Automotive Microcontrollers Market Report

A microcontroller is used in the automobile industry to operate electrical control unit operations, fail-safe systems, and automotive fault-tolerant systems, which warn the driver of vehicle defects (accelerator, anti-lock brake interface, and damaged lights). As a result, microcontrollers are a vital component of the automobile industry, and the rapid expansion of the automobile industry is fuelling the automotive microcontroller market.

Additionally, there is an increasing need for safety technology such as parking assistance, collision avoidance systems, lane departure alerts, traction control, electronic stability control, tire pressure monitors, airbags, and telematics due to a rise in traffic accidents worldwide. Vehicles equipped with ADAS can identify and classify road objects, alerting the driver to the road conditions. These technologies can also automatically slow down or stop automobiles based on the status of the road.

Furthermore, it has been observed that the fatality rate from road accidents has grown dramatically. These factors contribute to the growing need for automotive safety features. To meet the consumer demand, manufacturers are developing and delivering safety features. As a result of the increased need for safety features, the market for automotive microcontrollers is anticipated to boost over the forecast period.

Major market participants are concentrating their efforts on research and development in order to manufacture products that meet the demands of their customers. They also explore various market strategies, such as technological advancements, mergers, and acquisitions, in order to get a competitive advantage in the global market. Microchip Technology, for example, announced a 32-bit MCU based on the Arm Cortex-M0+ Core in September 2022, with features including Functional Safety, Cyber-security Protection, and AUTOSAR Compatibility. Microchip Technology's 32-bit chip provides the answer for functional safety and cyber-security protection. The PIC32CM JH MCU also has a polished touch with a driver shield that provides noise and water resistance.

Again, SemiDrive Technology Ltd., a Chinese smart car microprocessor company, announced the launching of its E3 series microcontrollers in April 2022. These microcontrollers are constructed on a TSMC 22nm automotive grade and can be used in a range of automotive applications such as chassis by wire, brake control, BMS, ADAS, LCD panel, HUD, streaming media systems, CMS, and so on. It is intended to provide high levels of stability and safety. It has an AEC-Q100 Grade 1 vehicle specification and an ISO 26262 ASIL D functional safety grade.

Furthermore, in September 2022, STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, introduced new microcontrollers (MCUs) aimed at the upcoming electrified drivetrains and domain-oriented, over-the-air updatable systems that will serve as the foundation of the next generation of EVs. ST's new Stellar P automotive MCUs were the industry's first qualifiable devices for the model year 2024 automobiles to embrace the new CAN-XL in-car communication standard, as vehicles produce, analyse, and transfer huge data flows, particularly to support the next generation of EVs.

When an automobile microcontroller unit fails, the vehicle's functionality is completely halted. It has a very poor temperature tolerance, which causes deterioration in its functions and resulting in operational failures in severe cold and hot situations. Excessive heat causes the microcontroller to melt, bridging the resistance and weakening signals, resulting in failure. Furthermore, it ceases to function at extremely low temperatures. As a result of this issue, nations that encounter extreme weather opt to employ the fewest number of semiconductor components necessary in the car, severely limiting the market.

Various firms are focusing on creating advanced semiconductor devices, such as high-temperature and low-temperature microcontrollers, to address this scenario. However, despite the rising demand for advanced automotive electrical systems, the market still faces several challenges. Some of these challenges include delivering integrated and lightweight components, as well as optimizing the cost-quality trade-off.

Toshiba, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Analog Devices, Cypress Semiconductors, Maxim Integrated, Texas Instruments, STMicroelectronics, Rohm Semiconductor, Renesas Electronics, Microchip Technology are some of the prominent market players operating in the global automotive microcontrollers market.

Owing to the expanding automobile industry, the automotive microcontroller market is anticipated to experience a significant demand in the Asia Pacific region over the forecast period. Major market players are focusing on establishing corporate headquarters and manufacturing sites in countries like China, Japan, and India in order to expand their customer base. Such endeavors by manufacturers result in the increasing production of complex automobile components that require microcontrollers to function.

In addition, the strong economic circumstances and rising disposable income are anticipated to encourage the expansion of premium vehicles which in turn will drive the growth of the automotive microcontroller market. On the other hand, North America is also expected to witness substantial growth in the automotive controller market. This growth can be attributed to the continuous technological advancements and the adoption of ADAS systems in automobiles in the region. Additionally, automobile manufacturers are focusing on the development of low-cost assistance systems. Since all these systems use microcontrollers, the market for automotive microcontrollers is expected to boost over the forecast period.