Automotive ABS and ESC Market Size, Share, Analysis, Trends, Growth, 2032

Automotive ABS and ESC Industry Prospective:

The global automotive ABS and ESC market size was worth around USD 70.3 billion in 2023 and is predicted to grow to around USD 134.7 billion by 2032, with a compound annual growth rate (CAGR) of roughly 7.5% between 2024 and 2032.

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Automotive ABS and ESC Market: Overview

The automotive ABS is a vehicle safety instrument that helps the driver retain steering control by preventing the wheels from locking up when braking. Automotive ESC helps drivers maintain control of the vehicle during sharp turns. The automotive ABS and ESC market is driven by several factors, such as rising income and buying power, changing lifestyles brought on by urbanization, and increasing awareness of road safety measures in developing nations.

Furthermore, the growing R&D expenditure and increasing innovative product launches offer a lucrative opportunity for industry growth. However, the complexity of retrofitting is expected to hamper the automotive ABS and ESC industry growth.

Key Insights

• As per the analysis shared by our research analyst, the global Automotive ABS and ESC market is estimated to grow annually at a CAGR of around 7.5% over the forecast period (2024-2032).
• In terms of revenue, the global Automotive ABS and ESC market size was valued at around USD 70.3 billion in 2023 and is projected to reach USD 134.7 billion by 2032.
• The increasing R&D investment is expected to drive the Automotive ABS and ESC market over the forecast period.
• Based on technology, the Four-Channel ABS and ESC segment is expected to dominate the Automotive ABS and ESC market over the forecast period.
• Based on vehicle type, the luxury vehicle segment is expected to hold the largest market share over the forecast period.
• Based on sales channel, the OEM segment is expected to hold the largest market share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Automotive ABS and ESC Market: Growth Drivers

Rising vehicle production drives the market growth

The market for automotive ABS (anti-lock braking system) and ESC (electric stability control) is expanding due to significant measures to raise vehicle production. Safety technologies like ESC and ABS are being included more frequently as the car industry grows globally. Automakers are adding cutting-edge safety technologies like ABS and ESC to suit consumer demand and regulatory requirements as a result of an increase in global vehicle production, particularly in emerging economies.

Higher production quantities make safety features standard, even in mid-range and low-cost cars. Due to urbanization, rising incomes, and growing middle classes, nations like China, India, and Brazil are also seeing rapid increases in automobile production. Higher adoption rates of ABS and ESC are a result of these areas' more stringent safety laws.

Automotive ABS and ESC Market: Restraints

Complexity in retrofitting hinders market growth

Significant changes to a vehicle's braking system, such as the inclusion of sensors, electronic control units (ECUs), and hydraulic modulators, are necessary to retrofit ABS and ESC. Older cars may lack the infrastructure needed to support certain technologies, such as suitable brake systems or electronic components. Furthermore, it is challenging to create standardized retrofit kits for ESC and ABS due to variations in vehicle designs and specifications. Custom solutions are needed for every vehicle model, which raises the complexity and expense even more.

Additionally, the labor and component expenses associated with retrofitting ABS and ESC systems are high and can exceed the value of older cars. Especially in markets where costs are a concern, this expense discourages car owners from choosing retrofits. Thus, the complexity of retrofitting might hinder the automotive ABS and ESC industry growth.

Automotive ABS and ESC Market: Opportunities

The rising number of contracts offers a lucrative opportunity for market growth

The rising number of contracts is expected to offer a lucrative opportunity for the Automotive ABS and ESC market over the analysis period. For instance, in September 2023, with an order completion date of 15 March 2026, the United States Army granted Ricardo Defense Inc. a contract worth over 385 million USD, continuing the manufacture and delivery of Antilock Brake System/Electronic Stability Control (ABS/ESC) upgrade kits.

The High Mobility Multipurpose Wheeled Vehicle (HMMWV) used by the US Army demands ABS/ESC upgrade kits. The contract action raises the maximum from 89 million USD to 474 million USD while extending the previous base three-year contract, granted in March 2021, by two years. Funding will be decided for each delivery order (DO) under the provisions of the expanded contract, with the first DO acquired valued at 92 million USD.

