Asia-Pacific MCU Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 8.34 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific MCU Market Analysis
The Asia-Pacific Microcontroller (MCU) Market is valued at USD 13.07 billion in the current year and is expected to reach USD 21.47 billion, recording a CAGR of 8.34% during the forecast period. Microcontrollers are computing units that control various peripherals and embedded systems, such as domestic appliances, automobiles, robotics, industrial machinery, and other devices.
- The Asia-Pacific region is home to some of the biggest semiconductor manufacturers, such as TSMC, SMIC, SK and Hynix. The presence of these companies further supports the growth of the market studied in this region. Additionally, the region is witnessing growing IoT connections among consumer and enterprise sectors. The need for low-power, high-performance, and energy-efficient connected products is the major factor driving the growth of IoT microcontrollers in the region. Several companies are working toward innovating advanced products that cater to this demand.
- In June 2022, Soracom Inc., a global provider of advanced IoT connectivity, announced that SPRESENSE from Sony Semiconductor Solutions Corporation (SSS) joined the Soracom Partner Space ecosystem, and SSS identified Soracom as a recommended provider of connectivity for its SPRESENSE microcontrollers. SSS's SPRESENSE 6-core microcontroller board is intended for professional IoT use cases, with a streamlined form factor, ultra-low power consumption, multiple sensor inputs, internal GPS, and edge AI support. The solid computing performance and advanced power efficiency make SPRESENSE suitable for edge computing.
- However, the price fluctuation of raw materials tends to impact the market's growth. For instance, since the start of 2022, the price of gallium has climbed by 550 CNY/Kg, or 24.18%, according to trading on a contract for difference (CFD) that monitors the benchmark market for this commodity. Such a rise in the gallium raw materials will increase the cost of gallium arsenide, restraining MCU vendors from purchasing the material and further impacting the market from growing.
- In recent years, India has witnessed a notable surge in the usage of connected devices, including smart home devices and wearables. According to Cisco, India will have around 2.1 billion internet-connected devices by 2023. The country is also expected to cross the 900 million mark of internet users, according to the recently published Cisco Annual Internet Report (2018-2023), owing to the increased penetration of affordable smartphones and cheaper internet plans. Demand for connected devices will drive the market's growth during the forecast period.
- Post-COVID-19, investments in the digitization of global economies, the deployment of 5G technologies, and robust investments in data centers are the primary drivers behind the growth. The market saw significant growth by the end of 2022, owing to the increase in the demand for electronics, driven by the ongoing 5G smartphone ramp-up and the continued strength of HPCs.
Asia-Pacific MCU Market Trends
Growing Automobile Industry to Drive the Market in Region
- Toyota, the prominent automaker, has launched 30 battery electric vehicle (BEV) models and strives to reach 3.5 million electric vehicle sales by 2030. The company's major share comes from the Asia-Pacific region; this may drive the MCU market.
- Further, the Asia-Pacific region's growing automotive industry supports the market's growth. For instance, the automotive industry in India witnessed massive growth in recent years due to the growing disposable income and rapid urbanization. According to a report by the IBEF in April 2023, India aims to double its auto industry size to INR 15 lakh Crore (~USD 181.6 billion) by the end of the year 2024. There has been a Foreign Direct Investment (FDI) inflow of USD 33.77 billion in the industry from April 2000 to September 2022, accounting for around 5.48% of the total FDI inflows in India during the same period.
- According to CAAM, in April 2022, China's new energy vehicle sales were reported to be 299,000 units, of which 280,000 were electric passenger vehicles and 19,000 were commercial electric vehicles, whereas sales of passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were 212,000 and 68,000 units, respectively.
- Moreover, by 2030, Volkswagen expects electric car sales to approach 50% in China, with almost all zero-emission vehicles by 2040. Such trends and plans strive to grow the regional market share and provide vendors and distributors of the market to expand in the region.
- Furthermore, according to the IBEF, the electric vehicle (EV) market is anticipated to reach INR 50,000 crore (~USD 6.05 billion) in India by 2025. In addition, a study by CEEW Centre for Energy Finance recognized a USD 206 billion opportunity for electric vehicles in India by 2030, which will necessitate a USD 180 billion investment in vehicle manufacturing and charging infrastructure. Vendors of the MCU market can benefit from this opportunity by collaborating and partnering with the players in the automotive industry in the country.
China to Have Significant Market Share
- The market is witnessing the entrance of several new players. For instance, in March 2022, Shanghai Fudan Microelectronics announced its plans to create microcontrollers for the automotive industry. The announcement underlines the expansion plans of the company.
- Also, China is one of the biggest manufacturing giants in the number of manufacturing units operational for many industries. With the US-China Trade war, China has focused on motivating microcontrollers' domestic manufacturing. Hence, local manufacturers are following large-scale policies of vehicle electrification and others, creating high demands for MCUs, and boosting domestic MCU manufacturing.
- For instance, in April 2022, Nanjing SemiDrive Technology Ltd introduced the E3 series of ARM-based automotive microcontrollers. These are aimed at drive-by-wire chassis, BMS, brake control, ADAS/autonomous driving motion control, HUD, LCD instrumentation, and streaming media vision systems.
- Similarly, in April 2022, BYD, another semiconductor manufacturer from China, launched its new BS9000AMXX series of 8-bit MCU chips for vehicles. According to the company, the BS9000AMXX series is an 8-bit general-purpose MCU, and the chip uses an S8051 core with a central frequency of up to 24MHZ.
- Moreover, according to Tencent, a Chinese multinational technology and entertainment conglomerate and holding company, in the first half of 2022, sales through online channels accounted for 73% of the total household appliance sales value in China, increasing from 69% in 2021. In the first half of 2022, around 97.7% of electric steamers were sold online. As one of the essential components for the electric streamer is MCUs, which allows the market vendors to expand their market in the country.
