CAGR: 7.4%Current Market Size: USD 11.22 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The Global Automotive Microcontrollers market is expected to grow from USD 11.22 billion in 2022 to USD 19.86 billion by 2030, at a CAGR of 7.4% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising cases of road accidents and to reduce the chances of human errors.
An automotive microcontroller acts as a single-chip device that controls all aspects of vehicle operation as well as manages battery power. It is used in automobiles to enable automatic control sensing, enhance safety features, such as temperature control and airbags, and speed up execution times. In the microcontroller, technological innovations are used to facilitate the smooth management of automotive devices and to prevent error occurrences. Microcontrollers make automobiles capable of performing automatic functions such as distributing electricity to various vehicle components and controlling exhaust emissions. With hybrid electric vehicles' high productivity and power-saving properties, the market for automotive microcontrollers is experiencing strong growth due to their increased need for microcontrollers. In addition, government support for the development of advanced driving system infrastructure in commercial vehicles will increase safety concerns and encourage the adoption of microcontrollers. Microcontrollers are widely used in automotive electronic goods and equipment such as remote controls, vehicle audio systems, engine control and operating systems, and Internet of Things (IoT) applications etc. In addition, the market for automotive microcontrollers is experiencing increased demand, prompting vendors to invest more in R&D. There is increasing demand for high-performance features in modern in-vehicle systems and safety features, which is helping to drive the market growth.
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Market Dynamics:
Drivers:
Rising cases of road accidents are one of the major reasons which are driving the growth of the automotive microcontrollers market, in order to provide a safe and secure experience while driving automobiles and to reduce the chances of road accidents. In a report from the World Health Organization, over 1.25 billion people die every year in traffic accidents, indicating that the death rate from traffic accidents has significantly increased, which is triggering the demand for automotive microcontrollers in automobiles.
Restraints:
The structural complexity of the structure impacts market growth. Microcontrollers cannot be reprogrammed which is making them less acceptable to the majority of consumers. Moreover, a static charge can damage complementary metal-oxide-semiconductor (CMOS) microcontrollers and it was not possible for microcontrollers to run multiple instructions simultaneously on the same chip, hampering the growth of the market.
Opportunities:
The rising trend for electric vehicles is creating new opportunities for the automotive microcontroller market to grow. Electric vehicles are in demand because these vehicles are playing a key role in lowering the level of air pollution as well as reducing carbon dioxide emissions. Governments from across the world are playing a major role in the rising demand and acceptability of electric vehicles among consumers. In addition, a declining cost of components such as microcontrollers, lithium-ion batteries, sensors, and others is expected to be the main catalyst for the development of electric vehicles in the near future.
Challenges:
A scorching environment causes microcontrollers to melt down or malfunction, and this leads to weak signals and failed devices, which is hampering the sales of the microcontrollers and ultimately affecting the growth of the market. High temperature affects the functioning of the microcontrollers which is making them less suitable for regions with high temperatures. Because of this, consumers in countries such as Canada and Russia are switching to mechanical devices, negatively impacting automotive microcontroller sales.
Segmentation Analysis:
The global automotive microcontrollers market has been segmented based on vehicle type, application, technology, and region.
By Vehicle Type
The vehicle type segment includes electric vehicle types, passenger cars and commercial vehicles. The passenger cars segment led the largest share of the automotive microcontrollers market with a market share of around 47.2% in 2022. A growing market for passenger vehicles is expected due to the importance of the segment in the transportation industry and the demand for better and more efficient vehicles using advanced technologies. In addition, government support and the development of advanced driving systems for passenger vehicles contribute to the growth of this segment.
By Application
The application segment includes infotainment & telematics, powertrains & chassis, body electronics and safety & security systems. The powertrains & chassis segment led the largest share of the automotive microcontrollers market with a market share of around 40% in 2022. In the Projection period, powertrain & chassis are expected to grow at 6.2% CAGR, contributing the largest percentage of revenue to the market. As a result of their ability to reduce vehicle fuel consumption, automotive microcontrollers are becoming increasingly popular in powertrains & chassis, which is propelling the growth of the market.
By Technology
The technology segment includes blind spot detection, park assist system, tire pressure monitoring system, and adaptive cruise control. The adaptive cruise control segment led the largest share of the automotive microcontrollers market with a market share of around 32.3% in 2022. An adaptive cruise control system allows a car to automatically adjust its speed in response to the vehicle in front of it. With add-on applications such as collision warning, mitigation, and avoidance, adaptive cruise control systems have gained popularity due to their ability to reduce the frequency of accidents.
Global Automotive Microcontrollers Market- Sales Analysis.
The sale of automotive microcontrollers expanded at a CAGR of 5.7% from 2016 to 2022.
Microcontrollers are experiencing rapid growth in the emerging market due to the increasing modernization of vehicles and a shift towards electric vehicles. Several automatic functions of automobiles are controlled by microcontrollers, such as optimizing the exhaust system, reducing fuel consumption, and distributing power to various components, boosting the growth of the market
Vendors are investing more in R&D to meet the increasing demand among end users for automotive microcontrollers, which creates new opportunities for market growth. Moreover, as demand for high-performing and safety-enhancing technologies in modern vehicles grows, the market is poised for growth
Thus, owing to the aforementioned factors, the global automotive microcontrollers market is expected to grow at a CAGR of 7.4% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the automotive microcontrollers market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the automotive microcontrollers market and held a 39.4% share of the market revenue in 2022.
