Automotive Domain Controller Market Size, Share & COVID-19 Impact Analysis, By Domain (Powertrain, Body & Chassis, Infotainment, and ADAS), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Propulsion (Electric and IC Engine), By Application (Active Safety, Body Control, User Experience, Parking, and Powertrain Management), and Regional Forecasts, 2023-2030

The global automotive domain controller market size was USD 2.32 billion in 2022. The market is projected to grow from USD 3.31 billion in 2023 to USD 12.13 billion by 2030, exhibiting a CAGR of 20.37% over 2023-2030.

An automotive domain controller is an Electrical/Electronic (E/E) architecture system used in the new generation of cars and commercial vehicles. It is a computing unit that controls a set of features and functions related to a specific area or vehicle domain. Domain controllers work efficiently in a compute-intensive environment and can connect to a larger number of input and output devices. ADAS, advanced cockpit systems, and body controls are among the most common areas where domain controllers are used in modern cars.

Over the years, the electrical & electronic architecture of vehicles has evolved significantly. A modern car is a cluster of multiple electronic components consisting of several ECUs, circuits, microprocessors, and others. Thus, it has created a highly congested system occupying a lot of space in the vehicle’s body. Thus, leading players are introducing combined processing power units to reduce the E/E systems and streamline the architecture. This has led to a great demand for Domain Control Units (DCUs) among automakers. As DCUs reduce the need for additional components and wiring, automakers have more room to provide in the vehicle. Furthermore, integrating DCUs also lessens the utilization of raw materials while reducing costs. However, the increased complexity of the DCU architecture and increased software complexity are factors that can affect the market growth.

COVID-19 IMPACT

Government-Enforced Lockdowns and Restrictions Disrupted Supply Chain of Raw Materials, Slowed Adoption of DCUs in Vehicles

The COVID-19 pandemic caused a temporary shutdown of factories and manufacturing units of various industries. This created an economic slowdown, affecting various economies on micro levels. The automotive industry also suffered a significant slowdown during the pandemic. The reduced capacity of manufacturing units led to improper inventory management, thus disrupting a streamlined supply chain of raw materials. Moreover, the sudden increased demand for semiconductors in 2021 created a colossal semiconductor shortage, inducing a slowed production rate and inflation of raw material prices in the automotive sector.

The repercussions of the semiconductor shortage lasted throughout the post-pandemic situation from 2021 to 2022. This slowed down the total vehicle production worldwide. It also created a favorable opportunity for automotive domain controller producers as integrating these components reduces the cost of making and lessens the number of electronic components used. Thus, the major players providing E/E architecture for automobiles recognized this shift and introduced advanced domain controllers to attract leading automakers and capture an early market share.

LATEST TRENDS

Growing Shift of Automakers From Distributed E/E Architecture to Centralized E/E Architecture to Fuel Market Growth

Modern-day vehicles integrate numerous electronics to serve the ever-growing demand for vehicle innovation. As vehicles progress toward connected, automated, and electrification technologies and solutions, the number of ECUs used in vehicles has increased significantly. Thus, the automakers are trying to use centralized processing units in vehicles. However, this cannot be achieved overnight. Hence, automakers are switching from independent ECUs to modular ECUs/domain controllers that overlook a whole set of functions instead of independent functions.

As the complexity of vehicles increased and more software-defined vehicles were introduced in the market, automakers starting using more combined processing power units to serve the need for processing data at high speeds. An automotive domain controller is highly efficient in categorizing and centralizing multiple vehicle functions under three or four central domain units. This reduces the overall volume of the components utilized in the vehicle, while minimizing the cost involved in the operations. Domain controllers play a vital role in increasing the preference for a centralized E/E architecture. Thus, the trend of centralized E/E architecture is expected to drive the automotive domain controller market growth during the forecast period

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DRIVING FACTORS

Increasing Demand for Higher Efficiency & Accuracy of Domain Controllers in Numerous Automotive Applications to Drive Market Growth

Leading automakers are focused on improving communication between various components, inputs & output devices, and electronic systems to increase data accuracy and efficiency of several other vehicle operations. However, the current ECUs that are integrated into modern vehicles do not function at par under such circumstances due to the lower processing speed of these chips. On the contrary, domain controllers are highly suitable for high-power computing operations as they offer more reliable and fast data transfer among various vehicle components. Moreover, the adoption of DCUs also aids in reducing the use of additional components. These factors are contributing to the market growth.

