Automotive Microcontroller Market

Automotive Microcontroller Market Outlook for 2024 to 2034

The automotive microcontroller market value is estimated to be USD 14.32 billion in 2024. The market is predicted to grow at a CAGR of 8.27% over the forecast period. The industry share is estimated to reach a value of nearly USD 31.7 billion by 2034.

Automotive Microcontroller Market Trends & Analysis

• The demand for car microcontrollers is increasing in the EV sector for advanced driver assistance systems (ADAS), lane change warning systems, surround view cameras, automated braking & lighting, and blind spot detection. Hybrid electric vehicles are gaining traction globally on the back of their energy efficiency, and these vehicles require a relatively large number of microcontrollers than regular vehicles.
• The automobile sector is increasingly choosing to integrate reduced instruction set computer 5 (RISC-V) solutions into its products. Long life cycles are ideal for the flexibility, customization, and long-term innovation offered by this open standard instruction set architecture known as RISC-V. The RISC-V ecosystem is expanding quickly on a worldwide scale, making it one of the popular MCUs in the automotive industry.

Report Attribute	Details
Automotive Microcontroller Market Size (2024)	USD 14.32 billion
Market Anticipated Forecast Value (2034)	USD 31.7 billion
Projected Growth Rate (2024 to 2034)	8.27% CAGR

Automotive Microcontroller Market Historical Analysis Vs Forecast Outlook

The market size in 2019 was nearly USD 8.89 billion and it expanded at a CAGR of 7.3% until 2023. In 2023, the net worth of the market was USD 13.23 billion.

The cost of microcontrollers has witnessed a decline over the past few years. However, tags for microcontrollers are expected to increase in the upcoming years, thereby spurring their costs.

Attributes	Details
Automotive Microcontroller Market Value (2019)	USD 8.89 billion
Historical Market Size (2023)	USD 13.23 billion
Historical CAGR (2019 to 2023)	7.3%

Key Opportunities and Challenges in the Market

Tinned steel is expected to continue to be the preferred material for automotive microcontrollers. The revenue from sales of tinned steel is projected to account for a substantial share of the market. Copper alloys are also anticipated to remain the second most desired material for in-vehicle microcontrollers.

So, the expansion of raw material sources and the strengthening of international trade channels are anticipated to boost affordable automotive microcontroller production during this forecast period.

With the advent of electric vehicles, automotive microcontroller applications have increased manifold for controlling electric drivetrains, battery systems, and power distribution in electric cars. The rising concern for global warming has caused many nations to implement regulations and encourage electric mobility solutions that are expected to drive sales of automotive microcontrollers.

Country-wise Insights

The table below lists the countries that are expected to be the leading markets during the forecast period.

Countries	CAGR (2024 to 2034)
United States	6.4%
Germany	5.1%
China	12.1%
India	11.1%
Australia	8.7%

Advancements in Automotive Technology Driving the United States Market

The United States market is forecasted to expand at a CAGR of 6.4% over the forecast years.

• Development of advanced driver assistance systems (ADAS) microcontrollers with features like automatic emergency braking, lane departure warning, and collision avoidance.
• As connected car technology is gaining popularity, microcontrollers in automotive embedded systems have become essential for facilitating communication between different car systems and outside networks.

Germany Dominates the European Automotive Microcontroller Market

Germany is expected to dominate the European market and thrive at a 5.1% CAGR through 2034.

• The rising popularity of automotive microcontrollers with better power management capabilities supports Europe's sustainability objectives.
• Improved standards for vehicle safety, along with strict traffic regulations, are driving vehicle control microcontrollers in Germany.

The Automotive Microcontroller Industry in China is Increasing its Exports

The automotive microcontroller industry in China is anticipated to witness a CAGR of 12.1% during the projected years.

• The automotive electronic market in China is currently witnessing greater demand from neighboring industrializing economies.
• Growing demand for adaptive microcontrollers to provide the computational capacity necessary for real-time sensor data interpretation.

Electric Mobility Trends are Driving Automotive Microcontroller Sales in India

Automotive microcontroller sales in India are poised to increase at a CAGR of 11.1% from 2024 to 2034.

• Increasing adoption of automotive microprocessor units in India is mainly for enhancing overall vehicle dependability and lowering maintenance expenses.
• Higher use of control units in electric two-wheelers and three-wheelers also presents lucrative opportunities for the automotive embedded system landscape.

Modern Automotive Features have Strengthened the Market in Australia

The demand for automotive microcontrollers in Australia is expected to witness a year-on-year growth rate of 8.7% through the forecast years.

• An increase in the use of hybrid and electric vehicles in the country has boosted the demand for automotive microprocessors.
• Greater use of vehicle electric control units (ECUs) to satisfy customer demands for high-tech in-car entertainment systems, navigation, and connection functions is driving the market.

Category-wise Insights

Mid-size Passenger Vehicle Owners are Demanding Automotive Microcontrollers

On the basis of vehicle type, heavy commercial vehicles are expected to dominate the automotive microcontroller market in terms of revenues, followed by premium passenger cars and electric vehicles. However, sales of automotive microcontrollers in the mid-size passenger vehicles segment are expected to account for a market share of 23.4%.

Attributes	Details
Top Vehicle Type	Mid-size Passenger Vehicle
Market Share in 2024	23.4%

• In conventional vehicles, automotive microcontrollers help to optimize the transmission systems that guarantee seamless gear changes and higher fuel economy.
• Designing mid-sized passenger vehicles with less weight is anticipated to further increase the application of automotive microcontrollers in this segment.