Global Automotive Microcontrollers Market- Country Analysis:
Germany's automotive microcontrollers market size was valued at USD 1.8 billion in 2022 and is expected to reach USD 3.21 billion by 2030, at a CAGR of 7.5% from 2023 to 2030.
The market is growing quickly due to the high-tech electronics and safety features on most vehicles, boosting the growth of the market in the country. A stable legal environment and affordable vehicles increase the use of safety systems in cars to increase safety and comfort, which accounts for a large share of the growth of the market.
China’s automotive microcontrollers market size was valued at USD 2.03 billion in 2022 and is expected to reach USD 3.70 billion by 2030, at a CAGR of 7.8% from 2023 to 2030.
The demand for microcontrollers in China is expected to rise as chassis fitted with engines are exported to the country on a yearly basis. In addition, Chinese customers' growing demand for an ever-increasing level of connectivity in cars is driving automakers to upgrade their Chinese models first.
India's automotive microcontrollers market size was valued at USD 1.56 billion in 2022 and is expected to reach USD 2.80 billion by 2030, at a CAGR of 7.6% from 2023 to 2030.
It is expected that the automotive microcontroller market will grow faster in the country owing to the increase in safety and security measures and the ease of transportation provided by the integration of automotive microcontrollers.
Key Industry Players Analysis:
To increase their market position in the global automotive microcontrollers business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
7.4% |
Market Size |
11.22 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Vehicle Type, By Application, By Technology, and By Region. |
Report Scope |
Revenue forecast, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
STMicroelectronics, Microchip Technology, Maxim Integrated, Renesas Electronics, Cypress Semiconductors, Rohm Semiconductor, Analog Devices, Toshiba, NXP Semiconductors, Analog Devices, Inc., On Semiconductor, and Infineon Technologies. |
By Vehicle Type |
|
By Application |
|
By Technology |
|
Regional scope |
|
Scope of the Report
Global Automotive Microcontrollers Market by Vehicle Type:
Global Automotive Microcontrollers Market by Application:
Global Automotive Microcontrollers Market by Technology:
Global Automotive Microcontroller Market by Region:
Global Automotive Microcontrollers market size is USD 11.22 billion in 2022
Rising demand for safety features in automobiles and increasing demand for electric vehicles will propel the market's growth.
STMicroelectronics, Microchip Technology, Maxim Integrated, Renesas Electronics, Cypress Semiconductors, Rohm Semiconductor, Analog Devices, Toshiba, NXP Semiconductors, Analog Devices, Inc., On Semiconductor, Infineon Technologies among others.
Asia Pacific region will witness more automotive microcontrollers market growth.
Global Automotive Microcontrollers market is expected to reach USD 19.86 billion by 2030, at a CAGR of 6.6% from 2023 to 2030.
Political Factors- Government and political institutions and authorities must keep an eye on industrial rivalry. By doing this, businesses can be sure that their products and business practises are ethical. The government can monitor, limit, and regulate imports with the use of competition regulation, which will support the development and growth of regional firms. The preservation of the rights and interests of the relevant stakeholders as well as the protection of all groups and stakeholders depends on competition regulation.
Environmental Factors- Lower overall disposable income in the economy due to higher unemployment trends would have a direct impact on the profitability of businesses like automotive skid plate market. A skills and knowledge gap in the workforce may also be reflected in higher unemployment trends, which would again hurt consumers through higher product prices. The higher prices would be associated with the increased cost of doing business when labour would be imported from other sources for purposes of work.
Social Factors- For automotive skid plate market, a bigger proportion of the younger population is advantageous because it will give the business access to a wider customer base. Additionally, a younger population will guarantee Smith Nephew plc more educated, competent, and human resources, expanding the company's talent pool. A moderate to high middle class is also important for Smith Nephew plc as its current consumers, and advocates . This group promotes Smith Nephew plc as a brand and inspires the younger generation to become devoted customers.
Technological Factors- The country, as well as other consumer markets, have significant internet penetration rates. Most of the population owns a smart phone for internet access and has access to PCs and laptops as well. Due to the strong penetration of the internet, it is used for both personal and professional obligations. A population that is progressive and well-educated is reflected in the higher internet penetration, which is advantageous for automotive skid plate market. automotive skid plate market has also taken advantage of the widespread use of the internet to connect with customers, as well as for marketing and promotional strategies so that it can speak with customers directly and get their feedback.
Environmental Factors- A rise in the green lifestyle has coincided with an increase in environmental sustainability awareness. Consumers in the nation and in all markets are gravitating toward goods and services that are "green," or created and promoted in ways that are sustainable and kind to the environment. To appeal to consumers, businesses are also jumping on the green product bandwagon and releasing them. automotive skid plate market engages regularly in environmental friendly CSR activities. A green product line, which is a modification of its current product line, has also been introduced by automotive skid plate market. To boost its contribution to environmental sustainability, the company intends to expand the weight of its green product range steadily.
Legal Factors- Businesses are required by national regulations to create valid employment contracts. These agreements, which cover every aspect of employment, are approved by the respected governmental bodies. Employment contracts provide a positive relationship between all parties and prevent miscommunication or collusion. automotive skid plate market complies with employment laws and informs prospective employees of these rules. automotive skid plate market HR division also regularly hosts workshops and training events for staff members to engage them and educate them on employment regulations and other legal requirements.
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