Growing Integration of ADAS Systems and Autonomous Driving to Boost Market Progress

The growth of ADAS systems and vehicle autonomy is attributed to numerous factors including increased road accidents, government initiatives to increase road safety, and various mandates. Moreover, ADAS requires high precision and exceptional computing power to monitor and carry out various functions. This has increased the number of ECUs in vehicles exponentially. However, domain controllers feature combined computing processors, thus reducing the overall amount of electrical components and E/E architecture in the vehicle. These factors will contribute to the demand for these controllers.

RESTRAINING FACTORS

Greater complexity in Architecture May Hamper Product Adoption Rate

Automotive domain controllers have proven to be highly beneficial in reducing the electronic components and creating a more centralized operation in vehicles. Modern vehicles integrate various electronic components, such as advanced infotainment systems, body control units, and ADAS systems, which require high computing power. Thus, these controllers have a highly complex structure and involve heavy software integration to compute, process, and pass large data sets present in the vehicle. The increased complexity in the architecture might reduce the adoption rate of DCUs as many leading auto players will have to reiterate systems to integrate domain controllers in their vehicles. These factors might negatively affect the product adoption.

SEGMENTATION

By Domain Analysis

Increasing Demand for Autonomous Driving to Fuel Adoption of ADAS Systems

Based on domain, the market is segmented into powertrain, body & chassis, infotainment, and ADAS.

The ADAS segment held the largest automotive domain controller market share in 2022 and is estimated to remain dominant throughout the forecast period. This segment's robust growth is driven by rising demand for autonomous driving solutions and increased adoption of various driver assistance systems in connected and electrified vehicles.

The infotainment segment is anticipated to register the fastest growth rate over the forecast period. The growth of this segment is credited to the increasing demand for and integration of advanced infotainment and cockpit systems that provide drivers with data, such as vehicle conditions, entertainment, and other features. The domain controller is highly suited to handle multiple functions. Hence, the infotainment segment is expected to grow significantly as more connected systems are integrated into modern vehicles.

The powertrain and body & chassis segments are also expected to witness a noteworthy growth rate in the future. The growing focus of automakers on predictive technology and improving in-vehicle experience are the primary factors responsible for the growth of these segments during the forecast period.

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By Vehicle Type Analysis

Passenger Cars to Increase Use of Automotive Domain Controllers Due to Rising Demand for Connected Technologies

Based on vehicle type, the market is segmented into passenger cars and commercial vehicles.

The passenger cars segment held the largest market share in 2022 and is estimated to retain its position in the market throughout the forecast period. This segment is growing at a robust pace as consumers hold a strong influence on the trends in the industry. Many consumers are shifting toward connected and autonomous technology for an enhanced driving experience. Moreover, the increased disposable income of consumers and higher production rate will contribute to the high demand for passenger cars.

The commercial vehicle segment is expected to register a high growth rate owing to the increased integration of connected technology in light commercial vehicles, such as utility trucks, cargo vans, and pick trucks. Various commercial vehicle fleet owners are recognizing the importance of fleet tracking and telematics system, which require high computational power to carry out various functions and optimize the efficiency of operations. Additionally, the growing focus on fleet management operations in commercial vehicles will contribute to the segment’s growth.

By Propulsion Analysis

Well-Established Infrastructure for Conventional Cars to Boost Demand for IC Engines

Based on propulsion, the market is segmented into electric and IC engine.

The IC engine segment held a major market share in 2022 and is estimated to hold its dominance throughout the forecast period. The high reliability of IC engines and well-supported technology and infrastructure suitable for conventional cars will contribute to the segment’s growth. Additionally, the electrification of vehicles is evolving at a rapid pace. However, there is a lack of robust EV infrastructure in many economies, which will encourage consumers to use IC engine vehicles over electric ones.

The electric segment is expected to register a high growth rate owing to the increasing emphasis of automakers, governments, and consumers on carbon neutrality and reducing the global carbon footprint to create a healthier environment. Moreover, electric vehicles require more electrical components that come with safety and monitoring functions, such as range, battery capacity, battery management software, and various other features. These few factors are expected to augment the demand for these controllers in the future as more EVs roll out on the roads.

By Application Analysis

Automotive Domain Controller to be Widely Used in Active Safety Applications Due to Rising Need for Safer Driving Experience

Based on application, the market is segmented into active safety, body control, user experience, and powertrain management.

