Automotive Microcontrollers (MCU) Market Key Drivers, Restraints, Growth Report 2024 to 2032 – Exactitude Consultancy
Luton, Bedfordshire, United Kingdom, Nov. 08, 2024 (GLOBE NEWSWIRE) — Overview of Automotive Microcontroller Market
A microcontroller unit (MCU) is a small integrated circuit that combines a processor core, memory, and peripherals essential for controlling various functions within electronic systems. In the automotive industry, MCUs are critical for managing operations across multiple systems, such as engine control, safety features, infotainment, and driver-assist technologies. As demand for automobiles rises, the microcontroller market in this sector is expected to grow significantly.
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Market Segmentation and Trends
Safety and Security Systems: The safety and security application segment is anticipated to dominate the automotive microcontroller market, driven by the adoption of advanced single-core and multi-core MCUs in vehicles. Safety regulations, such as mandatory ABS installation in India (from 2018) and TPMS requirements for commercial vehicles globally, are major growth drivers.
Connected and Automated Technologies: The increasing consumer preference for connected and automated vehicles is pushing the demand for automotive microcontrollers. Government initiatives promoting autonomous vehicles on public roads will further fuel this market growth. However, cybersecurity and system failures in extreme conditions remain significant market restraints.
Bit-size Segmentation: The market for 32-bit microcontrollers is expected to experience the highest growth due to their widespread use in electric vehicles (EVs) and conventional vehicles. Advanced power electronics in modern vehicles necessitate the use of these high-performance MCUs.
Automotive Microcontroller Market Trends: The Growing Role of Connected Technologies
The automotive industry is rapidly adopting connected technologies that enable vehicles to interact with both drivers and infrastructure. These innovations allow cars to access the internet through inbuilt systems, enabling smart features such as remote vehicle control, advanced safety functions, and internet connectivity. This growing trend is fundamentally reshaping the automotive sector, particularly through technologies like Artificial Intelligence (AI), Advanced Driver Assistance Systems (ADAS), Vehicle-to-Infrastructure (V2I), Vehicle-to-Vehicle (V2V), and Vehicle-to-Everything (V2X). These advancements are steering the industry towards fully autonomous driving, highlighting the increasing reliance on microcontrollers to manage these systems efficiently.
Methodology
The data in this report was gathered using various secondary sources, including industry bodies like the Japan Automobile Manufacturers Association (JAMA), European Automobile Manufacturers Association (EAMA), and Canadian Automobile Association (CAA). Additionally, interviews with industry experts and suppliers were conducted to provide insights into future trends within the automotive microcontroller market. Both bottom-up and top-down approaches were utilized to estimate the global market size, which was validated through region-wise production volumes and demand analysis. The market size, in terms of value, was calculated by multiplying the average selling price of automotive microcontrollers by the number of units installed in vehicles across different regions.
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Automotive Microcontroller Market Growth Factors: Key Drivers of Expansion
1. Rapid Development in the Automotive Industry and Demand for Safety Features
Microcontrollers are integral to various automotive systems such as fail-safe mechanisms, electric control units, automotive fault-tolerant systems, and more. These systems help detect faults and ensure proper functioning by engaging relevant controls through sensor-based microcontrollers. The demand for these systems has been growing due to the increasing need for safety features in vehicles.
In the U.S., for example, road safety remains a significant concern, with the Department of Transportation reporting that nearly 32 fatalities occur daily due to drunk driving. The National Highway Traffic Safety Administration (NHTSA) recorded 42,795 traffic-related fatalities in 2022. These alarming statistics have heightened the need for advanced safety features, which in turn drives the demand for microcontrollers. Features such as parking assistance, lane departure warnings, collision avoidance systems, electronic stability control, airbags, blind-spot detection, and adaptive cruise control rely on microcontroller technology. The increasing adoption of these features across global markets is fueling growth in the automotive microcontroller sector.
