The global IoT microcontroller market size was valued at USD 4,960.1 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 13.9% from 2023 to 2030. The increasing number of IoT connections among consumer and enterprise sectors and the need for low-power, high-performance, and energy-efficient connected products are some of the primary factors driving market growth. Also, a growing preference for embedded Non-Volatile Memory (eNVM) solutions over Product-in-Package (SiP) in high-end applications such as industrial automation, smart utilities, and smart transportation is expected to bode well for the market growth over the next few years. However, the need for industry standards, optimization, and data security of IoT-connected devices is expected to hamper the market growth over the forecast period.
The global slowdown in the automotive industry witnessed in 2018 and 2019 had a negligible impact on overall microcontroller unit (MCU) sales. Although the overall MCU market witnessed an upward trend in 2018, the average selling price of MCUs continued until H2/2020. On the other hand, the outbreak of the COVID-19 pandemic took a severe toll on the semiconductor manufacturing industry. Economies worldwide implemented stringent measures to arrest the spread of novel coronavirus.
The measures include strict lockdowns and sealing international borders to prevent trade from disrupting the supply chain. Furthermore, enterprises compelled employees to work remotely. Consequently, the market experienced a sudden increase in demand for IoT-enabled smart devices, wearables, home computers, and mobile phones. MCU manufacturers witnessed several challenges in balancing supply and demand. Several production facilities were suspended temporarily, and international borders were closed for trade.
As a result, the industrial sector is currently confronting a looming shortage of semiconductors and several components, including microcontrollers and microprocessors. Although the restrictions have been relaxed in several parts of the world and trade activities have resumed, the shortage of semiconductors is expected to continue until 2023. The average selling prices of MCUs are also likely to remain affected until Q4 2023. As such, the fluctuating selling prices of MCUs and the shortages of components, which are turning out to be one of the major bottlenecks for OEMs, device manufacturers, and automakers, are expected to restrain the market's growth.
The outbreak of the COVID-19 pandemic triggered a level of healthcare awareness among people. As such, the demand for wearables capable of monitoring and tracking various health parameters, such as oxygen level and heart rate, significantly grew. Concerns over maintaining health and hygiene, the increased popularity of fitness apps, and awareness about physical fitness and wearable devices, especially in countries such as Poland, China, the UK, Germany, and India, fueled the adoption of wearable technology.
Based on application, the market is categorized into industrial automation, smart homes, consumer electronics, and others. The industrial automation segment dominated the market with a revenue share of 33.1% in 2022. Industrial automation aims to streamline processes, increase operational efficiency, and improve productivity. IoT microcontrollers enable automation by connecting various devices and systems, allowing real-time data monitoring and control. It reduces downtime, optimized resource utilization, and improves operational performance.
The smart home segment is estimated to register a significant CAGR of 15.6% over the forecast period. The smart home segment includes home appliances. Advancements in app-controlled (notably mobile app) smart devices create the need for safe, secure, and energy-efficient applications such as HVAC and energy management, lighting, and infotainment. This trend is expected to support the market growth for the smart home segment over the next few years.
The consumer electronics segment encompasses smartphones, wearables, and others. The COVID-19 outbreak compelled the employees to work remotely. It has further triggered the demand for smart wearables such as smartwatches and fitness trackers. Increasing fitness and health awareness among millennials is also likely to spur wearables sales, which is expected to continue over the next few years. Therefore, the adoption of low-power MCUs coupled with short-range wireless connectivity, notably 8-bit integrated with Bluetooth/KNX/Zigbee/Wi-Fi-based protocols, is expected to drive the IoT MCUs sales over the forecast period.
Based on product, the IoT microcontroller market has been categorized into 8 bit, 16 bit, and 32 bit. The 32 Bit segment held the highest market share of 47.0% in 2022. The 32 Bit is the most compatible MCU for IoT applications. It processes multiple peripherals efficiently, is extensively used in industrial applications such as factory and building automation and is available at affordable prices.
The 8 Bit segment is estimated to register a significant CAGR of 13.7% over the forecast period. The 8-bit segment is extensively used for low-power applications such as smart wearables and connected devices. The growing preference for fitness wearables, particularly among millennials, is expected to drive the adoption of wearables. Lifestyle disorders, such as obesity, prompt individuals to opt for various fitness-related activities, and monitoring their performance using wearables is further expected to bode well for market growth over the next few years.
Asia Pacific accounted for the largest market share of 48.7% in 2022. The growth is primarily driven by China, India, and Japan, which account for more than 50% of the overall market share. It can be ascribed to increasing demand for smart wearables and favorable government spending to promote smart city initiatives. The recent Regional Comprehensive Economic Partnership (RCEP) trade agreement with China and ASEAN countries, coupled with the increase in disposable income among emerging economies such as Vietnam, Malaysia, and Indonesia, are expected to create affordable smart home devices among consumers, which will eventually drive the market growth over the forecast period.
On the other hand, Europe is projected to demonstrate growth at the highest CAGR of 13.8% over the forecast period. In Europe, more than 50% of the electricity meters have been replaced by smart meters as part of aggressive investments in grid modernization. Favorable government investments have particularly propelled the installation of smart meters across European countries, such as France, Spain, and the U.K., which supports market growth over the forecast period. All these factors are expected to open opportunities for market players to augment profitability and bode well for the market's growth for IoT microcontrollers over the forecast period.
