28.49 Billion Dollars Growth to Come for Market of Microcontrollers due to Automotive Industry
The market for microcontrollers has been steadily growing over the years, thanks to their wide range of applications in various industries. However, one sector that is set to significantly contribute to this growth is the automotive industry. According to a recent report by MarketsandMarkets, the global microcontroller market is projected to reach a whopping 28.49 billion dollars by 2022, with a compound annual growth rate of 4.4%. This growth can mainly be attributed to the increasing adoption of advanced driver-assistance systems (ADAS) and electric vehicles.
Rising Demand for ADAS and Electric Vehicles
The automotive industry is undergoing a major transformation, with the introduction of technologically advanced features in vehicles such as ADAS systems. ADAS systems use microcontrollers to control and monitor various aspects of driving, including lane departure warning, adaptive cruise control, and automatic emergency braking. These features not only enhance the safety of drivers and passengers but also provide convenience and comfort. With the rise in accidents caused by human error, there is a growing demand for such advanced safety features, driving the growth of the microcontroller market.
In addition to ADAS, the increasing popularity of electric vehicles is also fueling the demand for microcontrollers in the automotive industry. As governments around the world push for stricter emission regulations, more and more automakers are shifting towards electric vehicles. These vehicles require a high number of microcontrollers to manage their complex systems, including battery management, power control, and communication networks. With the rapid growth of the electric vehicle market, the demand for microcontrollers is set to soar.
Expanding Automotive Industry in Emerging Markets
The demand for microcontrollers is not limited to advanced markets such as the US and Europe. Emerging markets, including China, India, and Brazil, are witnessing a surge in automotive production and sales. According to a report by PwC, China has already surpassed the US to become the world’s largest automotive market, and India is set to become the third-largest market by 2022. This growth is fueled by various factors such as increasing disposable income, urbanization, and government initiatives to boost the automotive sector.
These emerging markets are also witnessing a rise in the adoption of advanced technologies in vehicles, including ADAS and electric vehicles. As a result, there is a growing demand for microcontrollers in these markets, further contributing to the overall growth of the global microcontroller market.
Innovation and Technological Advancements
The microcontroller market is highly competitive, with major players constantly investing in research and development to stay ahead of the game. With the increasing demand for advanced features in vehicles, semiconductor companies are coming up with innovative solutions to address the complex requirements of the automotive industry. For instance, companies are developing microcontrollers with higher processing speed, lower power consumption, and improved communication capabilities.
The integration of IoT technology in vehicles is also driving the demand for microcontrollers. IoT-enabled vehicles require microcontrollers to connect various sensors, communication units, and other electronic components, making them an integral part of the vehicle’s overall intelligence. As the concept of connected cars gains traction, the demand for microcontrollers is expected to grow significantly.
Challenges Ahead
While the future of the microcontroller market seems bright, there are some challenges that the industry needs to address. One major concern for semiconductor companies is the shortage of skilled labor. As the complexity of microcontrollers increases, there is a growing need for skilled engineers to design and develop these chips. Additionally, the high cost of microcontrollers is also a significant barrier for small-scale automakers and manufacturers in emerging markets.
Facing these challenges, semiconductor companies are investing in initiatives to train and educate engineers in developing countries, as well as exploring cost-effective methods for microcontroller production.
Conclusion
The growth of the automotive industry, along with advancements in technology and innovation, is set to fuel the demand for microcontrollers in the coming years. With a projected market size of 28.49 billion dollars by 2022, the microcontroller market is poised for significant growth, largely driven by the automotive sector. As semiconductor companies continue to invest in research and development and address challenges, we can expect to see further advancements and innovations in microcontroller technology, leading to new applications and opportunities in the automotive industry.