2. Government Regulations on Emission Reduction
Government regulations aimed at reducing vehicle emissions are also a major factor propelling the automotive microcontroller market. For instance, the European Union’s regulation 2019/631, enacted in 2019, set strict CO2 emission standards for passenger and light commercial vehicles, with targets running through 2024. If manufacturers fail to meet these standards, penalties are imposed, encouraging them to adopt advanced technologies for emission control.
Microcontrollers play a crucial role in powertrain applications by optimizing engine efficiency and reducing fuel consumption. They help minimize CO2 emissions through precise engine control, supporting compliance with stringent emission standards. As environmental regulations tighten globally, the automotive industry’s reliance on microcontrollers to meet these standards is expected to increase, further boosting market growth.
These growth factors, combined with the rising focus on safety, efficiency, and regulatory compliance, create a favorable market environment for automotive microcontrollers in the coming years.
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Automotive Microcontroller Market Segmentation Analysis: By Type
The automotive microcontroller market is segmented based on the type of microcontroller, which includes 8-bit, 16-bit, and 32-bit microcontrollers. Each segment caters to different automotive applications depending on the performance, cost, and processing power required.
8-bit Microcontrollers
The 8-bit microcontroller segment held a significant market share in 2023. These microcontrollers are cost-effective and require less physical space, making them ideal for applications that do not demand high computational power. 8-bit MCUs are widely used in automotive systems that need to operate under high temperatures, such as lighting, comfort and information systems, security body electronics, telematics, entry control, and powertrain. Due to their ability to meet basic performance requirements while being low-cost, this segment continues to drive market growth in entry-level and less complex automotive functions.
16-bit Microcontrollers
The 16-bit microcontroller segment accounted for a moderate market share in 2023. These MCUs provide a balance between performance and power consumption, sitting between 8-bit and 32-bit options. Offering a middle ground in terms of cost, size, and processing speed, 16-bit MCUs are well-suited for applications requiring moderate data processing power but without the need for the extensive processing capabilities of a 32-bit MCU. They find their place in a range of automotive systems where performance is important but the budget constraints are also a consideration.
32-bit Microcontrollers
The 32-bit microcontroller segment captured the largest market share in 2023. These MCUs are ideal for automotive applications that require intense data processing and high precision. As the automotive industry moves toward more complex and advanced systems, the demand for 32-bit MCUs is rapidly increasing. They are widely used in systems such as gearboxes, injection control, and central control units for combustion engines due to their ability to handle complex computations efficiently while maintaining superior power efficiency and performance. As the automotive industry increasingly integrates advanced driver-assist systems (ADAS) and autonomous vehicle technologies, the reliance on 32-bit microcontrollers is expected to rise, further fueling market growth.
Automotive Microcontroller Market Segmentation Analysis: By Application
The automotive microcontroller market is segmented based on various applications including infotainment & telematics, chassis & powertrain, body electronics, and safety & security. Each segment reflects the evolving needs and advancements in automotive technology.
Chassis & Powertrain
The chassis & powertrain segment accounted for the largest market share in 2023. This growth is driven by the increasing demand for improved engine efficiency and control. Microcontrollers play a critical role in Engine Control Unit (ECU) diagnostics and are integral to enhancing both power and fuel efficiency in vehicles. The need for optimized vehicle performance is accelerating the growth of this segment.
Infotainment & Telematics
The infotainment & telematics segment held a significant share in 2023, driven by the growing demand for connectivity and advanced in-car technologies. As modern vehicles increasingly integrate systems like Artificial Intelligence (AI) and Advanced Driver Assistance Systems (ADAS), microcontrollers are becoming essential in supporting the advanced features of telematics systems. The rising adoption of connected cars will continue to fuel growth in this segment.
Safety & Security
The safety & security segment also accounted for a notable market share in 2023. The rising penetration of connected and autonomous vehicles is driving the demand for advanced safety features such as collision avoidance systems, lane-keeping assistance, and cybersecurity technologies. The increased focus on autonomous driving capabilities is propelling the need for robust microcontrollers in this sector, particularly to ensure the integrity and security of connected vehicles.
