Microcontrollers Market worth over $20bn by 2027
Published Date: January 21, 2021 Authors: Preeti Wadhwani, Shubhangi Yadav
Microcontrollers Market size is set to surpass USD 20 billion by 2027, according to a new research report by Global Market Insights, Inc.
The rising penetration of wearable medical devices across developed economies is predicted to drive the market growth. According to January 2020 report by Pew Research Center, about 21% of U.S. adults regularly wear smart fitness trackers or fit bits for continuous health monitoring applications. These wearable medical devices are integrated with microcontroller units to obtain precise readings, stable outputs, energy efficiency, and compact footprint. The proliferation of AI and IoT in the wearable medical electronics market will further increase the adoption of microcontroller over the forecast period.
The rising deployment of smart meters under smart grid initiatives are expected to augment the market expansion. Smart energy management combines grid technology and microcontroller with digital communication to facilitate remote monitoring and control applications in the energy sector.
Design complexity associated with a Microcontroller Unit (MCU) is one of the major factors restraining the market revenue. The MCU has a low lifecycle compared to traditional controllers & modules and these controllers are difficult to modify, once they are fabricated. In addition, the industry has become highly competitive and profitability has seen a downward trend owing to the declining prices for these components over the years. Technological advancements in microelectronics and the presence of a large number of Chinese manufacturers in the market have resulted in the declining prices of microcontroller in recent years.
Rising demand for 8-bit MCU in smart speakers will spur the market value
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The 8-bit segment held a microcontrollers market share of over 30% in 2020 and is anticipated to witness 5% growth rate till 2027 led by growing uptake of 8-bit MCU in smart speakers. The 8-bit MCU offers several intuitive features, such as compact dimensions, increased functionality, low-power consumption, & cost optimization, compared to 16-bit and 32-bit MCUs. These features increase its usage in smart speakers and AI-based voice-assistance devices. According to the Consumer Technology Association 2020 report, the sales of smart speakers reached 39 million-unit shipments in 2020 with a year-on-year growth of 5%. Consumers are upgrading their smart speakers, such as Apple HomePod, Amazon Echo, and Google Home to voice-enabled devices, with display screens. The 8-bit MCU offers high-performance with energy efficiency, which is suitable for these smart speakers. The rising demand for smart speakers in developed economies, such as the U.S., Germany, China, and France, will boost the acceptance of 8-bit MCUs in the market.
Browse key industry insights spread across 170 pages with 116 market data tables and 28 figures & charts from the report, “Microcontrollers Market Size, By Product (8-Bit, 16-Bit, 32-Bit), By Application (Automotive, Consumer Electronics, Industrial, Healthcare, Aerospace & Defense), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Expansive penetration of smart factories will propel the demand for microcontroller
The industrial application accounted for 20% of the revenue share in 2020 and will grow at a CAGR of 10% through 2027 impelled by the expansive penetration of smart factories across the manufacturing and process industries. These smart factories are integrated with Programmable Logic Controller (PLC), Human-Machine Interface (HMI), wireless sensor modules, etc., that increase the adoption of MCUs for programmable operations.
Increasing government initiatives for the development of smart cities will influence the APAC market growth
Asia Pacific microcontrollers market is poised to expand at more than 7% CAGR during 2021 to 2027. Rising government investments for the development of smart city projects and growing integration of IoT in public infrastructures are fueling the acceptance of microcontroller. In December 2019, the Government of Seoul, South Korea announced its plans to deploy a city-wide IoT network as an ambitious plan to develop hyper-connected cities by 2022. The government intends to deploy around 1,000 wireless gateway devices to enhance the public Wi-Fi infrastructure for smart city applications. Similar smart city projects across Japan, China, Malaysia, and India will increase the adoption of MCUs in the region.
Key players operating in the market include STMicroelectronics N.V., Seiko Epson Corporation, Texas Instruments Incorporated, NXP Semiconductors N.V., Renesas Electronics Corporation, Microchip Technology, Inc., and Analog Devices, Inc., among others. These industry leaders are focusing on new product development strategies to offer technically advanced solutions than their competitors.