The Global Microcontroller Market Size Was Valued At USD 18.5 Billion In 2021 And Is Expected To Expand at a CAGR Of 9.8% From 2022 To 2030.

Microcontroller Market Overview

In the year 2021, more than 29 billion microcontrollers were shipped around the world. Most of the time, microcontrollers are used in devices that require a lot of control from the user. The price of the product is low because there is more competition in the market, which will drive the need for microcontrollers. Smart grids are making people more aware of smart energy management, which is expected to increase the demand for MCUs. The COVID-19 pandemic has had a big effect on the industries that make semiconductors all over the world.

Due to a lack of workers and a drop in production and exports of microcontrollers in places like China, Germany, the U.S., Japan, and South Korea, the overall market revenue in 2020 has dropped by a lot. But as the lockdown restrictions are lifted in some countries, like the U.K. and Germany, the factories have started to work with less capacity to stop COVID-19 from spreading. With the growing demand for 5G network equipment, servers, and applications for electric and self-driving vehicles (EV), microcontrollers are likely to be used a lot more in the coming years. This, in turn, is expected to help the growth of the market over the next few years.

The rising demand from the medical sector around the world is the most important thing that is driving market growth. The market is also growing because more people are getting coronavirus, more people are getting older, and more people are getting diseases like diabetes and high blood pressure. Because of this, there is a growing need for electronic medical devices that can measure levels of oxygen, temperature, blood pressure, and sugar. Microcontrollers can help make medical devices cheaper and give more accurate information about a patient's health. Because of this, manufacturers of medical equipment are buying a lot more microcontrollers.

Microcontrollers are used in a wide range of devices, including those for the automotive, industrial, telecommunications, healthcare, and consumer electronics industries. The auto industry is growing because there are more high-end cars with high-tech microcontrollers. The market for electric vehicles is growing quickly, which is likely to make more people want to buy them. As a result, the automotive sector is likely to make a big difference in the growth of the global market from 2022 to 2030, thanks to the growing demand for cars. But a slowdown in sales and production of cars around the world could slow the growth, since microcontrollers are mostly used in cars.

As technology improves and more people learn about smart energy management, the growth is likely to continue. The smart grid is a technology that uses digital communication and electrical networks to make it easier to control facilities from afar. A smart grid has smart metres and a way for them to talk to each other. So, microcontrollers are used to make sure that people in different places can talk to each other. Installing smart metres as part of smart grid projects is expected to drive the market a lot.

Market Dynamics

Rising Demand for Advanced Driver Assistance System (ADAS)

Most ADAS applications, such as self-driving cars, need microcontroller units (MCUs). For ADAS to get better, processors need to be faster and use less power. This can be done with multicore architectures, higher frequencies, and lower power needs, which are also used in monitoring, barracking, and safety applications. For instance, AURIX multicore microcontrollers help the NVIDIA DRIVE PX platform meet the ISO 26262 ASIL-D standard, which is the highest functional safety standard for self-driving systems. AURIX microcontrollers are important for bringing ADAS and AD to the road because they have lock-step cores, redundant peripherals, integrated monitoring systems, and real-time performance of up to 1,800 DMIPS based on Infineon's TriCore multicore architecture. In the coming years, the AURIX multicore microcontroller families will be used in applications for self-driving cars.

The growth of the MIU market will be helped by how quickly IoT is used. There is a high demand for IoT in many industries, such as automotive, consumer electronics, aerospace, defence IT & telecommunication, and healthcare. Demand for IoT microprocessors is also growing in the healthcare industry because of the growing web of connected devices, such as smartphones, TVs, tablets, home apps, gaming consoles, smart metres, and security systems.

Market Restraints

The microcontroller is small, so it is used in small devices. Microcontrollers can't access multitasking devices because they can only handle one operation and task at a time. The biggest problem with microcontrollers is that they can't be reprogrammed and don't have zero flags like microprocessors.

Segment Overview

By Product Type Analysis

The global market is split into three different groups based on the type of product: 8-bit MCU, 16-bit MCU, and 32-bit MCU.

32-bit microcontrollers will have the largest share of the microcontroller market and the highest CAGR from 2021 to 2028, according to a forecast. This is because of the higher level of functional capabilities that are useful for advanced Internet of Things applications, equipment for Industry 4.0, small medical devices that can be implanted, and so on.