Regional Market Insights
- Asia Pacific led the global market in 2023. The region’s dominance is driven by leading automotive players such as Renesas Electronics, which has introduced new microcontroller solutions for advanced driver assistance systems (ADAS) and safety systems.
- North America also held a significant market share, with major players such as Texas Instruments expanding their product portfolios for future vehicles, particularly through innovations in microcontroller solutions aimed at next-gen vehicle systems.
- Europe accounted for a notable share, bolstered by regulatory incentives for autonomous vehicles and environmental mandates on reducing emissions. This is prompting European companies to invest heavily in advanced microcontrollers that meet these evolving regulatory requirements.
- Rest of the World contributed a sustainable market share, with increasing interest in ride-hailing services and connected vehicles, which is driving the adoption of microcontrollers in this region.
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Competitive Landscape and Key Players
The automotive microcontroller market is competitive, with Renesas Electronics Corporation emerging as a key player. Renesas has developed advanced microcontrollers for use in various automotive applications such as ADAS, engine control, and safety features. The company’s focus on innovation and product diversification is strengthening its position in the global market.
Texas Instruments is another major player in the industry, expanding its portfolio of microcontroller solutions and offering scalable products to cater to the increasing demands of the automotive sector.
Key Players:
- Infineon Technologies AG (Germany)
- Texas Instruments (U.S.)
- Toshiba International Corporation (Japan)
- NXP Semiconductors (Netherlands)
- GigaDevice (China)
- Microchip Technology Inc. (U.S.)
- Renesas Electronics Corporation (Japan)
- Analog Devices Inc. (U.S.)
- Silicon Laboratories (U.S.)
Recent Developments :
- STMicroelectronics launched the STM32WL3 microcontroller in November 2023. This MCU combines ST’s expertise in wireless device design with its efficient STM32 architecture. It features a multi-protocol radio ideal for long-range communication, especially in industrial, scientific, and medical (ISM) applications.
- Infineon Technologies expanded its leadership in the automotive semiconductor market, securing the number one spot globally for automotive microcontrollers in 2023. Infineon’s AURIX™ and TRAVEO™ MCU families saw a 44% increase in sales, giving the company a 29% market share.
- Renesas Electronics introduced the R-Car V4H system-on-chip (SoC) platform for autonomous driving in November 2023. This platform includes powerful multi-core processing, designed to enable real-time processing and improve in-car AI capabilities.
- Texas Instruments announced an expansion of its microcontroller portfolio in December 2023 with the launch of the MSP430FR6x series. These microcontrollers are optimized for energy efficiency in automotive sensor applications and enable significant improvements in power savings and performance.
- Microchip Technology introduced its PIC32MX automotive-grade microcontroller in November 2023. It is designed for advanced safety and security features in automotive applications like ADAS and electric vehicle powertrains.
- NXP Semiconductors released an advanced automotive MCU in November 2023, the S32G3, optimized for next-gen vehicle networking and cloud connectivity. It features enhanced security for connected and autonomous vehicle applications.
Market Segmentations:
By Application Type
- Powertrain and Chassis
- Body Electronics
- Safety and Security Systems
- Infotainment and Telematics
By Electric vehicle type
By Vehicle Type
- Passenger Cars (PC)
- Commercial Vehicles (CV)
By Bit Size
- 8-bit Microcontrollers
- 16-Bit Microcontrollers
- 32-Bit Microcontrollers
By Technology
- Adaptive Cruise Control
- Park Assist System
- Blind Spot Detection
- Tire Pressure Monitoring System
By Connectivity
- Vehicle to Vehicle (V2V) Connectivity
- Vehicle to Infrastructure (V2I) Connectivity
- Vehicle to Cloud (V2C) Connectivity
By Region
- North America
- Europe
- Germany
- France
- U.K.
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East & Africa
- UAE
- South Africa
- Rest of Middle East & Africa
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