Electric Vehicle Communication Controller Market Size, Share & Trends Analysis Report By System, By Charging Type, By Electric Vehicle Type, By Application, By Region,- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global electric vehicle communication controller market size was exhibited at USD 63.10 billion in 2023 and is projected to hit around USD 1,222.51 billion by 2033, growing at a CAGR of 34.5% during the forecast period of 2024 to 2033.

Key Takeaways:

• Europe dominated the market in 2023.
• The vehicle-based communication controller segment dominated the market in 2023.
• The wired charging segment dominated the global electric vehicle communication controller market in 2023.
• The PHEV segment dominated the market in 2023.
• The passenger vehicle segment accounted for the largest share in the market in 2023.

Electric Vehicle Communication Controller Market: Overview 

In the rapidly evolving realm of electric mobility, Electric Vehicle Communication Controllers (EVCCs) play a pivotal role in enabling seamless communication between electric vehicles (EVs) and charging infrastructure. This overview delves into the essential aspects of the Electric Vehicle Communication Controller market, offering insights into its growth trajectory, key drivers, challenges, and future prospects.

Electric Vehicle Communication Controller Market Growth 

The Electric Vehicle Communication Controller (EVCC) market is experiencing robust growth driven by several key factors. Firstly, the increasing adoption of electric vehicles (EVs) worldwide is a significant growth driver. With growing environmental concerns and stringent emissions regulations, consumers and governments alike are incentivizing the transition to electric mobility, thereby boosting the demand for EVCCs. Secondly, technological advancements in EVCCs, including improved connectivity, cybersecurity features, and interoperability standards, are enhancing their functionality and appeal. These advancements not only optimize charging processes but also ensure seamless communication between EVs and charging infrastructure. Additionally, government initiatives and investments in charging infrastructure development are accelerating market growth by creating a conducive environment for EV adoption. As regulatory frameworks evolve to mandate standardized communication protocols and interoperability requirements, the EVCC market is poised for further expansion, offering promising opportunities for stakeholders across the e-mobility ecosystem.

Electric Vehicle Communication Controller Market Report Scope

Electric Vehicle Communication Controller Market Dynamics

The Electric Vehicle Communication Controller (EVCC) market dynamics are influenced by various factors that shape its growth trajectory. One significant dynamic is the increasing adoption of electric vehicles (EVs) worldwide. With rising environmental awareness and stringent regulations aimed at reducing carbon emissions, the demand for EVs is on the rise. This surge in EV adoption directly impacts the demand for EVCCs, as they are essential components in facilitating communication between EVs and charging infrastructure. Additionally, technological advancements in EVCCs play a crucial role in driving market dynamics. Ongoing innovations, such as improved connectivity, cybersecurity features, and interoperability standards, enhance the functionality and reliability of EVCCs. These advancements not only optimize charging processes but also ensure seamless communication across diverse charging networks, thus fueling market growth and fostering the widespread adoption of electric mobility solutions.

Electric Vehicle Communication Controller Market Restraint

One of the significant restraints facing the Electric Vehicle Communication Controller (EVCC) market is the challenge of interoperability. The lack of standardized communication protocols and interoperability between EVs and charging infrastructure poses a significant hurdle to seamless EV charging experiences. Inconsistent standards and compatibility issues hinder the efficient communication and integration of EVCCs across different charging networks, thereby limiting their widespread adoption and usability. Additionally, cybersecurity risks present another restraint to the EVCC market. With the increasing connectivity of EVs and charging stations, the potential for cybersecurity threats and breaches escalates. Ensuring robust cybersecurity measures within EVCCs is imperative to safeguard against malicious attacks and protect sensitive data, but addressing these risks effectively remains a challenge for industry stakeholders. These restraints underscore the importance of developing standardized protocols and robust security measures to overcome interoperability and cybersecurity challenges in the EVCC market, thereby fostering its sustainable growth and advancement.

