Microcontroller Market Size, Share & Trends Report

Microcontroller Market Size, Share & Trends Analysis Report By Product (8-bit, 16-bit, 32-bit), By Application (Automotive, Consumer Electronics & Telecommunication, Medical Devices), And Segment Forecasts, 2021 - 2028

  • Published Date: Mar, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-141-2
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 120

Report Overview

The global microcontroller market size was valued at USD 17.79 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 10.1% from 2021 to 2028. Globally, more than 28 billion units of microcontrollers shipped in 2020. Microcontrollers are majorly used in devices that require a considerable degree of control utilized by the users. The increasing competition in the industry has led to the low price of the product, which is anticipated to further boost the microcontroller demand. The growing awareness of smart energy management with the emergence of smart grids is expected to increase the MCU demand further. The COVID-19 pandemic has had a substantial impact on the semiconductor manufacturing industries across the globe. The fall in production and exports of microcontrollers in the countries, such as China, Germany, the U.S., Japan, and South Korea, coupled with labor shortage, has significantly declined overall market revenues in 2020.

U.S. microcontroller market size, by product, 2016 - 2028 (USD Billion)

However, as the lockdown restrictions are getting lifted in several countries such as the U.K and Germany, the manufacturing facilities have started operating with reduced work capacity to limit the spread of COVID-19. With the growing demand for 5G network equipment, servers, and electric and autonomous vehicles (EV) applications globally, microcontrollers' adoption is expected to see a remarkable surge over the coming years. This, in turn, is estimated to boost the overall market growth over the forecast years.

The critical factor that is boosting the market growth is the rising demand from the medical sector across the globe. There is a growing percentage of coronavirus cases, rising the geriatric population, and the occurrence of diseases such as diabetes, high blood pressure, and so on. As a result, the demand for electronic medical devices to measure oxygen levels, temperature, blood pressure, sugar levels, and so on, is increasing. Microcontrollers can decrease the cost of medical devices and help provide accurate reading and information of the patient. As such, the demand for the microcontroller from medical equipment manufacturers is considerably increasing.

Microcontrollers are used in numerous devices, from various applications such as automotive, industrial, telecommunications, healthcare, and consumer electronics, among others. The automotive sector is driven by an increase in the number of luxury cars that use advanced microcontrollers. The electric vehicle market is rapidly growing, which is anticipated to further boost the product demand. As a result, with the growing demand for vehicles, the automotive sector is expected to contribute considerably to the growth of the global microcontroller market from 2021 to 2028. However, the global slowdown in the sales and production of vehicles can affect the growth, as microcontrollers are majorly used in automotive applications.

Increasing awareness for smart energy management with technological advancements is expected to drive the growth further. The smart grid is one of the form technologies that combine with electrical network and digital communication to facilitate remote control facility. A smart grid uses smart meters and a communication channel to communicate. Hence, microcontrollers are used for ensuring communication between physical locations. Thus, smart meter installations under smart grid initiatives are expected to drive the market considerably.

Recently, the market is witnessing an increased demand for Internet of Things (IoT) MCUs. The growing web of connected devices encompasses smartphones, televisions, tablets, home appliances, gaming consoles, smart meters, security systems. By leveraging this ever-increasing web of devices, the demand for IoT MCUs is rapidly growing. Increasing competition has led to the reduced prices of the product, which is anticipated to further fuel the product demand. The declining average selling prices coupled with high demand from major application areas are expected to drive the market growth over the forecast period.

Product Insights

In terms of revenue, the 16-bit segment dominated the market with a share of 48.80% in 2020. This high share is attributable to the increasing use of these MCUs for automotive applications and rapidly decreasing average selling prices. The 8-bit technology simplifies the product design and lowers the material costs. The developers select the controllers based on the processing capability required, degree of interfacing needed, and power consumption. An 8-bit Microcontroller Unit (MCU) comprises a low gate count, software simplicity, and lesser complexity, which makes the 8-bit MCU cheaper than the other types of microcontrollers.