Automotive ABS and ESC Market: Challenges

Lack of standardization poses a major challenge to market expansion

One major issue confronting the market is the absence of standardization in the design, integration, and regulation of ESC (Electronic Stability Control) and ABS (Anti-lock Braking System) systems. The proprietary designs and technology used by many automakers and suppliers for ABS and ESC systems lead to a lack of homogeneity. This unpredictability raises development and production costs and makes integration across several vehicle platforms more difficult. Additionally, it is challenging to create universal retrofit kits for older cars due to a lack of standardized designs, which restricts aftermarket options. The complexity and cost of retrofitting are further increased by vehicle-specific modification.

Automotive ABS and ESC Market: Report Scope

Automotive ABS and ESC Market: Segmentation

The global Automotive ABS and ESC industry is segmented based on technology, vehicle type, sales channel, and region.

Based on the technology, the global Automotive ABS and ESC market is segmented into Three Channel ABS, Four-Channel ABS, and ESC. The Four-Channel ABS and ESC segment is expected to dominate the Automotive ABS and ESC market over the forecast period. Four-channel systems are recommended for passenger cars, SUVs, and luxury vehicles since they offer better control than single- or dual-channel systems. Vehicle safety is improved by their capacity to stop skidding and loss of control in difficult driving conditions.

Based on vehicle type, the global Automotive ABS and ESC industry is bifurcated into compact vehicle, mid-sized vehicle, premium vehicle, luxury vehicle, commercial vehicle and heavy commercial vehicle. The luxury vehicle segment is expected to hold the largest market share over the forecast period. Global safety regulations, which require cutting-edge safety features like ABS and ESC, must be followed by luxury car makers. Demand is increased by the enforcement of these laws, which is mostly carried out by nations in North America and Europe.

Based on sales channel, the global Automotive ABS and ESC market is bifurcated into OEM and aftermarket. The OEM segment is expected to hold the largest market share over the forecast period. The rise of electric and autonomous vehicles requires advanced ABS and ESC systems, creating opportunities for OEM innovation.

Automotive ABS and ESC Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global Automotive ABS and ESC market. Strict safety rules are driving the market's geographical expansion. Rules established by Transport Canada and the National Highway Traffic Safety Administration (NHTSA) state that ESC systems must be installed in all new passenger automobiles imported into the United States and Canada. These guidelines ensure a continuous need for ABS and ESC systems in every type of vehicle.

Moreover, North America leads the way in the evolution and acceptance of electric vehicles (EVs) and autonomous cars, both of which depend on advanced ABS and ESC systems for best performance and safety.

However, the Asia Pacific is expected to grow at the fastest rate during the projected period owing to the high production of passenger and commercial vehicles particularly in India and China. Additionally, the growing emphasis on the safety of passenger cars contributes to the growth of the Asia Pacific automotive ABS and ESC market.

Automotive ABS and ESC Market: Competitive Analysis

The global Automotive ABS and ESC market is dominated by players like:

• Robert Bosch GmbH
• Continental AG
• ZF Friedrichshafen AG
• Denso Corporation
• Aisin Seiki Co. Ltd
• Autoliv Inc.
• WABCO Holdings Inc.
• Hyundai Mobis Co. Ltd.
• Bendix Commercial Vehicle Systems LLC
• Delphi Technologies
• Deki Electronics
• NIDEC CORPORATION
• Panasonic Industry Co. Ltd.
• Lucas-Nuelle
• Ricardo

The global Automotive ABS and ESC market is segmented as follows:

By Technology

• Three Channel ABS
• Four-Channel ABS
• ESC

By Vehicle Type

• Compact Vehicle
• Mid-Sized Vehicle
• Premium Vehicle
• Luxury Vehicle
• Commercial Vehicle
• Heavy Commercial Vehicle

By Sales Channel

• OEM
• Aftermarket

By Region

• North America

  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa