"Market Intelligence for High-Geared Performance"
The global electronic stability control market size was USD 34.55 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with electronic stability control witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a huge decline of 15.04% in 2020. The market is projected to grow from USD 35.41 billion in 2021 to USD 66.65 billion in 2028 at a CAGR of 9.5% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market demand and growth, returning to pre-pandemic levels once the pandemic is over.
Electronic Stability Control (ESC), also known as the electronic stability program, is an active safety system that can be fitted to cars, coaches, buses, and trucks. The system is an extension of antilock braking technology, consisting of a speed sensor and independent breaking for all the wheels. The primary objective of ESC is to prevent vehicle skidding under various driving conditions and situations. The system identifies critical driving conditions and applies specific brake pressure on one or more wheels to prevent vehicle skidding. Apart from this, ESC also automatically adjusts the torque during the critical driving condition to retain steering control of the vehicle to the driver.
ESC has the highest potential to save lives on the road by preventing the slipping of the vehicle. Hence, increasing demand for enhanced safety features in automotive is expected to benefit the market growth over the forecast period. For instance, according to the National Highway Traffic Safety Administration, in 2019, the total number of fatalities in motor crashes was 36,096. To prevent upcoming crashes, governments worldwide are mandating the use of ESC to improve road safety.
Manufacturers in developed countries continue to improve their safety features to enhance the driving experience. This has created a competitive environment in the automotive industry for the consolidation and strengthening market position. For instance, in October 2017, major car brands in China Changan, Besturn, Dongfeng Fengshen, Haval, Geely, Hongqi, Lynk & Co, MG, Roewe, Senova, Trumpchi, and Wey, collectively represent 85% of the Chinese manufacturer market, announced to equip their upcoming models with the ESC.
Halt in Automotive Production to Hamper the Demand for ESC
The COVID-19 pandemic continues to impact the automotive industry. Additionally, various rules and regulations enforced by the government, such as restrictions on industrial production & import-export activities, transport & travel restrictions, and others, have disrupted the supply chain. Disruption in the supply chain and a significant decline in automotive production and auto parts demand have had an adverse impact on market growth. However, the automotive industry is expected to rebound by 2023, which will generate new opportunities for the market.
Request a Free sample to learn more about this report.
Development and Adoption of Autonomous Mobility to Drive Market Growth
The growing development and adoption of autonomous mobility are anticipated to create lucrative electronic stability control market growth opportunities. Additionally, safety is the selling point for autonomous vehicles; hence the demand for the advanced safety features in these autonomous vehicles is driving the positively influencing the market growth.
Moreover, to develop fully autonomous cars with autonomy, level 5 vehicles need to be equipped with various safety systems such as ADAS, ESC, and others. Therefore, the growing investment of automakers in R&D activities to develop fully autonomous cars is expected to boost the market growth in years to come. For instance, in April 2017, Bosch and Daimler joined forces to develop fully automated (SAE Level 4) and driverless (SAE Level 5) driving.
Furthermore, the growing automotive electrification is also one of the major trends expected to propel market growth. Almost all new electric vehicles are equipped with advanced safety features like autopilot, ESC, and others. Hence, the high adoption of EVs and the development of EV charging infrastructure are expected to accelerate the market growth during the forecast period.
Increasing Number of Government Regulations Worldwide to Propel Market Growth
Governments worldwide are implementing regulations for the manufacturers to mandate electronic stability control in passenger cars and commercial vehicles. Additionally, this technology is an extension of an antilock braking system. Hence, the governments that have already mandated the use of antilock braking systems are taking the initiative to mandate ESC in years to come. Governments in the U.S., Canada, European countries, Japan, Australia, and others have already implemented the mandatory regulation regarding ESC. Furthermore, to reduce the number of motor crashes, governments in emerging countries such as India, China, and others are expected to implement the regulations in the forthcoming years
Extensive Demand for Road Safety to Drive Market Growth
Customers in developed countries prefer to adopt vehicles with updated safety features. Hence growing preference of the populace for the adoption of ESC-equipped vehicles is anticipated to propel the market growth. Moreover, an inclination of customers towards EVs and autonomous vehicles is expected to influence the market in years to come.
Growing Preference for ESC by Manufacturers to Aid Growth
The growing preference of automakers to equip their upcoming models with advanced systems such as ADAS, ESC, and Autonomous Emergency Braking (AEB) to stay ahead in the intense competition is anticipated to boost the market growth over the forecast period. Moreover, the increasing passenger vehicles sales due to overburdened public transport and high demand for comfort is expected to create lucrative opportunities for the market during the forecast period.
Unavailability of Raw Materials May Restrain Market Growth
The unavailability of raw materials and their varying prices are expected to hamper the market growth over the forecast period. For instance, the shortage of semiconductor chips in the first quarter of 2021 has significantly impacted the automotive and electronic industry. Major automakers such as General Motors have terminated their production due to this shortage.
To know how our report can help streamline your business, Speak to Analyst
High Demand for Luxury Passenger Cars to Drive Segment Growth
Based on vehicle type, the market is segmented into passenger cars and commercial vehicles.
