Automotive Microcontroller Market Size, Share & Industry Analysis, By Type (8-bit, 16-bit, and 32-bit), By Application (Infotainment & Telematics, Chassis & Powertrain, Body Electronics, and Safety & Security), and Regional Forecast, 2024-2032

The global automotive microcontroller market size was valued at USD 5.48 billion in 2023. The market is projected to grow from USD 5.74 billion in 2024 to USD 9.65 billion by 2032, exhibiting a CAGR of 6.7% during the forecast period.

A microcontroller, also known as MCU (MicroController Unit), is a compact integrated circuit that contains a processor core, memory, and various peripherals necessary for controlling specific functions within a system. Microcontrollers manage various electronic systems and functions in the automotive industry, from engine control and safety features to infotainment systems and driver-assist technologies. With the growing demand and production of automobiles, the microcontrollers used in automobiles witness significant growth in the forecast period.

The customer's inclination toward the demand for connected and automated technologies to be integrated into modern cars propels the automotive microcontroller market growth. Moreover, increasing adoption and government initiatives to adopt autonomous vehicles on public roads will drive the market in the near future. However, threats related to safety and security, consisting of cyber threats and functional failures in extreme conditions, restrain the market growth. The major players are focused on research and development of safety and security features with compatible microcontrollers, which fuels the market growth in the forecast period.

The microcontroller market experienced a serious impact, especially during the initial phase of the COVID-19 pandemic. Production and exports were halted due to the COVID-19 impact, and companies witnessed a shortfall and disruption in the manufacturing of microcontrollers due to labor shortage. Microcontrollers used as a crucial component in the electronic control units integrated in automotive systems were in short supply, forcing the automotive manufacturers to reduce the production of automobiles. This hit the automotive industry's economy.

Automotive Microcontroller Market Trends

Increasing Use of Connected Technologies in Vehicles is a Latest Trend for the Automotive Industry

Connected technologies offered in a vehicle help the user and vehicle to interact with each other. With the help of connected technologies, a connected car can access the internet through the inbuilt systems. It provides smart features, including remote operation of vehicle functions, internet connectivity, remote operation of vehicle functions, and advanced safety features. The connectivity in the automotive industry has set the trend in modern car feature that is transforming the industry. Technologies such as Artificial Intelligence, Advanced Driver Assist Systems ADAS, park assist system, Vehicle to Infrastructure (V2I), Vehicle to Vehicle (V2V), Vehicle to Everything (V2X), and many other features are inclining the automotive industry toward autonomous driving functionality.

The devices integrated with this technology are all connected to the microcontroller to operate the functions efficiently. For this purpose, the advancement in the microcontroller is also necessary, as it plays a crucial role in the vehicle control system. Moreover, major companies focused on the concept of robotaxi are providing automated ride-hailing services with the help of connected technologies. This is creating a trend in the market that is fueling the automotive microcontroller market growth.

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Automotive Microcontroller Market Growth Factors

Rapid Development in Automotive Industry along with Demand for Safety Features Drives the Market

The microcontroller used in the automotive industry is utilized in several systems such as fail-safe systems, electric control units, automotive fault-tolerant systems, and others. The fault-tolerant system senses any fault in the vehicle or any incident to be occurred by the vehicle with the help of a sensor microcontroller and engages the required function for that instance.

According to the Department of Transportation of the U.S., nearly 32 fatalities occur every day in the U.S. in drunk and driving car crashes, which is one fatality every 45 minutes.

As per the annual traffic crash data released by the Department of Transportation National Highway Traffic Safety Administration (U.S.), in 2022, nearly 42,795 lives were lost in traffic crashes across the U.S. Therefore, due to the increase in road accidents worldwide, the demand for safety features such as parking assistance, lane departure warnings, collision avoidance systems, electronic stability control, airbags, telematics, traction control, blind spot detection system, and adaptive cruise control is driving the market.

Rising Government Regulations on Emission Reduction Drives the Market

Microcontrollers are widely used in powertrain applications to minimize vehicle emissions and improve engine efficiency. Moreover, these aid in reducing fuel consumption. In April 2019, the European Union adopted regulation 2019/631 to reduce CO2 emissions from passenger and light commercial vehicles. This regulation specifies fleet-wise emission standards for the next decade. Specific standards for cars and vans are set under this regulation for 2020 – 2024.

