Microcontroller Market Size & Share 2021 to 2027
Market Size by Product (8-Bit, 16-Bit, 32-Bit), by Application (Automotive, Consumer Electronics, Industrial, Healthcare, Aerospace & Defense), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast.
Report ID: GMI4906
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Published Date: January 2021
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
Microcontroller Market Size
Microcontroller Market size exceeded USD 15 billion in 2020 and is poised to grow at a CAGR of over 6.5% between 2021 and 2027. The increasing penetration of IoT devices is boosting the industry growth.
A microcontroller is a computing chipset, which is extensively incorporated in pre-programmable devices such as remote controls, connected solutions, and consumer electronics devices. These controllers offer software simplicity, energy efficiency, and reduced latency, which are increasing their integration into IoT connected devices across various industries. According to the GSMA Association, the number of global IoT connections in 2019 was 12 billion, which is projected to surpass the 24.6 billion mark by 2025. The smart home devices segment will account for more than two billion connections by 2025. The proliferation of smart home technology products across developed economies, such as the U.S., Germany, France, and Italy, is expected to increase the adoption of microcontroller over the coming years.
The COVID-19 pandemic has disrupted the supply chain of raw materials and components across the globe. The pandemic has also resulted in declining sales in the semiconductor industry, which is severely impacting the microcontroller market. According to the Semiconductor Industry Association, the global semiconductor sales declined by 3.6% in the first quarter of 2020 due to disruption in international trade activities caused by the COVID-19 pandemic. Along with this, several major consumer electronics manufacturers have halted their manufacturing operations due to several lockdown scenarios. This has further declined the adoption of microcontroller, hindering the market growth for the short-term.
Microcontroller Market Analysis
The 32-bit microcontroller segment held a microcontroller market share of over 40% in 2020 and is anticipated to witness growth of around 8% through 2027. The 32-bit Microcontroller Units (MCUs) provide several intuitive features such as high scalability, low-power consumption, and higher Input/Output (I/O) peripherals with miniaturized foot-print compared to other MCUs in the market. It can seamlessly carry out high-end operations with high accuracy and a lesser number of computational cycles, increasing its adoption in high-precision medical and healthcare devices.
These 32-bit MCUs are majorly used in portable medical devices, such as pulse oximeters, blood-glucose monitors, blood pressure monitors, and portable EKG/ECG monitors, due to their small size and low-power consumption of up to 5V for operations. In May 2020, ViraxClear, a China-based company, signed a Letter of Intent (LoI) with Phyto, the company’s North Africa-based distribution partner, to secure the purchase order of FDA-registered and CE-marked digital-thermometers for sales in North America. The COVID-19 pandemic has increased the adoption of infrared thermometers and portable temperature sensing devices across the globe, which further increases the adoption of 32-bit MCUs in medical device applications.
The automotive application segment dominated over 35% market share in 2020 and will register around 10% growth rate till 2027. In the automotive industry, microcontroller is used in several vehicle electronics such as instrument clusters, In-Vehicle Infotainment (IVI) systems, telematics, and advanced safety systems, among others. Rising trends toward the integration of AI-enabled voice-assistance, development in ADAS, and self-driving cars by major automotive OEMs will increase the uptake of MCUs in the market. Companies are extensively focusing on launching automotive-grade MCUs with advanced features to gain a competitive edge in the market.
Rising trend toward the adoption of electric vehicles across the globe will further impel the growth opportunities for MCUs. Major players in the automotive industry, such as Tesla, Nissan, and Volkswagen Group, are emphasizing on the development of cutting-edge Electric Vehicle/Battery Electric Vehicles (EV/BEVs). However, the declining sales of automotive due to the COVID-19 pandemic are hampering the microcontroller market growth over the short-term. Gradual relaxation by government bodies on lockdowns is anticipated to restore the sales demand for automotive by the end of 2021.
The North America microcontroller market accounted for 15% revenue share in 2020 attributed to increasing investments of the U.S. government in shifting some of the manufacturing back to the U.S. In addition, research & development in surveillance and combat-drones will create growth opportunities for the market. These drones and Unmanned Aerial Vehicles (UAVs) are integrated with MCUs for high precision militarized applications. Increasing investments of the U.S. government in its defense budget will further contribute to the market size expansion.
The microcontroller market is gaining traction owing to the increasing uptake of robotics and automation across the manufacturing and process industries. The manufacturing and process industries are emphasizing on installing industrial robots, Automated Guided Vehicles (AGV), collaborative robots, and smart sensor assemblies. These robotics and automation equipment are integrated with microcontroller to achieve high-performance, smaller footprint, energy efficiency, and minimize error occurrence activities.
Microcontroller Market Share
Key players operating in the microcontroller market are:
Companies are extensively focusing on new product development strategies to stay competitive in the market. These market players are emphasizing on developing application specific MCUs to increase their share among competitors. For instance, in October 2020, Infineon Technologies AG launched Traveo, a 32-bit automotive-grade MCU family. The new MCU product line addresses a broad variety of automotive applications including body control units, windows, sunroofs, doors, seat control units, and wireless charging units.
The microcontroller market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:
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