According to research by Future Market Insights, the demand for vehicle control units (VCU) is anticipated to expand at a CAGR of 19.3% during the forecasted period. According to projections, the market is likely to be worth USD 11,102.5 Million by 2033, up from USD 1,901.1 Million in 2023.
Increasing demand for electric cars, as well as the increasing prevalence of automation in vehicles and the electrification of automotive parts, are likely to boost the sales of vehicle control units (VCU). Rising public safety concerns, as well as increased demand for ADAS and automated safety systems, are some of the main key drivers. However, high investment costs are a crucial barrier that may stymie industry expansion.
Demand for superior electric cars and novel vehicle electronics technologies are important drivers propelling the vehicle control unit market growth. The market is likely to benefit from a greater emphasis on electric car features and the necessity for integrated vehicle electronics. Companies are developing advanced compact VCUs that can execute and regulate interconnected operations such as ADAS, predictive technology, infotainment, body control, battery management, torque coordination, and autonomous driving.
| Attribute | Details |
|---|---|
| Vehicle Control Unit (VCU) Market Size (2023) | USD 1,901.1 Million |
| Vehicle Control Unit (VCU) Market Forecast Value (2033) | USD 11,102.5 Million |
| Vehicle Control Unit (VCU) Market CAGR | 19.3% |
| Share of the U.S. in the Vehicle Control Unit (VCU) Market | 10.5% |
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Integrated VCU Adoption is a Trend that is Likely to Fuel Market Expansion
Due to the electronic equipment in cars, manufacturers make each VCU with certain functional needs, and as a result, each VCU's corresponding physical components (such as wiring, computing platforms, and sensors) have grown increasingly complicated. For instance, the majority of automobiles have more than 125 control units, and these devices take up a lot of room within the car. Companies are increasingly utilizing integrated VCU as it can serve as a single unit for the tasks of many control units. Control units from many disciplines function in integration following general functional criteria.
One area in which major players are focusing on improving is the in-car experience, which includes a dashboard, head-up display, rear-seat entertainment, and support for augmented reality (AR). Due to their complexity, VCUs need mobile communications, high-performance graphics, and data streaming. By combining these tasks, it will be possible for players to get away with the requirement for a graphics processing unit (GPU), a camera, and broadband network interference. As a result, throughout the projected period, the market for vehicle control units is likely to develop due to the rising usage of integrated control units in passenger cars.
Safeguarding Vehicle Owner Data to Support Demand Growth
Vehicles that are linked to numerous types of Internet-based services are more vulnerable to data theft. Third-party car systems, such as U-connect, for example, offer a variety of communication, navigation, and entertainment services. The U-shaped connection platform is compatible with Jeep, Dodge, Chrysler, RAM, and Fiat vehicles. These automobile owners may use their iPhones to lock and start the engine.
In the past, the U-connect platform has ceased operating due to a security breach, and hackers have full access to the car owner's data, including bank accounts and medical records. As a result, customers are becoming more concerned about data security, which is a significant driver driving market growth.
According to Future Market Insights, the vehicle control unit (VCU) market was growing at a CAGR of 6.5% to reach USD 1,586.92 Million in 2022 from USD 1,233.6 Million in 2018.
The market for vehicle control units (VCU) has grown as a result of the growing demand for electric cars that feature integrated electronic vehicle systems. VCU analyses the battery health and charging circumstances of electric cars and gives powertrain solutions. As a result, the automotive industry's shift toward electric cars is likely to drive the vehicle control unit market in the future. The market for vehicle control units (VCU) is predicted to grow at a CAGR of 19.3% during the expected period, according to research by Future Market Insights.
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During the forecast period, the USA is likely to hold a 10.5% market share. The region dominates the global market. It maintains its dominance during the projection period as a result of expanding demand for passenger automobiles in this region, to increase people's disposable income.
The vehicle control unit market in the USA is expected to increase steadily due to the rising adoption of safety systems in basic automobiles. Increased electronic system installation in passenger cars, light commercial vehicles, and SUVs is predicted to boost the expansion of the region's electric vehicle ECU market.
Europe is expected to be the second largest market holding a share of 6.4% during the projection period.