The 16-bit MCUs segment has the second highest market share. This is because more and more automotive modules are needed to make electric or hybrid cars, lighting devices, and other things. Microcontrollers with WIFI and microcontrollers with Bluetooth, which are most useful in the automotive, consumer electronics, and medical industries, are expected to be made in greater numbers by the major market players.

Also, the segment of 8-bit MCUs is expected to have a stable CAGR over the forecast period. This is because these MCUs are easy to program and can be used in applications that need less power.

By Application Analysis

Depending on what the market is used for, it is further divided into networking and communications, automotive, consumer electronics, industrial, medical devices, and military and defense.

In the next few years, the automotive sector is expected to have the highest growth rate and the largest share of the microcontroller market. This is because the industry prefers to use advanced technology to get the most out of the embedded systems used to make automotive parts and to establish a global position of technological superiority. On the other hand, working from home is becoming more and more important in both developed and developing economies, which is increasing the need for consumer electronics around the world.

During the forecast period, the medical devices segment is expected to have a high CAGR. This is because the MCU is a key part of digitally filtering and processing the patient's condition and displaying the parametric results of physiological data, such as heart rate, blood pressure, blood oxygen, lungs capacity, and many more. As with the industrial sector, manufacturing industries in developing countries in Asia, the Pacific, and the Middle East and Africa are focusing on switching to automated equipment and machines that make the manufacturing process less complicated, speed up production, and meet consumer needs.

With the demand for smart phones and other smart devices rising around the world, networking and communication is expected to grow at a stable CAGR. Every day around the world, the amount of data being created has grown a lot in the last 20 years, while the problems with traditional data drives have been solved. This has helped the microcontroller market grow around the world. MCUs are used in a lot of military and defense devices around the world because they carry a lot of sensitive information and have a higher chance of leaking that information. Since then, it is known that military and defense devices are built with both better programming and safe cyber operations.

Regional Analysis

In 2021, about 40.0% of the revenue came from the APAC microcontroller market, and it will grow at a CAGR of more than 10.2% during the forecast period. This is because car sales are growing quickly and the demand for high-end consumer electronics is going up in the region. APAC's market growth is also helped by the growing number of start-ups in developing countries like China and India that offer essential microcontroller solutions and innovative add-on products and services like entertainment and GPS navigation systems.

Also, the demand for microcontrollers in a variety of applications in the region is driven by factors like rising disposable income, the release of more technologically advanced gadgets, and the falling prices of consumer electronics.

North America had the second-largest share of revenue in 2021. This is because there are a lot of people in the U.S. and Canada who buy consumer electronics, and the demand for smart wearables, medical devices, sensors, and other IoT-enabled products is growing, which increases the need for microcontrollers in the region.

Scope Analysis:

Recent Developments

• In January 2021: Toshiba Electronic Devices & Storage Corporation introduced 5 new groups of TXZ+ family advanced class microcontrollers. The M4K, M4M, M4G, and M4N groups are based on Arm Cortex-M4 core, and the M3H group is based on the Arm Cortex-M3 core. These MCUs are suitable for several applications, such as connected IoT devices, motor control, leading-edge sensing functionalities, etc.
• In September 2021: STMicroelectronics announced new software packs and tools namely STM32 ecosystem extensions kick-start development with STM32U5 extreme low-power microcontrollers for mass market applications.
• In September 2021: Infineon Technologies AG announced that the PSoC 64 Standard Secure MCU family has achieved the Arm Platform Security Architecture (PSA) Level 2 certification for the IoT devices.

Market Segmentation

This portion of the study on the Microcontroller Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Product Type

• 8-Bit
• 16-Bit
• 32-Bit
• Others

By Application

• Networking & Communications
• Automotive
• Consumer Electronics
• Industrial
• Medical Devices
• Military & Defense
• Other

By Companies

• TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION (Japan)
• Texas Instruments Incorporated (U.S.)
• Microchip Technology Inc. (U.S.)
• Renesas Electronics Corporation (Japan)
• STMicroelectronics (Switzerland)
• NXP Semiconductors (Netherlands)
• Intel (U.S.)
• Infineon Technologies AG (Germany)
• Maxim Integrated (Analog Devices) (U.S.)
• ON Semiconductor (U.S.)
• ROHM CO., LTD. (Japan)
• Zilog, Inc. (U.S.)