IoT Microcontroller Market size is slated to garner significant momentum over 2021-2027 led by the proliferating trend of IoT across the world. IoT is experiencing rapid adoption across a wide range of applications such as home automation, smart appliances, industrial automation, smart grids, smart cities, and others. With the increasing number of connected devices and systems worldwide, it is becoming increasingly important to develop high-performance microcontroller.
Microcontrollers, also known as a microcontroller unit (MCU), are basically scaled-down computers that provide processing power, storage memory, and input/output peripherals. These units determine the computational ability of IoT and smart connected devices. Today, microcontrollers are employed in a variety of IoT products and devices including consumer electronics, remote controls, power tools, smart automobile engine controls, office machines, medical devices, and countless other systems.
By application, automotive sector is likely to account for a substantial share of the IoT microcontroller market by the end of 2027. Connected vehicle technologies are rapidly evolving and the adoption of advanced microcontroller units to support IoT workflows is increasing. Connected vehicle technology is highly dependent on a network of sensor, antennas, communication devices, and embedded software, which is driving the demand for high-performance microcontroller systems.
Chipmakers are focusing on launching new products designed for the auto industry. For example, in November 2020, NXP Semiconductors had updated its S32K product line with the launch of the S32K3 MCU family designed to power connected vehicle technologies of the future.
Based on region, North America IoT microcontroller industry is set to register appreciable gains during 2021-2027. The regional trends can be associated with the increasing adoption of consumer electronics gadgets and smart wearables. Additionally, developments in the connected cars space is fueling the regional IoT MCU demand. In coming years, the growing popularity of smart home solutions and connected home appliances will support the regional industry growth.
The IoT microcontroller market encompasses some of the world’s biggest chipmakers including Texas Instruments, Microchip Technology, Broadcom Limited, NXP Semiconductors, Infineon Technologies, Fujitsu Ltd., and Atmel, among others. Product innovation is a key area of focus for these companies and thus new semiconductor technologies for IoT use-cases are constantly being introduced in the market.
In June 2021, for instance, NXP Semiconductors had announced the availability of S32R294 radar processor and the S32G2 vehicle network processor family for advanced automotive applications. Recent innovations in the S32 family are focused at helping automakers streamline vehicle architecture and design fully connected cars of tomorrow.
Citing another instance, Infineon Technologies had rolled out the AIROC CYW5557x family of Wi-Fi 6/6E microcontrollers designed for IoT, industrial, consumer electronics, and automotive applications.
The COVID-19 has brought a range of challenges for business enterprises and changed the way companies operate. Each and every industry has had to evolve and adapt to the new normal. The pandemic year witnessed many firms introduce new smart connected products to achieve a competitive edge. With increased need for transparency and visibility of operations, smart connected technologies are playing a crucial role in business operations.
As the pandemic situation progresses, businesses will need to automate operations even further. Additionally, companies will need to build more resilience to flourish in the post-COVID era. Growing dependence on IoT will certainly augment IoT microcontroller market forecast over 2021-2027.