If a manufacturer fails to maintain these targets, then a penalty will be levied for each of its vehicles newly registered in that year. Microcontrollers play a pivotal role in emission control technology and help minimize CO2 emissions by enabling efficient engine control. Such government initiatives and technological advancements will drive the sales of microcontrollers in the automotive industry.

RESTRAINING FACTORS

Functioning and Operational Failures in Extreme Weather Conditions Hamper Market Growth

An automotive microcontroller unit that faces failure issues leads to a complete shutdown of the vehicle's operation. Microcontroller has a very low tolerance to a temperature, such as in extreme cold and hot environments, which causes impairment in its functions and results in operations failures. In extremely hot temperatures, the microcontroller tends to melt down, breaking the resistance and weakening signals, due to which failure occurs. Moreover, the microcontroller also stops working in extremely low temperatures.

Due to this issue, countries that experience extreme weather conditions tend to use the least number of microcontrollers required in the vehicle, majorly restraining the market. Although to tackle this situation, various companies are focused on developing microcontrollers, such as high-temperature and low-temperature microcontrollers, that will sustain the temperature variations according to the region.

STMicrocontroller introduced the SPC5 family of 32-bit automotive controllers designed to operate for various applications, including ADAS to engine and transmission control, safety features, and others. The SPC5 microcontroller offers up to three cores and can operate at a temperature range of -400⁰C to 1,650⁰C temperature.

Automotive Microcontroller Market Segmentation Analysis

By Type Analysis

Growing Application where Intense Data Processing is Needed and Increasing Advanced Features in Each Vehicle to Drive Segment Growth

Based on type, the market is divided into 8-bit, 16-bit, and 32-bit.

The 8-bit segment held a significant market share in 2023. 8-bit microcontrollers require less space and are cheap. Many under-hood automotive electronic systems need microcontrollers that can withstand high-temperature requirements. These microcontrollers are used in various applications, including lighting, comfort & information, security body electronics and telematics, entry control, powertrain, and safety & chassis, thus driving the market.

The 16-bit segment held a certain market share in 2023. They provide excellent performance with significant power savings. 16-bit microcontrollers offer the perfect middle ground in terms of cost, size, and processing speed between 8-bit and 32-bit microcontrollers that drives the market in the forecast period.

The 32-bit segment held the largest market share in 2023. These microcontrollers are ideal for applications where intense data processing is required. The demand for 32-bit microcontrollers is rapidly rising due to requirements for excellent performance, high accuracy, and superior power efficiency. These microcontrollers are widely used in gearboxes for injection control and combustion engines’ central control units, thereby fueling the market growth.

By Application Analysis

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Increasing Vehicle Software & Electronic Content to Drive the Segment Growth

Based on application, the market is split into infotainment & telematics, chassis & powertrain, body electronics, and safety & security.

Chassis & powertrain segment accounted for the largest market share in 2023. Rising demand for improving engine efficiency and control will drive the segment’s growth. Microcontrollers are widely used in Engine Control Unit (ECU) diagnostics applications. In addition, these microcontrollers aid in improving the power and fuel efficiency of the vehicle, propelling the market growth.

Infotainment & telematics segment held a decent market share in 2023. The advent of technology and connectivity in the automotive industry will surge the demand for microcontrollers in this segment. Increasing telematics penetration in the automotive mainstream will drive the segment’s growth in the future.

The body electronics segment accounted for a significant market share in 2023. Increasing vehicle software content will drive body electronics penetration, thereby supporting market growth. Body electronics are essential in a vehicle to create comfort and convenience. These microcontrollers help improve the operational capabilities of heating, Ventilation, and Air Conditioning (HVAC) systems, lighting systems, and door control systems that drive the market.

The safety & security segment accounted for a certain market share in 2023. The threat of cyber security in the wake of the rising penetration of connected and autonomous vehicles will surge product demand within this segment. Increasing penetration of connected and autonomous vehicles will drive the future demand for safety and security systems. This, in turn, will drive the sales of microcontrollers within this segment.

REGIONAL INSIGHTS

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Asia Pacific dominated the global market in 2023. Major automotive microcontroller players in the region are focused on developing and deploying body electronics with advanced technologies and solutions that require microcontroller integration. Renesas Electronics Corporation unveiled its new generation of microcontrollers using a 28nm process technology to be used in automotive. These MCUs are integrated with a built-in flash memory of 16MB and enhanced security and functional safety.

