CAGR: 11.1%Current Market Size: USD 99.9 BillionFastest Growing Region: North America
Largest Market: EuropeProjection Time: 2023-2030Base Year: 2022
The global automotive ABS and ESC market is expected to grow from USD 99.9 billion in 2022 to USD 231.8 billion by 2030, at a CAGR of 11.1% during the Projection period 2023-2030. The growth of automotive ABC and ESC market is mainly driven owing to the rising use of automotive.
Active safety features are increasingly being included in passenger cars as consumer demand for technologies like ESC and ABS that prevent accidents rises, especially in developing nations. Laws in developing nations are quickly catching up, providing a development window for the ABS and ESC markets. Numerous organisations, including the New Car Assessment Program (NCAP), provide cars safety ratings based on how well they perform in terms of safety. Governments all across the world are putting strict safety standards on automobiles. Leading automakers are launching marketing campaigns to raise consumer knowledge of key safety features in vehicles. Automotive industry technological developments have reduced the cost of providing safety systems like ABS and ESC. In the following years, the demand for luxury vehicles is anticipated to soar, particularly in regions like Europe and Asia-Pacific excluding Japan (APEJ). Numerous manufacturers worldwide are making the installation of ABS and ESC in automobiles required due to the safety systems' widely acknowledged advantages and the movement of some regions to enact legislation governing them. Although excellent safety devices, ESC and ABS are constrained by the laws of physics. When driven too quickly, vehicles with ABS and ESC may lose control, giving the impression that these technologies do not permit aggressive driving.
Sample Request: - Global Automotive ABS and ESC Market
Market Dynamics:
Drivers:
The market growth of automotive ABS and ESC is mainly driven by the continuous addition of new technologies in the already existing systems, as these technologies are making the ABS and ESC systems more efficient and enhancing their functionality. Moreover, rising awareness about the benefits of ABS and ESC systems installed in vehicles among consumers is also benefiting the market growth. Stringent rules and regulations imposed by governments of various countries to install the systems in vehicles for safety purposes also contribute a large share in market growth.
Restraints:
The lack of awareness and knowledge about the benefits associated with ABS and ESC technologies is hampering the market growth. Consumers in less developed economies are not ready to accept such technologies as they are comfortable with the traditional technologies moreover, the high cost of these systems is also reducing the level of acceptance among the consumers which is affecting the sales of the product as well as negatively impacting the growth of the market.
Opportunities:
The expansion of the automotive industry is creating so many opportunities for the automotive ABS and ESC market. In so many nations it has become mandatory to have ABS and ESC systems installed in vehicles to ensure the safety of the drivers as well as the passengers which are boosting the expansion of the automotive industry with increasing demand for automobiles among consumers as well boosting the growth of the ABS and ESC market as installation of these systems are becoming mandatory. According to the International Organization of Motor Vehicle Manufacturers, the number of vehicles on the road is growing, which increases the demand for automotive antilock braking systems, or ABs, which is expected to drive market growth.
Challenges:
The market is witnessing immense growth but on the other hand, the high cost associated with the installation of these systems is hindering the growth of the market. In the manufacturing of automotive antilock braking systems (ABS) and electronic stability control (ESC), raw materials have been expensive, and a rise in design and testing costs will be a major challenge for the market and could hinder the growth of the automotive antilock braking systems (ABS) and electronic stability controls (ESC) market during the Projection period.
Segmentation Analysis:
The global automotive ABS and ESC market has been segmented based on technology, sales channel, vehicle type, and region.
By Technology
The technology segment includes electronic stability control, a three-channel antilock braking system and a four-channel antilock braking system. The electronic stability control segment led the largest share of the automotive ABS and ESC market with a market share of around 47.2% in 2022. Over half of the market share will be accounted for by electronic stability control technology in 2017, and demand for ESC technology in vehicles will begin to surge by 2022-end. The electronic stability control system assists the driver in maintaining control of the car when driving in critical conditions through automatic computer-controlled braking of individual wheels. Moreover, the number of single-vehicle crashes and rollover crashes resulting in driver injury has decreased by 32% and 58% respectively in cars fitted with electronic stability control.
