Microcontroller Market Size, Share & Trends Analysis Report By Product (8-bit, 16-bit, 32-bit), By Application (Consumer Electronics & Telecom, Automotive, Industrial, Medical Devices, Aerospace & Defense), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global microcontroller market size was valued at USD 25.48 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.2% from 2023 to 2030. The increasing adoption of smart meters in smart grid systems and the growing demand from the medical and automotive sectors drive the growth of the market over the forecast period. Global healthcare expenditure is increasing owing to the growing immunodeficiency disorders among the population.

There is a growing percentage of the geriatric population and the occurrence of diseases such as diabetes and high blood pressure. As a result, the demand for electronic medical devices is increasing to measure blood pressure and sugar levels. Medical device manufacturers are introducing affordable and reliable medical equipment. Microcontrollers are crucial components used in all kinds of medical care devices to achieve higher reliability and affordability. Devices such as blood glucose meters and blood pressure monitors incorporate a significant number of microcontrollers (MCUs). Thus, there is substantial demand for MCUs from the medical industry.

Manufacturers of microcontrollers are designing innovative products and are consistently providing breakthrough solutions. This is creating opportunities for the growth of the market. A nexus of connected devices such as security systems, smart meters, gaming consoles, home appliances, tablets, televisions, and smartphones has led to various advancements in microcontrollers and is anticipated to fuel the demand for IoT microcontrollers.

Many connected devices that operate on batteries for months and years without the need for battery replacement or maintenance require energy-efficient, IoT end-node applications. The reduced costs of components such as processors and sensors and the growing use of wireless connectivity have resulted in the development of smart products that can communicate with each other without the need for human intervention.

The leading companies from many sectors such as telecommunications, consumer electronics, and automotive are intensely focusing on incorporating artificial intelligence into their products. For instance, Qualcomm Technologies, Inc. made huge investments in the research and development of on-device AI. The integration of machine learning in automobiles, smartphones, robots, and drones is becoming possible owing to the increased computing power, along with improved AI algorithms.

On-device AI provides better security and privacy protection as all the processing is done offline and on the device. The AI industry is witnessing a shift toward embedded artificial intelligence. Such state-of-the-art developments in AI and machine learning are paving new ways for the application of microcontrollers in numerous fields such as medical, smart cities, smart factories, IoT, and so on. This is expected to create growth opportunities for the microcontroller market players.

COVID-19 Impact

The COVID-19 pandemic has significantly impacted the microcontroller industry, affecting both the production and demand for these devices. One of the significant impacts of the pandemic has been disruptions to global supply chains. The shutdown of factories and other manufacturing facilities has led to shortages of key components and materials, causing delays and bottlenecks in production. This has resulted in longer lead times for microcontrollers and other electronic components and increased prices for some devices.

In 2020, the rapidly rising number of COVID-19 cases across key countries such as China, Germany, the U.S., Japan, and South Korea compelled their respective federal governments to levy stringent regulations. These regulations mainly included lockdowns in highly spreading cities, sealing of international borders for trade, and allowing companies to provide employees with work-from-home facilities.

However, the overall trade of microcontrollers in Q2 of 2020 witnessed a decline owing to the temporary shutdown of production facilities and international borders across several countries globally. Countries such as China, Japan, South Korea, and Singapore are the key suppliers of microcontrollers globally and were substantially impacted by COVID-19. The decline in production and exports of microcontrollers in these countries, coupled with a labor shortage, resulted in a significant decline in the overall growth in Q1 and Q2 of 2020.

Product Insights

In terms of product, the market is classified into 8-Bit, 16-Bit, and 32-Bit. Among these, the 32-bit segment dominated in 2022, gaining a revenue share of 49.6%. It is expected to grow at the fastest CAGR of over 11.0% throughout the forecast period. A 32-bit microcontroller is a type of embedded SoC with a CPU capable of handling 32 bits of data at a time. It often features a high memory capacity (up to several megabytes) and a comprehensive set of cutting-edge peripherals, including fast ADCs, Digital Signal Processors (DSPs), and cutting-edge communication interfaces such as Gigabit Ethernet, USB 3.0, and CAN bus.

32-bit microcontrollers are an ideal choice for applications requiring high-performance computing, real-time data processing, and sophisticated control systems since they have the highest processor and memory capacity. They are widely used in demanding applications such as aerospace, robotics, automotive systems, and other fields requiring great dependability, accuracy, and scalability.

The 16-Bit segment is anticipated to grow at a considerable CAGR of 10.7% throughout the forecast period. A 16-bit microcontroller is a type of embedded SoC that has a CPU capable of processing 16 bits of data at a time. It features more peripherals, including Analog-to-Digital Converters (ADCs), Digital-to-Analog Converters (DACs), and communication interfaces such as USB, Ethernet, and Wi-Fi.

