Automotive Microcontrollers Market Size

Automotive Microcontrollers Market Size

Automotive Microcontrollers Market was valued at over USD 13.2 billion in 2023 and is anticipated to grow at a CAGR of around 8% between 2024 and 2032. The increasing shift toward Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) is driving the demand for microcontrollers in battery management systems, electric powertrain control, and other related applications. According to an IEA report, the share of electric cars in total sales increased to over 14% in 2022 with over 10 million sales compared to over 4% in 2020. The transition to electric powertrains requires sophisticated power electronics including inverters and converters. Microcontrollers are essential for controlling these power electronics and managing the flow of electrical energy between the battery & the electric motor.

Automotive microcontrollers are Integrated Circuits (ICs) embedded in vehicles, managing Electronic Control Units (ECUs) to control functions including engine performance, safety systems, and infotainment. These compact devices process real-time data from sensors, enabling precise control over vehicle components. They play a vital role in enhancing automotive performance, efficiency, and connectivity.

The design and development of advanced automotive microcontrollers involve substantial research, development & testing costs. The complexity of meeting stringent safety and quality standards adds to these expenses, potentially limiting market entry for some companies.