By Sales Channel
The sales channel segment includes aftermarket and OEM. The OEM segment led the largest share of the automotive ABS and ESC market with a market share of around 59% in 2022. ABS and ESC sales are expected to reach nearly US$ 100,000 million in revenues by 2029-end, with OEM being the most attractive sales channel. With the introduction of ABS and ESC by OEMs, automotive braking systems have created a breakthrough in the market by improving vehicle safety and requiring minimal maintenance.
By Vehicle Type
The vehicle type segment includes heavy commercial vehicles, compact vehicles, luxury vehicles, mid-sized vehicles, premium vehicles, and light commercial vehicles. The light commercial vehicles segment led the largest share of the automotive ABS and ESC market with a market share of around 25.4% in 2022. Light commercial vehicles are projected to be the most lucrative in the global automotive ABS and ESC market, followed by heavy commercial vehicles. Commercial vehicles whether they are light or heavy are used in the transportation of goods from one place to another, and as a result of this, it is very important to protect drivers from any kind of road accidents. In order to increase the safety of drivers, ABS and ESC technologies are installed in the vehicles.
Global Automotive ABS and ESC Market- Sales Analysis.
The sale of automotive ABS and ESC expanded at a CAGR of 9% from 2016 to 2022.
The National Highway Traffic Safety Administration (NHISA) in the United States has been instructed to consider the installation of antilock braking and electronic stability control systems in passenger vehicles such as sport utility vehicles, cars, pickup trucks, and vans. This is expected to accelerate the growth of the automotive ABS and ESC market. In order to improve the overall efficiency of the vehicle, there have been substantial advances in the introduction of efficient connected car technologies, driverless vehicles, Internet of Things (IoT), and redundant designs.
One of the key reasons contributing to the expansion of the automotive antilock braking system (ABS) and electronic stability control (ESC) market globally is the increase in vehicle manufacturing. For instance, 97 million vehicles were produced worldwide in 2017, up from 95 million in 2016, according to the International Organization of Motor Vehicle Manufacturers. Therefore, the increasing number of vehicles on the road is driving up demand for electronic stability controls (ESC) and automotive antilock braking systems, which are likely to drive the market's expansion.
Thus, owing to the aforementioned factors, the global automotive ABS and ESC market is expected to grow at a CAGR of 11.1% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the emesis bags market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The European region dominated the automotive ABS and ESC market and held a 39% share of the market revenue in 2022.
Global Automotive ABS and ESC Market- Country Analysis:
Germany's automotive ABS and ESC market size was valued at USD 12.07 billion in 2022 and is expected to reach USD 28.8 billion by 2030, at a CAGR of 11.5% from 2023 to 2030.
Entry-level vehicles in Germany are now mandated to have ABS systems, along with seatbelts, which is driving the market growth in the country forward. The use of anti-lock braking systems in the vehicles produced by German luxury, sport, and supercar carmakers, such as Mercedes Benz, Audi, Porsche, and BMW, creates a huge market opportunity for market growth in the country.
China's automotive ABS and ESC market size was valued at USD 6.22 billion in 2022 and is expected to reach USD 14.6 billion by 2030, at a CAGR of 11.3% from 2023 to 2030.
There are increasingly high safety standards in the Chinese automotive industry, resulting in an increase in demand for automotive antilock braking systems and electronic stability control systems, which is helping to stimulate market growth.
India's automotive ABS and ESC market size was valued at USD 4.9 billion in 2022 and is expected to reach USD 11.45 billion by 2030, at a CAGR of 11.2% from 2023 to 2030.
Increased consumer demand for better quality safety systems in vehicles, along with legislation and policy framework that mandates the integration of safety equipment in vehicles, are all factors contributing to the growth of the ABS and ESC markets in the country.
Key Industry Players Analysis:
To increase their market position in the global automotive ABS and ESC business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
11.1% |
Market Size |
99.9 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Technology, By Sales Channel, By Vehicle Type, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Tata Motors, Autoliv, Aptiv, AISIN CORPORATION, AKEBOND BRAKE INDUSTRY CO. LTD., Hitachi, Ltd., Ford Motor Company, Mando Corp., Murata Manufacturing Co., Ltd., Continental AG, Robert Bosch GmbH, Veoneer HoldCo, LLC., HYUNDAI MOBIS, ZF Friedrichshafen AG, Haldex, DENSO Corporation |
By Technology |
|
By Sales Channel |
|
By Vehicle Type |
|
Regional scope |
|
Scope of the Report
Global Automotive ABS and ESC Market By Technology:
Global Automotive ABS and ESC Market By Sales Channel:
Global Automotive ABS and ESC Market By Vehicle Type:
Global Automotive ABS and ESC Market By Region:
Global automotive ABS and ESC market worth is USD 99.9 billion in 2022.
