In recent years, the deployment of electric vehicles has surged sharply, on account of the escalating air pollution levels and the implementation of stringent emission norms by the governments of several countries. This has subsequently pushed up the demand for electric vehicle charging infrastructure and facilities, which has, in turn, fueled the need for electric vehicle communication controllers. Moreover, many electric vehicle manufacturers and charging component producers are investing heavily in the development of efficient and smart battery charging devices.
The organizations are focusing on leveraging the government provisions and incentives to manufacture more efficient and high-capacity electric vehicles and charging stations. For example, an investment of $15 million, which included a grant of $6 million from the Australian Renewable Energy Agency (ARENA), was made by several investors in Chargefox Pty. Ltd. in October 2018. The organization will use this investment to deploy electric vehicle chargers all over Australia, which will consequently push up the demand for electric vehicle communication controllers in the nation in the coming years.
Apart from the aforementioned factors, the advent of advanced technologies, such as the vehicle-to-grid (V2G) technology, for the two-way management of the demand for electricity, is also predicted to generate lucrative growth opportunities for the players operating in the electric vehicle communication controller market. Owing to these reasons, the value of the market is predicted to rise from $97.0 million in 2018 to $553.4 million by 2024, while the market will demonstrate a CAGR of 34.8% from 2019 to 2024 (forecast period), as per the estimates of the market research company, P&S Intelligence.
Furthermore, many industry players are focusing on developing the V2V charging technology. This is because this technology assists in reducing the load on the grid, which generally increases massively when connecting several vehicles to the charging infrastructure. The technology basically takes power from the batteries of the idle EVs and feeds it to the grid, which helps in reducing the load on the grid. Supply equipment communication controllers (SECC) and electric vehicle communication controllers (EVCC) are the two types of systems used in electric vehicle charging facilities. Between these, the demand for SECC is predicted to rise at a faster pace over the next few years.
This will be because of the soaring deployment of electric vehicle charging stations all over the world. As per various estimates, there were nearly 538,600 publicly accessible chargers around the world in 2018, which was higher than the number of chargers in 2017 (105,360). Geographically, the sales of electric vehicle communication controllers were observed to be the highest in the Asia-Pacific (APAC) region in the years gone by and this trend is expected to continue in the forthcoming years as well. This is attributed to the growing adoption of electric vehicles, on account of the provision of subsidies by the governments of the regional countries, in the region.
Thus, the demand for electric vehicle communication controllers will soar in the coming years, primarily because of the increasing adoption of electric vehicles and the surging requirement for electric vehicle charging infrastructure across the world.