Electronic Stability Control System Market Growth, Size, Share, Trends, and Forecast 2032

Electronic Stability Control System Industry Prospective:

The global electronic stability control system market size was worth around USD 10.95 billion in 2023 and is predicted to grow to around USD 23.83 billion by 2032 with a compound annual growth rate (CAGR) of roughly 9.02% between 2024 and 2032.

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Electronic Stability Control System Market: Overview

Electronic stability control (ESC) system is an automotive feature that is used for the prevention of control loss when driving a vehicle. It prevents loss of directional control caused by plowing out or spinning out. If ESC is used efficiently, it can also reduce the risk of a rollover which is considered one of the most deadly or dangerous types of vehicle-related accidents. The technology backing ESC uses multiple sensors that are responsible for reading and recording the direction of the vehicle along with tire brakes and steering wheel direction.

When the sensors detect that the vehicle is moving in a direction that was not intended, electronic stability control systems assist in correcting the car's direction by applying selective brakes to one of all vehicles and adjusting the speed of the car. If ESC is not used correctly, it can lead to the car getting into a crash or departing from the road. Certain parameters determine the efficiency of the vehicle. The performance of an electronic stability control system is directly related to the efficiency of the anti-braking system (ABS) and hence users must always ensure that the ABS is well-maintained throughout the vehicle’s life cycle.

Key Insights:

• As per the analysis shared by our research analyst, the global electronic stability control system market is estimated to grow annually at a CAGR of around 9.02% over the forecast period (2024-2032)
• In terms of revenue, the global electronic stability control system market size was valued at around USD 10.95 billion in 2023 and is projected to reach USD 23.83 billion by 2032.
• The market is projected to grow at a significant rate due to the rising number of vehicle buyers across the globe
• Based on component segmentation, ECU was predicted to show maximum market share in the year 2023
• Based on vehicle type segmentation, passenger vehicle was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

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Electronic Stability Control System Market: Growth Drivers

Rising number of vehicle buyers across the globe will affect the market growth rate

The global electronic stability control system market is expected to grow due to the rising number of vehicle owners globally. In the last decade, the demand for automobiles has grown significantly with multiple factors working in favor of the automotive industry. For instance, the rise in disposable income of the general population along with access to financial assistance such as in the form of monetary loans, subsidies, and discounts has been a crucial driver for the global automotive industry.

In some countries, especially nations that lack extensive and cheap public transport systems, personal vehicles such as cars are necessary. Between 2017 and 2021, the United States (US) registered a growth of around 3.7% in terms of car ownership. In emerging nations such as India and China, the affordable vehicle segment is one of the fastest-growing industries. The change in consumer lifestyle and the production of low-cost or low-maintenance vehicles are considered essential growth influencers.

Growing focus of the regional governments on the automotive sector will help drive market demand

The use of electronic stability control systems is likely to be further impacted by the increasing focus of the regional governments on the promotion of the domestic automotive industry. Governments are encouraging more international players to set up large-scale manufacturing units which assist in reducing the prices of vehicles in addition to promoting regional economic growth.

In September 2023, Formex announced its plans to become a part of the R4.8 billion investment pledge along with 15 other companies in the South African automotive sector. In the same month, another leading player in the automotive space Stellantis NV announced that it will invest USD 3 billion to set up a new vehicle manufacturing unit in South Africa. The company will partner with the Industrial Development Corporation along with the Department of Trade, Industry, and Competition thus promoting the global electronic stability control system market.

Electronic Stability Control System Market: Restraints

Performance limitations of ESC will restrict market expansion during the forecast period

The global electronic stability control system industry is projected to be restricted due to several performance limitations of the high-end safety feature. For instance, ESCs do not improve cornering performance at high speeds since the tires are designed to be handled at controlled cornering speed.

One of the most common problems with electronic stability control systems is that the vehicle cannot be cornered faster if it is being driven passionately. Furthermore, ESCs are not useful when driving on a race track. These functional limitations will act as growth barriers during the projection period.

Electronic Stability Control System Market: Opportunities

Rising efforts by regional governments to improve road safety will create growth opportunities

The global electronic stability control system market is expected to gain growth opportunities due to the rising initiatives undertaken by regional governments to promote road safety. From 1st April 2023, all Indian buses were mandated to install electronic stability control systems.

