Vehicle Control Unit Market Size, Share, and COVID-19 Impact Analysis, By Propulsion (BEV, HEV, and PHEV), By Component (Hardware and Software), By Voltage (12/24 V and 36/48 V), By Capacity (16-Bit, 32-Bit, and 64-Bit), and Regional Forecast, 2025-2032

A vehicle control unit is a computerized unit that controls various vehicle performance metrics. The vehicle control unit optimizes the vehicle's acceleration, braking, regenerative braking energy, energy management, and battery optimization for overall vehicle efficiency. The VCU receives input from various sensors throughout the vehicle, such as battery temperature and charging state, motor rpm, torque induced, and brake pressure. It then processes the information and sends commands to various vehicle systems to optimize performance and efficiency.

VCU can regulate the amount of power sent to the electric motor based on driver input; it can also manage the regenerative braking system on how much energy is to be dissipated or stored. Overall the electric vehicle control unit plays a significant role in ensuring the effective performance and safety of the vehicles. One of the significant drivers of the VCU market is the adoption of electric vehicles globally. Governments are pushing for greater use of sustainable cars to reduce the greenhouse effect and combat climate change. As a result, automotive manufacturers are investing heavily in electric vehicle development, driving demand for these VCUs.

Impact of COVID-19 on the Vehicle Control Unit Market

COVID-19 had a significant impact on the Automotive sector, especially on the vehicle control unit market. The critical point was the disruption in the supply chain, closed manufacturing facilities, and initially dropped automotive production. Many countries worldwide implemented strict sanctions and lockdowns on the movement of components and goods, disrupting the market logistics. People staying at home and less usage led to a dropped sales and services related to automotive components.

Post COVID-19 changes in Consumer behavior and rapid adoption of electric vehicles have led to a surge in demand for components like VCU. This trend will continue as more and more push towards green and sustainable transportation occurs. The pandemic has also driven innovation and competition among manufacturers. Companies are investing in research and development to create more advanced and efficient VCUs, making electric vehicles more accessible to consumers.

Overall the electric vehicle control unit market is expected to grow highly post-COVID-19 as EVs get significant traction and popularity.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships.
• Porter's Five Forces Analysis.
• Technological Developments.
• Impact of COVID-19 on Vehicle Control Unit Market.

Segmentation

Analysis by Propulsion

BEVs are expected to have high growth due to the rapid adoption of pure electric vehicles around the globe.  Advanced safety and comfort features in passenger cars provide better control and convenience for the drivers, especially in congested urban areas leading to increased demand for electric vehicles by consumers. Additionally, the growing popularity of compact electric cars and sedans is expected to drive growth in this segment. These electric vehicles solely rely on battery power, have a more extended driving range, and are equipped with fast charging. The affordability and declining cost of battery technology is the primary driver for the segment's growth.

Analysis by Component

As the hardware and software segment goes, the software segment is expected to have higher growth potential due to increasing demand for advanced software systems to manage electric vehicle performance and safety. Modern-day vehicles are becoming increasingly complex, and they require more sophisticated control systems to ensure that all the components work together efficiently. Integrating various sensors, electronic systems, and communication devices requires robust software to ensure these systems work seamlessly. The software is a critical component in controlling these systems and ensuring they function properly. Moreover, modern-day vehicles are becoming more connected and rely heavily on software, which further poses a risk of cyberattacks. That is why good software in VCU plays a critical role in securing the vehicle against potential cyber threats.

Analysis by Voltage

The electrification of vehicle subsystems such as power steering, water pumps, and air conditioning system drives the demand for  36/48 V VCU. These subsystems require higher voltage levels to operate efficiently, and traditional 12V segments are insufficient. The 3/38V segment is designed to provide higher voltage levels required for these subsystems. Automakers also understand the increasing pressure to improve fuel efficiency and reduce emissions. The 36/38V VCU can help achieve these goals by enabling the use of more electrically efficient systems. The segment will continue to grow due to the current generation of electric vehicles equipped with advanced features like regenerative braking and fast charging, which require this high-voltage control module.

Analysis by Capacity

Modern-day vehicles are becoming complex, and integrating subsystems requires more computing power so that all systems work together efficiently. The integration of various sensors and electronic systems and the emergence of new autonomous vehicles require large amounts of data processing in real-time,  and 64-bit VCU can provide the higher processing power required for these systems as these trends continue to evolve the 64-bit segment is expected to have high growth driving demand for more powerful and sophisticated solutions.

Analysis by Region

Asia Pacific is anticipated to witness the fastest growth rate, especially in India, China, and other Southeast Asian countries, due to the significant EV manufacturers and surging EV sales in the region. Rising disposable income and improving the standard of living in the region are driving the demand for passenger cars with advanced features and technologies, which is likely to have a rising impact on sales of these control units in the Asia Pacific. The rapid adoption of intelligent safety and efficient control units will boost regional sales and help manufacturers' growth. Moreover, North America and Europe are also anticipated to witness significant growth rates over the forecast period due to strong technological advancement in the regions.

Key Players Covered

Robert Bosch (Germany), Continental AG (Germany), Denso (Japan), BorgWarner (U.S), Hitachi Automotive (Japan), Valeo SA (France), Magneti Marelli S.p.A. (Italy), Delphi Technologies (U.S), Cummins Inc. (U.S), Siemens AG (Germany), HELLA kGAa Hueck & Co. (Germany), Johnson Controls Inc. (U.S),  and ZF Friedrichshafen AG (Germany).

Key Industry Developments

• March 2023: Continental AG announced the launch of the VCU4.0 Electric vehicle control unit, designed to provide efficient energy management and vehicle dynamics control.

• February 2023: BOSCH GmbH announced a collaboration with Lucid Motors to develop VCU for their new line of electric vehicles.

• January 2023: Delphi Technologies announced the launch of MCHX microcontrollers with increased computing power and connectivity for Vehicle control units.

• Nov 2022: Denso Corporation launched the VCU2 vehicle control unit designed to provide advanced safety features such as collision detection and prevention.