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

Automotive traction control systems are electronic systems installed in vehicles to prevent wheels from slipping while accelerating, particularly in situations with low traction such as wet or icy roads. These systems constantly monitor the rotational speed of each wheel, and upon detecting any loss of traction, they automatically adjust the engine power output and selectively apply braking to the wheels in order to regain control. By doing so, this technology enhances the stability of the vehicle and effectively prevents skidding or sliding, ultimately improving its handling and safety. Traction control systems typically work in conjunction with other safety systems like anti-lock braking systems (ABS) to optimize the overall performance and control of the vehicle.

The automotive traction control systems market is growing at steady rate of 9.24% in the forecast period owing to heightened customer preference for safety and dynamics. In spite of slightly higher prices, there has been a significant surge in customer preference for enhanced safety and driving dynamics, which is driving the industry towards traction systems. For instance, According to a recent study by J.D. Power in 2022 on US buyer behavior, it was found that 88% of customers actively seek out advanced driver assistance features when making a purchase. This safety-conscious demographic is willing to pay extra for stability controls and collision avoidance, as demonstrated by Tesla's USD 12K 'Full Self Driving' traction aid suite. Luxury brands such as BMW and Mercedes are also capitalizing on this trend by actively marketing traction features like dynamic handling packages to meet the demand for sportier and safer performance. Recognizing this growing appetite for dynamics and control, mass-market players like Toyota and VW are now offering traction control even in their mid-price range models. Additionally, electronic stability control (ESC) and similar systems contribute to better resale value, which is a crucial factor for used car buyers. As a result, customer sentiment in favor of safety, which enables precise vehicle control, is compelling original equipment manufacturers (OEMs) to swiftly implement traction solutions. With the increasing adoption of traction systems even in mid-price segments, consumer preference for safety and dynamics serves as the primary driving force behind the global expansion of the traction system marketplace..

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 Evs. 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.

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 for the growth of the segment followed by the growing global population and increasing ride-hailing and ride-sharing. 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.

For a better understanding of the market adoption of the shipbuilding industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. 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 automobile market in the last few years. The growth is primarily driven by increasing population, demand for the 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 lies in the same region such as Honda, Suzuki, Hyubdai, Mahindra, KIA, and Changan. These companies accelerated sales has demanded and increased the market of 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.

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.