The automotive industry, owing to their specific requirements for the technologies, uses 16-bit and 32-bit MCUs on a large scale. The 32-bit segment is expected to expand at the highest CAGR from 2021 to 2028. 32-bit MCUs have a higher processing power than their counterparts and consume less power. Furthermore, the increasing popularity of 32-bit MCUs owing to the decreasing unit price is expected to drive the segment growth further. However, 8-bit MCU is expected to have a slower growth owing to processing speed, which generally runs at 8 MHz and does not have substantial internal Random-Access Memory (RAM).

Application Insights

In terms of revenue, the automotive segment dominated the market with a share of 30.13% in 2020. This high share is attributable to the increasing demand for MCUs for the demand for enhanced car safety features, convenience functions, entertainment systems, and government edicts on emission control. This application sector is also expected to have significant growth owing to the Advanced Driver Assistance System (ADAS). ADAS technology uses image sensors to improve driver safety by offering features such as lane departure warning, parking assistance, and collision avoidance systems. The stringent regulatory norms targeted at improving road safety for drivers and pedestrians are expected to further propel the growth.

Global microcontroller market share, by application, 2020 (%)

The consumer electronics and telecom application segment is expected to lead the market in terms of CAGR from 2021 to 2028. This growth is driven by the miniaturization of consumer devices and the increasing adoption of consumer electronic products such as cameras, televisions, washing machines, and microwave ovens, among others. The medical segment is also expected to witness increasing demand for microcontrollers over the forecast period, owing to various factors. These include the high demand for accuracy in medical procedures, technological advancements, government support for medical automation, and increasing R&D investments for the development of MCUs that are required in advanced medical equipment.

Regional Insights

North America dominated the market, with a share of 38.31% in 2020. This is attributable to the prevailing large consumer base for tablets, smartphones, and other consumer electronics in the region. Moreover, there is a growing penetration of IoT ecosystems in homes and corporate places in the region. This has led to the increase in the demand for smart electricity gadgets, smart wearables, sensors, medical devices, and other IoT-enabled devices from consumers, which is expected to drive the regional market growth over the forecast period.

The market in Europe is primarily driven by the presence of the major automotive and equipment manufacturers in the country. Luxury car manufacturers, such as BMW, Mercedes-Benz, and Porsche, have their manufacturing plants in Europe, which drives the demand for microcontrollers for the automotive application. However, the Asia Pacific regional market is expected to witness a significant gain in revenue share from 2021 to 2028. The proliferation of start-up business ventures in developing economies such as India that offer the essential microcontroller services, along with the innovative add-on services and products such as insurance, GPS navigation, and entertainment systems, are some major factors attributing to this gain.

Key Companies & Market Share Insights

The top five participants accounted for more than 50% of the overall market share in 2020. The players are actively engaged in collaborations and partnerships to develop new products. For instance, in Nov 2020, Renesas Electronics Corporation in collaboration with ALTRAN, an engineering and R&D service provider (A Capgemini Subsidiary), developed a social distancing-based wristwatch on Ultra-Wideband (UWB) technology. The wristwatch is integrated with the Renesas Synergy S128 MCU featuring HMI capacitive touch with licensed secure ranging UWB technology. Some of the prominent players operating in the global microcontroller market are:

  • Infineon Technologies AG

  • Microchip Technology Inc.

  • NXP Semiconductor

  • Renesas Electronics Corporation

  • STMicroelectronics

  • Texas Instruments Incorporated

Microcontroller Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 18.48 billion

Revenue forecast in 2028

USD 36.16 billion

Growth rate

CAGR of 10.1% from 2021 to 2028 (Revenue-based)

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Million and CAGR from 2021 to 2028

Shipment in Million Units from 2016 to 2028

Report coverage

Revenue forecast, volume forecast, company share, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; China; Japan; India; Brazil

Key companies profiled

Infineon Technologies AG; Microchip Technology Inc.; NXP Semiconductor; Renesas Electronics Corporation; STMicroelectronics; Texas Instruments Incorporated

Customization scope

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments over the forecast period of 2021 to 2028. For this study, Grand View Research has segmented the global microcontroller market report based on product, application, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2028)

    • 8-bit

    • 16-bit

    • 32-bit

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • Automotive

    • Consumer Electronics & Telecommunication

    • Industrial

    • Medical Devices

    • Military & Defense

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East & Africa

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