Market Trends of Japan MCU Industry
Automotive Sector Holds Significant Market Share
- The growing vehicle electrification and automation, stringent government regulations and consumer demand for increased safety, reliability, comfort, and efficiency, and increasing need for security across all automotive applications are major factors driving the adoption of automotive microcontrollers globally.
- The significantly growing electric vehicle market, alongside the integration of MCU in the operational model, is expected to accelerate the demand for microcontrollers during the forecast period.
- 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.
- Several automobile manufacturers are expanding their production facilities in Japan to meet the growing demand and stay ahead of the competition. For instance, in June 2024, ROHM Co Ltd, a power semiconductor device manufacturer headquartered in Japan, has introduced its EcoSiC brand as a trademark for products utilizing silicon carbide (SiC). The unveiling of the EcoSiC brand is strategically aimed at enhancing performance, promoting sustainability, and driving technological innovation.
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Increasing Usage of Electronic Devices
- The increasing demand for the Internet of Things and artificial intelligence in consumer electronics and home appliances is driving the demand in the microcontroller market. Further, the demand for smart buildings and home automation drives the market.
- The country's microcontroller market is also driven by the increasing adoption of smart devices, including smartphones, as they can be conveniently connected to IoT devices. The Japan Smartphone Security Association (JSSEC) estimates that domestic smartphone users could reach 68.8 million by 2022.
- Moreover, according to the same organization, the monthly domestic shipment volume of mobile phones in Japan reached 1.42 million units in July 2022 and 0.68 million in May 2022.
- Furthermore, several electronic device manufacturers are expanding their presence in Japan, creating a high demand for microcontrollers. For instance, in December 2022, Kyocera, a leading supplier of electronic devices, mobile phones, automotive components, semiconductor packages, and others, announced to build a new manufacturing plant in Japan to advance its business expansion goals. The company aims to increase international and domestic production capacity through this plant.
- Companies in the market are developing new products to provide their customers with various solutions. For instance, in June 2022, NXP Semiconductor announced a new MCX portfolio of microcontrollers developed to advance innovation in smart homes, smart factories, smart cities, and many emerging industrial and IoT edge applications.
