Automotive Engine Management System Market Growth Size [2031]

Report Description

Automotive Engine Management System Market Outlook 2031

The global automotive engine management system market size was valued at USD 68.17 Billion in 2022 and is likely to reach USD 93.72 Billion by 2031, expanding at a CAGR of 3.6% during 2023 – 2031. The market growth is attributed to increasing implementation of stringent emissions norms and rising fuel prices.

Increasing implementation of stringent emissions norms is expected to boost the demand for automotive engine management systems. Engine management systems monitor and control components such as the catalytic converter, oxygen sensor, and exhaust gas recirculation (EGR) to ensure compliance with emission standards. Therefore, rising emissions norms around the world are projected to enhance the market.

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The demand for engine management systems is rapidly increasing in commercial and passenger vehicles as they precisely control the timing of ignition and the amount of fuel injected into the engine. It also ensures the efficient working of various parts of the vehicles. This system optimizes power delivery and minimizes emissions from the vehicles, which increases its adoption among consumers.

Rising fuel prices around the world are projected to drive the market. Engine management systems offer efficient fuel economy in vehicles as they use an oxygen sensor in the exhaust to monitor the air-to-fuel ratio (AFR), which feeds information to EMS to adjust the fuel flow of the vehicle. Thus, increasing fuel prices is propelling the market.

The COVID-19 pandemic hampered the demand for the automotive engine management system. The manufacturing facilities of engine management systems faced problems during COVID-19 due to the shortage of manpower and major components such as semiconductor chips and sensors. Moreover, disruption in the supply chain and the closure of international trade declined the production of motor vehicles, which impeded the demand for engine management system as it is used in vehicles to control engine and their performance. For instance,

• According to a report published by the International Organization of Motor Vehicle Manufacturers, a 16% decline was seen in the production of automobiles in 2020.

Impact of Artificial Intelligence (AI) on Automotive Engine Management System

Growing technological advancements in the automobile industry and the introduction of artificial intelligence in automotive create a lucrative opportunity in the market. AI-powered engine management systems can train ECUs with more than 50,000 setting parameters so that they optimally adjust the engine.

AI-enabled engine management system optimizes the performance of vehicles by analyzing vast amounts of data in real-time, allowing more accurate and efficient management of the engine. AI-powered engine management systems can monitor various engine parameters such as temperature, pressure, and fuel mixture, to predict potential issues before they become major problems.

Automotive Engine Management System Market Dynamics

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Major Drivers

Growing automobile industry is projected to boost the demand for automotive engine management systems. Engine management systems are used in automobiles to ensure efficient operation of the engine.  It uses ECU, actuators, and various sensors in the engine to control the ignition systems, fuel injection, and air systems. Therefore, increasing production of automobiles is estimated to enhance the market. For instance,

• According to the European Automobile Manufacturers Association, 85.4 million motor vehicles were produced around the world in 2022, an increase of 5.7% compared to 2021.

Increasing incidence of vehicle theft is anticipated to drive the market. Engine management systems are an important component in case of vehicle theft as they control a vehicle's engine and block the engine from being restarted, which prevents vehicle theft and increases its adoption in vehicles. Thus, the rising incidence of vehicle theft is propelling the market.

Existing Restraints

High cost associated with the engine management system is expected to restrict the market. Engine management systems are costly as they require advanced technology and specialized knowledge to repair and maintain, which makes them more costly and time-consuming. Moreover, a fault in sensors and ECUs can cease the engine, which encourages people to lessen the adoption of engine management systems.

Emerging Opportunities

Increasing investment in R&D activities by major players in the market to develop and introduce novel engine management systems for two-wheelers creates an immense opportunity in the market.

• For instance, on February 6, 2020, Robert Bosch a Germany-based multinational engineering and technology company introduced a comprehensive range of engine management systems technologies specifically designed for two-wheelers. These include innovation in components for fuel injection and supply, air management, ignition and exhaust-gas treatment, and engine control units.

Scope of The Automotive Engine Management System Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Engine Management System Market Segment Insights

Engine Type Segment Analysis

Based on engine type, the automotive engine management system market is bifurcated into gasoline engines and diesel engines. The gasoline segment dominated the market in 2022 and is expected to continue its dominance throughout the forecast period owing to rising fuel prices, increasing emission norms, and growing adoption of hybrid vehicles.

The Gasoline engine management system electronically controls combustion parameters to increase engine output and reduce emissions and fuel consumption. It also controls the amount of gas injected into each cylinder, which increases its adoption in gasoline engines.

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Vehicle Type Segment Analysis

In terms of vehicle type, the global market is segregated into passenger vehicles and commercial vehicles. The commercial vehicle system accounted for a major market share in 2022 due to increasing transportation and logistics services and rising industrialization in emerging nations. Engine management systems are utilized in commercial vehicles to optimize power delivery and minimize emissions as they are involved in heavy-duty work.

Moreover, growing urbanization worldwide is propelling the demand for light commercial vehicles, which is projected to boost the demand for engine management systems.

The passenger vehicle segment is anticipated to grow at a robust pace during the assessment period owing to its ability to provide better features and greater security. Engine management systems are deployed in passenger vehicles to modify or customize a car to optimize it for a different set of performance requirements. It also reduces the fuel intake and CO2 emissions which enhances its demand in passenger vehicles.

Component Segment Analysis

Based on components, the automotive engine management system market is divided into engine control units (ECU), engine sensors, fuel pumps, and others. The electronic control units (ECU) held a large share of the market in 2022 due to rising demand for advanced navigation features in vehicles and increasing preference for connected cars. ECU in vehicles provides instructions for various electrical systems, instructing them on how to operate and what to do. It also controls the fuel injection, ignition, and ancillaries of the engine which enhances its demand for engine management system.

The fuel pump segment is expected to grow at a quick pace during the projected period owing to increasing vehicle production, advancements in fuel injection technologies, and the shift towards electric mobility. Fuel pumps in vehicles convey the required quantity of fuel from the tank to the engine at the necessary pressure, which increases its adoption in engine management systems.

Regional Outlook

In terms of region, the automotive engine management system market is categorized into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a major share of the market in 2022 due to a surge in fuel prices and increasing demand for automobiles. Moreover, rising emission norms in the region are expected to boost the demand for engine management systems as these systems monitor and control components such as the catalytic converter, oxygen sensor, and exhaust gas recirculation (EGR) which reduces the C02 emission from vehicles. For instance,

• On April 1, 2020, the Government of India mandated that vehicle makers must manufacture, sell, and register only BS-VI (BS6) vehicles to reduce the emission of certain hydrocarbons.

North America is anticipated to witness considerable CAGR growth during the projected period owing to increasing trend of automotive customization and stringent emission norms. Moreover, the presence of major market players in the region such as BorgWarner Inc., Cummins Inc., and Johnson Controls are propelling the market.

Additionally, rising adoption of commercial vehicles in the region is enhancing the demand for engine management system as it is utilized in commercial vehicles to optimize power delivery and minimize emissions. For instance, around 11 million commercial vehicles were sold in the US in 2022.

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