Electric Vehicle Control Unit Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Propulsion Type (Battery Electric Vehicle and Hybrid Vehicle), By Application (ADAS, Body & Comfort, Infotainment, and Others), and Regional Forecast, 2023-2030

The global electric vehicle control unit market size was valued at USD 9.68 billion in 2022. The market is expected to grow from USD 12.91 billion in 2023 to USD 39.57 billion by 2030, exhibiting a CAGR of 17.4% during the forecast period. Asia Pacific dominated the global market with a share of 51.03% in 2022.

The electric vehicle control unit controls vehicle function in complex vehicle wiring systems or as a gateway between separate Controller Area Network (CAN). The control unit is used for different applications, such as evaluating and controlling the lighting system and providing anti-theft protection. The vehicle control unit delivers torque, operation, and gearshift strategies, high-voltage and 48V coordination, charging control, onboard diagnosis, monitoring, thermal management, and more for electrified and connected powertrains. The Vehicle Control Unit (VCU) can be used in electric passenger cars, trucks, off-highway vehicles, and combustion engine applications. The growing integration of advanced technologies in recent electric vehicles for enhanced performance is anticipated to propel the electric vehicle control unit industry’s growth.

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COVID-19 IMPACT

Increased Demand for EVs Fueled Market Growth during the COVID-19 Pandemic

The COVID-19 pandemic positively affected the electric vehicle control unit industry. The pandemic led to the closure of automotive component assembly plants and large-scale manufacturing organizations. Lockdowns, supply chain interruption, and decreased consumer spending affected production and sales in the automotive industry. However, as the pandemic promoted a greater focus on sustainable transportation and reduced emissions, interest in electric vehicles increased. The market accelerated due to heightened demand for electric vehicles and associated components.

LATEST TRENDS

Increased Integration of AI and Machine Learning in ADAS is an Ongoing Trend in the Market

The advanced integration of machine learning and AI in Advanced Driver Assistance Systems (ADAS) is an ongoing trend in the market. The trend is driven by the need to enhance safety systems, efficiency, and overall driving experience. By leveraging AI and machine learning technologies, EV control units can process and analyze vast amounts of actual data from sensors, cameras, and other sources. This enables enhanced features, such as adaptive cruise control, lane departure warnings, autonomous emergency braking, and self-parking capabilities. The electric vehicle control unit market growth is attributed to the growing adoption of AI technology in electric vehicles. AI can optimize energy management in electric vehicles by predicting driving patterns and adjusting power distribution to maximize efficiency. This can extend the range of the EV and enhance battery life.

• For instance, in July 2023, Horizon signed a strategic corporation agreement with NavInfo to research and develop new-generation solutions for self-driving passenger cars. The pair will also promote the mass production of cost-effective autonomous car driving solutions. The two companies will create high-end intelligent driving solutions based on the full-scenario vehicle intelligent central computing chip - Horizon Journey 5 and NavInfo's intelligent driving system capabilities.

DRIVING FACTORS

Growing Demand for Energy-Efficient Vehicles to Propel Market Growth

Electric vehicles have intricate systems that require control units to manage various functions, such as battery management systems, motor control, regenerative braking, and power distribution. This complexity leads to a higher demand for vehicle control units. EV control units play a crucial role in optimizing the performance of electric vehicles. The control unit manages power delivery, torque distribution, and other critical parameters, resulting in improved acceleration, efficiency, and overall driving experience. Therefore, increasing sales and demand for electric vehicles drive the market growth.

Additionally, the transition toward autonomous driving features in electric vehicles require a standard/advanced control unit to operate sensor data fusion, object detection, and decision-making algorithms. This trend further drives the demand for electric vehicle control units in forecasting years.

RESTRAINING FACTORS

High Development Cost May Hamper Market Growth

The high cost associated with the development of electric vehicle control units hampers market share. Developing advanced control units and incorporating them into electric vehicles involve significant research, development, and testing. Control units that can effectively manage the complex systems of electric vehicles require a sustainable research and development process. Designing control algorithms, ensuring compatibility with various vehicle components, and conducting extensive testing contribute to higher development costs. This can lead to challenges and limitations for market growth.

SEGMENTATION

By Vehicle Type Analysis 

Passenger Segment’s Growth Driven by Rising Sales of Passenger Cars

Based on vehicle type, the market is segmented into passenger car and commercial vehicle. The passenger car segment holds the highest market share and is anticipated to dominate during the forecast period. Higher consumer awareness and rising demand for electric passenger cars accelerates market growth. Moreover, the government’s focus on promoting the adoption of electric passenger vehicles by implementing regulations and offering attractive incentives, drives market growth.

The commercial vehicle is the second leading segment in the electric vehicle control unit industry. The segment growth is attributed to increasing innovation, R&D, and vehicle launches.

By Propulsion Type Analysis

BEV Segment Leads due to Increasing Sales and Launches of Battery Electric Vehicles

Based on propulsion type, the market is projected into Battery Electric Vehicles (BEV) and Hybrid Vehicles (HV). The BEV segment holds the maximum market share. The BEV is projected to exhibit a CAGR of 72.7%. The growth is attributed to increasing battery electric vehicle sales and EV infrastructure. Furthermore, the popularity has grown due to advancements in battery technology, increasing driving range.

• For instance, in May 2023, BYD introduced two new full-electric vehicles at Automobile Barcelona 2023. The company unveils BYD DOLPHIN and BYD SEA in the Spanish market at Automobile Barcelona 2023. The BYD DOLPHIN offers three power levels (95 hp, 177 hp, and 204 hp), two batteries (44.9 kWh and 60.4 kWh), and four trim levels (active, boost, comfort, and design).

