ADAS and Electrification Spurs Growth in Automotive Electronics
The automotive electronics sector is seeing strong growth thanks to the increasing electrification of vehicles, advancements in vehicle networking, and the adoption of advanced driver assistance systems (ADAS). According to Yole, the microcontroller (MCU) market is the largest segment of the automotive electronics sector, and it is expected to see flat growth in 2023 and low-single-digit growth in 2024.
This growth is being driven by the increasing demand for MCUs in electric vehicles (EVs) and hybrid electric vehicles (HEVs as they require more MCUs than traditional gasoline-powered vehicles due to the increased complexity of their electrical systems. MCUs are used to control a wide range of functions in EVs and HEVs, including the battery management system, motor control system, and charging system.
In addition to the electrification of vehicles, advancements in vehicle networking and ADAS are also driving demand for MCUs. Vehicle networking is the connection of vehicles to each other and to the infrastructure around them that allows vehicles to communicate with each other and to exchange data, such as traffic conditions and weather information. ADAS are systems that use sensors and software to help drivers avoid collisions and other accidents.
MCUs are used in both vehicle networking and ADAS systems to control the sensors and software and to process and interpret the data that is collected. The increasing demand for vehicle networking and ADAS is expected to continue to drive growth in the MCU market in the coming years.