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The microcontroller market size is estimated to grow at a CAGR of 6.97% between 2022 and 2027. The market size is forecast to increase by USD 9,031.4 million. The growth of the market depends on several factors, including the increasing use of microcontrollers in automobiles, increasing demand for IoT and smart devices, and the growth of the consumer electronics industry. A microcontroller is a type of processor mounted on a single integrated circuit containing memory, processor, and input/output peripherals.
This microcontroller market report extensively covers market segmentation by application (automotive, consumer devices, industrial, and others), product (32-bit microcontrollers, 8-bit microcontrollers, and 16-bit microcontrollers), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing use of microcontrollers in automobiles is one of the key factors driving the growth of the market. Microcontrollers are used to control various electronic control units (ECU) in automobile functions such as control car seats, power windows, braking systems, security systems, steering, taillights, and headlights. These features enable the efficient operation of the vehicle. Automobiles use multiple microcontrollers to manage various functions such as ECU diagnostics and powertrain functions to reduce fuel consumption. They help ensure the efficient functioning of the vehicle. For example, the Infineon SAA-XC866-4FRA 5V BE is a microcontroller used for fuel economy and powertrain functions.
Furthermore, to improve the customer experience, automakers are providing cars with some best-in-class features such as advanced driver assistance systems (ADAS), heads-up displays, movie systems, studio-quality sound systems, and seamless connectivity solutions. Because of these features, efficient microcontrollers and MPUs are required to access and control all these applications. In addition, automakers focus on developing energy-efficient vehicles, electric vehicles, and autonomous cars which require an extensive number of microcontrollers in automobile circuity. Thus, the rising investments in autonomous cars will lead to high demand for microcontrollers during the forecast period.
The development of edge computing is one of the primary trends driving the growth of the global microcontroller market. Edge computing refers to computing applications that run at the edge of the network, closer to the sources of data generation, rather than far-located data centers. In edge computing, the system focuses on the proximity of the data analysis process to the data source in order to improve and optimize network operation and process speed. With the growing deployment of edge computing in IoT networks, there will be raised uses of microcontrollers for edge computing purposes. IoT device microcontrollers perform functions such as network connectivity, sensor readings, display updates, and managing timers and other interrupts.
Furthermore, machine learning can be implemented using a neural network library optimized for Cortex-M-based microcontrollers, rising the efficiency of microcontrollers by approximately 5 times. Due to their low cost, these microcontrollers can facilitate the deployment of trained networks (algorithms) onto test applications. Thus, edge computing can be implemented using microcontrollers, which will boost the growth of the market during the forecast period.
The manufacturing challenge is hindering the microcontroller market growth. Rising microcontroller design and application complexity led to the stretching of development timelines for manufacturing microcontrollers. This is due to the rising integration of complex components, devices, peripherals, or software functions to manufacture microcontrollers. Although, microcontroller (MCU) market vendors are increasingly constrained by the shortening technology obsolescence window. As a result, the design-to-production cycle and time-to-market are required to be shorter and shorter to keep up with the competitive market.
However, the design and manufacturing stages are becoming more important in microcontroller manufacturing. Microcontroller (MCU) market players need to be more vigilant during the production process as the increasing complexity and added component functionality lead to introduce bugs and issues that must be fixed within a limited time frame. Thus, a defect in microcontroller manufacturing can impact large quantities of end products. This leads to a raised cost of defective microcontroller manufacturing, which impedes the growth of the global microcontroller market during the forecast period.
The market share growth by the automotive segment will be significant during the forecast period. Automotive original equipment manufacturers (OEMs)are integrating advanced safety features such as blind-spot detection and alert systems and collision-avoidance systems in their vehicles, primarily due to the increasing number of road accidents and stringent regulations on fuel efficiency and emissions of carbon dioxide and carbon monoxide at the global level which leads to the growth of the microcontroller (MCU) market.
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The automotive segment shows a gradual increase in the microcontroller market share of USD 6,326.01 million in 2017 and continue to grow by 2021. Microcontrollers are in high demand for automotive applications, as they are used for various purposes, ranging from ECM applications and navigation systems to info-entertainment applications. Also, the demand for microcontrollers employed in automobiles will increase due to the global increase in demand for automobiles. which will drive the microcontroller market. Furthermore, the increasing development of autonomous driving and hybrid and electric vehicles will lead to a rise in demand for microcontrollers which will during the forecast period.
32-bit microcontrollers are devices that perform arithmetic and logical functions on 32-bit data. In the MCU market, these microcontrollers have a wider data bus capacity, which allows an understanding of more different unique memory addresses. They have a larger register width, which provides more capacity to manipulate data per cycle of instruction. Moreover, vendors in the market are mainly launching new microcontroller products to fulfill the demand. The global MCU Market is observing a consistent decline in the ASP of microcontrollers.
Furthermore, this trend is especially noticeable in the 32-bit microcontroller segment as market players do their best to get lower prices. These microcontrollers also offer communication interfaces, peripheral integration, high performance, and excellent on-chip memory. Technological advances enabling fully and semi-autonomous driving systems will also require the presence of 32-bit microcontrollers, which will boost the growth of the MCU Market during the forecast period.
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APAC is estimated to contribute 65% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC dominates the global microcontroller market primarily due to the higher concentration of OEMs and ODMs across industries, including consumer electronics, automotive, healthcare, industrial, and others. In addition, APAC is a hub for major semiconductor foundries, outsourced assembly and test companies, and fabless semiconductor companies, which are involved in the design, development, and manufacturing of semiconductor ICs. The abundant availability of raw materials and the low establishment and labor costs helped companies to set up their production centers in this region. Several top companies are focusing on increasing the number of manufacturing plants in the region.
Moreover, some major market players are focusing on increasing the number of manufacturing plants in the region. Also, the governments of emerging nations like India, have taken initiatives to set up electronics manufacturing bases in their respective country. For example, the Ministry of Electronics and IT (MeitY) announced the expected incentive schemes on May 2021 for setting up display and semiconductor fabrication units in India in H2 2021.
In 2020, due to the COVID-19 pandemic manufacturing and industrial activities in APAC were adversely impacted. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to increased demand for microcontrollers. Hence, the recommencing of manufacturing and industrial activities will positively impact the growth of the regional microcontroller market during the forecast period.
The microcontroller market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Microcontroller Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Analog Devices Inc.: The company offers microcontroller units for Internet of Things processing applications.
Arm Ltd.: The company offers microcontrollers such as Cortex A78.
Arrow Electronics Inc.: The company offers STM32F417IGH6 microcontroller for applications related to power tools, toys, and other embedded systems.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The microcontroller market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Microcontroller Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.97% |
Market growth 2023-2027 |
USD 9,031.4 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.47 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 65% |
Key countries |
US, China, South Korea, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Analog Devices Inc., Arm Ltd., Arrow Electronics Inc., Fujitsu Ltd., Infineon Technologies AG, Intel Corp., Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corp, Panasonic Holdings Corp., Parallax Inc., Renesas Electronics Corp., ROHM Co. Ltd., Silicon Laboratories Inc., STMicroelectronics NV, TE Connectivity Ltd., Texas Instruments Inc., TOSHIBA CORP, Yamaichi Electronics Co. Ltd., and Zilog Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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