Vehicle Control Unit Market Size, Share and Trends 2024 to 2034

Vehicle Control Unit Market Size and Forecast 2024 to 2034

The global vehicle control unit market size is expected to be worth USD 60.05 billion in 2024 and is anticipated to reach around USD 92.55 billion by 2034, growing at a solid CAGR of 4.42% over the forecast period 2024 to 2034. The benefits of the vehicle control unit (VCU) include an enhanced user interface, over-the-air updates, automation capabilities, operational streamlining, improved diagnostics, improved passenger and vehicle safety, and the ability to prevent and predict potential malfunctions, which help the growth of the vehicle control unit market.

Vehicle Control Unit Market Key Takeaways

• Asia Pacific dominated the vehicle control unit market in 2023.
• North America is estimated to witness significant growth in the market during the forecast period.
• By vehicle type, the passenger car segment dominated the market in 2023.
• By vehicle type, the commercial vehicle segment is expected to grow significantly in the market during the forecast period.
• By application, the ADAS segment dominated the market in 2023.
• By application, the body electronics segment is expected to grow significantly in the market during the forecast period.

Market Overview

The vehicle control unit market refers to the vehicle control unit used that can control one or more systems in a vehicle. A vehicle control unit is an electronic device used in electric vehicles. It acts as the brain of the vehicle's electrical system, regulating and overseeing many subsystems, including energy regeneration systems, battery management, motor drive, and thermal management, to ensure they operate harmoniously and efficiently. The benefits of the vehicle control unit include improved user interface, automation capabilities, over-the-air updates, improved diagnostics, operational streamlining, and improved vehicle and passenger safety. These factors help to the growth of the market.

Vehicle Control Unit Market Growth Factors

• The vehicle control unit is helpful in electric vehicles, which act as the brain of the electric vehicles system, which helps the growth of the vehicle control unit market.
• Regulating and overseeing many subsystems, including thermal management, motor drive, battery management, and energy regeneration systems, to ensure they operate harmoniously and effectively.
• The vehicle control unit market benefits include improved user interface, automation capabilities, and over-the-air updates.
• It also includes improved diagnostics, operational streamlining, and improving vehicle and passenger safety. These factors help to the growth of the vehicle control unit market.

Role of Artificial Intelligence in Automotive Sector

AI-driven collision prevention systems help in improving safety through the analysis of data from sensors and cameras and preventing accidental threats by activating autonomous brake systems. AI creates opportunities in 3D printing vehicles components and other features like advanced driver assistance systems. Integrating AI into vehicle-to-vehicle communication assists identification of blind spot. Machine learning algorithms help in the analysis of video inputs from cameras and provides real-time data analytics. Artificial neural networks help in object identification on the road ahead for a safe path plan and considering weather conditions and traffic situation.

• In June 2024, Planet Electric announced the launch of its electric vehicle with the integration of weight sensors into its telematics communication system to decide efficient path for logistics with real-time weight tracking, and improved vehicle performance efficiency.

Market Scope

Market Dynamics

Driver

Rising electric vehicles trend

Rising electric vehicles trend due to their benefits, including better retail value, lower maintenance costs, whisper quiet, super sleek, and pretty darn fast, tax benefits, financial benefits, energy independence, lower or eliminated fuel costs, reduction of air pollution, higher performance and acceleration, free parking, government funding, better driving experience, renewable electricity tariffs, lower running costs, no congestion charge, convenience of charging at home, no noise pollution, and cleaner environment. These factors help to grow the vehicle control unit market.

Restraint

Disadvantages of vehicle control units

The disadvantages of vehicle control units include complexity, limited availability because they are found only in hybrid or electric vehicles, and high costs, which can hamper the growth of the market. This vehicle control unit is a more critical device than an electric control unit (ECU), which makes it more complicated to repair or diagnose if something goes wrong and more expensive to maintain and manufacture. It also requires high-cost investment in the development of vehicle control units. These factors can restrict the growth of the vehicle control unit market.

Opportunity

Rising advanced technologies demand

In recent stages of vehicle control unit development, the unit first focused on basic vehicle functions and powertrain management. Although vehicles become more complex and advanced, the scope of the vehicle control unit has expanded to incorporate many systems like connectivity features, infotainment, and ADAS (advanced driver assistance system). Automotive vehicle control unit development is an important electric control unit that acts as the central nervous system of electric vehicles (EVs). Vehicle control unit technologies help for highly integrated, safe, and accurate vehicle control. These factors help to grow the vehicle control unit market.

Vehicle Type Insights

The passenger car segment dominated the vehicle control unit market in 2023. Passenger cars play an important role in vehicle control units. The benefits of passenger cars include less damage in case of an accident as compared to other vehicles, ease of operation & parking, these cars are more affordable than other types of vehicles like luxury cars or SUVs, and the ability to transport family and yourself without depend on taxis or public transport.

It also includes improved user interference, automation capabilities, over-the-air updates, improved diagnostics, operational streamlining, improved vehicle & passenger safety, and predict & prevent vehicle malfunction. These factors help to the growth of the passenger car segment and contribute to the growth of the market.

The commercial vehicle segment is expected to grow significantly in the market during the forecast period. The commercial vehicle benefits include providing coverage for vehicles used for business purposes, additional options based on contractual requirements & business risks, coverage for vehicles, passengers, and you, and liability protection for property and others. It also includes an enhanced user interface, automation capabilities, over-the-air updates, improved diagnostics, operational streamlining, improved passenger & vehicle safety, and can prevent and predict potential malfunction.

The advantages of commercial vehicles as compared to personal vehicles include towing capacity, tax benefits, potential for income generation, durability and reliability, improved safety features, and versatility and spaciousness. These factors help the growth of the commercial vehicle segment and contribute to the growth of the vehicle control unit market.

