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Microcontroller Market Revenue To Escalate Noticeably With 9.8% CAGR Owing To Rising Awareness Regarding Smart Energy Management With Emergence of Smart Grids Till 2030 | Grand View Research, Inc.

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Microcontroller Market Revenue To Escalate Noticeably With 9.8% CAGR Owing To Rising Awareness Regarding Smart Energy Management With Emergence of Smart Grids Till 2030 | Grand View Research, Inc.

May 10
08:14 2022
Microcontroller Market Revenue To Escalate Noticeably With 9.8% CAGR Owing To Rising Awareness Regarding Smart Energy Management With Emergence of Smart Grids Till 2030 | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting
According to new report available with Grand View Research, the global microcontroller industry is expected to witness enhanced demand due to the increasing competition in the market has led to the low price of the product, over the forecast period.

Microcontroller Industry Overview

The global microcontroller market size was valued at USD 18.5 billion in 2021 and is expected to reach USD 41.6 billion by 2030, registering a CAGR of 9.8% over the forecast period.

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.

Gather more insights about the market drivers, restrains and growth of the Global Microcontroller Market

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.

U.S. microcontroller market size, by product, 2020 - 2030 (USD Billion)

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.

Microcontroller Market Segmentation

Based on the Product Insights, the market is segmented into 8-bit, 16-bit and 32-bit.

  • 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.   
  • 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).

Based on the Application Insights, the market is segmented into Automotive, Consumer Electronics & Telecom, Industrial, Medical Devices, Aerospace & Defense and Others.

  • 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.
  • 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.

Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

  • 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.
  • 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.
  • 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.

Market Share Insights

  • November 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.
  • October 2020: The Key players are highlighting on developing application specific MCUs to improve their share among competitors, like Infineon Technologies AG launched Traveo, a 32-bit automotive-grade MCU family.

Key Companies Profile:

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.

Some of the key players in the global microcontroller market include,

  • Cypress Semiconductor Corporation
  • Fujitsu Semiconductor Limited
  • Infineon Technologies AG
  • 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.

Order a free sample PDF of the Microcontroller Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

Web: https://www.grandviewresearch.com

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