Market Trends of Americas Microcontroller (MCU) Industry
Automotive Application Segment is Expected to Hold a Considerable Share
- In the automobile industry, a microcontroller is used to manage electrical control unit activities, manage fail-safe and fault-tolerant automotive systems, and report problems that occur in the vehicle (such as the accelerator, anti-lock brake interface, and broken lights).
- The growing vehicle electrification and automation, stringent government regulations, consumer demand for increased safety, reliability, comfort, and efficiency, and increasing need for security across all automotive applications are some of the major factors driving the adoption of automotive microcontrollers in the American region.
- Growth in automotive microcontroller sales mainly depends on vehicle sales and production trends, along with the increase in semiconductor deployment per vehicle, driven by the proliferation of electronic features throughout the vehicle. Due to the high degree of regulatory scrutiny and safety requirements, the automotive industry is characterized by stringent qualification processes, zero-defect quality processes, functionally safe design architecture, high reliability, extensive design-in timeframes, and extended product lifecycle, which result in significant growth of microcontrollers in the sector.
- General Motors Co. announced to its investors in New York City that it expects its swiftly growing electric vehicle portfolio to achieve profitability in North America by 2025. This outlook is based on the company's plans to ramp up production in the region to over one million EVs annually, expand software sales opportunities, generate substantial greenhouse gas reductions, and take advantage of the newly available clean energy tax credits
- According to the U.S. Department of Energy, in the United States, Plug-in Electric Vehicle Sales as a Share of All Light-Duty Vehicle Sales has increased from 7.8% in December 2022 to 9.8% in 2023. By looking at the sales of electric vehicles and the rise in production of electric vehicles (EV), it is anticipated that the market growth for the MCU will increase during the forecast period.
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United States is Expected to Hold Significant Market Share
- With the growing demand for 5G network equipment, servers, and autonomous and electric vehicles (EV) applications in the United States, the adoption of microcontrollers is anticipated to witness a remarkable surge over the forecast period.
- According to Cox Automotive, Tesla sales accounted for approximately 64.5% of battery EVs in the United States, increasing to about 809,700 by 2022. Second-ranked Ford accounted for just 7.6 percent of battery electric vehicle sales in the United States.
- With the upcoming 5G technology, the Internet consumption rate and the industry's requirement for adequate data storage facilities are anticipated to increase. According to GSMA, 5G adoption in the United States is anticipated to reach 68% by 2025. Such growth is further expected to influence the development of the microcontroller (MCU) market.
- The prominent market leaders in the country are focusing on expanding their product line related to MCU, which will allow the companies to strengthen their positions in the studied market. For instance, in March 2023, Texas Instruments (TI) announced that it is expanding its broad analog and embedded processing semiconductor portfolio by introducing a scalable Arm Cortex-M0+ microcontroller (MCU) portfolio that features a wide range of computing, pinout, memory, and integrated analog options.
- In April 2022, Microchip Technology introduced five new product families and more than 60 individual devices to help embedded designers solve their most common problems. These new devices combine application-specific integrated circuit (ASIC)-like capabilities with a simple development experience, allowing them to be configured as smart peripheral chips while extending traditional MCU capabilities. These intelligent peripherals enhance applications, such as software-controlled op-amps, multi-voltage I/O (MVIO), and analog-to-digital converter with computation (ADCC).
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