Major firms such as Robert Bosch GmbH (Germany), Continental AG (Germany), STMicroelectronics (Switzerland), IET SPA (Perugia), Rimac Automobili (Croatia), and AIM Technologies are headquartered in the region (England). Europe is a crucial location for electric car innovation, considerable Research and Development, and technological developments in vehicle electronics, sophisticated automotive systems, and charging solutions. Germany is Europe's largest market, followed by France. Germany, known as the world's automotive capital, is home to numerous prominent cars and VCU manufacturers, as well as a greater EV adoption rate. The growing demand for sophisticated automotive features in electric cars, as well as the electrification of automotive components, are propelling the European vehicle control unit market.
During the projected period, Asia Pacific is predicted to be the fastest-growing and biggest vehicle control unit market. The region's market development may also be ascribed to an increase in demand for autonomous driving features in BEVs, HEVs, and PHEVs. In addition, numerous OEMs in Asia Pacific, particularly in Japan and China, are focused on car electronics technology through R&D. Japan is an important player in Asia Pacific automobile technology holding a 3.2% share in the VCU market. It is the world's largest market for technologically sophisticated automobiles equipped with cutting-edge automotive technologies.
During the forecast period, the China vehicle control unit market is anticipated to grow at a CAGR of 14.6%. The vehicle control unit market in China is being driven by the country's quickly expanding sales of electric vehicles and strong Research and Development in the automotive industry.
Furthermore, with the highest CAGR of 23.6%, the India vehicle control unit market is anticipated to become one of the regions with the highest growth potential. India might be a significant prospective market for vehicle control units if the government adopts favorable laws for electric vehicles. There are now a relatively small number of electric automobiles on the Indian market. However, if more electric vehicles are sold in India over time, the market for vehicle control units will expand as well.
Due to the biggest number of passenger automobiles on the road, the passenger car category has the lion's share of the worldwide market. Throughout the projection period, the market for electric vehicles is also anticipated to see exponential development. Additionally, the expanding use of electric cars throughout the world and millennials' growing need for safety features, together with the growing demand for modern, safe, and pleasant driving experiences in future automobiles, are all contributing to the market's global expansion.
The VCU hardware is directed or instructed by the VCU software to manage, watch over, and carry out certain functions in the vehicle. For any VCU to operate at its best, finely customized software is just as crucial as correctly integrated hardware. Software, as opposed to hardware, is simple to update through computer programming. SOTA and FOTA protocols allow for over-the-air (OTA) software reprogramming. VCU software is therefore very adaptable and can be integrated into any vehicle system with the aid of the necessary programming. At the moment, every VCU provider on the market uses their proprietary basic software in their VCUs.
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ZF Friedrichshafen AG is a multinational technology business that offers automotive systems for commercial trucks, passenger automobiles, and industrial technologies. It offers integrated solutions for travel suppliers, automakers, and emerging firms in the travel and transportation sector and has a broad technology portfolio. The company keeps enhancing its automation and digital networking systems.
The first chip in the industry to include a controller and transceiver for Controller Area Network with Flexible Data Rate was released by Texas Instruments in June 2019. (CAN FD). The TCAN4550-Q1 uses the Serial Peripheral Interface (SPI) bus of almost any microcontroller to implement a CAN FD interface or increase the number of CAN FD bus ports in a system with minimal hardware changes. It was created to meet the high-bandwidth and data-rate flexibility needs of in-vehicle networks.
As a standby for the Automated Driving System, Continental unveiled the redesigned Safety Domain Control Unit (SDCU) in January 2018. The central control unit and the Assisted & Automated Driving Control Unit, add another layer of security. If the primary automation feature fails, cars can still be brought to a safe halt thanks to the SDCU.
Mitsubishi stated in February 2019 that it had created what is reportedly the smallest power unit in the world for a two-motor hybrid electric car (two inverters and one converter), weighing just 2.7 liters in volume and delivering a world-leading 150 kVA/l power density. The motor also offers an output-power density of 23 kW/l, which is world-class.
Magna Introduced a New Product Category to Automobiles in February 2021.