North America held a significant automotive microcontroller market share in 2023. Major players are focused on investing in the development of technology that will be integrated into the vehicles of the future. For instance, in March 2023, Texas Instruments (TI) announced that the company is expanding its broad analog and embedded processing semiconductor portfolio by presenting a scalable Arm Cortex-M0+ microcontroller (MCU) portfolio that features a broad range of computing, pinout, memory, and integrated analog options.

The market in Europe accounted for a decent market share in 2023. Many European countries are focused on deploying rules and legislation for adopting autonomous cars fueling the market growth. The European companies also focus on introducing new microcontrollers that drive the region's market growth.

The rest of the world market accounted for a sustainable market share in 2023. Major players are focused on deploying connected and automated cars for ride-hailing services in the region to increase their reach. This creates a lucrative demand for microcontrollers to be used in automobiles in the region, driving the market growth.

List of Key Companies in Automotive Microcontroller Market

Focus on Development of Automotive Microcontrollers to Drive the Competition

The global market is consolidated with several automotive microcontroller players operating in this industry. It is observed that key players have a wide product and service portfolio that includes various types and applications than other market players. Most of the players involved in the market are established market leaders with wide industry experience. The majority of the regional players are focused on their acquisitions & expansion through dealership and production activities. The players are focused on developing products with increasing investment in research and development that are compatible with the latest trends and technologies.

Renesas Electronics Corporation is One of the Prominent Companies in the Market 

Renesas Electronics Corporation is a leading automotive microcontroller company. It is involved in highly automotive solutions-oriented research and developments, providing updated technology microcontroller products. Renesas is also focused on expanding its product portfolio to acquire a strong foothold in the market, provided by increasing production capacity to achieve higher product delivery rates and customer satisfaction.

LIST OF KEY COMPANIES PROFILED:

• Infineon Technologies AG (Germany)


• Texas Instruments (U.S.)


• NXP Semiconductors (Netherlands)


• STMicroelectronics (Switzerland)


• Microchip Technology Inc. (U.S.)


• Renesas Electronics Corporation (Japan)


• Analog Devices Inc. (U.S.)


• Silicon Laboratories (U.S.)


• Toshiba International Corporation (Japan)


• GigaDevice (China)

KEY INDUSTRY DEVELOPMENTS:

• In November 2023, STMicroelectronics introduced a new microcontroller (MCU) that fuses the Company’s expertise in wireless device design with its high-performing and efficient STM32 architecture. The latest innovation in ST’s lineup of integrated wireless chips, the STM32WL3, contains an advanced, power-efficient multi-protocol radio suitable for long-range communication using license-free frequency bands reserved globally for industrial, scientific, and medical (ISM) applications.


• In February 2023, STMicroelectronics announced that it expanded its STM32 family of advanced microcontrollers (MCUs) with extra STM32U5 devices that increase performance while consolidating power consumption for more elongated runtimes and energy efficiency. The new MCUs extend the code and data storage range to 128Kbyte Flash for cost-sensitive applications while adding high-density versions for complex applications and sophisticated smartphone-like user interfaces.


• In September 2022, Microchip Technology announced a 32-bit MCU based on Arm Cortex-M0+ Core with features such as Functional Safety, Cyber-security Protection, and AUTOSAR Compatibility Features. This 32-bit chip from Microchip Technology addresses the solution for functional safety and cyber-security protection. The PIC32CM JH MCU also includes a refined touch with a driver shield that provides noise and water-tolerant operability.


•  In September 2022, STMicroelectronics launched its Stellar P6 Automotive MCU with the EV platform system integration application. It supports new high-data-rate in-car communication protocol and is also capable of over-the-air updates for systems. The introduction of this MCU series will boost the transition toward software-defined vehicles. The MCU is capable of fully synchronized operations and over-the-air upgrades for both maintenance and continued performance improvement.


• In April 2022, Toshiba International Corporation launched its new M3H Group of ARM Cortex-M3 Microcontrollers under the TXZ+TM Family Advanced Class. These microcontrollers are equipped with various applications, including motors, home appliances, and industrial equipment. These microcontrollers offer various interface and motor control options such as an encoder and programmable motor driver.


• In April 2022, STMicroelectronics unveiled its new microcontrollers used in automotive that are optimized for centralized (domain and zonal) electronic architectures. The new Stellar E series can sense the environment, control vehicle dynamics, enhance power-conversion efficiency, and safely manage high-current power stages that are effectively handled in a single component. Introducing these new MCUs enables EVs to be more affordable and sustainable.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types, and applications in the automotive industry. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition, the report encompasses several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation