February 2024
The global vehicle control unit market size surpassed USD 57.51 billion in 2023 and is estimated to increase from USD 60.05 billion in 2024 to approximately USD 92.55 billion by 2034. It is projected to grow at a CAGR of 4.42% from 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.
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.
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.
Report Coverage | Details |
Market Size by 2034 | USD 92.55 Billion |
Market Size in 2023 | USD 57.51 Billion |
Market Size in 2024 | USD 60.05 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 4.42% |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Vehicle, Propulsion, Communication Technology, Function, Application, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
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.
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.
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.
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.
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.
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.
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.
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.
Segments Covered in the Report
By vehicle
By Propulsion
By Communication Technology
By Function
By Application
By Geography
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
February 2024
February 2024
July 2023
August 2024