India’s BS-VI, the markets for gasoline vehicle are expected grow at a prominent rate in the coming years and boost the market for engine management system for gasoline vehicles.

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Asia Pacific is estimated to be the largest geographical segment of the engine management system market

The upcoming emission norms in Asia Pacific are the most prominent driving forces for the engine management system market. 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 engine management systems in the region is expected to grow significantly in the coming years.

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 engine management system market are Robert Bosch (Germany), Continental AG (Germany), Denso (Japan), BorgWarner (US), and Hitachi Automotive (Japan), Infineon technologies (Germany), Hella (Germany), Sanken (Japan), NGK spark plug (Japan).

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