Global Automotive Microcontrollers Market Size Is Booming Worldwide with Share, Top Key Players 2024-2032

Automotive Microcontrollers Market Size And Forecast

Automotive Microcontrollers Market size was valued at USD 9.08 Billion in 2023 and is projected to reach USD 16.71 Billion by 2031, growing at a CAGR of 8% from 2024 to 2031.

• Microcontrollers are a type of integrated circuit (IC) that contains a central processing unit (CPU), memory, and input/output (I/O) peripherals on a single chip. They are used in a wide variety of electronic devices, including cars, smartphones, and appliances.
• Modern vehicles are packed with more and more features, such as advanced driver-assistance systems (ADAS), infotainment systems, and comfort features. All of these features require microcontrollers to function.
• Furthermore, microcontrollers can be used to optimize engine performance and reduce emissions which will help to improve fuel efficiency and emissions control.

Global Automotive Microcontrollers Market Dynamics

The key market dynamics that are shaping the Automotive Microcontrollers Market include:

Key Market Drivers

• Rising Demand for Electric and Hybrid Vehicles: The growing popularity of electric and hybrid vehicles necessitates sophisticated microcontrollers to manage powertrain control, battery management, regenerative braking, and other critical functions specific to these vehicle types.
• Advancements in Autonomous Driving Technologies: The development of autonomous driving technologies relies heavily on microcontrollers to process sensor data, execute control algorithms, and make real-time decisions. As autonomous vehicles move closer to commercialization, the demand for high-performance microcontrollers capable of handling complex processing tasks will continue to rise.
• Increasing Electronic Content in Vehicles: Modern vehicles are equipped with a wide array of electronic systems and features, including advanced driver assistance systems (ADAS), infotainment systems, connectivity features, and more. This proliferation of electronic content in vehicles requires more powerful and efficient microcontrollers to handle complex functionalities.
• Advancements in Autonomous Driving Technologies: The development of autonomous driving technologies relies heavily on microcontrollers to process sensor data, execute control algorithms, and make real-time decisions. As autonomous vehicles move closer to commercialization, the demand for high-performance microcontrollers capable of handling complex processing tasks will continue to rise.
• Integration with Machine Learning: Machine learning is increasingly being integrated into various fields like cars, smartphones, robotics, and drones due to advancements in AI algorithms and processing power. On-device AI, which processes data offline, offers enhanced security and privacy protection. Embedded artificial intelligence is becoming more common in the AI sector. Innovative advancements in AI and machine learning create new opportunities for microcontrollers in industries like medical profession, IoT, smart factories, and smart cities, resulting in growth prospects in the microcontroller market.
• Cost-cutting and Energy Efficiency: Automobile manufacturers are always looking for ways to cut costs and make cars more energy-efficient. In response to these needs, microcontroller producers are creating more affordable solutions with improved performance, higher integration, and lower power consumption, resulting in market growth.

Key Challenges:

• Strict Safety and Security Standards: To guarantee the dependable operation of vital systems and defend against cyberattacks, automotive applications demand microcontrollers to adhere to strict safety and security standards. Complying with functional safety requirements like ISO 26262 and cybersecurity standards like ISO/SAE 21434 increases the complexity and expense of developing microcontrollers, thereby limiting market adoption.
• Performance and Efficiency Demands: Meeting the performance and efficiency demands of automotive applications while maintaining low power consumption is a significant challenge for microcontroller manufacturers. Automotive systems require microcontrollers capable of processing large volumes of data in real time while operating within strict power constraints.
• Supply Chain Disruptions: Geopolitical tensions, natural disasters, and component shortages are some of the variables that create supply chain disruptions in the automotive sector. Effective risk management in the supply chain is necessary for microcontroller manufacturers to guarantee continuous production and delivery of automotive-grade microcontrollers.

Key Trends:

• Emphasis on Sustainability and Energy Efficiency: The design of automotive microcontrollers is increasingly taking energy efficiency and sustainability into account due to regulatory requirements and environmental concerns. Vehicle makers can create environmentally friendly automobiles with lower energy consumption and emissions due to microcontrollers with low power consumption, sophisticated power management capabilities, and support for energy-efficient hardware accelerators.
• Rise of Electric and Autonomous Vehicles: As EVs and autonomous driving technologies proliferate, there is an increasing trend for sophisticated microcontrollers that can handle battery management, sensor fusion, powertrain control, and real-time decision-making. As the EV and autonomous vehicle markets expand, microcontrollers tailored for these applications are becoming more and more popular.
• Adoption of AI and Machine Learning: Automotive microcontrollers are integrating AI and machine learning technologies to enhance functions like predictive maintenance, adaptive control, and intelligent decision-making. These microcontrollers can analyze sensor data, identify trends, and respond intelligently to changing driving conditions, enhancing user experience, safety, and efficiency.