European region will witness more automotive ABS and ESC market growth.
Rising introduction of new technologies and automotive industry expansion development will propel the market's growth.
Global Automotive ABS and ESC Market are expected to reach USD 231.8 billion by 2030, at a CAGR of 11.1% from 2023 to 2030.
Tata Motors, Autoliv, Aptiv, AISIN CORPORATION, AKEBOND BRAKE INDUSTRY CO. LTD., Hitachi, Ltd., Ford Motor Company, Mando Corp., Murata Manufacturing Co., Ltd., Continental AG, Robert Bosch GmbH, Veoneer HoldCo, LLC., HYUNDAI MOBIS, ZF Friedrichshafen AG, Haldex, DENSO Corporation among others.
Political Factors- Politicians are very interested in the effects that automobiles have on the environment in addition to regulating the safety-related aspects of the automotive industry. The majority of automobiles, motorcycles, and buses are propelled by fossil fuels like diesel and petroleum, which when burned, release a number of harmful pollutants into the environment. The amount of carbon dioxide produced by driving a car, or carbon emissions, is a major issue with motor vehicles. Governments are therefore very interested in the emissions data for both new and used vehicles. This is just another legal hurdle that automakers must clear in addition to other environmental worries.
Environmental Factors- For businesses like the automotive ABS and ESC market to prosper, the economy needs a moderate rate of inflation. A moderate rate of inflation will also aid in business expansion and positively influence consumer confidence and spending patterns. The economy will benefit, and disposable income will rise overall. A greater inflation rate would result in less discretionary money, which could affect enterprises and companies and weaken consumer confidence. It would also likely lead to a decrease in overall expansion. A decreased inflation rate will result in a significant rise in disposable income, which could stimulate competition, particularly through pricing methods that could result in unethical price wars that unfairly benefit the customer.
Social Factors- There is no denying that driving is becoming more and more popular from a sociocultural standpoint. Families all over the world are increasingly likely to own one or more cars; in fact, owning one or more cars is already the standard in industrialized nations like the United States, Canada, and a large portion of the European Union. It's not like most of us can't get by on bicycles and buses; rather, we choose to drive motor cars just because that's what is expected of us, and that's part of the problem.
Technological Factors- A significant technological development in the automotive sector, aside from the introduction of self-driving automobiles, is the safety of motor vehicles in general. Wearing seat belts wasn't made mandatory until the 1980s, and lower-end automakers didn't start installing airbags in all of their vehicles until the early 2000s. Industry-wide standards are rising, and the underlying technology is as well. Recently, automakers have started equipping their vehicles with emergency braking assist systems, greatly reducing the possibility of front-end collisions.
Environmental Factors- Recycling and environmental sustainability are receiving more attention. More and more consumers are demanding ways to recycle things before disposing of them. Consumption of recycled goods is also on the rise among consumers. The automotive ABS and ESC market has introduced dedicated websites for the disposal of recyclable goods. Like many other businesses, the automotive ABS and ESC market is also launching a brand-new product range of recycled goods for the benefit of customers. Automotive ABS and ESC markets should affiliate with and register with the waste management authorities and institutions in order to follow rules, maintain checks, and prevent any future troubles because the country has strict waste management and control regulations.
Legal Factors- Interestingly, the car business is also impacted by the copyright issue. Copyright, trademark, and patent laws may provide protection for specific aspects of a car, including its branding and even its shape. Although you don't hear much about legal battles in the auto industry, they do happen. Chinese automakers openly copying the designs of their Western competitors has become a growing problem in recent years. For instance, there has been significant contention over some suspiciously similar Rolls Royce Phantom replicas made by the Chinese company Geely. Although the overall impact of this copying on the sector is unknown, it is undoubtedly a problem.
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