• In September 2022, a new electric drive for light commercial vehicles was launched by Bosch. They provide vehicle control units and DC/DC converters for the drivetrain and also contribute to better air quality, power that is electrically and emission-free, and eliminate noise pollution for residents.

Application Insights

The ADAS segment dominated the vehicle control unit market in 2023. The benefits of ADAS (advanced driver assistance system) include insurance premium reductions, several insurance companies offering discounts for vehicles equipped with the ADAS technique, and contribution to environmental benefits. It provides convenience for drivers, improved safety, and elimination of the risk of fatalities and risks.

The vehicle control unit acts as the brain of the ADAS system. They receive data from cameras and sensors, process it, and, based on predefined algorithms, make decisions. These decisions range from issuing warnings to taking control of specific vehicle functions to prevent accidents. These factors help to the growth of the ADAS segment and contribute to the growth of the market.

• In September 2023, Hyundai updated as Venue for 2023 with new features and specs, and it became the first SUV in its segment to offer ADAS (advanced driver assistance system).

The body electronics segment is expected to grow significantly in the market during the forecast period. The vehicle control unit for body electronics provides many benefits, which include simplified vehicle diagnostics, over-the-air updates, increased safety and security of passengers and vehicles, real-time monitoring help to predict and prevent malfunctions, enhanced energy efficiency, optimized electrical system performance, which helps to better fuel economy and energy management, improved convenience and comfort.

By centralizing control of the many systems, the VCU makes it easy for drivers to improve their driving experience and adjust settings. It also includes lighting control, security and access control, climate control, washer and wiper control, mirrors and power windows control, seat control, etc. These beneficial factors help the growth of the body electronics segment and contribute to the growth of the vehicle control unit market.

• In March 2024, a SmartMCD series gate driver ICs with embedded microcontroller (MCU) was launched by Toshiba Electronic Devices and Storage Corporation. These automotive applications are helpful for the driver to control and drive different functions.

Regional Insights

Asia Pacific dominated the vehicle control unit market in 2023 and is estimated to grow at the fastest rate during the forecast period. Increasing demand for passenger cars helps to the growth of the market in the Asia Pacific region. India is the leading country in the region for growth in the market.

• In September 2023, in Asia, HCLTech and Saietta Group Plc. a British electric drivetrain (eDrive) specialist, co-developed the development of an all-new vehicle control unit, especially for three and 4-wheeled lightweight electric vehicles (LEVs). The company's VCU improves its ability to provide OEMs with complete eDrive solutions that may be cost-effective and quickly adaptable to certain applications.
• In January 2024, electric vehicle concepts or prototypes VS4 and VM4 were launched by an EV (electric vehicle) company founded by Vikas Gupta and Ringlarei Pamei from IIT Delhi, Creatara, at IIT Delhi’s Research & Innovation Park. Their strong private vehicle control unit ensures long-term durability and stability and holds all the features together.
• In April 2024, an affordable made-in-India four-wheeler retro-fitment or EV conversion kit, ‘Electra-Revive,’ was launched by Sirius Cleantech Pvt. Ltd., Which converts old ICE vehicles into electric vehicles. This is driven by a vehicle control unit and an IP67-rated drive.

North America is estimated to witness significant growth in the market during the forecast period of 2024-2033. Increased use of safety systems in standard vehicles helps the growth of the vehicle control unit market in the region. The increased installation of electronic systems in light commercial vehicles, passenger cars, and sports utility vehicles helps the growth of the market in this region.

Vehicle Control Unit Market Companies

• NXP Semiconductors N.V. (Netherlands)
• Delphi Technologies (United Kingdom)
• Valeo Inc. (France)
• Altera (Intel Corporation) (U.S.)
• Robert Bosch GmbH (Germany)
• Autoliv (Sweden)
• Hyundai Mobis (Korea)
• Denso Corporation (Japan)
• Continental AG (Germany)
• ZF FRIEDRICHSHAFEN AG (Germany)
• Mitsubishi Electric Corporation (Japan)
• Texas Instruments (U.S.)
• Pi Innovo
• STMicroelectronics
• Embitel
• Rimac Automobili
• Autonomous Solutions, Inc.

Recent Developments

• In March 2024, the 60kW VPT60N ready-to-run vehicle powertrain was launched by Viritech. The powertrain includes a fully functional vehicle control unit with tri-volt energy management, DC power converter, cooling components, battery management systems, combined E-machine, etc.
• In April 2024, in Bengaluru, in the Jigani Industrial Area, a new e-motorcycle, ‘F77 Mach 2’, was launched by Ultraviolette Automotive, an electric vehicle maker. Its vehicle control unit can collect 3000 data points each second across many parameters like performance, current, voltage, and temperature and optimize the riding experience by giving real-time feedback to the riders using their Violette AI Platform.
• In May 2024, a special purpose vehicle (SPV) named E Astra NACOF Ooorja Pvt Ltd. was introduced by a multi-state cooperative society under the Ministry of Agriculture, a prominent renewable energy developer backed by NACOF, NACOF Ooorja. This center is dedicated to developing a vehicle control unit that manages electric vehicles’ all functions based on electric vehicle range extender technology.

Segments Covered in the Report

By vehicle

• Commercial Vehicle
• Passenger Car

By Propulsion

• Bev
• Hev
• Phev

By Communication Technology

• Controller Area Network
• Local Interconnect Network
• Flexray, Ethernet

By Function

• Predictive Technology
• Autonomous Driving/ADAS (Advanced Driver Assistance System)

By Application

• Powertrain
• Breaking System
• Body Electronics
• ADAS
• Infotainment

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa