Automotive Traction Control Systems Market: Current Analysis and Forecast (2023-2030)

The Automotive Traction Control Systems Market is expected to grow at a strong CAGR of around 9.24% during the forecast period due to the stringent government mandates and NCAP protocols. Governments worldwide have implemented more stringent laws and testing procedures to ensure the use of traction control and ESC. The National Highway Traffic Safety Administration (NHTSA) has set a requirement that all vehicles in the US weighing less than 10,000 lbs must have ESC by 2022. Similarly, the EU regulations mandate the deployment of ESC in all new car models. Additionally, Bharat NCAP, as part of its Safer Cars for India initiative, assigns higher safety ratings to cars equipped with traction control.

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These regulations have prompted major OEMs such as VW, Toyota, and Hyundai to universally adopt traction systems. For example, Maruti Suzuki has added ESC to its models to comply with the stricter Indian regulations. The primary motivation behind implementing traction control is to ensure regulatory compliance. With China also mandating the use of ESC from 2022 under its C-NCAP protocol and considering its position as the largest car market globally, regulatory pressures are significantly driving the adoption of traction systems across major economies. Furthermore, these mandates have positive spillover effects, encouraging automakers to incorporate more advanced vehicle stability controls like torque vectoring. As a result, traction systems are becoming essential features to meet safety regulations and testing protocols.

Some of the major players operating in the market include Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Aptiv PLC, Autoliv Inc., IAV Automotive Engineers, Magna International Inc., BMW Motorrad, Ducati Motor, and Hyundai Mobis Co., Ltd. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst type, the electrical system segment dominated the market in 2022.”

Based on type, the market is bifurcated into mechanical system and electrical system. The electrical system segment dominated the market in 2022 and is expected to show the same fashion in the forecast period. The major factors contributing for the growth are the growing transportation and logistics industry which has recognized the benefits of electric vehicles for reducing fuel costs and emissions. Delivery companies, taxi services, and public transportation systems have started incorporating electric vehicles into their fleets, driving the demand for electrical traction control systems. Various governments worldwide have implemented strict emissions standards and incentives to boost the adoption of electric vehicles. The mechanical system in automatic traction control has emerged as crucial due to its reliability and versatility. With a growing emphasis on road safety, governments and organizations worldwide are actively promoting the adoption of technology that minimizes accidents and improves driving conditions. The mechanical system, with its ability to manage wheel slippage and optimize traction in real-time, has gained immense traction among automakers and consumers alike.

“Amongst vehicle type, the less than 6-inches segment generated the highest revenue in 2022.”

• Based on vehicle type, the market is bifurcated into passenger vehicle and commercial vehicle. The passenger vehicle segment holds a significant market share in 2022 and is expected to showcase the same trend in the forecast period. The major factors contributing to the growth of the segment followed by the growing global population and increasing ride-hailing and ridesharing. The demand for passenger vehicles has witnessed a significant surge due to the steady growth of the global population, resulting in an increased number of individuals in need of transportation. For instance, the world’s population is expected to increase by nearly 2 billion persons in the next 30 years, from the current 8 billion to 9.7 billion in 2050. Moreover, ATCS plays a crucial role in enhancing vehicle performance and maximizing fuel efficiency. By automatically adapting power distribution to the wheels, these advanced systems effectively eliminate energy wastage caused by wheel spin. Consequently, passenger vehicles equipped with ATCS witness a notable enhancement in fuel economy, appealing to environmentally conscious consumers and offering substantial long-term financial benefits. Additionally, the increasing global trend towards electric mobility has significantly boosted the need for automatic traction control systems. For instance, in 2023, according to the report published by International Energy Agency, passenger electric cars are surging in popularity and estimated that 18% of new cars sold in 2023 will be electric. Moreover, electric car markets are seeing exponential growth as sales exceeded 10 million in 2022, and the share of electric cars in total sales has more than tripled in three years, from around 4% in 2020 to 14% in 2022.

Automotive Traction Control Systems Market Report Coverage

“Asia Pacific dominated the market for Automotive Traction Control Systems market in 2022.”

The Asia Pacific automotive traction control systems market dominated the market and is expected to behave in the same fashion in the forecast period. The growth is primarily driven by increasing population and demand for transportation, technological advancements, and growing urbanization. The Asia Pacific region is the home of 60% of the world’s population dominated by China and India. The Asia Pacific region has seen the highest growth for the automobile market in the last few years. The growth is primarily driven by increasing population, demand for transportation, technological advancements, and growing infrastructure and urbanization. The Asia Pacific region is the home of 60% of the world’s population dominated by India and China. Major automobile manufacturers lie in the same region such as Honda, Suzuki, Hyubdai, Mahindra, KIA, and Changan. These companies accelerated sales demand and increased the market for traction control system in the region. For instance, according to the report published by Organisation Internationale des Constructeurs d’Automobiles, the total number of passenger vehicles sold was 28.29 million units in the year 2021 from the five major countries increased to 31.08 million units in 2022.

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• The study comprehensively covers the market across different segments.


• Deep dive regional level analysis of the industry.

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