Electric Vehicle Communication Controller Market Opportunity

The Electric Vehicle Communication Controller (EVCC) market presents significant opportunities driven by the growing emphasis on infrastructure development. Government initiatives and investments in charging infrastructure expansion are creating a conducive environment for market growth. As nations worldwide prioritize the electrification of transportation, there is an increasing focus on building robust charging networks to support the growing fleet of electric vehicles. This presents an opportunity for EVCC manufacturers to capitalize on the rising demand for communication controllers that facilitate efficient charging processes and grid integration.

Another notable opportunity lies in the evolving regulatory landscape. With the emergence of regulatory frameworks mandating standardized communication protocols and interoperability requirements, there is a growing need for compliant EVCC solutions. Manufacturers that can develop EVCCs capable of meeting regulatory standards while offering enhanced features such as cybersecurity measures and advanced connectivity stand to gain a competitive edge in the market.

Electric Vehicle Communication Controller Market Challenges

Two significant challenges facing the Electric Vehicle Communication Controller (EVCC) market include interoperability concerns and cybersecurity risks.

Interoperability concerns arise from the lack of standardized communication protocols between electric vehicles (EVs) and charging infrastructure. Inconsistent standards and compatibility issues hinder seamless communication and integration across different charging networks. This lack of interoperability complicates the charging process for EV owners and presents challenges for EVCC manufacturers in developing solutions that can effectively interface with diverse charging systems.

Cybersecurity risks pose another significant challenge to the EVCC market. With the increasing connectivity of EVs and charging stations, there is a heightened risk of cybersecurity threats and breaches. Malicious actors may target EVCCs to access sensitive data or disrupt charging processes, posing risks to both vehicle owners and charging infrastructure operators. Ensuring robust cybersecurity measures within EVCCs is crucial to mitigate these risks and safeguard the integrity and security of electric vehicle charging systems. 

Segments Insights:

System Insights

Based on the system, the market has been segmented into a vehicle-based communication controller and Supply Equipment Communication Controller (SECC). The vehicle-based communication controller segment dominated the market in 2023 owing to the emphasis of various EV manufacturers on the development of a vehicle-based communication controller. For instance, Volkswagen AG has entered into a partnership with ABB Ltd. under which, ABB Ltd. will develop vehicle-based communication in some of the models developed by Volkswagen AG. Also, increasing demand for buses for public transportation with vehicle-based controllers has driven the segment.

The SECC segment is expected to register the highest CAGR over the forecast period as a result of increased demand for advanced charging stations such as EV charging kiosks. In a charging kiosk, EVCC is used for the authentication of the Vehicle Identification Number (VID) and access card information. The unavailability of the additional workforce in developed countries such as the U.S., the U.K., and Germany has made it difficult for EV charging station owners to assign customer service representatives during heavy traffic. This is expected to drive the demand for a charging kiosk. Besides, smart city initiatives are expected to drive the demand for EVCC.

Charging Type Insights

The wired charging segment dominated the global electric vehicle communication controller market in 2023 owing to the rising need for fast-charging that requires vehicle ECU to communicate with EVSE over a standard protocol. In recent years, there has been a rising demand for fast-chargers, which is a major factor responsible for the growth of the market. Furthermore, growing initiatives by EVSE and automotive manufacturers for the installation and deployment of fast chargers in highway charging stations and other public stations are expected to drive the demand for EVCC. For instance, Tesla, Inc. has, to date, installed more than 15,000 superchargers at 1,600 charging stations located at hotels, highways, wildlife parks, and other public destinations, wherein EVCC allows vehicle ECU communication with fast-chargers. Besides this, surging demand for inverted pantographs with EVCC for charging electric buses has fueled segment growth.

The wireless charging segment is expected to grow tremendously over the forecast period owing to a rise in the adoption of driverless and ridesharing EVs. In countries such as China and the U.S., there has been a rising demand for driverless EVs that mostly use wireless charging technology. Furthermore, various automotive manufacturers and OEMs are engaging in R&D activities to develop EVCC for wireless charging solutions, which bodes well for segment growth. For instance, Siemens AG is currently working with BMW AG for development EVCC for wireless charging solutions.

