Electric Vehicle Communication Controller market COVID-19 Impact, Trends

Posted by Mrudula Anil Karmarkar on April 29th, 2022

The global electric vehicle communication controller (EVCC) market size is expected to reach USD 436.5 million by 2026, registering a CAGR of 32.5% from 2020 to 2026, according to a new report by Grand View Research, Inc. The market is driven by increasing adoption of electric vehicles (EV) and advancements in charging solutions. Prominent companies in the market, including Tesla, Inc. and LG INNOTEK, are focusing on development of advanced charging technology. Furthermore, rising demand for fast charging technology is fueling market growth.

On-going developments in wireless charging technology for EVs and associated safety concerns are significantly contributing to the growing demand for EVCC. Various Original Equipment Manufacturers (OEMs) and automotive manufacturers have established partnerships for the development of EVCC and incorporating EVCC in wireless charging technology. For instance, Enide, AB Volvo, Continental AG, and HELLA GmbH & Co. KGaA have collaborated on the UNPLUGGED project aimed at development of wireless charging technology. Rise in the number of EVs is fueling the demand for Vehicle-to-Grid (V2G) technology, through which the automobiles can recharge their battery and simultaneously send back electric energy into the grid, when there is a surge in demand. Increasing adoption of EVCC in the development of V2G technology is accelerating market growth.

Governments in countries such as U.S., China, and Germany are collaborating with various academic institutions such as Sandia National Laboratories and the University of Delaware for the development of V2G technology. Furthermore, the growing Public-Private Partnerships for the development of EVCC are expected to propel the market. In May 2012, the University of Delaware, Exelon Corporation, various OMEs, and the U.S. government established the Mid-Atlantic Grid Interactive Car Consortium (MAGICC) that focused on the development of EVCC for V2G. The MAGICC project was funded USD 200,000 by the Delaware Green Energy fund, USD 250,000 by Exelon Corporation, and USD 150,000 from Google LLC for R&D.

The market is driven by rising demand for efficient charging systems owing to an increase in financial incentives, including subsidies and tax benefits, provided by several governments for buying electric vehicles (EVs). For instance, in April 2015, the Government of India announced the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India) scheme under the National Electric Mobility Mission Plan (NEMMP) 2020. Through FAME, the government will provide subsidies on purchases of three-wheeler and four-wheeler commercial EVs. In recent years, there has been an increasing demand for highway charging stations that mostly employ fast-charging solutions. This has further propelled the market growth.

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The growing emphasis of various governments and automobile companies on enhancing the performance of charging solutions bodes well for the growth of the market. For instance, in 2016, the Government of Norway made investments worth USD 180.3 billion for enhancing Electric Vehicle Supply Equipment (EVSE). Furthermore, countries such as France, U.K., Germany, and Belgium are focusing on developing EV charging and supporting infrastructure as well as emphasizing enabling interoperability across different EVs throughout the region. Various OEMs and EV manufacturers are looking to enhance the interoperability of charging infrastructure and electric vehicles and this is expected to keep the market prospects upbeat.

Further key findings from the report suggest:

• The Supply Equipment Communication Controller (SECC) communication controller segment is expected to grow significantly owing to rising need for safety while ensuring fast charging
• The wireless charging technology segment is anticipated to register the highest CAGR over the forecast period owing to numerous benefits offered, such as full autonomy and convenience for EV passengers
• The Battery Electric Vehicle (BEV) segment is anticipated to grow significantly over the next few years owing to growing initiatives by OEMs toward the development of EVCC for charging stations in cities
• The commercial segment is expected to grow remarkably over the forecast period owing to rise in the adoption of EVCC in the fleet of logistic and public transport agencies
• The Asia Pacific market is expected to grow significantly over the forecast period owing to increasing national standards for EV charging interfaces and communications protocols set by the National Energy Administration, China
• Key players in the electric vehicle communication controller market are ABB, Ltd.; BYD Auto; Efacec; Ficosa; LG INNOTEK; Mitsubishi Electric; Robert Bosch LLC; Schneider Electric; Tesla, Inc.; and Vector.

Some of the key players in the market are ABB, Ltd.; BYD Auto; Efacec; Ficosa; LG INNOTEK; Mitsubishi Electric; Robert Bosch LLC; Schneider Electric; Tesla, Inc.; and Vector. These players have adopted strategies such as investments in R&D for the up-gradation of existing products and the launch of new products. For instance, in March 2020, Tesla, Inc. launched the new V3 Supercharging - designed specifically for Tesla’s grid-connected batteries.

Various companies have adopted strategies such as mergers, acquisitions, and partnerships to sustain competitive pressure. For instance, Blink Charging Co. entered into a partnership with Hubject to offer e Roaming service. The eRoaming service enables EV drivers to have a subscription of either of the companies to charge their EVs at charging stations owned by both. Furthermore, various companies are entering into PPPs for the development of EVCC. For instance, American Electric Power Company, Inc.; Ford Motor Company; New York Power Authority; Siemens AG; and Sacramento Municipal Utility District established the Smart Grid Interoperability Panel (SGIP).