ABS and ESC market Growth Slowing Down
Date: 16 December 2011

Electronic stability control (ESC) is industry recognised to prevent accidents and in turn, save lives. As a number of regions move to legislate this technology, the market value for anti-lock braking system (ABS) with ESC is expected to reach $12.5 billion by 2018.

ESC is a driving safety system which helps to prevent accidents. In wet conditions or when a vehicle is swerving to avoid a collision, the system will prevent the vehicle’s wheels from skidding by controlling the engine output and the braking force of each wheel as conditions dictate.

It is well established that ESC can save lives. Research by the Department of Transport* has shown that ESC-equipped vehicles are involved in 25% fewer fatal road accidents. As the benefits of ESC are well established, many regions have made the fitment of ESC mandatory in light vehicles. In the US and the UK, ESC is being phased in and 100% of new vehicles will have ESC fitted as standard by 2012 and 2014 respectively. This regional legislation has impacted vehicle manufacturing countries which don’t have domestic ESC legislation. ‘For countries like Japan and South Korea, which export a lot of vehicles, OEMs are forced to fit ESC to their vehicles in order to sell cars in ESC-legislated regions’ says Ben Scott, automotive market analyst with IMS Research. The way ESC is being marketed has changed too. Now that OEMs can no longer offer ESC as an optional extra, they are using consumers’ naivety. ‘OEMs are now advertising their vehicles as “ESC fitted as standard”, which implies the consumer is receiving an extra feature for no cost, when in reality ESC systems have to be fitted by law’, adds Scott.

With a growing number of regions making ESC fitment mandatory, the global fitment rate will tend towards 100%. Initially, as this system is gradually phased into vehicles, the market will grow quickly. From 2010 to 2014 the global market will grow by almost US$5 billion; but between 2014 and 2018 the market will only grow by just over US$1.3 billion. IMS Research explains that the large growth between 2010 and 2014 is because of the large uptake of ESC within legislated regions. However, between 2014 and 2018, the market starts to become saturated and with falling system cost, the market growth slows.

Reference: Department of Transport* http://www.dft.gov.uk/vosa/repository/Technical%20Pen%20Picture%201%20-%20Brakes.pdf

Ben Scott, Market Analyst, Ben.Scott@imsresearch.com

Editors Note :

IMS Research has recently published a report on Automotive OEM Electronics, “The World Market for Automotive OEM Electronic Systems – 2011 Edition”. 35 different Automotive OEM Electronic Systems are analysed and forecast from 2008 to 2018, looking at fitment rate, system average selling price, units and revenues. There is global coverage within this report with a dedicated breakout for Brazil, Russia, India and China. Production locations as well as production and sales figures are shown.

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About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, custom research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan, South Korea, and Japan. To find out more, contact IMS Research.

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