Since 2018, over 12 automotive giants in China have announced their decisions to install all new car models with anti-skid ESC technology. Such mandates along with other provisions to control road accidents will lead to higher demand for ESC in the coming years.

Growing sales of electric vehicles (EVs) hold high growth opportunities

One of the crucial segments in the automobile sector worldwide is the increasing sale of EVs across public and private transport mediums. The global electronic stability control system market is expected to benefit from the rising demand for EVs. As consumers continue to make environmentally conscious decisions, the market for ESC will deliver high revenue.

As per market projections, the sale of EVs in the Indian market is projected to reach over 20 million units by 2030. Similar trends can be expected in other countries as well since governments are also in favor of promoting electric vehicles.

Electronic Stability Control System Market: Challenges

Retrofitting older vehicle models with ESC systems may prove as a crucial challenge

The global electronic stability control systems industry is projected to be challenged due to the challenges associated with retrofitting older models of cars with modern ESC systems. Electronic stability control systems are highly advanced tools using sophisticated technology. Older vehicles may be unable to support the integration of superior technologies such as ESC.

Electronic Stability Control System Market: Segmentation

The global electronic stability control system market is segmented based on component, vehicle, and region.

Based on component, the global market segments are sensors, hydraulic modulators, and ECU. In 2023, the highest growth was witnessed in the electronic control unit (ECU) segment since it acts as the brain or the central controlling unit of the entire ESC setup. Electronic control units are responsible for managing and interpreting the data prompted by the sensors followed by making necessary decisions in favor of the safety of the vehicle driver. The price of ESC is known to range between USD 40 to USD 1500 depending on the quality of the technology.

Based on vehicle type, the global market is divided into commercial vehicles and passenger vehicles. In 2023, the highest demand was registered in the passenger vehicle segment led by the increasing sale of modern technologically-rich passenger vehicles. The growing disposable income of the buyers along with the presence of multiple passenger vehicle brands at affordable prices are the leading reasons for higher segmental growth. As per the latest findings, more than 23 million passenger vehicles were sold in China in 2023.

Electronic Stability Control System Market: Report Scope

Electronic Stability Control System Market: Regional Analysis

Asia-Pacific to deliver higher revenue during the forecast period

The global electronic stability control systems market will be led by Asia-Pacific during the forecast period. China is expected to dominate the regional market. In 2023, the country was regarded as the largest producer and exporter of automotive vehicles, especially in the electric model segment. In 2024, the country’s EV market is expected to reach around USD 306 billion. As per market research, the Chinese government has spent over USD 57.1 billion in the EV sector between 2016 and 2022. In January 2024, China-based Xpeng announced that its latest launch in the EV industry could be regarded as a pivotal game-changer. The company launched the X9 large 7-seater EV. The vehicle is built on SEPA2.0 architecture. India is registering a high demand for affordable cars as emerging nations are witnessing a swift change in consumer lifestyle.

Additionally, the growing measures adopted by regional governments to promote road safety include mandating the integration of electronic stability control systems across passenger and commercial vehicles. Europe is one of the most crucial regional markets. It is home to some of the largest developers and users of modern ESC technologies. The growing collaboration between European and Asian companies operating in the automotive sector is likely to promote regional market expansion.

Electronic Stability Control System Market: Competitive Analysis

The global electronic stability control system market is led by players like:

• ZF Friedrichshafen AG
• Bosch
• ADVICS Co. Ltd.
• Continental AG
• Knorr-Bremse AG
• Autoliv Inc.
• Denso Corporation
• Delphi Technologies
• Mando Corporation
• TRW Automotive (acquired by ZF Friedrichshafen)
• Johnson Electric Holdings Limited
• Aisin Seiki Co. Ltd.
• Hyundai Mobis
• Hitachi Automotive Systems
• WABCO Holdings Inc.

The global electronic stability control system market is segmented as follows:

By Component

• Sensors
• Hydraulic Modulators
• ECU

By Vehicle Type

• Commercial Vehicles
• Passenger Vehicles

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