Global Automotive MCU Market Size (2024 - 2029)

Automotive Microcontrollers Market Analysis

The Global Automotive MCU Market size is estimated at USD 10.48 billion in 2024, and is expected to reach USD 16.05 billion by 2029, growing at a CAGR of 8.92% during the forecast period (2024-2029).

An increased demand for devices designed for extreme operating conditions, providing real-time response and high reliability, even in extreme temperatures, and incorporating features for functional safety to meet automotive design challenges, is expected to offer lucrative opportunities for growth of the studied market.

• The rise in automation has generated a significant need for microcontrollers responsible for the automatic operation of vehicle functions. MCUs are being used in automobiles to perform automatic functions like keeping the exhaust system clean, distributing electricity to various vehicle components, and reducing fuel consumption. Further, the electrification of vehicles is creating a need for new and specialized MCUs that are optimized for the needs of electric vehicles (EVs). To cater to the upsurge in demand for EVs, companies in the market are innovating advanced products and investing in extensive R&D projects.
• For instance, aiming to keep the impetus going for zonal architecture-related solutions, in February 2022, ST released Stellar E MCUs, a new offering optimized for software-defined EVs Built around 32-bit, 300 MHz Arm Cortex-M7 cores. The MCUs feature up to 2 MB of on-chip Flash and 16 Kbyte of cache per core. The new MCUs, an extension of the Stellar family, are meant to be powerful, centralized domain and zone controllers to simplify design and scalability for a zonal architecture automobile. Also, the new MCUs aim to allow for easy control of wide-bandgap power electronics, such as silicon carbide, which has become a mainstay for efficient power conversion in EVs.
• Additionally, in July 2021, Sterling Gtake E-mobility Ltd, a manufacturer of motor control units for electric vehicles, announced that it had bagged an order worth INR 60 crore from a leading electric two-wheeler maker. The company said it is also in the advanced stages of discussions with over 20 electric vehicle (EV) manufacturers to supply motor control units (MCUs) for different vehicle types, including two-wheelers and three-wheelers passenger vehicles and commercial vehicles.
• On the flip side, as the global automotive sector is recovering from a slump in sales caused by Covid-19, another crisis is dampening its revival. A global semiconductor shortage disrupts global automotive production and may cause a delay in the sales of new vehicles. Microcontrollers, a crucial component of electronic control units used in modern infotainment systems, anti-lock braking systems (ABS), advanced driver assist systems (ADAS), and other electronic stability systems are in short supply forcing carmakers to reduce output. Resultantly, the carmakers are selectively idling plants until the shortage eases. However, the market is expected to make quick progress in the near future.
• Moreover, the possibilities of operational failure of the automotive MCUs in extreme climatic conditions, coupled with their design complexity, might hamper the growth of the studied market.

Automotive Microcontrollers Industry Segmentation

An MCU is an intelligent semiconductor IC consisting of a processor unit, memory modules, communication interfaces, and peripherals. The global automotive MCU market is segmented by product type (8-bit,16-bit, 32-bit), application (powertrain and chassis, safety and security, body electronics, and telematics and infotainment), vehicle type (passenger ICE vehicle, commercial ICE vehicle, and electric vehicles), and geography. The segmentation comprises an in-depth coverage of the global revenue generated from the sale of application-specific consumer analog ICs and unit shipments.