Electric Vehicle Type Insights

The market has been segmented into Battery Electric Vehicle (BEV) and Plug-In Hybrid Electric Vehicle (PHEV). The PHEV segment dominated the market in 2023 owing to the growing need for standardization of communication protocols between PHEV and grids. Also, ongoing PPPs for the development of communication standards for electric grids used for PHEV has further fueled the market growth. 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). SGIP is working on the development of a standard for establishing communication between grids and PHEVs.

The BEV segment is estimated to register the highest CAGR over the next few years as a result of a rise in the number of BEVs. Market demand for BEVs is expected to rise significantly due to growing government initiatives toward the promotion of BEVs and the development of vehicle-based communication controllers. For instance, the government of Switzerland awarded funds worth USD 850 million to ABB, Ltd. for the development of EVCC for BEVs. Also, technologies such as Radio Frequency Identification (RFID) and Near-Field Communication (NFC) have enabled the installation of interactive, kiosk-based, and self-operated highway charging stations. This is expected to drive the demand for EVCC over the forecast period.

Application Insights

The passenger vehicle segment accounted for the largest share in the market in 2023 as a result of rising sales of passenger vehicles. This is owing to the availability of financial subsidies and incentives offered by various governments. Furthermore, various automotive manufacturers such as BMW AG, Ford Motor Company, and General Motors are providing chargers along with electric cars, which has driven the demand for EVCC Market. Besides this, the growing emphasis of automotive manufacturers on the installation of EV charging stations for their employees to raise awareness about electric cars has fueled demand. For instance, the installation of 100 EV charging stations at the parking lots of General Motors Company’s Detroit facility has led to an increase in demand for the company’s Chevrolet Volts electric cars from employees.

Commercial vehicles are anticipated to emerge as the fastest-growing segment over the forecast period owing to rising demand for commercial EVs such as trucks, vans, and buses from e-commerce, logistics, and public transport agencies. Governments of various countries are focusing on the replacement of fuel-based bus fleets with electric buses. Furthermore, companies such as Siemens AG; ABB, Ltd.; and Schneider Electric are focusing on the development of inverted pantographs for commercial vehicles, which is further propelling market demand.

Regional Insights

Europe dominated the market in 2023, as a result of the high demand for EVCC owing to growing government initiatives toward the development of electric highways in the region. For instance, the governments of Norway, Germany, France, Sweden, the U.K., Denmark, and Italy have developed Norway to Italy Electric Highway. It consists of 180 fast-charging stations requiring EVCC for establishing communication between the grid and EVs. The growing focus of European oil companies such as BP Plc and Royal Dutch Shell Plc to capitalize their vast fuel and gas station network across the region for deploying electric vehicle chargers has significantly boosted demand for EVCC. Moreover, demand for EVCC has increased tremendously due to focus on the development of zero or low emission zones that consist of charging stations in the region.

Asia Pacific is expected to exhibit the highest CAGR over the forecast period. The major factor driving the market is increasing emphasis by various governments on supporting charging infrastructure, which has encouraged various start-ups as well as key global players to develop new charging solutions. Various governments in the region are emphasizing on the expansion of charging infrastructure, which bodes well for the growth of the market. For instance, in 2016, South Korea announced an investment of around USD 180.3 million to expand EV charging infrastructure across the nation. Governments of countries such as China and South Korea are focusing on the development of national and international policy frameworks to support charging infrastructure, which is subsequently driving the demand for EVCC Market.

Some of the prominent players in the Electric vehicle communication controller market include:

• ABB, Ltd
• BYD Auto
• Efacec
• Ficosa
• LG INNOTEK
• Mitsubishi Electric
• Robert Bosch LLC
• Schneider Electric
• Tesla, Inc

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global electric vehicle communication controller market.

System

• Vehicle-based Communication Controller
• Supply Equipment Communication Controller (SECC)

Charging Type

• Wired Charging
• Wireless Charging

Electric Vehicle Type

• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)

Application

• Passenger Vehicle
• Commercial Vehicle

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)