The passenger cars segment held the largest market share of 60.3% in 2020, owing to the rising demand for luxury passenger vehicles with advanced safety features. Additionally, government rules and regulations regarding the mandatory adoption of ESC in passenger vehicles further support the market growth. Various automotive manufacturers such as Daimler, Toyota, and others produce passenger cars with pre-installed ESC systems. Due to the increasing number of safety regulations, other mid-range automotive manufacturers plan to install ESC in their passenger vehicles.
The commercial vehicle segment is anticipated to witness the fastest growth rate due to increasing demand for road safety and regulations enforced by the regulatory bodies. Additionally, growing commercial vehicle sales in North America are expected to fuel the segment growth during the forecast period.
Rising Adoption of ESC in New Automobile Models to Drive Segment Growth
Based on the sales channel, the market is segmented into OEM and aftermarket.
In 2020, the OEM segment accounted for the largest market share of 94.9% and is expected to continue its dominance in years to come. Automakers’ focus on building vehicles with pre-installed ESC systems is anticipated to fuel the market growth. Additionally, government standards for ESC installation encourage OEMs to equip their vehicles with these systems. Moreover, intensifying competition among the OEMs to offer updated safety features for the market consolidation are some of the factors expected to influence the segment growth in years to come.
The aftermarket segment is expected to grow with the highest CAGR of 13.4% during the forecast period due to the increasing awareness regarding ESC among the populace and the increasing number of online automotive parts retailer platforms such as eEuroparts, eBay, and others.
Rising Demand for High Accuracy to Drive the Segment growth
Based on component type, the market for electronic stability control systems is segmented into hydraulic modulators, Sensors, ECU, and others.
The hydraulic modulator was the leading segment, with a market share of 33.9% in 2020. The hydraulic units are vital parts of an ESC system as they distribute the braking force and effectively prevent vehicle skidding. Additionally, they assist the driver in taking over control of the vehicle.
The sensors segment is anticipated to witness the highest growth rate during the forecast period owing to the increasing demand for effective critical situation detection using various sensors. Moreover, the growing adoption of autonomy and EVs is expected to boost the sensors segment growth over the forecast period.
North America Electronic Stability Control Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
North America dominated the electronic stability control market in 2020 with a market size of 12.98 billion in terms of revenue. The growing advanced automotive sales are driving the market growth in the region. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, 14.45 million vehicles were sold in the US. The number is anticipated to increase in years to come. The rising sales of vehicles with ESC are anticipated to fuel the market growth in the region.
Europe held the second-largest market share due to the strict government regulations enforced by regulatory bodies. Additionally, the presence of major OEMs and technological advancement in the region support market growth. Moreover, automakers such as Daimler, Volkswagen, and others investing in the development of autonomous mobility solutions with enhanced safety features are anticipated to boost the market growth in the region.
Asia Pacific is expected to witness the fastest growth of 13.9% CAGR during the forecast period. The growing adoption of ESC in emerging countries such as India, China, Japan, and others is expected to fuel the market growth. Additionally, the government plans to enforce ESC mandatory regulations in the future are anticipated to boost the market growth over the forecast period. Moreover, increasing automotive sales in the Asia Pacific will positively influence the market.
For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, China was the largest contributor of global automotive sales; increasing penetration of the ESC system in China is expected to boost the market growth. Furthermore, major Chinese manufacturers have already announced the commitment to adopt the ESC system. This growing adoption by OEM in years to come is expected to create a surge in demand for ESC systems.
Rest of the World accounted for the lowest market share in 2020 due to the weak presence of the automotive industry in Latin America and the Middle East & Africa regions. However, the market is expected to witness a significant growth rate due to the expanding automotive industry and increasing demand for road safety in countries such as Brazil, Africa, and others.
Key Players Focus on Early Development of Updated Safety Features to Drive Competition
The global market is consolidating with the major players. The key players are expanding their product portfolio to provide a stability control system compatible with various passenger and heavy commercial vehicles. Moreover, major automakers plan to jointly develop an autonomous driving system to provide autonomous driving with updated safety features. For instance, in April 2017, Bosch and Daimler joined forces to develop fully automated (SAE Level 4) and driverless (SAE Level 5) driving. Furthermore, manufacturers utilize various sensors to increase the system’s accuracy to strengthen their market position.
Robert Bosch GmbH is One of the Leading Players in the Market
Robert Bosch GmbH. is one of the leading Electronic Stability Program (ESP) providers headquartered in Gerlingen, Germany. The company provides ESP solutions to various major automakers such as Daimler. Additionally, Bosch also provides ESP value-added function, which includes software functions with added values. Moreover, Bosch has also developed the ESP system for motorcycles. The company has manufactured more than 250 million stability control systems till now.
An Infographic Representation of Electronic Stability Control System Market
To get information on various segments, share your queries with us
The global electronic stability control market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, vehicle types, sales channels, and components. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion & Million)
By Vehicle Type
By Sales Channel
Fortune Business Insights says that the global electronic stability control market size was USD 34.55 billion in 2020 and is projected to reach USD 66.65 billion in 2028.
The market is expected to register a CAGR of 9.5% during the forecast period 2021-2028.
The growing demand for road safety and government regulations regarding ESC installation worldwide are some of the major factors driving the market growth.
North America is expected to be the dominant region during the forecast period.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry