Automotive Microcontrollers Market - By Bit Size (8-bit Microcontrollers, 16-bit Microcontrollers, 32-bit Microcontrollers), By Vehicle Type (Passenger Vehicle, Commercial Vehicle), By Propulsion Type, By Application, By End User & Forecast, 2024 – 2032

Automotive Microcontrollers Market Size

Automotive Microcontrollers Market was valued at over USD 13.2 billion in 2023 and is anticipated to grow at a CAGR of around 8% between 2024 and 2032. The increasing shift toward Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) is driving the demand for microcontrollers in battery management systems, electric powertrain control, and other related applications. According to an IEA report, the share of electric cars in total sales increased to over 14% in 2022 with over 10 million sales compared to over 4% in 2020. The transition to electric powertrains requires sophisticated power electronics including inverters and converters. Microcontrollers are essential for controlling these power electronics and managing the flow of electrical energy between the battery & the electric motor.
 

Automotive microcontrollers are Integrated Circuits (ICs) embedded in vehicles, managing Electronic Control Units (ECUs) to control functions including engine performance, safety systems, and infotainment. These compact devices process real-time data from sensors, enabling precise control over vehicle components. They play a vital role in enhancing automotive performance, efficiency, and connectivity.

The design and development of advanced automotive microcontrollers involve substantial research, development & testing costs. The complexity of meeting stringent safety and quality standards adds to these expenses, potentially limiting market entry for some companies.
 

COVID-19 Impact

The COVID-19 pandemic had notable impacts on the automotive microcontrollers market. The disruptions in the global supply chains led to shortages of critical components including semiconductors. Automotive microcontroller manufacturers faced challenges in sourcing materials and components, causing production delays. Many automotive manufacturers temporarily halted production or faced reduced capacity due to lockdowns, restrictions, and workforce shortages. This directly impacted the demand for automotive microcontrollers as vehicle production scaled back. The automotive industry including microcontroller manufacturers faced challenges related to semiconductor shortages. Increased demand for consumer electronics during the pandemic strained semiconductor production capacity, affecting the availability of microcontrollers for automotive applications.
 

Automotive Microcontrollers Market Trends

The automotive industry has witnessed a growing integration of ADAS. Microcontrollers are at the forefront of this trend, enabling the processing of data from various sensors and cameras to implement features such as adaptive cruise control, automatic emergency braking & lane-keeping assistance. To meet the escalating processing demands of advanced applications, there is a notable shift toward employing multicore microcontrollers. These architectures facilitate parallel processing, enabling microcontrollers to handle multiple tasks simultaneously and improve the overall system performance.
 

The trend toward connected vehicles and V2X communication is driving the demand for microcontrollers with robust communication capabilities. These controllers enable vehicles to exchange information with each other and the surrounding infrastructure, contributing to enhanced safety & efficiency.
 

Automotive Microcontrollers Market Analysis

Based on application, the market is divided into powertrain & chassis, safety & security, body electronics, telematics & infotainment, ADAS, and others. The powertrain & chassis segment dominated the global market with a share of over 30% in 2023.
 

• The increasing adoption of Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) is a major factor promoting microcontroller adoption in the powertrain segment. Microcontrollers are essential for managing electric powertrains including battery management, motor control, and power electronics.
   

• Microcontrollers contribute to vehicle dynamics and chassis control systems, ensuring stability, traction & overall safety. Electronic Stability Control (ESC) and Anti-lock Braking System (ABS) are examples of chassis control systems that rely on microcontrollers to improve vehicle safety.
   

Based on bit size, the market is segmented into 8-bit microcontrollers, 16-bit microcontrollers, and 32-bit microcontrollers. The 32-bit microcontrollers segment is anticipated to register a CAGR of over 10% till 2032.
 

• 32-bit microcontrollers offer significantly higher processing power compared to their 8-bit and 16-bit counterparts. The automotive industry is increasingly relying on advanced applications, such as ADAS, autonomous driving & in-car infotainment systems, which demand enhanced processing capabilities and performance.
   
• Modern vehicles are becoming more connected, requiring microcontrollers to manage communication protocols and handle large amounts of data exchange. 32-bit microcontrollers offer better support for connectivity features including Controller Area Network (CAN) & Ethernet, contributing to improved vehicle-to-vehicle and vehicle-to-infrastructure communication.
   

North America dominated the global automotive microcontrollers market with a share of over 35% in 2023. North American companies are actively involved in the development and testing of autonomous driving technologies. Microcontrollers play a critical role in processing real-time data from various sensors, enabling decision-making in autonomous vehicles. The region has a strong presence of leading automotive manufacturers, technology companies, and research institutions. Ongoing research & development activities in North America contribute to the innovation and advancement of automotive technologies including microcontrollers. North America is also witnessing a high demand for in-car connectivity, infotainment systems, and advanced features among consumers. Automotive microcontrollers facilitate the integration of these technologies, meeting the expectations of tech-savvy consumers.
 

Automotive Microcontrollers Market Share

Players operating in the automotive microcontrollers industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product developments & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. These players also heavily invest in R&D to introduce innovative products in the market.
 

Automotive Microcontrollers Market Companies

Major players operating in the automotive microcontrollers industry are:

• Infineon Technologies AG
• Renesas Electronics Corporation
• STMicroelectronics NV
• NXP Semiconductors NV
• Texas Instruments Incorporated
• Microchip Technology Inc.
• Rohm Semiconductor Co., Ltd.
   

Automotive Microcontrollers Industry News

• In November 2022, Infineon Technologies AG launched XMC7000 microcontroller (MCU) family for advanced industrial applications such as two-wheel electrical vehicles, electrical vehicle (EV) charging and robotics. Featuring a 350 MHz 32-bit Arm Cortex-M7 and a 100 MHz 32-bit Arm Cortex-M0+, the XMC7000 series offers both single and dual core options. Additionally, it supports up to 8 MB of embedded flash and 1 MB of on-chip SRAM. The devices reach their full operating voltage range of 2.7 to 5.5 V and operate between -40°C and 125°C.  

The automotive microcontrollers market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion and Units) from 2018 to 2032 for the following segments:

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Market, By Bit Size

• 8-bit microcontrollers
• 16-bit microcontrollers
• 32-bit microcontrollers

Market, By Vehicle Type

• Passenger vehicle
• Commercial vehicle

Market, By Propulsion Type

• ICE
• HEV
• BEV
• PHEV
• FCEV

Market, By Application

• Powertrain & chassis
• Safety & security
• Body electronics
• Telematics & infotainment
• ADAS
• Others

Market, By End User

• OEMs
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA