Electric Vehicle Communication Controller Market Size [2031]

Report Description

Electric Vehicle Communication Controller Market Outlook 2031

The global electric vehicle communication controller market size was USD 123.29 Mn in 2022 and is likely to reach USD 1551.91 Mn by 2031, expanding at a CAGR of 32.5% during 2023–2031. The market growth is attributed to the increasing demand for fast-charging EV infrastructure and rising EV sales across the globe.

An electric vehicle communication controller (EVCC) is a system that ensures safe and compliant communication with the EV charging station. It streamlines the current flow and maintains the voltage distribution for improved battery charging. The controller directly transforms the direct current (DC) to alternative current (AC), and controls the energy flow from the battery.

Increasing demand for electric vehicles and fast charging systems is boosting the need for EVCC devices. The electric vehicles market is expected to reach around USD 560 Bn in 2023, expanding at 10% annually.

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The COVID-19 pandemic affected almost every industry across the globe; however, the demand for EVs surged during this period. According to the International Energy Agency, EV sales exceeded all expectations with worldwide sales climbing to over 3 million in 2020 from 2.1 million in 2019 and reaching a market share of over 4%. For the EV industry, 2020 was a record-breaking year and these increased sales were backed by existing policy support and additional stimulus measures by governments across the globe. Increased EV sales boosted the demand for EV communication controllers, thereby driving the market.

Electric Vehicle Communication Controller Market Dynamics

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Drivers

Rising demand for fast and efficient charging systems is expected to drive the market. The evolution of high-power batteries necessitated the need for fast-charging technologies. EVCC helps in the rapid charging of a vehicle with reliability. EV sales are expected to continue strongly through 2023 with over 2.3 million EVs already sold in the first quarter of 2023.

As per the report by the International Energy Agency, by the end of 2023, EV sales are expected to reach around 14 million, with year-on-year growth of 35% with new purchase vehicles in the second half of 2023.

Restraints

High repair costs associated with EV communication controllers hampers the market. EV communication controller placements are crucial and complex, and these controllers are expensive, as they play an important role in EV charging, especially fast charging.

The complex placement and high cost of raw materials needed for these controllers decrease the demand for EV communication controllers, resulting in impeding the market.

Emerging Opportunities

Rising favorable government policies for the adoption of electric vehicles is expected to create lucrative opportunities in the market during the forecast period. Governments across the globe are inclined towards reducing pollution and adopting electric transport vehicles.

For instance, major cities in China have implemented a broad array of EV promotion policies. In 2020, the government announced subsidies for the use of charging infrastructure in Shanghai and is focusing on completing public bus fleet electrification by 2025.

Scope of the Electric Vehicle Communication Controller Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Electric Vehicle Communication Controller Market Segment Insights

System Type Segment Analysis

Based on system type, the electric vehicle communication controller market is divided into supply equipment communication controller and vehicle-based communication controller. The vehicle-based communication controller segment is projected to expand at a significant growth rate during the projection period.

EVCC manages the flow of energy between electric vehicle supply equipment (EVSE) and the battery. EV companies are increasingly installing EVCC in EVs to ensure the optimal charging of the battery by maintaining the precise flow of current to the EVs.

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Charging Type Segment Analysis

On the basis of charging type, the global market is segregated into wired charging and wireless charging. The wired charging segment is projected to expand at a considerable CAGR during the forecast period, due to rising government initiatives for installing electric vehicle charging stations. EV manufacturing companies are installing wired fast charging systems, as these are easily accessible.

Wired chargers are compatible with electric vehicle communication controllers installed in the EVs. Major automotive companies are partnering with governments to install compatible and accessible charging stations, hence, the demand for wired charging systems is expected to grow in the coming years.

The wireless segment is anticipated to expand at a considerable CAGR during the forecast period, owing to the rise in the adoption of driverless vehicles in countries, such as the US and China. Driverless or self-driving vehicles usually need wireless charging systems.

Companies are focusing on introducing EVCC systems that are compatible with wireless charging systems. Automotive manufacturing companies are focusing on launching self-driving vehicles in the passenger and commercial segments. For instance, Volkswagen is planning to launch autonomous or self-driving cars by 2026.

Electric Vehicle Type Segment Analysis

On the basis of electric vehicle type, the electric vehicle communication controller market is segmented into battery electric vehicles and plug-in hybrid electric vehicles. The segment is expected to register robust growth during the forecast period, owing to the rising need for ISO standardization between grid and charging stations.

ISO 15118 enables bidirectional energy transfer in a grid grid-friendly manner to realize vehicle-to-grid applications. Grid-friendly indicates that the charging station is able to fast charge multiple vehicles at once while preventing the grid from overloading. This is an effective way of matching the capacity of the grid to the electricity demand of every charging session for an EV.

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Vehicle Type Segment Analysis

Based on vehicle type, the market is bifurcated into passenger vehicles and commercial vehicles. The commercial vehicle segment is expected to dominate the market in the coming years. The segment growth is attributed to the extensive usage of EVCC for commercial vehicles, as these vehicles are used for delivering heavy loads and transportation purposes. These vehicles need high range and reliability.

EVCC ensures this by offering fast-charging options. Governments across the globe are focusing on using electric buses as a medium of transport to reduce pollution. This, in turn, is expected to boost the segment.

The passenger vehicle segment is projected to expand at a considerable CAGR during the forecast period, owing to the growing usage of electric passenger vehicles globally. Passenger EV sales have increased in recent years.

For instance, according to the World Economic Forum, passenger EV sales were around 63 million cars in 2022 and are expected to increase in the coming years. The demand for fast-charging EVs is increasing, as customers prefer EV cars over ICE cars to reduce carbon emissions.

Regional Outlook

In terms of region, the global electric vehicle communication controller market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe dominates the market, owing to the favorable government policies for the adoption of electric vehicles and EV charging infrastructure. In early 2021, nine EU countries urged the European Commission to accelerate the EU-wide phase-out of petrol and diesel cars.

Moreover, the governments in the region are pushing to reduce emissions to 15% in 2025 and 37.5% by 2030 as compared to 2021. The governments present in the region are introducing policies for EV charging infrastructure by offering subsidiaries, which is expected to create favorable market conditions in the coming years.

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