Global Automotive Microcontroller Market to Grow at a CAGR of 7.5% During 2020 –2030

Microcontrollers on a single integrated circuit contain memory, CPU, input/output devices, and peripherals. They are installed in automatically controlled objects and electrical devices, such as remote controls and machinery. The technology used in microcontrollers is meant to enable effective management of modern automobile components, hence improving the driving experience. The use of automotive microcontrollers has increased as a result of improvements in the automation industry and the improvement of driving systems. In addition, increased automation has significantly increased the demand for microcontrollers responsible for the autonomous operation of automobile features. During the forecast period, the market for automotive microcontrollers is predicted to be encouraged by rising electrification and the implementation of numerous regulations about vehicle safety and security by governments worldwide. Market Dynamics Rapid Developments in the Automotive Industry to Drive the Global Automotive Microcontroller Market In the automobile sector, a microcontroller is used to regulate the fail-safe system, manage the activities of the electrical control unit, and inform the vehicle's fault-tolerant systems (accelerator, anti-lock brake interface, and broken lights). For instance, fault tolerance might be highlighted if a car loses traction on snow-covered roads. Under such conditions, the sensor microcontroller detects the occurrence and engages anti-lock braking when the driver hits the brakes. Consequently, microcontrollers are an essential component of the automotive sector, and the rapid growth of the automotive industry contributes to the expansion of the market. Rise in Demand for Electric and Hybrid Vehicles to Provide Opportunities for the Global Automotive Microcontroller Market Global demand for electric and hybrid automobiles is increasing. The lowering cost of components such as lithium-ion batteries, sensors, and microcontrollers is expected to be the primary factor in developing a mainstream market for electric vehicles in the near future. Moreover, because electric vehicles play a crucial role in reducing carbon emissions and combating air pollution, they are being extensively encouraged by governments worldwide. Currently, only 1% of newly marketed vehicles are electric, but consumers and manufacturers migrate toward electric vehicles as component costs decline. Bloomberg predicts that the market for electric vehicles will increase by 35% by 2040. Microcontrollers are a vital part of electric cars, which presents global growth potential for microcontroller makers. Key Highlights The global automotive microcontrollers market was valued at USD 11,225 million in 2021 and is projected to reach USD 21,520 million by 2030, registering a CAGR of 7.5% during the forecast period (2022 – 2030). Based on application, the global automotive microcontroller market is categorized into powertrain & chassis, safety & security, body electronics, and telematics & infotainment system. The powertrain & chassis segment was the highest contributor to the market and is estimated to grow at a CAGR of 6.2% during the forecast period.  Based on technology, the global automotive microcontroller market is divided into a park assist system, blind spot detection system, adaptive cruise control, and tire pressure monitoring system. The adaptive cruise control segment was the highest contributor to the market and is estimated to grow at a CAGR of 6.4% during the forecast period.  By vehicle type, the global automotive microcontroller market is classified into passenger vehicles, commercial vehicles, and electric vehicles. The passenger ice vehicle segment was the highest contributor to the market and is estimated to grow at a CAGR of 7.2% during the forecast period.  Regional Insights Region-wise, the global automotive microcontroller market is analyzed across North America,Asia-Pacific, Europe, and LAMEA. Asia-Pacific was the highest revenue contributor and is estimated to grow at a CAGR of 8.8%. In recent years, the automotive industry in the Asia-Pacific area has evolved. The region has contributed significantly to global automobile sales and is one of the most attractive investment markets. The leading players in the automotive business have prioritized expansion in Asia by building their headquarters or manufacturing units in Japan, India, and China, the automotive centers of the area. Such operations conducted by vehicle manufacturers increase the production of innovative automotive components requiring microcontrollers. As a result of the region's robust economy and rising disposable income, the market for automotive microcontrollers is expected to expand due to the growing demand for luxury automobiles in Asia, as these automobiles contain various technological components. The market expansion for automotive microcontrollers is bolstered by regional advancements and investments made by various manufacturers. The Europe automotive microcontrollers market, is the second largest. It is estimated to reach an expected value of USD 5515 million by 2030, growing at a CAGR of 6.8%. Europe consists of Germany, France, the United Kingdom, Italy, and the rest of Europe. Europe is the most significant contributor to the worldwide ADAS market in terms of revenue due to factors such as the strong demand for comfortable driving and the establishment of Euro-NCAP ratings for automobiles. This enhances the demand for automotive microcontrollers because ADAS systems are increasingly using them. Technological advancements drive the expansion of the automotive business in the automobile industry for the effective implementation of safety measures and improvement of driving quality. As the popularity of autonomous driving has expanded, so has the use of ADAS to improve the safety of automobiles. The presence of enabling laws and cost-effective vehicles encourages the installation of safety systems in automobiles to enhance safety and comfort. Automotive manufacturers in the region have prioritized the reduction of road deaths by adopting various safety-guaranteeing initiatives, such as eSafety aware and other educational efforts aimed at informing locals of the necessary safety precautions while driving. This contributes to the expansion of the automotive grade microcontrollers. The North American automotive microcontrollers market is the third largest. North America comprises the United States, Canada, and Mexico. The market for automotive microcontrollers is predicted to expand rapidly in this area due to the implementation of ADAS in automobiles and continuing technological advancements. North American automakers have targeted significant automakers such as Ford Motors and General Motors by providing them with advanced sensors. In addition, they distribute ADAS equipment to the North American aftermarket. Regional agencies have enforced installing TPMS sensors in all passenger vehicles for real-time tire pressure monitoring. Dual modal systems are less successful than developments in audible and tactile warning systems, which increase driver performance (auditory-visual and tactile-visual). Automotive manufacturers have prioritized the development of inexpensive, tamper-resistant assistance systems. These innovations contribute to the expansion of the automotive microcontroller market in the region, as all of these systems incorporate microcontrollers. Competitive Landscape The global key players profiled in the report are Cypress Semiconductor Corporation, Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductor N.V., On Semiconductor, Renesas Electronic Corporation, STMicroelectronics, Texas Instrument Incorporated, Toshiba Corporation, and ROHM Semiconductors. Market News August 2022 - NXP Semiconductors (NASDAQ: NXPI) today announced expanded and robust customer engagements for its entire S32 family of the domain and zonal automotive processors. This includes a major automotive OEM's selection of NXP's S32 family of automotive processors and microcontrollers to be used across its fleet of future vehicles, beginning mid-decade. The resulting multi-year supply agreement spans the S32 family, including the upcoming 5nm ASIL-D processors. This includes several recent awards with leading automotive OEMs in Europe, the Americas, Asia, and China and highlights the appeal and traction of the S32 platform for software-defined vehicles (SDV). July 2022 - NXP Semiconductors (NASDAQ: NXPI) today announced that it had signed a memorandum of understanding with Hon Hai Technology Group ("Foxconn") to jointly develop platforms for a new generation of smart connected vehicles. Hon Hai (Foxconn), the world's largest electronics manufacturer and leading technology solution provider, will leverage NXP's portfolio of automotive technologies and longstanding safety and security expertise to enable architectural innovation and platforms for electrification, connectivity, and safe automated driving. The collaboration builds on the company's initial digital cockpit partnership, based on the NXP i.MX applications processors and NXP Software Defined Radio platform. Global Automotive Microcontroller Market: Segmentation By Application Powertrain & Chassis Safety & Security Body Electronics Telematics & Infotainment By Technology Park Assist System Blind Spot Detection System Adaptive Cruise Control Tire Pressure Monitoring System By Vehicle type Passenger ICE Vehicle Commercial IVE Vehicle Electric vehicle By Region North America Europe Asia-Pacific LAMEA