Market Trends of Global Microcontroller (MCU) Industry
This section covers the major market trends shaping the Microcontroller MCU Market according to our research experts:
Automotive Applications to Drive the MCU Industry
- Introducing new-age technology in the automotive industry has encouraged the involvement of semiconductors and microcontrollers. According to IEEE Explore, an average of more than 50 Microcontroller Units (MCUs) are used in automobiles. The inclusions of connected tech, AI, autonomous driving, and other IoT services have created enormous demand for the deployment of MCUs.
- The MCUs can be configured per any requirement based on the architecture's versatility and functionality. The input/output (I/O) ports, microprocessor, connectivity options, technological platform, range of operation, power consumption, and other differentiating factors add to the customizability and flexibility of use for the MCUs in automobiles. Each MCU serves a dedicated purpose.
- In the wake of surging fuel prices and climate change, carmakers are optimizing fuel consumption by monitoring the fuel efficiency of vehicles in real-time with the help of Electronic Control Units (ECUs), which are forms of microcontrollers. An ECU is the central controlling unit in modern vehicles responsible for monitoring various vehicular functions like fueling, infotainment, remote functionality, autonomous driving functions, parking aids, and electronic driving aids (like lane-keep assist, park-assist features, etc.), and others. Hence, ECUs demand highly reliable and robust hardware to run compatible platforms and software to achieve the required crucial functions.
- Autonomous vehicles and sensor-driven safety features like automatic brake assist, collision avoidance systems, etc., are the driving factors in the future of automobiles, incorporating MCUs. The MCUs housing sensors related to each function offer local computing followed by temporary data storage and transfer to the master controlling units or remote servers.
- MCUs with automobile sensors also demand more robust and reliable quality promising accurate results and operation in various environmental constraints. For instance, in April 2022, Honda opted R-Car and RH850 by Renesas Electronics for use in the Honda SENSING 360 omnidirectional safety and driver assistance system. The 40 nm-process MCU provides good embedded security at low power consumption and high scalability for advanced automotive applications.
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Asia Pacific to Exhibit the Fastest Growth in the Market
- The Asia Pacific has emerged as a significant hub for semiconductor manufacturing and semiconductor-based devices. The region is home to some of the most prominent electronics and automotive manufacturing companies. Hence, the area contributes significantly through various applications of microcontrollers like automotive, industrial automation, pharmaceutical, consumer electronics, robotics, and other end-user industries.
- China is one of the largest manufacturing giants dominating the region in the number of manufacturing units operational for many industries. With the US-China Trade war, China has been lately focussing on motivating domestic manufacturing of microcontrollers. Hence, local manufacturers are following large-scale policies of vehicle electrification and others, creating high demands for MCUs, and boosting domestic MCU manufacturing.
- APAC comprises chief contract-based semiconductor manufacturers like Taiwan Semiconductor Manufacturing Company (TSMC). TSMC accounts for manufacturing more than 70% of the global microcontrollers sold by significant market players, like NXP Semiconductors, Texas Instruments, STMicroelectronics, etc. Other regional manufacturers comprise Foxconn, MediaTek, Qualcomm, and others, contributing significantly to the region's growth.
- Companies in this region are looking at constant innovation and upgrades to keep up with global microcontrollers' industrial evolution. For instance, Japanese semiconductor manufacturer Renesas Electronics announced a higher investment in manufacturing capacity by more than 50% by 2023. The company will focus on producing more high-end microcontrollers and other vital components for cars and electronics. Renesas aims for 40,000 200mm wafers a month by procuring more lines for outsourced production at chip foundries.
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