Automotive Microcontroller Market

According to Stratistics MRC, the Global Automotive Microcontroller Market is accounted for $13.15 billion in 2022 and is expected to reach $23.67 billion by 2028 growing at a CAGR of 10.29% during the forecast period. Microcontrollers are embedded processors that integrate a CPU, memory, input/output hardware, and peripherals onto a single integrated circuit. They are installed in machinery, remote controls, and other automatic control electrical appliances. The technology found in microcontrollers is designed to efficiently manage sophisticated auto parts and improve the driving experience.

According to Bloomberg By 2040, the market for electric vehicles is anticipated to expand by 35%. Microcontroller manufacturers have a chance to expand internationally because they play a crucial role in electric car technology.



Market Dynamics:

Driver:

Rising demand for safety features in the automotive industry

The automotive industry uses microcontrollers in a variety of systems, including fail-safe systems, electric control units, fault-tolerant systems for automotive applications, and others. With the aid of a sensor microcontroller, the fault-tolerant system detects any defect in the vehicle or any incident that the vehicle may experience. According to the U.S. Department of Transportation, approximately 32 people die in drunk-driving-related car accidents every day in the country. Thus, the market is being driven by demand for safety features like parking assistance, lane departure warnings, collision avoidance systems, electronic stability control, airbags, telematics, traction control, blind spot detection, and adaptive cruise control as a result of the rise in traffic accidents around the world.

Restraint:

Technological & regulatory limitations

Automotive microcontrollers demand a high level of technical expertise and complex manufacturing procedures, which can be difficult for some manufacturers. Furthermore, older microcontrollers may become quickly outmoded due to the speed of technological advancement in the automotive sector, which reduces their usefulness. Microcontrollers must also adhere to a number of rules and standards that apply to the automotive industry in order to be used in vehicles. Complying can be difficult and time-consuming, and breaking the law can have serious financial and legal repercussions.

Opportunity:

Rise in demand for electric and hybrid vehicles

Interest in electric and hybrid vehicles is growing on a global scale. The primary factor anticipated to accelerate the growth of an established market for electric vehicles in the near future is the cost reduction of parts like lithium-ion batteries, sensors, and microcontrollers. Additionally, because electric vehicles play such a crucial part in lowering carbon emissions and addressing air pollution, governments all over the world are actively promoting them. Only 1% of recently purchased cars are electric, but as component costs decline, buyers and manufacturers are switching to electric cars, which is propelling the market expansion.

Threat:

Operational failures in extreme climatic conditions

In cold and extremely hot climates, these devices' operational shortcomings primarily restrain the market for automotive microcontrollers. Due to the tendency of microcontrollers to melt down or malfunction in hot conditions, the signal is too weak and fails. High cold is also unsuitable for microcontrollers because it stops them from working. It can typically operate at temperatures between -25°C and +150°C. Canada and Russia, for example, favor using fewer microcontrollers as a result. As a result, consumers start using mechanical devices instead, which has a negative impact on the automotive microcontroller market.

Covid-19 Impact

The microcontroller market experienced a serious impact, especially during the initial phase of COVID-19. Due to the COVID-19 effect, production and exports were halted, and businesses experienced a shortage and disruption in the production of semiconductor chips and devices due to a labor shortage. The production of automobiles is hampered by a global semiconductor shortage, which could also delay the sales of new cars. Microcontrollers, an essential component of electronic control units used in contemporary infotainment systems, ABS, ADAS, and other electronic stability systems, are in short supply, forcing automakers to reduce output. As a result, until the shortage subsides, the automakers are selectively shutting down plants. However, in the near future, the market is anticipated to advance quickly.

The Safety & Security segment is expected to be the largest during the forecast period

Due to the increased use of cutting-edge single and multi-core microcontrollers in automobiles, safety and security systems are predicted to account for the largest market share during the projection period. Moreover, the mandates relating to safety and security traits are one factor that is contributing to the growth of this section. These include the requirement for ABS installation in passenger cars starting in 2018 in India and, consequently, the rule requiring TPMS installation in commercial vehicles in many nations around the world.

The 32-Bit Microcontrollers segment is expected to have the highest CAGR during the forecast period

Owing to the need for fewer components and the growing complexity of automotive electronics, 32-bit microcontrollers are in high demand and are anticipated to witness lucrative growth throughout the projection period. This has fueled the expansion of the market as a whole. They also provide improved accuracy, increased power efficiency, and processing performance for a variety of small- and large-scale applications.

Region with largest share:

The automotive microcontroller market was expected to be dominated by the Asia-Pacific region during the forecast period. The major automakers have concentrated on expanding in Asia by establishing their corporate headquarters or manufacturing facilities in countries like China, Japan, and India, which are the region's automotive hubs. The market is anticipated to expand in Asia due to favorable economic conditions and a persistent rise in disposable population income. This is due to the fact that luxury vehicles frequently have a variety of high-tech components installed inside of them. These improvements and investments made regionally by various players support the market's expansion for automotive microcontrollers.

Region with highest CAGR:

During the forecast period, the North American region is expected to witness the highest CAGR. In 2021, North America accounted for a sizable portion of the automotive microcontroller market. The development of technology that will be incorporated into future vehicles is the main focus of the major players. The market in the region is also being driven by the presence of important automakers like Ford Motor Co., General Motors Co., and Tesla Inc., who have been at the forefront of ADAS technology implementation across all categories, including passenger cars and commercial vehicles like buses and trucks in this region.



Key players in the market

Some of the key players profiled in the Automotive Microcontroller Market include Broadcom Inc, Cypress Semiconductor Corporation, GigaDevice, Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductor N.V., On Semiconductor, Renesas Electronics Corporation, ROHM Semiconductor, Silicon Laboratories, STMicroelectronics, Texas Instrument Incorporated and Toshiba International Corporation.

Key Developments:

In August 2022, NXP Semiconductors announced expanded and robust customer engagements for its entire S32 family of the domain and zonal automotive processors. This includes a major automotive OEM's selection of NXP's S32 family of automotive processors and microcontrollers to be used across its fleet of future vehicles, beginning mid-decade.

In July 2022, NXP Semiconductors announced that it had signed a memorandum of understanding with Hon Hai Technology Group ("Foxconn") to jointly develop platforms for a new generation of smart connected vehicles.

Material Types Covered:
• Tinned Steel
• Nickel-Cobalt Ferrous Alloy
• Copper Alloy

Vehicle Types Covered:
• Passenger ICE Vehicle
• Commercial IVE Vehicle
• Electric vehicle

Technologies Covered:
• Park Assist System
• Blind Spot Detection System
• Adaptive Cruise Control
• Tire Pressure Monitoring System

Bit Sizes Covered:
• 8-bit Microcontrollers
• 16-Bit Microcontrollers
• 32-Bit Microcontrollers

Connectivity’s Covered:
• Vehicle to Vehicle (V2V) Connectivity
• Vehicle to Infrastructure (V2I) Connectivity
• Vehicle to Cloud (V2C) Connectivity

Applications Covered:
• Powertrain and Chassis
• Safety & Security
• Body Electronics
• Telematics & Infotainment

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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o Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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