Electric Vehicle Communication Controller Market Global Forecast To 2027
The electric vehicle communication controller (EVCC) market is projected to reach USD 563 million by 2027 from an estimated USD 55 million in 2019, at a CAGR of 33.8%. The growth of the controller market is driven by the increasing demand for electric vehicles. The evolution of high-power batteries necessitated the development of fast charging technologies. EVCC helps in the rapid charging of a vehicle with more reliability. Increasing demand for fast charging in the passenger vehicle segment is expected to drive the market for EVCC.
The market for EVCC is expected to grow significantly in the commercial vehicle segment as these vehicles are used for transporting and delivering heavy loads over long distance and require high range and reliability. EVCC will play a crucial role in these vehicles as it will help in fast charging of the vehicle. Increasing sales of electric buses, particularly in China, has contributed to the growth of the electric bus segment. In the near future, several countries are expected to replace their existing fuel-based bus fleet with electric buses. The increasing trend of replacement of fossil fuel-based public transport fleet with electric buses will drive the growth of electric commercial vehicles during the forecast period.
The Asia Pacific market is expected to witness the highest growth, followed by North America and Europe. It is also estimated to be the largest market during the forecast period. The region is home to some of the fastest developing economies of the world such as China and India. The governments of these developing economies have recognized the growth potential of the electric vehicle market and, hence, have taken different initiatives to attract major OEMs to manufacture electric vehicles in domestic markets. For instance, the Government of India, to increase the adoption of electric vehicles, has announced plans for financial support—a zero-rated goods and services tax (GST) for a window of 3 years for EVs and a scheme called Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME).
North America is expected to be the second-largest market, followed by Europe. It comprises developed countries such as the US and Canada. North America is a regional hub for many renowned OEMs known for delivering quality and high-performance vehicles. OEMs in North America such as Tesla and GM focus on the development of faster, cleaner, and high-performance electric vehicles. The US holds the largest market share in the North American electric vehicle sales. Top-selling electric vehicles in the US are Tesla Model S, Chevrolet Volt, Nissan Leaf, and Ford Fusion Energy PHEV. Various services offered by electric vehicle infrastructure providers have increased the adoption rate of electric vehicles in the US. These services have reduced range anxiety of electric vehicle owners. In the near future, many initiatives by governments and policymakers are expected to boost the demand for electric vehicles, which, in turn, will boost the electric vehicle communication controller market in the region.
The global electric vehicle communication controller market is dominated by major players such as LG Innotek (South Korea), Tesla (US), BYD Auto (China), Schneider Electric (France), and ABB (Switzerland). These companies have strong distribution networks at a global level. In addition, these companies offer an extensive product range in this market. These companies have adopted strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position. Companies such as Tesla and BYD have anticipated the growth potential of the market. Thus, in July 2016, Tesla opened its Gigafactory in Nevada, US. It is one of the biggest battery manufacturing plants for EV batteries in terms of capacity. Tesla built it, keeping in mind the future demand for EVs. Tesla also acquired Grohmann Engineering, a world-renowned engineering company in Prum, Germany. The company has planned to increase vehicle production from 100,000 units to 500,000 units per year by 2018. Chinese leader, BYD signed a cooperation agreement with ENEL (Italy), which is a multinational power company and a leading integrated player in the world’s power industry. The partnership is expected to boost electrified mobility and energy storage. These developments will help the companies to grow exponentially in the near future.
–Report by MarketsAndMarkets