Market Trends of Asia-Pacific MCU Industry
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.
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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.
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