Leading market players are investing aggressively in R&D initiatives to introduce innovative, low-power, and energy-efficient MCUs and foray into different application segments to retain existing customers while attracting new ones. MCU manufacturers, such as strategic partnerships and Mergers & Acquisitions (M&A), are also pursuing inorganic growth strategies to gain a competitive edge.
Besides M&A, OEM emphasizes research and development to develop energy-efficient MCUs for low-power applications. Companies also focus on developing products that comply with regional regulatory norms to eliminate the risk of losing business because of regulatory violations. For instance, in May 2020, NXP Semiconductor collaborated with OKdo, one of the business units of Electrocomponents Group, to develop E1, a single-board computer (SBC). The SBC includes NXP's LPC55S69 Microcontroller, offers a high-performance, secure, low-cost platform for IoT applications, and helps the company enhance its customer base.
In February 2023, InnoPhase IoT, a semiconductor company specializing in low-power Wi-Fi IoT solutions, collaborated with Eoxys, an IoT solution provider, and Nuvoton, a global microcontroller unit (MCU) supplier, to unveil a market-ready solution for intelligent and secure IoT devices. This collaboration offers a comprehensive solution that simplifies the creation of intelligent and secure IoT devices for various industries, enabling faster time-to-market and empowering customers to bring innovative sensor-based products to market efficiently
In March 2023, Data I/O Corporation, a provider of advanced security and data deployment solutions for microcontrollers, joined forces with Nuvoton Technology Corporation to offer security deployment services for Nuvoton's M2354 Series-based IoT Security Microcontroller (MCU) series. The partnership aims to assist Original Equipment Manufacturers (OEMs) in designing solutions for applications like building automation, metering, medical devices, and other areas with stringent security requirements
In June 2023, Arduino, the open-source hardware and software platform, has recently unveiled the latest iteration of its popular UNO board. This next-generation UNO R4 board represents a significant advancement from the previous 8-bit technology. With this latest release, Arduino continues to empower makers and enthusiasts with upgraded capabilities, improved performance and expanded possibilities for their projects. The UNO R4 is set to provide enhanced flexibility and functionality for the ever-growing Arduino community
In June 2022, Soracom, Inc., a leading global provider of advanced IoT connectivity solutions, officially welcomed SPRESENSE™ from Sony Semiconductor Solutions Corporation (referred to as "SSS") into its Soracom Partner Space ecosystem. SSS has recognized Soracom as a recommended connectivity provider for its SPRESENSE microcontrollers as part of this collaboration. This partnership between Soracom and SSS aims to leverage their expertise to enhance the connectivity options for SPRESENSE microcontrollers
In November 2022, Memfault, the pioneering provider of the industry's first IoT reliability platform, partnered with Infineon to enhance developers' productivity by utilizing Infineon products through the ModusToolbox. This strategic collaboration aims to provide developers an advanced diagnostic capability, remote updating functionalities offered by the Memfault platform, and device observability
Report Attribute |
Details |
Market size value in 2023 |
USD 5.20 billion |
Revenue forecast in 2030 |
USD 12.94 billion |
Growth rate |
CAGR of 13.9% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2017 - 2021 |
Forecast period |
2023 - 2030 |
Report updated |
November 2023 |
Quantitative units |
Revenue in USD million and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; France; China; Japan; India; Australia; South Korea; Brazil; Mexico; Saudi Arabia; South Africa; UAE |
Key companies profiled |
Broadcom; Espressif Systems; Holtek Semiconductor Inc; Infineon Technologies AG; Microchip Technology Inc.; Nuvoton Technology Corporation; NXP Semiconductors; Silicon Laboratories; STMicroelectronics; Texas Instruments Incorporated; Renesas Electronics Corporation
|
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global IoT microcontroller market based on product, application, region:
Product Outlook (Revenue, USD Million, 2017 - 2030)
8 Bit
16 Bit
32 Bit
Application Outlook (Revenue, USD Million, 2017 - 2030)
Industrial Automation
Smart Homes
Consumer Electronics
Smartphones
Wearables
Others
Others
Regional Outlook (Revenue, USD Million, 2017 - 2030)
North America
U.S.
Canada
Europe
UK
Germany
France
Asia Pacific
China
India
Japan
South Korea
Australia
Latin America
Brazil
Mexico
Middle East & Africa
Saudi Arabia
South Africa
UAE
b. The global IoT microcontroller market size was estimated at USD 4,960.1 million in 2022 and is expected to reach USD 5.19 million in 2023.
b. The global IoT microcontroller market is expected to grow at a compound annual growth rate of 13.9% from 2023 to 2030 to reach USD 12.94 billion by 2030.
b. The Asia Pacific dominated the IoT microcontroller market with a share of over 48% in 2022. This is attributable to the proliferation of connected devices and the presence of several key manufacturers pioneering the manufacture of MCUs supporting IoT devices.
b. Some key players operating in the IoT microcontroller market include NXP Semiconductors, Microchip Technology Inc, Broadcom Corporation, Infineon Technologies, Texas Instruments, STMicroelectronics, and Silicon Labs among others.
b. Key factors that are driving the IoT microcontroller market growth include the growing network of connected devices encompassing smartphones, televisions, tablets, home appliances, gaming consoles, smart meters, and security systems.
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