China MCU Market Size (2024 - 2029)

China MCU Market Analysis

The China MCU Market size is estimated at USD 7.84 billion in 2024, and is expected to reach USD 12.68 billion by 2029, growing at a CAGR of 10.09% during the forecast period (2024-2029).

The automotive sector is a significant market for MCUs, and electronic control units (ECUs) are a type of auto MCU. The market is expected to experience increased MCU demand at a global level owing to new energy/electric vehicles (NEVs) and autonomous driving. For instance, according to Huawei, by 2030, autonomous vehicles will account for more than 10% of new vehicles sold globally. China's EV penetration is expected to increase by 25% by the end of the forecast period. Further, in the forecast period, semiconductors for advanced driver-assistance systems (ADAS) are also expected to witness increased demand, directly increasing the need for MCUs in China.

• Moreover, there is enhanced activity from the semiconductor fabrication facilities in countries China. Numerous multinational manufacturers of memory direct a large amount of investment into the Chinese semiconductor fabrication market. The country's government initiatives, such as Made in China 2025, primarily support these initiatives. Such initiatives are expected to draw more investments into the country, driving the market studied over the forecast period.
• Due to the China-US trade war, China failed to meet its objectives and is behind the United States and other international semiconductor makers by a wide margin despite all of its attempts and financing. According to news, China will only own 40% of the global semiconductor market in 2025, falling short of the government's target of 70%. China is falling short of its goals to lead the world in setting standards because its semiconductor industry is at least two to three generations behind cutting-edge firms like TSMC and Samsung, which are creating sophisticated chips. A minimum of five to ten years will likely take China to develop technical competence.
• However, China's failure to create a self-sufficient chip ecosystem is due to several supply chain bottlenecks, including limited access to cutting-edge semiconductor manufacturing equipment and software and a shortage of talent and expertise. The U.S.-China trade war has indeed hurt China's indigenization efforts. These geopolitical issues can affect the market growth in the country during the forecast period.

China MCU Industry Segmentation

A microcontroller is a compact, reasonably priced microprocessor that is made to carry out the particular functions of embedded systems, such as displaying microwave information and receiving distant signals, among others.

The China microcontroller (MCU) market is segmented by product (4 and 8-bit, 16-bit, 32-bit) and by application (aerospace and defense, consumer electronics and home appliances, automotive, industrial, healthcare, data processing and communication). The market sizes and forecasts are provided in terms of value in (USD) for all the above segments.