The Automotive ABS and ESC markets are primarily driven by strict safety laws, technological breakthroughs in safety technologies, such as ESC systems, rising sales of luxury vehicles, increasing preference for passenger cars and commercial vehicles, and growing concerns about fuel efficiency. The usage of safety systems like ABS/ESC is required by law in several nations to increase traffic safety and lower accident rates. As a result, more types of automobiles are implementing these systems. The adoption of sophisticated safety systems like driver assistance, anti-lock braking systems (ABS), and electronic traction control has also been made possible by technological improvements (ESC). The demand for sophisticated ABS/ESC systems is also being driven by the increasing demand for luxury vehicles. Additionally, automakers are adding these technologies to automobiles to increase their fuel efficiency as a result of the growing need for fuel economy.
The market is required because automobiles must comply with safety standards and enhance performance. Modern car designs must include automotive ABS and ESC systems because they enhance vehicle performance and safety. Vehicles must be equipped with automotive ABS and ESC systems to comply with increasingly strict restrictions enforced by governments worldwide. Additionally, these devices aid in enhancing vehicle performance and cutting pollutants. Additionally, technological improvements have made it possible for automakers to include advanced safety features like lane departure warnings, electronic stability control, and an anti-lock braking system (ABS) (ESC). As a result, demand for car ABS and ESC systems has skyrocketed.
Automotive ABS & ESC are electronic safety devices that increase traction and vehicle stability in slick or dangerous driving situations. The Electronic Stability Control (ESC) preserves the vehicle's stability by automatically lowering power output, applying brakes to specified wheels, and taking other corrective actions in the event of over- or under-steer. The Anti-lock Braking System (ABS) avoids wheel lockup during harsh braking. These systems are employed in passenger cars, commercial vehicles, SUVs, and high-end automobiles.
The automotive ABS and ESC market is anticipated to reach an estimated value of USD 28.2 billion in 2021 and USD 46.4 billion by 2031, growing at a CAGR of over 8% during the forecast period 2021–2031.
A few of the key reasons propelling the expansion of the automotive ABS and ESC market include rising vehicle production, government laws aimed at enhancing safety, and technological developments in ABS and ESC systems. A few of the key reasons propelling the expansion of the automotive ABS and ESC market include rising vehicle production, government laws aimed at enhancing safety, and technological developments in ABS and ESC systems.
The Automotive ABS and ESC Market now face several difficulties, including high costs, incompatibility with current systems, and a dearth of component availability. The system's high price is a significant barrier to the market. Additionally, incompatibility between current systems and emerging safety technologies is impeding the market's expansion. The limited supply of components needed to make ABS/ESC systems is another factor limiting industry expansion. Additionally, the lack of knowledge about safeguarding features and technology in emerging nations is impeding the market's expansion. However, rising R&D spending, technological development, and expanding partnerships between automakers and IT companies are projected to open up new market prospects during the forecast period.
The Three Channel ABS Segment emerged as the Most Lucrative Type
The market is divided into three-channel ABS, four-channel ABS, and ESC segments based on type. The three-channel ABS segment, out of them, had the biggest market share in 2020 and is anticipated to continue to hold the top spot during the forecast. The need for safety features like anti-skid brakes, traction control, and electronic stability control, all of which call for a three-channel ABS, is growing, which is the cause of this.
The Most Prominent Application is the Compact Vehicle Segment
The automotive ABS and ESC market is further divided into applications such as light commercial vehicles, large commercial vehicles, commercial vehicles, premium automobiles, and mid-sized vehicles. Due to rising sales of tiny automobiles with cutting-edge safety features, the compact vehicle segment held the biggest market share in 2020 and will maintain its dominance throughout the projection period.
The APAC Region to render Ample Financing Opportunities
The Automotive ABS and ESC Market are divided into five geographic regions: North America, South America, Asia Pacific, Europe, and the Middle East & Africa. Due to growing sales of passenger vehicles, escalating demand for safety features, and strict government rules governing vehicle safety systems, Asia-Pacific dominated among these regions in terms of market share in 2020 and is predicted to continue dominating during the projection timeframe.
COVID-19 Impact and Market Status
The COVID-19 epidemic has significantly slowed down the global economy, which has had a huge negative impact on the automotive sector. The pandemic outbreak led to the temporary closure of production facilities and the interruption of the supply chain in numerous nations. This has had an impact on the Automotive ABS and ESC Market's expansion in 2020. However, manufacturing activities are gradually improving as a result of governments loosening tight regulations, which is anticipated to favorably impact the market's expansion in 2021. The rising demand for safety features is also anticipated to support the Automotive ABS and ESC Market's expansion over the course of the forecast period.
Hitachi Automotive Systems Ltd., Autoliv Inc., TRW Automotive Holdings Corp., Bosch, WABCO Vehicle Control System (WABCO), ZF Friedrichshafen AG, Nissan Motor Co. Ltd., Continental AG, Denso Corporation, Hyundai Mobis are the major companies active in the global Automotive ABS and ESC industry. To bring new products and technologies to market, these firms are heavily engaged in research and development efforts. To spur innovation and broaden their customer base, they are also concentrating on strategic alliances with their clients. Additionally, they are making significant investments in product diversification and technological progress to increase the effectiveness and lower the cost of ABS/ESC solutions.
Recent Developments in the Automotive ABS and ESC Market
• German automotive technology firm Elektrobit Automotive GmbH was purchased by Continental AG in June 2020. The goal of this acquisition was to increase Continental's proficiency in the creation of software-based advanced driver assistance systems (ADAS) and solutions for driverless vehicles.
• A new ESC system for automobiles in series production with integrated brake control was introduced in May 2021 by Hella KGaA Hueck & Co. In various driving situations, this new device is intended to offer better stability control and braking performance.
• Bosch Automotive Solutions unveiled its brand-new "Active Wheel" technology in April 2021. This innovation enables the integration of an electric motor and braking system on the wheel.
Automotive ABS and ESC Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2031||USD 46.4 billion|
|Growth Rate||CAGR of 8 % during 2022-2031|
|Segment Covered||by Type, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Hitachi Automotive Systems Ltd., Autoliv Inc., TRW Automotive Holdings Corp., Bosch, WABCO Vehicle Control System (WABCO), ZF Friedrichshafen AG, Nissan Motor Co. Ltd., Continental AG, Denso Corporation, Hyundai Mobis|
Key Segments of the Global Automotive ABS and ESC Market
Type Overview, 2021-2031 (USD Billion)
- Three Channel ABS
- Four Channel ABS
Application Overview, 2021-2031 (USD Billion)
- Compact Vehicle
- Mid-Sized Vehicle
- Premium Vehicle
- Luxury Vehicle
- Commercial Vehicle
- Heavy Commercial Vehicle
Regional Overview, 2021-2031 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa