Automotive MCU Market - Forecast(2024 - 2030)

Automotive MCUs Market Overview

The Automotive MCUs market size in 2023 is estimated to be $13.2 Billion and is projected to reach $22.9 Billion in 2030 at a CAGR of 8.2% during the forecast period 2024-2030. The push towards electric and autonomous vehicles is a primary driver, necessitating sophisticated MCUs to manage complex electronic systems. These MCUs are essential for controlling various functions, including powertrain, infotainment, safety, and advanced driver-assistance systems (ADAS). Another notable trend is the adoption of higher bit sizes, such as 32-bit MCUs, which offer enhanced processing power and efficiency, crucial for handling the growing data demands of modern vehicles. 
Furthermore, the industry is witnessing a shift towards more energy-efficient solutions, aligning with global sustainability goals. Manufacturers are focusing on developing MCUs with lower power consumption without compromising performance. Additionally, the integration of Internet of Things (IoT) capabilities in automotive MCUs is enabling real-time data exchange and connectivity, enhancing vehicle performance and safety. As the automotive sector continues to evolve, the role of MCUs becomes increasingly pivotal, driving innovations that redefine vehicle functionality and user experience.

Market Snapshot :-

Advanced Driver Assistance Systems (ADAS)

The integration of advanced driver assistance systems (ADAS) is a significant trend in the automotive microcontroller industry. These systems rely on MCUs to process data from sensors and cameras, enabling features like automatic braking, lane-keeping assistance, and adaptive cruise control. The growing demand for safety and convenience in vehicles drives the development and implementation of more sophisticated ADAS technologies, enhancing overall driving experience and vehicle safety. 

Electric and Autonomous Vehicles

According to the Government of the UK, self-driving cars could constitute 40% of the UK automotive market, potentially reaching a market value of £42 billion ($45.4 billion) by 2035. The shift towards autonomous vehicles is transforming the automotive microcontroller landscape. As autonomous vehicles rely on a multitude of sensors for real-time data collection, there's a growing necessity for MCUs capable of complex sensor fusion. As a result, there's a heightened demand for microcontroller solutions that can meet these complex requirements, driving innovation and development in the Automotive MCUs Market.

Automotive MCUs Market Report Coverage

The report: “Automotive MCUs Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Automotive MCUs market.
By Bit Size: 8-Bit MCUs, 16-Bit MCUs, 32-Bit MCUs and 32-Bit MCUs Fusion Box 
By Connectivity: V2V Connectivity, V2I Connectivity and V2C Connectivity
By Technology: Park Assist System, Blind Spot Detection System, ACC and TPMS 
By EV: BEV, HEV, PHEV and FCEV
By Vehicle: Passenger Car and Commercial Vehicle
By Application: Powertrain & Chassis, Safety & Security, Body Electronics and Telematics & Infotainment
By Geography:  North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC (China, Japan India, South Korea, Australia & New Zealand, Indonesia, Malaysia, Taiwan and Others), South America (Brazil, Argentina, Chile, Colombia and others), and RoW (Middle East and Africa).

Key Takeaways

• Asia Pacific held the largest market share with 37% in 2023. The Asia Pacific region is witnessing an increase due to rapid urbanization, economic growth, and a burgeoning population. These factors drive the need for advanced mobility solutions, leading to increased adoption of MCUs in automotive applications.
• Increasing integration of connected car technologies drives demand for MCUs with IoT capabilities, facilitating seamless connectivity, data exchange, and communication between vehicles and external networks for enhanced functionality and user experience. 
• In October 2023, Artery Technology launched its automotive-grade microcontroller, the AT32A403A, marks its entry into the automotive MCU market, meeting stringent automotive standards. With increasing demand for software-defined vehicles under the CASE trend, MCUs play a crucial role, driving growth in the global automotive microcontroller market.

Automotive MCUs Market Segment Analysis – By EV

The HEV segment held the largest share in the Automotive MCUs market in 2023 and is anticipated to grow at a CAGR of 8.5% by revenue through the forecast period 2024-2030. According to the International Energy Agency, new electric car registrations in the US reached 1.4 million in 2023, marking a growth of over 40% from 2022. The rise of electric vehicles (EVs) is influencing the HEV market, with consumers increasingly gravitating towards electrified transportation options. HEVs serve as a bridge between conventional gasoline-powered vehicles and fully electric cars, offering a familiar driving experience with the added benefits of electric propulsion. This transition towards electrification is driving the integration of sophisticated MCUs in HEVs to manage hybrid powertrains seamlessly and enhance overall vehicle performance and efficiency. As the automotive industry continues to evolve towards electrification, HEVs are poised to play a significant role, driving further innovation and advancements in automotive microcontroller technology.

Automotive MCUs Market Segment Analysis – By Application

The Powertrain & Chassis segment held the largest share of 36% in the Automotive MCUs market in 2023. The United States consumed approximately 8.94 million barrels per day or roughly 376 million gallons per day of finished motor gasoline in 2023, as per U.S. Energy Information Administration. The increasing demand for fuel efficiency and emissions reduction drives the adoption of advanced MCUs in powertrain systems. These MCUs optimize engine performance, manage fuel injection, and control transmission systems to enhance fuel economy and meet stringent emission standards. Additionally, the growing trend towards electrification in vehicles, including hybrid and electric powertrains, fuels the need for specialized MCUs. These MCUs play a crucial role in managing battery systems, electric motors, and power distribution in electric vehicles, contributing to improved efficiency and performance.

Automotive MCUs Market Segment Analysis – By Geography

Asia Pacific held the largest share of 37% in the Automotive MCUs market in 2023 and owing to the rapid expansion of the automotive industry in countries like China, Japan, and India fuels the demand for MCUs, driven by increasing vehicle production and technological advancements. Additionally, stringent government regulations regarding vehicle safety and emissions encourage the adoption of advanced microcontroller technologies for efficient vehicle management systems. Moreover, the growing trend towards electric vehicles (xEVs) and the development of autonomous driving technologies in the region further boost the demand for sophisticated microcontroller units. For instance, in March 2024, Toshiba introduced SmartMCD™ Series gate driver ICs with built-in microcontroller for sensorless control of automotive three-phase brushless DC motors, reducing system sizes and enhancing motor control capabilities. The debut product, TB9M003FG, streamlines component counts and integrates power MOSFET control, flash memory, and communication interfaces, catering to the growing demand for compact, efficient automotive motor solutions. The increasing focus on research and development activities by key market players to innovate and introduce cutting-edge microcontroller solutions tailored to regional automotive requirements drives market expansion in the Asia Pacific. 

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Automotive MCUs Market Drivers

Advancements in Automotive Safety Systems Necessitate More Powerful Microcontroller Units.

Advancements in automotive safety systems demand more robust microcontroller units (MCUs) in the automotive industry. For uncompromised functional safety and security in embedded systems, advanced 32-bit MCUs offer robust protection against malware attacks. For instance, in November 2023, Infineon provided memory solutions tailored for automotive applications, ensuring high reliability and endurance. Key applications like BMS, Body Control Units with Integrated Gateway, HVAC, Gateway, and ADAS demand tailored solutions for real-time data capture, flexibility, scalability, and enhanced security features to meet evolving automotive requirements. Increasing complexity in safety features like adaptive cruise control, lane departure warning, and autonomous emergency braking requires advanced MCUs to process data quickly and accurately. Enhanced safety regulations also drive the need for more powerful MCUs to ensure compliance and meet stringent safety standards. Moreover, the integration of AI and machine learning algorithms for real-time decision-making in safety-critical situations further underscores the necessity for high-performance MCUs. These drivers push automotive manufacturers to invest in advanced microcontroller units to enhance vehicle safety and performance.

Increasing Complexity of In-Vehicle Infotainment Systems Necessitates Powerful Microcontroller Units

As consumers demand more advanced features like touchscreens, voice recognition, navigation, and connectivity options, automakers require powerful microcontroller units (MCUs) to support these functionalities seamlessly. Modern infotainment systems also integrate with other vehicle systems like safety features and diagnostics, further amplifying the need for robust MCUs. Additionally, the trend towards electrification and autonomous driving introduces additional complexities, such as managing sensor data and processing algorithms in real-time, placing higher demands on MCUs for efficient performance. Consequently, automakers are investing in advanced MCUs with enhanced processing capabilities and connectivity features to meet these evolving demands and deliver a superior in-car experience to consumers. The ability of MCUs to handle these intricate tasks efficiently is crucial for the success of modern automotive infotainment systems, making them a vital component in the automotive industry's technological evolution. 

Complexity in Integrating Multiple Functionalities within a Single Microcontroller Unit Poses Design Challenges

With the increasing demand for advanced features such as connectivity, security, and autonomous driving capabilities, microcontroller units need to accommodate a wide range of functions while ensuring seamless operation and compatibility. However, integrating these functionalities into a single unit requires meticulous planning, careful allocation of resources, and effective management of power consumption and heat dissipation. Moreover, ensuring reliability, safety, and compliance with industry standards adds another layer of complexity to the design process. Meeting these challenges necessitates robust engineering solutions, innovative design techniques, and thorough testing procedures to deliver high-performance microcontroller units that meet the stringent requirements of the automotive industry.

Automotive MCUs Market Landscape

The Automotive MCUs market is moderately consolidated with key players are adopting strategies such as acquisition, product launches and others with the players and companies prevalent in the market. The top companies present in the market include the below.

1. Analog Devices, Inc. 
2. Infineon Technologies AG
3. Microchip Technology Inc.
4. NXP Semiconductors
5. STMicroelectronics
6. Renesas Electronics Corporation
7. Rohm Semiconductor
8. Texas Instruments Incorporated
9. Toshiba Corporation
10. Silicon Laboratories

Acquisitions

• In May 2024, Infineon Technologies launched the PSoC 4 HVPA 144K microcontroller, targeting automotive battery management, featuring high-precision analog integration. It complies with ISO 26262, offering precise measurement of battery parameters and ASIL-C functional safety standards compliance for LINbus communication.
• In June 2023, Cortus introduced its ULYSS family of secure, low-power RISC-V automotive MCUs, catering to diverse vehicle functions like body control, safety, networking, and ADAS. These MCUs adhere to stringent safety standards and offer comprehensive technical specifications, supporting various automotive electronic systems.

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