Download Sample, How EV and Automotive Vehicle Production Are Elevating Demand for Microcontrollers
The demand for the automotive microcontroller market is expected to grow with the rising automotive production and increasing technological advances. According to the data of the International Organization of Motor Vehicle Manufacturers, the global sales of motor vehicles or demand for the automotive sector were recorded at 92.7 million in 2023, whereas the sales in 2022 were recorded at 82.8 million, showing a growth of approximately 12% and is expected to grow at a steady pace over the time. Especially the rising demand for electric vehicles is expected to boost the demand for the automotive controller market.
Advanced microcontrollers are demanded to manage power systems, battery management, and charging. The rise in sales of EV cars is expected to rise due to environmental awareness, advancements in battery technology, and growing government incentives aimed at reducing carbon emissions. As per the data of the International Energy Agency, a total of 14 million cars were sold in 2023, where 95% of the sales were recorded in China, Europe, and the United States. Also, as per the data for the year 2023, one in five cars sold in 2023 was electric. Thus, with the rising automotive and especially EV car sales, the market for automotive microcontrollers is expected to boom.
Advanced microcontrollers are demanded to manage power systems, battery management, and charging. The rise in sales of EV cars is expected to rise due to environmental awareness, advancements in battery technology, and growing government incentives aimed at reducing carbon emissions. As per the data of the International Energy Agency, a total of 14 million cars were sold in 2023, where 95% of the sales were recorded in China, Europe, and the United States. Also, as per the data for the year 2023, one in five cars sold in 2023 was electric. Thus, with the rising automotive and especially EV car sales, the market for automotive microcontrollers is expected to boom.
Surging Demand for 8051 Microcontroller and Road Crashes Leads the Market Growth
The 8051 automotive microcontroller is a widely used microcontroller designed specifically for automotive applications. Its unique features include robust performance, low power consumption, and a built-in interrupt system, making it suitable for managing various vehicle functions such as engine control, transmission, and safety systems. Additionally, its adaptability to different automotive functions enhances its utility in modern vehicles. The demand for the 8051 microcontroller is increasing due to the rising use of automotive electronics, the focus on improving vehicle performance, and the growing trend towards electric and autonomous vehicles.
The World Health Organization reports that road traffic crashes are summed at 1.3 million lives annually. In the United States, over 46,000 people die in crashes each year, with a fatality rate of 12.4 per 100,000 inhabitants, and 4.4 million are seriously injured. Road crashes are the leading cause of death for people aged 1-54 in the US, which has the highest road crash death rate among high-income countries. The National Safety Council suggests that ADAS technologies could prevent over 20,000 deaths annually, reshaping the market for microcontrollers and offering new opportunities for innovation and collaboration.
The World Health Organization reports that road traffic crashes are summed at 1.3 million lives annually. In the United States, over 46,000 people die in crashes each year, with a fatality rate of 12.4 per 100,000 inhabitants, and 4.4 million are seriously injured. Road crashes are the leading cause of death for people aged 1-54 in the US, which has the highest road crash death rate among high-income countries. The National Safety Council suggests that ADAS technologies could prevent over 20,000 deaths annually, reshaping the market for microcontrollers and offering new opportunities for innovation and collaboration.
Recent Trends in the Automotive Microcontrollers Industry:
- Increased electric vehicle production drives microcontrollers with enhanced power management features.
- The rise of automation and IoT in vehicles boosts microcontroller integration and connectivity.
- The development of low-power microcontrollers supports energy efficiency in automotive applications.
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Rising Semiconductors Shortage and Cyber Attacks Challenge the Limits the Market
The automotive microcontroller market faces a major challenge due to the shortage of semiconductors. These small but essential components are important for the functioning of various vehicle systems, from engine control to safety features. As demand for cars increases, especially with the rise of electric vehicles, manufacturers find it difficult to manage enough semiconductors to produce the microcontrollers. This shortage has led to production delays, higher costs, and limited availability of new vehicles, impacting both automakers and consumers.
Cybersecurity is a big concern for the automotive microcontroller market because cars are becoming more connected to various technologies, such as Wi-Fi and cellular networks. This means they have software and internet features that can be targeted by hackers. If a hacker gains access, they could control important systems in the car, like brakes or steering, which can be dangerous and force manufacturers to invest more in security measures to protect their vehicles. This increases costs and can hamper the market. If, due to cyber threats, consumers feel that cars aren’t secure, they may hesitate to buy new models, which could affect sales in the automotive market as well as the automotive microcontroller market.
Cybersecurity is a big concern for the automotive microcontroller market because cars are becoming more connected to various technologies, such as Wi-Fi and cellular networks. This means they have software and internet features that can be targeted by hackers. If a hacker gains access, they could control important systems in the car, like brakes or steering, which can be dangerous and force manufacturers to invest more in security measures to protect their vehicles. This increases costs and can hamper the market. If, due to cyber threats, consumers feel that cars aren’t secure, they may hesitate to buy new models, which could affect sales in the automotive market as well as the automotive microcontroller market.