Global Automotive Microcontrollers Market Regional Analysis

Here is a more detailed regional analysis of the Automotive Microcontrollers Market:

Asia Pacific:

• According to Market Research, the Asia Pacific region is estimated to grow at a faster rate over the forecast period. In the Asia Pacific region, the Automotive Microcontrollers Market is influenced by several factors specific to the region’s automotive industry dynamics, technological advancements, regulatory environment, and market trends. Asia Pacific is a major hub for the automobile industry, with South Korea, China, Japan, and India at the forefront of production for two-wheelers, commercial vehicles, and passenger cars. The need for automotive microcontrollers, which are crucial parts of the electronic systems found in contemporary cars, is fueled by the region’s strong rise in automobile production.
• Several Asia-Pacific nations are encouraging the use of electric vehicles to cut down on pollution and reliance on fossil fuels. To promote the use of EVs, governments provide subsidies and incentives, which stimulate investments in EV manufacture and charging infrastructure. Microcontroller manufacturers now have the chance to supply parts for EV powertrains, battery management systems, and onboard charging as a result of the change to electric mobility.

North America:

• North America is home to some of the world’s leading automotive OEMs, including General Motors, Ford, and Stellantis (formerly Fiat Chrysler Automobiles), as well as numerous Tier 1 automotive suppliers. These companies drive demand for automotive microcontrollers to support the development of advanced vehicle systems and electronic components.
• North American automotive manufacturers are increasingly integrating ADAS features such as adaptive cruise control, lane-keeping assistance, and automatic emergency braking into their vehicles to enhance safety and driver assistance. Automotive microcontrollers play a critical role in implementing these advanced safety technologies, processing sensor data, and executing control algorithms to assist drivers and prevent collisions.

Europe:

• Europe is estimated to exhibit strong growth potential over the forecast period. Europe is a major hub for automotive manufacturing, with countries such as Germany, France, Italy, and the United Kingdom hosting numerous automotive OEMs, Tier 1 suppliers, and technology providers. The region’s strong automotive industry presence drives demand for automotive microcontrollers to support the development of advanced vehicle systems and electronic components.
• European countries are leading the transition towards electric mobility, with ambitious targets to reduce greenhouse gas emissions and promote the adoption of electric vehicles (EVs). Microcontrollers are essential components in electric vehicles, controlling powertrain systems, battery management, regenerative braking, and other functionalities specific to electric propulsion.

Global Automotive Microcontrollers Market: Segmentation Analysis

The Global Automotive Microcontrollers Market is segmented on the basis of Type, Application, and Geography.

Automotive Microcontrollers Market, By Type

• 16-Bit Microcontrollers
• 8-Bit Microcontrollers
• 32-Bit Microcontrollers

Based on Type, the market is segmented into 16-bit Microcontrollers, 8-bit Microcontrollers, and 32-bit Microcontrollers. The 32-bit microcontrollers segment is estimated to dominate with a revenue share of more than 50.0%. A 32-bit microcontroller is an embedded SoC that has a CPU capable of processing 32 bits of data at once. It frequently has a large memory capacity (up to several megabytes) and an extensive collection of state-of-the-art peripherals, such as digital signal processors (DSPs), fast ADCs, and cutting-edge communication interfaces including CAN bus, USB 3.0, and gigabit Ethernet. The enhanced processing power of 32-bit microcontrollers is one of their main benefits. Compared to 16-bit microcontrollers, they can handle more data and carry out more calculations thanks to a more extensive data bus.

Automotive Microcontrollers Market, By Application

• Body Electronics
• Chassis And Powertrain
• Infotainment And Telematics
• Safety And Security

Based on Application, the market is segmented into Body Electronics, Chassis And Powertrain, Infotainment And Telematics, and Safety And Security. The Safety & Security segment is estimated to dominate within the Automotive Microcontrollers Market driven by the increasing emphasis on vehicle safety, regulatory requirements, and the growing complexity of automotive electronics. Microcontrollers are essential for airbag control systems, which deploy airbags in the event of a collision to protect occupants from injury. These microcontrollers process sensor data from crash sensors and make split-second decisions to deploy the appropriate airbags with the right timing and force. With safety regulations mandating advanced airbag systems in vehicles, the demand for microcontrollers in airbag control applications remains strong.

Key Players

The “Global Automotive Microcontrollers Market” study report will provide valuable insight with an emphasis on the global market including some of the major players of the industry are Toshiba, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Analog Devices, Cypress Semiconductors, Maxim Integrated, Texas Instruments, STMicroelectronics, Rohm Semiconductor, Renesas Electronics, Microchip Technology, and Others.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Automotive Microcontrollers Market Recent Developments

• In July 2021, Sterling Gtake, a major producer of electric two-wheelers, placed an order with Sterling Gtake E-mobility Ltd, valued at INR 60 crore. The company is in the advanced stages of negotiations with over 20 electric vehicle manufacturers to offer motor control units for various vehicle types, including passenger cars, commercial vehicles, and two- and three-wheeled vehicles.
• In February 2022, ST has introduced Stellar E MCUs, designed for software-defined electric vehicles (EVs). These MCUs, based on Arm CortexM7 32-bit, 300 MHz processors, have 16 K bytes of cache per core and up to 2 MB of on-chip Flash. They are strong, centralized zone and domain controllers, making designing and scaling a zonal architecture car easier. They also simplify the control of wide-bandgap power electronics like silicon carbide, which is becoming a standard for effective power conversion in EVs.

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