Microcontroller Market Size, Share & Trends Analysis Report By Product (8-bit, 16-bit, 32-bit), By Application (Consumer Electronics & Telecom, Industrial, Automotive), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global microcontroller market size was valued at USD 18.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2022 to 2030. Globally, more than 29 billion units of microcontrollers were shipped in 2021. 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 will drive the demand for microcontrollers. The growing awareness regarding smart energy management with the emergence of smart grids is expected to increase the MCU demand. 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 the labor shortage, has significantly declined the overall market revenue in 2020. 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. The growing percentage of coronavirus cases, the increasing geriatric population, and the rising occurrence of diseases such as diabetes and high blood pressure are other key factors fueling the market growth. As a result, the demand for electronic medical devices to measure oxygen levels, temperature, blood pressure, and sugar levels is increasing. Microcontrollers can decrease the cost of medical devices and help provide accurate reading and information about the condition of the patient. As such, the demand for microcontrollers 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. 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 market from 2022 to 2030. 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 regarding smart energy management with technological advancements is expected to boost the growth further. The smart grid is one of the technologies that combine with electrical networks and digital communication to facilitate remote control facilities. 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, and security systems. By leveraging this ever-increasing web of devices, the demand for IoT microcontrollers 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 over the forecast period.

Product Insights

In terms of revenue, the 32-bit segment dominated the market with a share of over 40.0% in 2021. This large share is attributed to the increasing use of these MCUs for automotive applications and rapidly decreasing average selling prices. The 32-bit technology simplifies the product design and lowers the material costs, and it has 32 pathways in parallel for data transmission. The developers select the controllers based on the processing capability required, the degree of interfacing needed, and power consumption. A 32-bit Microcontrollers Unit (MCU) can handle a quadruple amount of data, making it technically more data-efficient.

The automotive industry, owing to its specific requirements for the technologies, uses 16-bit and 32-bit microcontrollers on a large scale. The 32-bit segment is expected to expand at the highest CAGR from 2022 to 2030. 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 further. 8-bit MCU is expected to witness slower growth in the years to come owing to processing speed, which generally runs at 8 MHz and does not have substantial internal Random-Access Memory (RAM).

Application Insights

The consumer electronics and telecom application segment held the largest revenue share of over 45.0% in 2021 and is expected to register the fastest CAGR from 2022 to 2030. This segment 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. The medical devices segment is expected to witness increasing demand for microcontrollers over the forecast period owing to various factors such as 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.

The automotive segment is expected to witness significant growth over the forecast period. This is attributed to the increasing demand for microcontrollers for enhanced car safety features, convenience functions, entertainment systems, and government edicts on emission control. This application sector is also expected to witness significant growth over the coming years owing to the Advanced Driver Assistance System (ADAS). ADAS technology uses image sensors to improve driver safety by offering features such as lane departure warnings, 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.

Regional Insights

The Asia Pacific regional market held the largest revenue share of over 40.0% in 2021. It is also expected to expand at the fastest CAGR from 2022 to 2030. The proliferation of start-up business ventures in developing economies such as India that offer the essential microcontrollers service, along with the innovative add-on services and products such as insurance, GPS navigation, and entertainment systems, is contributing to the regional market growth. North America held the second-largest revenue share in 2021. This is attributed 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 North America. 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 North American market 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.

Key Companies & Market Share Insights

The top five participants accounted for more than 50.0% share in the market in 2021. 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 prominent players in the global microcontroller market include:

• Infineon Technologies AG

• Microchip Technology Inc.

• NXP Semiconductor

• Renesas Electronics Corporation

• STMicroelectronics

• Texas Instruments Incorporated

Microcontroller Market Report Scope 

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2022 to 2030. For the purpose of this study, Grand View Research has segmented the global microcontroller market report based on product, application, and region:

• Product Outlook (Volume, Million Units; Revenue, USD Million, 2017 - 2030)

  • 8-bit

  • 16-bit

  • 32-bit

• Application Outlook (Volume, Million Units; Revenue, USD Million, 2017 - 2030)

  • Automotive

  • Consumer Electronics & Telecom

  • Industrial

  • Medical Devices

  • Aerospace & Defense

  • Others

• Regional Outlook (Volume, Million Units; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa (MEA)