Advancing Technology and Launching the New Product Spurs the Market
In April 2024, Infineon Technologies AG introduced the PSoC 4 HVMS family of automotive microcontrollers, integrating high voltage features (12 V regulator and LIN/CXPI-transceiver) in combination with advanced analog features (CAPSENSE, Inductive sensing), ISO26262 compliant, and ISO21434 ready. The PSoC 4 HVMS family was AEC-Q100 qualified and offered in small footprint QFN packages with wettable flanks. The ICs offered scalability and pin compatibility across devices. ISO26262 ASIL-B compliance ensured safe operation at temperatures up to 125°C. The family was based on ARM Cortex-M0+ processors with up to 128KB of embedded flash and 16KB of SRAM. The microcontrollers could be powered directly from a 12V battery and included LIN and CXPI PHY.
In April 2021, Nuvoton Technology Corporation launched a new series of Arm Cortex-M0 NUC131U 32-bit microcontrollers for automotive applications, running up to 50 MHz, qualified by AEC-Q100 Grade 2 and built-in Controller Area Network (CAN) 2.0 B interface. It was equipped with a rich peripheral comprising six sets of UARTs, two sets of I2Cs, 1 set of SPI, and 24 channels of 100 MHz PWM to make accurate control to drive both stepping motors and HVAC compressors. The 12-bit ADC delivered up to 800 k SPS to sense voltage, current, or temperature sensors for automotive applications to reduce the number of external peripheral components and the form factor of the end product.
In April 2021, Nuvoton Technology Corporation launched a new series of Arm Cortex-M0 NUC131U 32-bit microcontrollers for automotive applications, running up to 50 MHz, qualified by AEC-Q100 Grade 2 and built-in Controller Area Network (CAN) 2.0 B interface. It was equipped with a rich peripheral comprising six sets of UARTs, two sets of I2Cs, 1 set of SPI, and 24 channels of 100 MHz PWM to make accurate control to drive both stepping motors and HVAC compressors. The 12-bit ADC delivered up to 800 k SPS to sense voltage, current, or temperature sensors for automotive applications to reduce the number of external peripheral components and the form factor of the end product.
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Lucrative Opportunities for Microcontrollers in Asia-Pacific and Europe
The Asia Pacific region presents a lucrative opportunity for the automotive microcontroller market due to the rising automotive production. As per the reports of the International Organization of Motor Vehicle Manufacturers, a total of 48.9 million units of vehicles were produced in the Asia-Pacific region, which sums up to 53% of the global vehicle production. This 48.9 million is made from the total of China, which produced a total of 30 million units; Japan, which produces 8.9 million units; India, which produces a total of 5.8 million units; and South Korea, which produces 4.2 million units. This makes Asia Pacific an automotive hub and a lucrative market for automotive microcontrollers.
The European region also shows promising opportunities due to the rising number of new electric car registrations. As per the data of the International Energy Agency, the new electric car registrations for the year 2023 reached 3.2 million, which, compared to 2022, is an increase of 20%. Also, the EV cars sold in the European Union region amounted to 2.4 million and is expected to grow at a rapid pace. Thus, the rising demand for EV cars in Europe is expected to trigger the market for automotive microcontrollers.
The European region also shows promising opportunities due to the rising number of new electric car registrations. As per the data of the International Energy Agency, the new electric car registrations for the year 2023 reached 3.2 million, which, compared to 2022, is an increase of 20%. Also, the EV cars sold in the European Union region amounted to 2.4 million and is expected to grow at a rapid pace. Thus, the rising demand for EV cars in Europe is expected to trigger the market for automotive microcontrollers.
The report provides a detailed overview of the automotive microcontrollers market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for automotive microcontrollers market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the automotive microcontrollers market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the automotive microcontrollers market. Some key country and region included in the automotive microcontrollers market report as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Belgium, Sweden, Austria, Slovakia, Hungary, Romania, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Egypt, Turkey, Morocco, Nigeria, Iran, Rest of MEA |
Automotive Microcontroller Market Research Report Covers In-depth Analysis on:
- Automotive microcontroller market detailed segments and segment-wise market breakdown
- Automotive microcontroller market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in automotive microcontrollers industry)
- Current, historical, and forthcoming 10 years market valuation in terms of automotive microcontrollers market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Automotive microcontroller market demand analysis
- Automotive microcontroller market pricing analysis over the forecast period (by key segment and by region)
- Automotive microcontroller market regional insights with the region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the automotive microcontroller market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the automotive microcontrollers market
- Automotive microcontroller market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the automotive microcontroller market forecast by countries
- Mergers and acquisitions in the automotive microcontroller market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key applications driving the demand for automotive microcontrollers?
Automotive microcontrollers are primarily used in applications like engine control units, advanced driver assistance systems (ADAS), infotainment systems, and body electronics, enabling efficient and safe vehicle operations.
Why is market research critical for manufacturers in the automotive microcontroller industry?
Market research helps manufacturers understand emerging trends, competitive landscapes, and technological advancements, enabling them to make informed decisions and enhance product innovation.
What are the key challenges faced by the automotive microcontroller market?
Challenges include semiconductor supply chain disruptions, high manufacturing costs, and adapting to stringent automotive safety and performance standards while keeping up with technological advancements.
How does the shift toward electric vehicles impact the automotive microcontroller market?
The transition to electric vehicles increases demand for microcontrollers in battery management systems, inverters, and motor control, highlighting their critical role in vehicle electrification.