The active safety segment led the market in 2022 and is expected to continue its dominance during the forecast period. The segment’s growth is attributed to the rising demand for more advanced driver safety features in modern vehicles to create a safer driving experience and road environment. Additionally, active safety features require a high computing power source to analyze, process, and deliver the necessary functions. These factors make it highly suitable for integrating domain controllers in the vehicle, thus contributing to this application’s growth.

The user experience segment is expected to grow the fastest during the forecast period. The growth is due to technological advancements and the introduction of various infotainment and connected car features, such as in-vehicle payments, e-call, telematics, and others.

The body control and powertrain management segments are also expected to grow considerably owing to the increased focus of automakers on achieving a more streamlined E/E architecture in the vehicle.

REGIONAL INSIGHTS

Increased Demand for ADAS and Autonomous Driving Technology to Propel Asia Pacific Market Growth

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Asia Pacific dominated the global market and was valued at USD 1.29 billion in 2022. It is expected to continue its dominance in the coming years as well. The growing production rate of vehicles, increased demand for Advanced Driver Assistance Systems (ADAS), and adoption of connected and autonomous driving technology in China, Japan, and other Asian countries are the key factors that will contribute to the regional market growth. Additionally, China, Japan, and India are among the largest vehicle manufacturers, thus contributing toward the market’s growth throughout the forecast period.

North America held the second-largest market share in 2022. The presence of reputed automotive industry players and high demand for domain controllers will account for the regional market expansion. Moreover, well-established infrastructure and capital investments for adopting newer technology in the region are expected to positively influence the regional market forecast.

Europe and the Rest of the World also held decent shares in the global market in 2022. The high demand for advanced road and driver safety systems and increasing rollout of stringent laws for road and traffic safety in Europe is expected to increase the adoption of these controllers for ADAS.

The Rest of the World is also expected to grow owing to higher demand for connected autonomous technology in the Middle Eastern countries.

KEY INDUSTRY PLAYERS

Major Market Players to Focus On New Product Launches to Capture Dominant Market Share

The competitive landscape of the market consists of various well-established players. The market is consolidated and highly competitive. All major companies have a strong presence in the automotive and domain controller industries. Organizations, such as Aptiv, Renesas, and Continental are actively introducing these controllers to their product offerings as they recognize the shift toward centralized computing E/E architecture.

Few other players, such as Ambarella and Samsung are aiming at a collective effort to develop newer and more advanced domain controllers to serve the unique computing needs in next-generation EVs and conventional vehicles. The companies are also introducing domain controllers for ADAS as it is one of the primary segments utilizing these controllers. Thus, the market is highly competitive, and major companies are constantly competing with others through mergers and new product launches.

LIST OF KEY COMPANIES PROFILED:

• STMicrocontrollers (Switzerland)


• Visteon Corporation (U.S.)


• Infineon Technologies (Germany)


• Robert Bosch GmbH (Germany)


• Aptiv PLC (Ireland)


• Renesas (Japan)


• Texas Instruments (U.S.)


• Panasonic Corporation (Japan)


• Nxp Semiconductors (Netherlands)


• Continental AG (Germany)


• Monolithic Power Systems (Japan)


• Valeo (France)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: TuSimple, one of the leading providers of autonomous driving technology, introduced a new automotive-grade domain controller suitable for ADAS applications and L4 autonomous solutions.


• February 2023: Hyperview, an autonomous driving technology company, announced integrating Ambarella’s CV3-AD portfolio of AI-based domain controllers into its autonomous driving systems to provide high-performance computing on its autonomous driver platforms.


• January 2023: Qualcomm announced its partnership with Thunder X, a company specializing in autonomous driving domain controllers. Both companies aim to create a new line of high-performance computing domain controllers, which are suitable for ADAS and intelligent driving technologies.


• January 2023: Harman International Inc., an automotive technology supplier, showcased its new platform Ready Upgrade, which includes fully upgradable hardware and software product lines. It also features three families of OEM-grade cockpit domain controllers, advanced software, and other products.


• October 2022: NXP Semiconductors introduced its single domain controller, Orangebox, for automotive-grade platforms. It has a variety of infotainment functions while providing a unified interface between the vehicle’s gateway and its wired/wireless technologies.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects, such as leading companies, product types, and key product applications. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

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