Electronic Power Steering Systems have increased the Popularity of MCUs

The revenue from sales of automotive microcontrollers for application in electronic power steering is expected to account for 37.67% of the market.

Attributes	Details
Top Application segment	Electronic Power Steering
Market Share in 2024	37.67% CAGR

• Growing preference for electronic power steering systems in passenger cars as well as commercial fleet vehicles.
• Brake control systems and airbags are also expected to remain the prominent applications for automotive microcontrollers through the projected years.

Competitive Landscape

The overall market remained concentrated as very few manufacturers were able to compete at a global level with sufficient technical knowledge and infrastructure to produce reliable automotive microcontrollers. However, greater government support for establishing original equipment manufacturing (OEM) industries in emerging economies is currently fragmenting the global market.

Recent Developments

• In October 2020, Synopsis Inc. expanded its portfolio of automotive VDKs with support for Infineon’s AURIX TC4xx 32-bit microcontroller family. Synopsis also declared the availability of a Virtualizer Development Kit supporting the Infineon AURIX TC4xx Microcontroller Family. The partnership focuses on escalating the development of automotive systems. The TC4xx virtual prototype enables the support of two sets of models for the Tricore CPU subsystem, the parallel processing unit, memories, communication, timer, analog to digital converters, security, and safety.
• In July 2020, SemiDrive Technology Ltd. selected the EB Tresos Studio tool for use in its AUTOSAR-compliant Microcontroller Abstraction Layer development platform. EB Tresos Studio is capable of delivering an MCAL layer that fulfills the requirements of a wide variety of automotive applications across all ECUs. The studio features advanced driver assistance systems, infotainment, connectivity, V2X, and also domain control of autonomous driving. It consists of scalable, basic software and tools enabling the development of AUTOSAR standard-compliant software for reliable automotive electronic control units with the highest levels of functional safety.
• Melexis has introduced a grade 3D Hall Effect sensor, MLX90395 Triaxis Magnetometer Node that uses the Hall Effect to provide contactless sensing in three dimensions. The dual version of the model is capable of providing redundancy in some situations such as gear lever position sensing in automotive applications. The MLX90395 includes both I2C and SPI interfaces, which help in simpler integration into automotive or industrial control environments. Due to the Triaxis technology, the product is smaller consumes less power with an idle current of 1.4 microampere and standby a current of 2.4 microampere and a supply current of less than or equal to 4mA.

Key Players

• Texas Instruments Incorporated
• NXP Semiconductors NV
• STMicroelectronics NV
• Microchip Technology Inc.
• Renesas Electronics Corporation
• Silicon Labs Private Limited
• Fujitsu Limited
• Maxim Integrated Products, Inc.
• Infineon Technologies
• Toshiba Corporation

Key Coverage in the Automotive Microcontroller Market Report

• Adjacent market study on 32-bit microcontroller units and demand for electric vehicles.
• Impact of microcontroller automotive projects and experiments on the actual market.
• New industrial standards for automotive microcontroller board manufacturing.
• Demand analysis of the most used microcontrollers in the automotive industry.

Automotive Microcontroller Market Report Scope

Attribute	Details
Estimated Market Size (2024)	USD 14.32 billion
Projected Market Size (2034)	USD 31.7 billion
Anticipated Growth Rate (2024 to 2034)	8.27%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	USD million or billion for Value and Units for Volume
Key Regions Covered	North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania
Key Countries Covered	United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa
Key Segments Covered	By Material Type, By Application, By Vehicle Type, and By Region
Key Companies Profiled	Texas Instruments Incorporated; NXP Semiconductors NV; STMicroelectronics NV; Microchip Technology Inc.; Renesas Electronics Corporation; Silicon Labs Private Limited; Fujitsu Limited; Maxim Integrated Products, Inc.; Infineon Technologies; Toshiba Corporation
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material Type
  • 5.1. Tinned Steel
  • 5.2. Nickel-Cobalt Ferrous Alloy
  • 5.3. Copper Alloy
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vehicle Type
  • 6.1. Compact Passenger Cars
  • 6.2. Mid-sized Passenger Cars
  • 6.3. Premium Passenger Cars
  • 6.4. Luxury Passenger Cars
  • 6.5. Light Commercial Vehicles
  • 6.6. Heavy Commercial Vehicles
  • 6.7. Electric Vehicle
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
  • 7.1. Advanced Driver Assistance System
  • 7.2. Parking Assist System
  • 7.3. Brake Control System
  • 7.4. Electric Control Suspension
  • 7.5. Airbags
  • 7.6. Functional Safety Technology
  • 7.7. Transmission Control
  • 7.8. Start-Stop System
  • 7.9. Electronic Power Steering System
  • 7.10. Others
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 8.1. North America
  • 8.2. Latin America
  • 8.3. Western Europe
  • 8.4. Eastern Europe
  • 8.5. South Asia and Pacific
  • 8.6. East Asia
  • 8.7. Middle East and Africa
• 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Key Countries Market Analysis
• 17. Market Structure Analysis
• 18. Competition Analysis
  • 18.1. Toshiba Corporation
  • 18.2. Texas Instruments Incorporated
  • 18.3. NXP Semiconductors NV
  • 18.4. STMicroelectronics NV
  • 18.5. Microchip Technology Inc.
  • 18.6. Renesas Electronics Corporation
  • 18.7. Silicon Labs Private Limited
  • 18.8. Fujitsu Limited
  • 18.9. Maxim Integrated Products, Inc
  • 18.10. Infineon Technologies
• 19. Assumptions & Acronyms Used
• 20. Research Methodology