Asia-Pacific MCU Industry Overview
The Asia-Pacific Microcontroller (MCU) market is significantly consolidated, with many companies supplying MCUs. The companies enter strategic partnerships and develop new technologies to maintain their market share.
- April 2023: Renesas Electronics Corporation announced that it had produced its first microcontroller (MCU) based on advanced 22-nm process technology. The first chip built on the new 22-nm process extends Renesas' RA family of 32-bit Arm Cortex-M microcontrollers. This new wireless MCU offers Bluetooth 5.3 Low Energy (LE) with a software-defined radio (SDR) integration. It provides a future-proof solution for customers building products targeting a long lifetime.
- March 2023: Infineon Technologies AG and United Microelectronics Corporation announced a long-term strategic partnership to multiply capacity for producing Infineon automotive microcontrollers to serve the quickly developing automotive market. The high-performance microcontroller product leverages Infineon's proprietary eNVM (embedded non-volatile memories) technology & will be manufactured at UMC's Singapore fab on its 40nm process.
Asia-Pacific MCU Market Leaders
Renesas Electronics Corporation
Infineon Technologies Ag
Microchip Technology Inc.
STMicroelectronics
NXP Semiconductors
*Disclaimer: Major Players sorted in no particular order
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Asia-Pacific MCU Market News
- October 2022: STMicroelectronics announced the release of new microcontrollers (MCUs) for use in electrified vehicles that will utilize domain-oriented, over-the-air updatable systems and electrified drivetrains. For the model year 2024 vehicles, ST's Stellar P automotive MCUs will integrate the new CAN-XL in-car communication standard as vehicles generate, process, and transfer extensive data flows to support the next generation of electric vehicles. As a result of this technology, the new vehicle platforms can handle growing data flows, ensuring that the car operates at its best.
- June 2022: NXP Semiconductors announced the latest MCX portfolio of microcontrollers, developed to advance innovation in smart homes, smart factories, smart cities, and across many emerging industrial and IoT edge applications. The portfolio contains four series of devices built on a common platform & is supported by the broadly adopted MCU Xpresso suite of expansion tools and software. This integrated offering permits developers to maximize software reuse across the portfolio to swift development. The portfolio also features the first instantiation of NXP's new, specialized neural processing unit for accelerating inference at the edge, providing up to 30x faster machine learning throughput compared to a CPU core alone.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Macro Trends on the Market
4.5 Technology Snapshot
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Emergence of Internet of Things (IoT)
5.1.2 Growth of the Automotive Technology
5.2 Market Challenges
5.2.1 Increasing Complexity Of Design
6. MARKET SEGMENTATION
6.1 By Product
6.1.1 4 And 8-bit
6.1.2 16-bit
6.1.3 32-bit
6.2 By Application
6.2.1 Aerospace And Defense
6.2.2 Consumer Electronics And Home Appliances
6.2.3 Automotive
6.2.4 Industrial
6.2.5 Healthcare
6.2.6 Data Processing And Communication
6.2.7 Other End-user Industries
6.3 By Country
6.3.1 China
6.3.2 Japan
6.3.3 South Korea
6.3.4 Rest of Asia Pacific
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Elan Microelectronics Corporation
7.1.2 Infineon Technologies AG
7.1.3 Microchip Technology Inc.
7.1.4 Nxp Semiconductors Nv
7.1.5 Renesas Electronics Corporation
7.1.6 STMicroelectronics NV
7.1.7 Texas Instruments Incorporated
7.1.8 Toshiba Electronic Devices & Storage Corporation
7.1.9 Intel Corporation
7.1.10 Analog Devices Inc
7.1.11 Silicon Labs
7.1.12 Broadcom Inc
7.1.13 On Semiconductor (semiconductor Components Industries, Llc)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Asia-Pacific MCU Industry Segmentation
A microcontroller is a single-chip microcomputer that is made using very-large-scale integration (VLSI) technology. Microcontrollers are commonly referred to as embedded controllers. Microcontrollers are used in vehicles, robots, office machines, medical devices, mobile radio transceivers, vending machines, and home appliances, among other devices. They are simple miniature personal computers (PCs) developed to handle small features of a larger component without a complicated front-end operating system (OS).
Asia-Pacific Microcontroller (MCU) Market is segmented by Product (4 and 8-bit, 16-bit, 32-bit), Application (Aerospace and Defense, Consumer Electronics And Home Appliances, Automotive, Industrial, Healthcare, Data Processing and Communication), and Country. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| By Product | |
| 4 And 8-bit | |
| 16-bit | |
| 32-bit |
| By Application | |
| Aerospace And Defense | |
| Consumer Electronics And Home Appliances | |
| Automotive | |
| Industrial | |
| Healthcare | |
| Data Processing And Communication | |
| Other End-user Industries |
| By Country | |
| China | |
| Japan | |
| South Korea | |
| Rest of Asia Pacific |
Frequently Asked Questions
What is the current Asia-Pacific MCU Market size?
The Asia-Pacific MCU Market is projected to register a CAGR of 8.34% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific MCU Market?
Renesas Electronics Corporation , Infineon Technologies Ag , Microchip Technology Inc. , STMicroelectronics and NXP Semiconductors are the major companies operating in the Asia-Pacific MCU Market.
What years does this Asia-Pacific MCU Market cover?
The report covers the Asia-Pacific MCU Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Asia-Pacific MCU Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific MCU Market Industry Report
Statistics for the 2024 Asia-Pacific MCU market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific MCU analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