Compared to 8-bit microcontrollers, 16-bit microcontrollers offer greater processing capability and memory (up to a few hundred kilobytes), which makes them ideal for applications that require more advanced algorithms and higher performance. They are often used in automobile systems, consumer electronics, industrial automation, and medical equipment.

Application Insights

In terms of application, the market is classified into consumer electronics & telecom, automotive, medical devices, industrial, aerospace & defense, and others. The consumer electronics & telecom segment dominated the overall market, gaining a market share of 32.6% in 2022 and witnessing a CAGR of 11.7% during the forecast period. Microcontrollers are employed in consumer electronics and telecom applications owing to their capability to process data, regulate functions, and interact with other devices.

They are used to handle user inputs, interact with other devices, and control a variety of operations in smart home appliances such as smart locks, smart thermostats, and smart lighting systems. In wearable gadgets such as smartwatches and fitness trackers, microcontrollers are employed to keep track of sensors, process data, and interact with smartphones and other gadgets. Moreover, in telecom infrastructure such as cell towers and base stations, microcontrollers are used to process and manage network traffic, regulate power usage, and carry out real-time monitoring and diagnostics.

The automotive segment is anticipated to witness the fastest growth, growing at a CAGR of 12.6% throughout the forecast period. Microcontrollers are electronic components that are often used in the automotive sector to manage and control several systems in automobiles. They are compact, low-power integrated circuits made for real-time data processing and control in embedded systems.

Automotive applications that use microcontrollers include Advanced Driver Assistance Systems (ADAS), Anti-lock Braking Systems (ABS), airbag control, entertainment systems, and gearbox control. Microcontrollers can process sensor data, interface with other electronic systems inside the car, and control a variety of actuators, thereby enhancing the performance, safety, and comfort of the vehicle.

Regional Insights

Asia Pacific dominated in 2022, gaining a market share of 58.1%. The region includes countries with a sizable and diverse electronics industry, including China, Japan, South Korea, India, and Taiwan. One of the biggest applications for microcontrollers in the Asia Pacific region, particularly in countries such as Japan, South Korea, and China, is the automotive industry.

The demand for microcontrollers in this industry is being driven by the rising demand for safety features, ADAS, and electric automobiles. In the Asia Pacific region, the industrial segment is also a prominent end user of microcontrollers, particularly in countries such as China and India, which have substantial and expanding manufacturing industry.

North America is anticipated to grow at a considerable CAGR of 10.7% throughout the forecast period. The rising need for smart and connected devices is one of the key factors influencing the microcontroller market growth in North America. The region is at the forefront of the development of Internet of Things (IoT) technologies, which connect commonplace gadgets to the internet and allow them to communicate and exchange data.

The demand for microcontrollers with cutting-edge features such as connectivity, sensing, and low power consumption is driving regional market growth. Some of the key players operating in the North American microcontroller market include Texas Instruments, Inc.; Microchip Technology Inc.; NXP Semiconductors N.V.; Renesas Electronics Corporation; and STMicroelectronics.

Key Companies & Market Share Insights

The market is consolidated and is anticipated to witness increased competition due to several players' presence. Major players are spending heavily on research and development activities to integrate advanced technologies in microcontrollers has intensified the competition among these players. Some prominent players in the market include NXP Semiconductors, Microchip Technology Inc., Renesas Electronics Corporation, STMicroelectronics, and Infineon Technologies AG, among others.

These players are focusing on partnership and collaboration to gain a competitive edge over their peers and capture a significant market share. In November 2022, a partnership was formed between Infineon Technologies AG and REE Automotive Ltd., a company focusing on automotive technology, to develop the REE modular Electric Vehicle (EV) platform. This platform is designed to be versatile and adaptable, serving as a foundation for a wide range of electric vehicle types, including robotaxis, commercial vans, and electric passenger shuttles. Some prominent players in the global microcontroller market include:

• Infineon Technologies AG

• Fujitsu Semiconductor Limited

• Microchip Technology Inc.

• NXP Semiconductors

• Renesas Electronics Corporation

• STMicroelectronics

• TE Connectivity Ltd.

• Texas Instruments Incorporated

• Toshiba Electronic Devices & Storage Corporation

• Yamaichi Electronics Co., Ltd.

• Zilog, Inc.

• Broadcom

Microcontroller Market Report Scope

Global Microcontroller Market Report Segmentation

This report forecasts revenue growths 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 microcontroller market report based on product, application, and region:

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

  • 8-Bit

  • 16-Bit

  • 32-Bit

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

  • Automotive

  • Consumer Electronics & Telecom

  • Industrial

  • Medical Devices

  • Aerospace & Defense

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

  • Asia-Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa