Enjoy complimentary customisation on priority with our Enterprise License!
The microcontroller market size is forecast to increase by USD 6.79 billion, at a CAGR of 7.57% between 2023 and 2028. The microcontroller market is undergoing robust growth, driven by its increasing application in automobiles, IoT devices, and consumer electronics. Microcontrollers, which integrate a single chip containing memory, processor, and input/output peripherals, serve as a fundamental component in these sectors. The surge in demand for smart devices and connected systems, coupled with the automotive industry's reliance on microcontrollers for various functionalities, is propelling market expansion. This trend underscores the pivotal role microcontrollers play in powering modern technological advancements across diverse industries, including automotive, IoT, and consumer electronics.
_market_size_abstract_2023_v1.jpg.webp?v4.1.20)
To learn more about this report, View Report Sample
The market is witnessing significant growth due to the increasing adoption in various sectors such as smart grid systems, automotive, medical, and telecommunications. In the automotive sector, MCUs are used in engine control systems, anti-lock braking systems, and airbag control systems. In the medical sector, Mcus are utilized in medical devices like blood pressure monitors, blood glucose meters, and electronic medical records. In the telecommunications sector, MCUs are essential for endnode applications like tablets, gaming consoles, televisions, and smartphones. The Internet of Things (IoT) is another major driver for the MCU market, with the technology being used in wireless connectivity, computing power, AI algorithms, and machine learning. The market is expected to grow at a steady pace due to the increasing demand for advanced features and functionalities in various applications. The use of Mcus in smart cities for traffic management, energy management, and public safety systems is also expected to boost market growth.
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 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 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. However, market companies 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. Market players need to be more vigilant during the production process as the increasing complexity and added component functionality lead to the introduction of bugs and issues that must be fixed within a limited time frame. Thus, a defect in MCU manufacturing can impact large quantities of end products. This leads to a raised cost of defective MCU manufacturing, which impedes the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and forecasting strategies.
Global Market Customer Landscape
The market plays a pivotal role in various industries, benefiting from advancements in RADAR, Lidar, and work-from-home electronics equipment. With semiconductor manufacturing units driving innovation, microcontrollers power IoT services and electronic control units (ECUs) in smart grid systems and smart meter applications. In the automotive sector, they enable features like energy efficiency and automation in manufacturing processes, while in the medical sector, they support electronic medical devices for global healthcare services and the management of immunodeficiency disorders among elderly individuals. Furthermore, microcontrollers facilitate embedded systems in home appliances and industrial machines, leveraging artificial intelligence (AI) to enhance healthcare equipment and drive advancements in semiconductor technology.
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.
_market_segments_abstract_2023_v2.jpg.webp?v4.1.20)
Get a glance at the market contribution of various segments View Free PDF Sample
The automotive segment showed a gradual increase in the market share of USD 3.89 billion in 2018 and continued to grow by 2022. 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 market. Furthermore, the increasing development of autonomous driving and hybrid and electric vehicles will lead to a rise in demand for microcontrollers which will occur 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 MCU products to fulfill the demand. The global MCU Market is observing a consistent decline in the ASP of MCU. Furthermore, this trend is especially noticeable in the 32-bit MCU segment as market players do their best to get lower prices. These MCUs 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 MCUs, which will boost the growth of the market during the forecast period.
_market_regions_abstract_2023_geo_v2.jpg.webp?v4.1.20)
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 64% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC dominates the 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. Hence, such factors are driving the market in APAC during the forecast period.
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 market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Embedded Computer Market Analysis Europe, APAC, North America, Middle East and Africa, South America - US, China, UK, Germany, India - Size and Forecast
EMEA - Microcontroller (MCU) Market by Application, Product, and Geography - Forecast and Analysis
Semiconductor Micro Components Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, Taiwan, US, South Korea, Japan - Size and Forecast
The market is experiencing rapid growth, driven by innovations in IoT microcontrollers and embedded artificial intelligence. These devices play crucial roles in diverse sectors like medical care devices, automotive sector advancements such as Honda SENSING 360, and smart grid systems. With applications ranging from smart meters to smart factories, microcontrollers facilitate sensor-driven safety features and on-device AI, enhancing computing power and wireless connectivity. Key players like TSMC, Foxconn, and MediaTek are pivotal in advancing processors and sensors, reducing costs and boosting efficiency in devices such as tablets, gaming consoles, and televisions. Privacy protection remains paramount, especially with IoT advancements impacting home appliances and security systems, underscoring the market's dynamic evolution towards interconnected, AI-driven solutions. Further, the market is rapidly evolving with advancements in AI algorithms and industrial IoT communication. These technologies are pivotal in developing innovative medical devices such as blood glucose meters and improving healthcare services for monitoring blood pressure and sugar levels. In the telecommunications sector, microcontrollers enable the connectivity of smartphones and endnode applications, driving smart city initiatives and autonomous vehicles. Key players like Seong Ji Industrial and STM32WL are advancing industrial equipment with solutions like the R-Car and RH850 series, enhancing automation and camera systems. With smart grid systems and IoT integration through Sigfox, the market continues to expand, leveraging smaller wafer diameters and IEEE Explore insights to reduce costs and innovate across various sectors.
A growing market has become the backbone of modern technology, powering various applications in sectors like Smart grids, Automotive, Medical, and Telecommunications. In Smart grids, MCUs enable the functioning of Smart meters, ensuring efficient energy management. In the Automotive sector, MCUs are integral to the functioning of Electronic Medical Devices, such as Blood pressure monitors and Blood glucose meters, improving healthcare services for individuals with Immunodeficiency disorders and Elderly individuals. The Medical sector is witnessing a surge in the adoption of MCUs in Medical care devices, including Telecommunications-enabled devices like AI-powered Blood glucose meters. The Telecommunications sector is also leveraging MCUs for innovative products like Tablets, Gaming consoles, Televisions, and Smartphones, enhancing user experience through IoT applications. MCUs are also transforming the Automotive industry with On-device AI and Machine Learning capabilities, enabling advanced features in Motor vehicles. The future of MCUs lies in Smart cities and Smart factories, where Embedded AI and Privacy protection are crucial. With the increasing demand for AI algorithms and Wireless connectivity, the market for MCUs is poised for significant growth.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
186 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 7.57% |
|
Market growth 2024-2028 |
USD 6.79 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
6.89 |
|
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 64% |
|
Key countries |
China, South Korea, US, Japan, and UK |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 International N.V., 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, Market growth and Forecasting, 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