Magna will use cutting-edge cameras and electrical control modules for automobiles to give 3D surround vision. Beginning with the model year 2022 and extending across various clients and vehicle platforms, Magna's next-generation cameras, and domain controllers will help make the advantages of 3D surround vision, a driver-assistance system seen largely on premium vehicles, widely accessible.
Panasonic, a leader in projection generation technology, aims to combine the most recent developments in imaging, volume optimization, and optics with A.I. from its SPYDR cockpit domain controller in January 2021. This also displays near-field and far-field material for vehicle information (such as speed), object and pedestrian identification, and mapping/route assistance for a more smooth, involved, and knowledgeable driver.
Robert Bosch GmbH and Nikola Motor Company Formed Partnership to Develop a Fuel Cell Truck in March 2020
The Bosch vehicle control unit is the central component of the advanced truck system, providing more computer capacity for advanced operations while lowering the number of separate components. VCU promotes future improvements by providing a scalable foundation for the complicated E/E architecture, which is required to maintain Nikola vehicles' unique capabilities.
| Attribute | Details |
|---|---|
| Forecast period | 2023 to 2033 |
| Historical data available for | 2018 to 2022 |
| Market analysis | USD Million in value |
| Key regions covered | North America; Eastern Europe; Western Europe; Japan; South America; Asian Pacific; Middle east and Africa |
| Key countries covered | USA, Germany, France, Italy, Canada, The United Kingdom, Spain, China, India, Australia |
| Key segments covered | By Vehicle Type, By Component, By Propulsion Type, By Communication Technology, By Function, Region |
| Key companies profiled | Texas Instruments (USA); Mitsubishi Electric Corporation (Japan); ZF FRIEDRICHSHAFEN AG (Germany); Continental AG (Germany); Denso Corporation (Japan); Hyundai Mobis (Korea); Autoliv (Sweden); Robert Bosch GmbH (Germany); Altera (Intel Corporation) (USA); Valeo Inc. (France); Delphi Technologies (United Kingdom); NXP Semiconductors N.V. (Netherlands) |
| Report Coverage | Market Forecast, Company Share Analysis, Market Dynamics, Challenges, Competitive Landscape, Drivers, Restraints, Opportunities, Threats Analysis, Strategic Growth Initiatives |
| Customization and Pricing | Available upon request |
The vehicle control unit (VCU) market size is assessed to be USD 1,729.2 Million in 2023.
The vehicle control unit (VCU) market is expected to rise at a CAGR of 19.3% during the forecast period.
China's vehicle control unit (VCU) market is projected to grow at a CAGR of around 14.6% through 2033.
Its market share of Germany in the vehicle control unit (VCU) market is about 6.4% of the global market.
The global vehicle control unit (VCU) market is forecasted to surpass USD 11,102.5 Million by 2033.
1. Executive Summary | Vehicle Control Unit (VCU) Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Vehicle type 5.1. Commercial Vehicle 5.2. Passenger Vehicle 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Propulsion Type 6.1. BEV 6.2. HEV 6.3. PHEV 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Voltage Type 7.1. 12/24V 7.2. 36/48V 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Capacity 8.1. 16-bit 8.2. 32-bit 8.3. 64-bit 9. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Offering Type 9.1. Hardware 9.2. Software 10. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Electric Two-wheeler Type 10.1. E-Scooter/Moped 10.2. E-Motor cycle 11. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Off-highway Electric Vehicle type 11.1. Construction 11.2. Mining 11.3. Agriculture 12. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 12.1. North America 12.2. Latin America 12.3. Europe 12.4. Asia Pacific 12.5. Middle East and Africa (MEA) 13. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 16. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 17. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. STMicroelectronics 20.2. Texas Instruments 20.3. Continental AG 20.4. Xtalin Ltd 20.5. PUES Corporation 20.6. Robert Bosch 20.7. Rimac Automobili 20.8. AIM Technologies 20.9. AEM Electronics, Inc. 20.10. Ecotron LLC 20.11. Beijing Jingwei Hirain Technologies 20.12. Selectron Systems AG 20.13. Hiconics Drive Technology 20.14. Enika Sp. z o.o. 21. Assumptions & Acronyms Used 22. Research Methodology
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Vehicle Control Unit (VCU) Market
