This market research report was originally published at Yole Développement’s website. It is reprinted here with the permission of Yole Développement.
The spike in electronics purchases during the pandemic and global inflation is causing a dip in the MCU market for 2022, creating overages at OEMs.
OUTLINE
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The MCU industry is expected to reach about US$27 billion by 2027.
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With 32% of the microcontroller revenue in 2022 and a forecast 37% in 2027, automotive is the biggest market segment.
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The Top 5 MCU suppliers are NXP, Renesas, Infineon Technologies, STMicroelectronics, and Microchip.
In 2022, some markets relying on consumer spending will experience overages, if not already impacted. This will drive pricing in the short term, especially for multimarket MCUs. However, high-reliability and secure MCU ASP s are expected to remain high, and demand will be less severely affected…
Yole Intelligence has developed a dedicated market monitor to provide an in-depth representation of the microcontroller market. In its Microcontroller (MCU) Market Monitor, the company, part of Yole Group, presents the current megatrends and their effects on the MCU Market. The market monitor provides a comprehensive analysis of the trends that drive the overall class and individual markets. This new edition gives context to the competitive landscape and the strategy of the leading MCU suppliers. Moving up the value chain, Yole Intelligence’s analysts also deliver a clear perspective on the size and market for MCU manufacturing with associated sizing and trends in wafer manufacturing.
Continued supply chain disruptions will not allow prices to drop dramatically overall. There is still the risk of overbuilding, driving down prices in 2024 and beyond. But this is unlikely, given that the new fabs will not be targeting traditional MCU manufacturing technologies but cutting-edge MPU s, GPU s, and accelerators.
It is more likely that manufacturers will keep prices high to recuperate some of their investments in new capacity. It will take one or more manufacturers thinking they can grow their share by undercutting the competition for ASPs to drop. Still, a more gradual decrease in ASP is likely to benefit most suppliers regardless of market share. Materials shortages, real or feigned, may forestall a rapid lowering of ASPs before 2027.
“Over the last decade, automotive OEMs have embraced the strategy of trying to redesign the primary control network in automobiles to reduce the number of disparate ECU s connected by the increasingly overtaxed CAN , leading toward more centralized and CAN-FD or Ethernet-connected DC.”
Tom Hackenberg
Principal Analyst, Computing & Software, Semiconductor, Memory and Computing Division, Yole Intelligence
The faster networks and DCs have contributed to the development of more advanced imaging and sensor platforms, more advanced driver assistance, improved network security, and significantly enhanced driver and passenger experiences. Recently, domain controllers have been moving more toward zone control, allowing for more distributed intelligence with slightly fewer electronic control units than classic discrete ECUs. The resulting evolution seems to have achieved more intelligent vehicles rather than a reduction in controllers and continues to drive MCU quantity and revenue growth.
More impactful is the strategy of electrification.
With an entirely different set of monitoring and control units, as well as energy storage, regeneration, charging, and safety, the powertrain is increasingly demanding more MCUs. This is especially true of hybrid electric vehicles, which require control over both an internal combustion engine and an electric power train. Eventually, electrification may allow for more consolidated powertrain control, but for now, it is a growth driver. Electrification is also a growth driver with synergies in cockpit feature upgrades to accentuate the electric vehicle. Consumers buying electric vehicles will expect electrification throughout the vehicle: power windows, doors, seats, digital displays, and other electronic features are expected to increase in EV s, which will also increase demand for MCUs beyond the powertrain.
As the global semiconductor market tries to recover from the effects of the pandemic, the repercussions and residual crisis continue to wreak havoc with supply chains. Not all ICs are impacted the same and not all markets are affected equally. Don’t miss the MCU Supply Chain Swings – Live Market Briefing on December 1st, 2022, to understand the state of the microcontroller market specifically in relation to the current state and outlook for the supply chain. Register here!
Yole Intelligence’s Imaging team invites you to follow this industry at www.yolegroup.com.
Stay tuned!
Acronyms
- ASP : Average Selling Price
- CAN : Controller Area Networks
- DC : Domain Controllers
- ECU : Electronic Control Units
- EV : Electric Vehicle
- FD : Flexible Data-Rate
- GPU : Graphic Processing Unit
- MCU : Microcontroller Unit
- MPU : Microprocessor Unit
