Microcontroller Market Size

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.