The automotive microcontroller market is driven by the increasing demand for advanced driver assistance systems (ADAS) and infotainment systems in vehicles. The rising demand for automobiles, coupled with the increasing need for safety and comfort, is leading to the adoption of these systems in vehicles. Another element influencing the industry is the global implementation of strict emission standards.
There is a rising need for efficient and secure automobiles as the number of vehicles on the road rises. Automotive microcontrollers are used in various applications such as body electronics, infotainment and telematics, and chassis and powertrain to provide advanced features in vehicles. They are also utilised for anti-lock brake systems, gearbox control, and engine management (ABS).
One of the key reasons propelling the market for automotive microcontrollers is the rising need for vehicles that are environmentally friendly and economical to run on gas. The stringent emission norms set by different governments across the globe are encouraging manufacturers to develop more fuel-efficient engines. This has led to the development of new technologies such as start-stop systems and electric power steering, which require automotive microcontrollers for their proper functioning.
The desire for cutting-edge features in cars, like infotainment systems, advanced driver assistance systems (ADAS), and body electronics, is driving the growth of the automotive microcontrollers market. Another significant factor propelling the expansion of the automotive microcontrollers market is the increased need for fuel-efficient and emission-reduced automobiles.
However, the market for automotive microcontrollers is being constrained by the high cost of these components and the difficulties in their design and development.
On the basis of type, application, and region, the automotive microcontrollers market has been divided. According to type, the automotive microcontrollers market has been divided into 8-bit, 16-bit, 32-bit, and other microcontrollers (64-bit and above). The automotive microcontroller market is anticipated to be dominated by the 8-bit microcontroller segment during the projected period due to its low cost and wide availability.
On the basis of application, the automotive microcontroller market has been classified into body electronics applications, chassis & powertrain applications, infotainment & telematics applications, and others (safety & security). The body electronics application segment is estimated to be the fastest-growing application segment during the forecast period due to the increasing adoption of AD
An automotive microcontroller (MCU) is a specialized type of microcontroller that is designed for use in automobiles. Vehicle MCUs are employed in a range of automotive applications, including telematics, entertainment, and body electronics. Automotive MCUs are available in a variety of different bit widths, including 8-bit, 16-bit, and 32-bit. The most common type of automotive MCU is the 16-bit MCU. 16-bit MCUs offer a good balance between processing power and cost, making them ideal for use in many automotive applications.
Automotive MCUs typically have on-chip peripherals that are specifically tailored for automotive applications. These peripherals can include things like CAN controllers, LIN controllers, and motor control peripherals. Automotive MCUs also often have special temperature ranges and EMI/RFI protection circuitry to deal with the harsh operating environment of an automobile.
The automotive microcontrollers (MCU) market is expected to grow from USD 5.54 billion in 2021 to USD 11.09 billion by 2031, at a CAGR of 7.52% between 2021 and 2031.
The demand for body electronics, chassis and powertrain, infotainment, and telematics applications in the automotive industry is largely responsible for the market's expansion.
The restraining factors of the automotive microcontroller market are:
- Lack of standardization: There is a lack of standardization in the automotive microcontroller market, which makes it difficult for suppliers to scale their businesses. This is because each automaker has its own set of specifications and requirements for microcontrollers.
- High costs: Automotive microcontrollers are relatively expensive compared to other types of microcontrollers. This is due to the fact that they need to be able to operate in extreme temperatures and conditions.
- Long product development cycle: The product development cycle for automotive microcontrollers is longer than that of other types of microcontrollers due to the stringent safety and quality requirements of the automotive industry.
However, another significant driver propelling the growth of the automotive microcontrollers market is the increased need for fuel-efficient and emission-reduced automobiles.
Currently, a small number of major firms dominate the fiercely competitive market for automotive microcontrollers. Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), Infineon Technologies AG (Germany), STMicroelectronics NV (Switzerland), and Renesas Electronics Corporation are the market's top contenders for automotive microcontrollers (Japan). Together, these businesses account for a sizeable portion of the automotive microcontrollers market.
Other notable players in the automotive microcontrollers market include Atmel Corporation (U.S.), Texas Instruments Incorporated (U.S.), Microchip Technology Incorporated (U.S.), Freescale Semiconductor Ltd. (U.K.), and Fujitsu Limited (Japan).
The market's largest section is composed of bit microcontrollers.
In 2019, the market for automotive microcontrollers is anticipated to be dominated by the category of -bit microcontrollers. The high demand for -bit microcontrollers can be attributed to their increasing use in body electronics applications, such as airbags, ABS/ESC systems, and power window controllers.
Chassis and Powertrain Segment to rule the market
The chassis and powertrain application segment include engine control units (ECUs), transmission control units (TCUs), battery management systems (BMSs), and electric power steering (EPS) systems. One of the main drivers fueling the expansion of this application category is the rising need for fuel-efficient vehicles. In addition, stringent emission norms are forcing automakers to equip their vehicles with advanced technologies, which is further anticipated to fuel the demand for automotive microcontrollers in chassis and powertrain applications.
America will command the market.
The world's largest market for radar detectors is reportedly in North America. The US contributes the most to this market. Some of the key factors propelling the growth of the radar detector market in this area include the rising demand for sophisticated safety features in automobiles and the rise in the number of speeding citations given. Additionally, it is projected that the existence of strict government laws related to car safety will support market growth in North America throughout the projection period.
Covid-19 Impact & Market Status
The COVID-19 outbreak has had a significant impact on the automotive microcontrollers market. The ongoing pandemic has led to a decline in vehicle production, which in turn, has adversely affected the demand for automotive microcontrollers. However, the market is expected to rebound in 2021 as vehicle production is expected to recover globally.
Latest Innovations in the Global Automotive Microcontrollers (MCU) Market: A Snapshot
- The recent developments in the automotive microcontrollers market are the introduction of new product offerings by leading players such as Texas Instruments (TI), NXP Semiconductors, and Renesas Electronics.
- TI has introduced its new family of automotive microcontrollers, the TMS470M MCU series, which features on-chip safety and security features.
- NXP has launched its next-generation automotive microcontroller platform, the S32K3, which is based on Arm Cortex-M33 core technology.
- Renesas has announced its new R-Car system-on-chips (SoCs), which are designed for use in autonomous driving applications.
Automotive Microcontrollers Market Scope
|Revenue forecast in 2031
|USD 11.09 billion
|CAGR of 7.52% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Atmel Corporation (U.S.), Texas Instruments Incorporated (U.S.), Microchip Technology Incorporated (U.S.), Freescale Semiconductor Ltd. (U.K.), and Fujitsu Limited (Japan).
Key Segment of Global Automotive Microcontrollers (MCU) Market
By Type Overview (USD Billion)
- 8-Bit Microcontrollers
- 16-Bit Microcontrollers
- 32-Bit Microcontrollers
By Application Overview (USD Billion)
- Body Electronics Chassis and Powertrain
- Infotainment and Telematics
By Region Overview (USD Billion)
- Rest of Asia Pacific
- Rest of North America
- Rest of Europe
Middle East and Africa