The hybrid segment is the second dominating segment. Hybrid vehicles provide improved fuel efficiency and reduced emissions than traditional internal combustion engines. Increasing consumer transition toward environmentally friendly options while having the convenience of the gasoline engine is estimated to drive the segment’s growth in the electric vehicle control unit industry.

By Application Analysis

ADAS Segment Dominates due to its Advanced Feature and Technology in EV

Based on application, the market is projected into ADAS, body & comfort, infotainment, and others. The ADAS (Advanced Driver Assistance Systems) segment accounts for the largest market share globally. The ADAS segment is estimated to reach a value of USD 8843.158 million in 2025. The growth is attributed to increasing ADAS adoption in electric vehicles due to their potential to enhance safety features, convenience, and overall driving experience. The ADAS features include lane departure warning, adaptive cruise control, automatic emergency braking, parking assistance, and others. This development is estimated to drive the electric vehicle unit sector’s growth during the forecast period. The body and comfort segment holds the second largest market share. The growth is attributed to the rising demand for advanced features related to vehicle comfort, convenience, and interior functions.

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REGIONAL ANALYSIS

This market is analyzed across North America, Europe, Asia Pacific, and the rest of the world.

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Asia Pacific stood at USD 4.94 billion in 2022.The region dominated the market in 2022 and is expected to continue its dominance throughout the forecast period, with the fastest CAGR. The electric vehicle control unit market in Japan is expected to reach an estimated value of USD 63.82 million in 2025. The existence of a strong automotive sector in developing economies including China, India, Japan, and others, is supporting the market growth in the region. Additionally, high electric vehicle sales in India, China, and South Korea further propel the region's demand in this market. The market in China is expected to grow at a steady CAGR of 17.9%.

Europe holds the second dominant position in the electric vehicle control unit sector as the region is an early adopter of electric vehicles. It is the second largest manufacturing hub for electronic components and electric vehicles globally. Europe is projected to exhibit a CAGR of 17.4%. Increasing environmental concerns and stringent vehicle emission norms in European economies are impacting the manufacturers to adopt advanced features for efficient working to meet consumer preferences.

North America’s market growth is attributed to the increasing adoption of commercial transportation. The favorable incentives, subsidies, and tax rebate programs from governments is anticipated to boost the adoption of electric vehicles in the region.

KEY INDUSTRY PLAYERS

Market Players Focus on Increasing Product Portfolio to Secure Prominent Position

Major market players include Continental AG, Denso Corporation, and Hitachi Automotive Systems Ltd. Manufacturers of vehicle control units focus on offering cutting-edge electric vehicle control units for various vehicles worldwide.

Continental AG is one of the leading vehicle control unit manufacturers. The company focuses on research and development activities to develop new products with improved capabilities. The company provides an Electric Vehicle Control Module (VCU). The EV control module is a low-voltage control module and is responsible for most processes related to the functional aspects of electric or hybrid-electrical vehicles.  

List of Key Companies Profiled: 

• DELPHI Technologies (U.K.)
• Continental AG (Germany)
• Denso Corporation (Japan)
• Texas Instruments Incorporated (U.S.)
• HELLA GmbH & Co (Germany)
• Hitachi Automotive Systems Ltd. (Japan)
• Hyundai Mobis (South Korea)
• Robert Bosch GmbH (Germany)
• ZF Friedrichshafen AG (Germany)
• Panasonic Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• In August 2023, Continental AG signed an agreement with Amazon Web Services to accelerate automotive software development. The company introduced virtual ECU Creator software (vECU Creator). The virtual ECU Creator is part of the Continental Automotive Edge (CAEdge) framework, which runs on Amazon Web Services (AWS). The new solution will drive development for software-defined vehicles from conceptualization to real-world application.
• In January 2023, NVIDIA signed a strategic partnership agreement with Hon Hai Technology Group (Foxconn) to Hon Hai Technology Group (Foxconn). As per the partnership, Foxconn produces electronic control units (ECUs) based on NVIDIA DRIVE Orinfor the global automotive market. Foxconn-manufactured Electric Vehicles (EVs) will feature DRIVE Orin ECUs and DRIVE Hyperion sensors for highly automated driving capabilities.
• In December 2022, HELLA received a customer order for its innovative Coolant Control Hub (CCH). The company will also get the Coolant Control Hub into series production for its all-electric pick-up or light truck platform. The company also received a series of orders for the performance line of a German premibutum manufacturer.
• In May 2022, Tokai Rika Co., Ltd. (Tokai Rika) announced the progress of its mid-term business plan for the period ending in March 2031 (FY 2030). Tokai Rika plans to strengthen its semiconductor and Electronic Control Unit (ECU) businesses. The company will start external sales of semiconductors. It also aims to expand marketing channels for the sensors and actuators associated with the ‘zone ECUs’ and ECUs used in automakers’ next-generation electric platforms.
• In October 2021, Continental signed a joint venture contract with Horizon Robotics to provide hardware and software-integrated solutions for Advanced Driver Assistance systems (ADAS) and automated driving. The company also signed an investment contract with Shanghai Jiading Industrial Zone for the new JV in Jiading District Shanghai.

REPORT COVERAGE

The electric vehicle control unit market research report provides a detailed analysis and focuses on key aspects such as leading market players, competitive landscape, and vehicle type. Besides, the report includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

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