APAC Tops the Global Two-wheeler ECU Market| Technavio

The latest market research report by Technavio on the global two-wheeler electronic control unit (ECU) market predicts a CAGR of more than 11% during the period 2017-2021.

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Technavio has published a new market research report on the global two-wheeler ECU market from 2017- ...

Technavio has published a new market research report on the global two-wheeler ECU market from 2017-2021. (Graphic: Business Wire)

The report segments the global two-wheeler ECU market by end-user (commuter, mid-premium, and premium) and by geography (APAC, the Americas, and EMEA). It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.

Here are some key findings of the global two-wheeler ECU market, according to Technavio automotive researchers:

  • Increased electrification of mechanical components: a major market driver
  • The global two-wheeler ECU market was dominated by the commuter segment with a market share of more than 80% in 2016.
  • APAC dominated the global two-wheeler ECU market and accounted for a market share of more than 88% in 2016
  • Bosch, DENSO, Delphi Automotive, and Continental are the leading players in the market

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Increased electrification of mechanical components: a major market driver

Increased electrification of mechanical components is one of the major factors driving the global two-wheeler ECU market. Technology has grown rapidly in the auto electronics industry. In the last decade, electronic systems and functions have replaced mechanical components in modern two-wheelers to an extent. The driving forces behind this development are the ever-growing needs for fewer emissions, greater safety and energy consumption, driver assistance, and more information to the driver. The demand for powered motorcycles is increasing worldwide because of its riding experiences and safety benefits. Electronic components assist in increasing the efficiency and riding experience of the rider. Therefore, there is a rapid electrification of components. This is driving the adoption of ECU in two-wheelers.

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Global commuter two-wheeler ECU market: largest segment by end-user

The demand for safety features such as antilock braking system (ABS) in commuter two-wheelers is increasing due to the imposition of legislation mandating the installation of safety systems in these vehicles. There is an increase in consumer’s preference for safety features because of the increase in the number of road accidents. Hence, there is an increased demand for active and passive safety systems in the two-wheelers. One-channel ABS was developed to satisfy the demand from low-powered commuter two-wheelers, where cost is an important parameter for the price-sensitive public.

According to Ganesh Subramanian, a lead analyst at Technavio for research on automotive manufacturing, “Bosch pioneered the concept of one-channel motorcycle ABS for the Indian market. The motorcycle ABS is compatible with hydraulic disc brakes, and the presence of mechanical brakes hinders the adoption of the same. Therefore, the ABS adoption is limited to hydraulic brake motorcycles. Most of the low-powered motorcycles are equipped with only one hydraulic brake, particularly front wheel, and the ABS is limited to that wheel. Therefore, with the increase in these features in motorcycles, the demand for ECUs will also increase at a steady pace.”

Competitive vendor landscape

The global two-wheeler ECU market is concentrated as it has the presence of many vendors. The market is characterized by the presence of international and regional players. International players are increasing their presence in many regions and they occupy a major share of the global market. Local vendors are facing difficulties to compete with them in terms of quality, features, safety, and price. In global two-wheeler ECU market, technological innovation plays a major part in product differentiation. Vendors mostly target the OEMs that sell premium motorcycles because consumers of this segment are generally not price-sensitive, and they only care about the offerings of the motorcycle.

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