Automotive Microcontrollers Market Report 2025

The automotive microcontrollers market size has grown strongly in recent years. It will grow from $15.77 billion in 2024 to $17.25 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to rise in disposable income, a rise in merger and acquisition activity, emerging markets growth, and increasing population growth.

The automotive microcontrollers market size is expected to see strong growth in the next few years. It will grow to $24.49 billion in 2029 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to growing demand for driverless vehicles, increasing demand for commercial vehicles, increasing automotive sector and supportive government regulations and rising demand for electric vehicles. Major trends in the forecast period include focus on technological advancement, focus on strategic partnerships, focus on product innovations, focus on use of microcontrollers in electric vehicles and focus on adoption of microchips that improve flexibility of vehicles in crucial situations.

The increasing demand for driverless vehicles is driving growth in the automotive microcontrollers market. An autonomous vehicle is capable of operating independently and performing essential functions without human intervention, utilizing a fully automated driving system to respond to external conditions. Multicore microcontroller families are integral to supporting autonomous driving applications. For example, a report published in December 2022 by the Insurance Institute for Highway Safety, a US-based nonprofit organization, projected that there would be 3.5 million autonomous vehicles or self-driving cars on American roads by 2025, with an expected 4.5 million by 2030. Thus, the rising demand for driverless vehicles will propel the automotive microcontrollers market.

Supportive government regulations are fueling the growth of the automotive microcontrollers market during the forecast period. These regulations impact the global automotive microcontroller market by requiring the installation of various automatic components in vehicles. For instance, in November 2023, the National Center for Science and Engineering Statistics, a UK-based National Science Foundation, reported that state government agencies increased their spending on research and experimental development (R&D) to $2.644 billion in FY 2022, a 5.2% increase from $2.513 billion in FY 2021. Therefore, government regulations are contributing to the growth of the automotive microcontrollers market during the forecast period.

The automotive microcontrollers market is witnessing a prominent trend of product innovation, with major companies in the sector actively engaged in developing new technological solutions to enhance their market positions. For instance, in February 2022, STMicroelectronics, a multinational electronics and semiconductor manufacturer based in Geneva, launched cutting-edge automotive microcontrollers (MCUs) tailored for centralized electronic architectures (domain and zonal) and electric vehicles (EVs). These MCUs play a crucial role in making EVs more accessible, extending their range, and facilitating quick charging.

Leading companies in the automotive microcontrollers market are concentrating on creating innovative products, such as high-voltage precision analog microcontrollers, to improve battery management systems (BMS) for electric and hybrid vehicles by enabling effective monitoring and control of battery health and performance. High-voltage precision analog microcontrollers are specialized semiconductor devices designed for precise monitoring and control of high-voltage systems, particularly within automotive applications. For example, in May 2024, Infineon Technologies, a semiconductor manufacturer based in Germany, introduced the PSoC 4 High Voltage Precision Analog (HVPA)-144K microcontroller, engineered for advanced automotive applications, especially in battery management systems (BMS) for electric and hybrid vehicles. This microcontroller combines high-precision analog capabilities with high-voltage subsystems, allowing for effective monitoring and control of battery health and performance. It complies with automotive safety standards such as ISO 26262, ensuring reliability and safety in critical automotive settings. This makes it a vital component for modern automotive electronic systems, especially as the industry transitions to more electrified platforms.

In August 2024, Renesas, a Japan-based company specializing in semiconductor solutions, acquired Altium for an undisclosed amount. This acquisition aims to establish an innovative electronics system design and lifecycle management platform that boosts productivity and accelerates innovation, making electronics design more accessible to a wider market. Altium is a US-based provider of electronic design automation (EDA) software that specializes in PCB (Printed Circuit Board) design.

Major companies operating in the automotive microcontrollers market include STMicroelectronics N.V., Infineon Technologies AG, Renesas Electronics Corporation, Microchip Technology Inc., NXP Semiconductors N.V., Texas Instruments Incorporated, Toshiba Corporation, ROHM Semiconductor, Analog Devices Inc., ON Semiconductor, Cypress Semiconductor Corp, ARM LTD, Fujitsu Limited, Panasonic Corporation, Saankhya Labs, ASM Technologies, Broadcom Inc, CDIL, GigaDevice, CR Micro, Silan, Dialog Semiconductor Plc, Elmos Semiconductor and Arm, Maxim Integrated, Nuvoton Technology Corporation, Mitscholl electronics co. llc.

Asia-Pacific was the largest region in the automotive microcontrollers market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive microcontrollers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive microcontrollers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Automotive microcontrollers are self-contained systems comprising processors, memory, and peripherals, serving as embedded systems to control various functions within vehicles. These microcontrollers, integrated into a single chip, are pivotal in managing automotive operations efficiently and with minimal components. They are utilized in systems such as remote control, operating systems, and automobile audio systems.

The primary types of automotive microcontrollers include 8-bit, 16-bit, and 32-bit variants, differing in CPU capabilities and data handling. These microcontrollers cater to various vehicle types, including passenger ICE vehicles, commercial ICE vehicles, and electric vehicles. They facilitate connectivity such as vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-cloud (V2C). Automotive microcontroller technologies encompass adaptive cruise control, park assist systems, blind spot detection, and tire pressure monitoring systems. Their applications span powertrain and chassis, body electronics, safety and security systems, as well as infotainment and telematics in automobiles.

The automotive microcontrollers research report is one of a series of new reports that provides automotive microcontrollers statistics, including automotive microcontrollers industry global market size, regional shares, competitors with automotive microcontrollers share, detailed automotive microcontrollers segments, market trends, and opportunities, and any further data you may need to thrive in the automotive microcontrollers industry. This automotive microcontroller research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The automotive microcontroller market consists of sales of battery cell controllers, battery chargers, and battery sensors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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