The global vehicle control unit market is projected to grow from USD 2.9 billion in 2019 to reach USD 10.4 billion by 2027, at a CAGR of 17.1%.
The growth of the vehicle control unit market can be attributed to the growing adoption rate of electric vehicles. Technological advancements in vehicle electronics, battery management systems, body control, and infotainment functions, ADAS, autonomous driving technology, and electrification of automotive components along with the need of compact integrated vehicle systems are some of the major factors driving the growth of vehicle control unit. Thus, the vehicle control unit market is expected to witness a significant increase in the future.
The software segment is expected to grow at the highest CAGR
The software segment is expected to be the fastest market. Software can be reprogrammed over the air (OTA) using SOTA and FOTA protocols. Due to this, VCU is very flexible and can fit into any vehicle system with the help of required programming. Currently, all the VCU providers in the market are using their basic software in their VCUs. However, software can be reprogrammed easily using platforms such as MATLAB and Simulink. This makes the system much more flexible, as the company can roll out software updates over the air. Thus, just like most other electronic systems, hardware might get standardized in the future, and companies would roll out their software, designed predominantly for their vehicles. This would change the VCU market scenario in the future, as software with innovative technologies might get expensive, and hardware is expected to become cheaper.
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Passenger car segment is expected to be largest market during the forecast period
Passenger car is expected to be the largest market by vehicle type during the forecast period. The passenger car segment is the largest VCU market, by vehicle type, and includes sedans, hatchbacks, station wagons, sports utility vehicles (SUVs), multi-utility vehicles (MUVs), and other car types. Electric passenger car is the fastest growing segment in the EV market and is expected to witness significant growth during the forecast period. The availability of a wide range of models, upgraded technology, increasing customer awareness, and availability of subsidies and tax rebates are the major factors driving the market. Earlier, electric passenger cars were introduced with basic functionalities and features. However, with technological advancements in vehicle electronics and increasing demand for features and functions, OEMs have started providing electric vehicles with advanced functions such as toque coordination, infotainment and body control functions, charging control, battery management system, ADAS, predictive vehicle technology, and engine and powertrain functions. Many globally established companies such as Robert Bosch, Continental, and Texas Instruments have been focusing on developing advanced VCUs for performance electric cars that can execute various interconnected functions in vehicles.
Asia Pacific is expected to be the largest market during the forecast period
Asia Pacific is expected to be the fastest-growing and the largest vehicle control unit market during the forecast period. The market growth in the region can also be attributed to the rising demand for autonomous driving functions in BEVs, HEVs, and PHEVs. Also, Asia Pacific is home to many OEMs that are focusing on vehicle electronics technologies through R&D, especially in Japan and China. Japan plays a vital role in automotive technologies in Asia Pacific. It is the largest market for technologically advanced vehicles with advanced automotive electronics.
China’s rapidly growing electric vehicle sales and strong R&D in the automotive sector is driving the vehicle control unit market in the country. With favourable government regulations for electric vehicles, India can be a great potential market for vehicle control units. As of now, very few electric vehicles have been introduced in the Indian market. However, electric vehicle sales in India would grow with time, resulting in the growth of market.
Key Market Players
The global vehicle control unit market is dominated by major players such as Robert Bosch GmbH (Germany), Continental AG (Germany), Texas Instruments (US), Mitsubishi Electric Corporation (Japan), and STMicroelectronics (Switzerland). These companies have strong distribution networks at a global level.
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