How Are Technological Improvements Driving Electric Vehicle Communication Controller Demand?

In 2018, the global electric vehicle communication controller market generated a revenue of $97.0 million. The market is predicted to reach a valuation of $553.4 million by 2024. According to the estimates of P&S Intelligence, a market research firm based in India, the market would progress at a CAGR of 34.8% between 2019 and 2024. The rising implementation of favorable government regulations regarding the installation of electric vehicle charging infrastructure is the biggest factor driving the market advancement. 

With the soaring pollution levels and deteriorating air quality levels, the popularity of electric vehicles (EVs) is growing rapidly across the world. This is, in turn, boosting the demand for electric vehicle charging facilities and infrastructure. As a result, various governments, charging component providing organizations, and electric vehicle manufacturing companies are making huge investments in the deployment of proper EV charging infrastructure. They are investing heavily in efficient and smart battery charging systems. 

Furthermore, many organizations are leveraging various government provisions for producing EVs and charging stations having high capacities and efficiencies. This is propelling the expansion of the electric vehicle communication controller market. For instance, an investment worth $15 million was made by several investors in Chargefox Pty. Ltd. in October 2018. This investment includes the $6 million grant provided by the Australian Renewable Energy Agency (ARENA). This amount will be used for installing quick EV chargers in Australia. 

The installation of these charging stations would push up the demand for controllers, which would, in turn, cause the expansion of the electric vehicle communication controller market. Depending on system, the market is divided into supply equipment communication controller (SECC) and electric vehicle communication controller (EVCC). Of the two, the EVCC recorded higher growth in the market in the past few years, on account of the large-scale deployment of plug-in electric vehicles (PEVs) around the world. 

This category is further divided on the basis of vehicle and technology type. When technology is taken into consideration, the market is classified into plug-in hybrid electric vehicle (PHEV) and battery electric vehicle (BEV). Between these, the BEV category is predicted to demonstrate faster growth in the market in the future. This would be because of the implementation of strict environment regulations and government laws supporting BEV deployment in various countries. 

Across the globe, the electric vehicle communication controller market registered the highest growth in Asia-Pacific (APAC) in the years gone by. In this region, China witnessed more than half of the global sales of electric vehicles in 2018. The lucrative subsidies provided by the governments of many regional countries on the purchase of EVs boosted the sales of these vehicles in the region in the last few years. This subsequently caused the boom of the market in the region. 

Hence, it can be said with full surety that the market would exhibit huge expansion all over the globe in the upcoming years, mainly because of the rising usage of electric vehicles and the enactment of favorable government regulations regarding electric vehicle and charging station deployment across the world.