Microcontroller Market Analysis Report By Product, By Application And Segment Forecasts From 2020 To 2027

Industry Insights

The global microcontroller market size was worth USD 20.82 billion in 2019. It is estimated that the market would expand at 10.8% CAGR over the forecast duration, 2020 to 2027. In 2019, over 30 billion units of microcontrollers were shipped. Increasing demand for the microcontroller is attributed to its growing use in consumer electronics, healthcare, and automotive. Often, microcontrollers units are used in applications where users require significant control. Further, high competition in the market has led to a reduction in prices in the past few years, which in turn, has supplemented the industry growth. In addition, increasing awareness about smart energy management is bolstering the product demand.

The automotive and healthcare sectors have been the major end-users of the microcontroller. Over the past few years, the demand for electronic medical devices has increased considerably owing to the increase in the geriatric population coupled with the rise in the number of diabetes patients. Microcontrollers not only reduce the cost of devices but provides accurate measurements as well.

Some of the other applications of microcontrollers include telecommunications, consumer electronics, and industrial. Owing to the emergence of advanced and luxury vehicles, the use of microcontrollers in the automotive industry has increased significantly. Increasing demand from the automotive industry is also fueled by the growing penetration of electric vehicles. However, the recent slowdown in the sales of automotive vehicles is estimated to restrain the market growth to some extent. On the other hand, the increasing penetration of smart energy grid systems is further anticipated to boost market growth. To enable remote control, smart grid technology combines both digital and electrical communication systems.

The demand for IoT microcontroller units has increased significantly in the past few years. Several connected devices in the IoT infrastructure include a smartphone, smart meters, security systems, tablets, gaming console, and televisions. With the rapidly growing IoT applications in various end-user industries, the demand for MCUs is gaining traction.

Product Insights

Based on product, the microcontroller market is classified into 32-bit, 16-bit, and 8-bit. Among them, 8-bit MCUs lower the cost of material and make the product design simple. The selection of controllers depends on the interfacing requirement, power consumption, and processing capability. Owing to lesser complexity, software simplicity, and lower gate count, 8-bit MCUs are cost-effective than others. However, owing to the low processing speed, this segment is projected to witness moderate growth from 2020 to 2027.

The uses of 32-bit and 16-bit MCUs are popular in the automotive sector. In 2019, the 16-bit product segment held the highest share in the market. On the other hand, the 32-bit category is anticipated to register the highest growth rate over the next seven years. Factors such as lesser consumption of power and high processing capability are driving the growth of the segment. Moreover, cost reduction in 32-bit MCUs is also supplemented its demand.

Application Insights

The market is categorized into consumer electronics, military & defense, automotive, medical devices, and industrial based on application. In 2019, the automotive division accounted for the maximum share in the market. The increasing adoption of the Advanced Driver Assistance System (ADAS) is driving the growth of the automotive segment. The stringent regulations framed by governments to ensure road safety is attributing to the increasing demand for ADAS in automotive.

The consumer electronics segment is projected to witness the highest growth over the forecast duration. Rising sales of consumer electronics devices such as washing machines, microwaves ovens, televisions, cameras, and others coupled with the growing trend of miniaturization are attributing to the growth of this segment. Besides, the medical segment is also witnessing significant growth owing to technical advancements, need for the high precision in medical procedures, and automation in the industry.

Regional Growth

In 2019, North America held more than 35% of the share in the overall microcontroller market. Further, the region is projected to continue to grow at a significant pace. Growing penetration of consumer electronics and automotive is the major factor driving regional growth. In addition, the growing development of smart homes has led to an increase in adoption in IoT-enabled devices, sensors, and smart wearables among others, which in turn, has positively driven the growth of the market. Further, the U.S. is witnessing rapid growth in its healthcare systems, which, offers a lucrative opportunity for industry growth.

On the other hand, the European market is bolstered by the presence of the leading automotive manufacturers such as Porsche, Mercedes-Benz, and BMW. Besides, Asia Pacific is projected to witness considerable growth over the next seven years. The region is witnessing considerable growth in the adoption of electric vehicles led by China.

Impact of COVID-19

The microcontroller is increasingly used in the automotive industry. The COVID-19 pandemic has led to a significant drop in the sales of automobile vehicles. Several countries have witnessed a drop up to 20-25% in the sales of cars during the second quarter of 2020. This drop is estimated to further decrease in countries such as the United States and India as they were severely hit by the pandemic. In addition, consumer electronics witnessed a significant decline in sales owing to the declining power of consumers.

However, the impact of the pandemic will be for short to mid-terms and the market is projected to pick pace once the situation returns to normal. Industry players can focus on mergers & acquisitions to strengthen their customer base. Governments across the world are also offering relief packages to increase the purchasing power of consumers, which, in turn, is estimated to drive market growth.

Microcontroller Market Share Insights

Leading market players include Microchip Technology, Renesas Electronics, Texas Instruments, NXP Semiconductor, and Infineon Technologies AG among others. In 2019, the top five industry players accounted for over 50% share in the market. Key players are actively focusing on collaboration and new product development. For example, Microchip’s subsidiary Silicon Storage Technology (SST) collaborated with SK Hynix system in 2018. The partnership was aimed at developing cost-effective and low-power flash memory solutions. In addition, companies are focusing on expanding their customer base by opening new sales channels in emerging regions.

Report Scope

Segments Covered in the Report 

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 2016 to 2027. For this study, Million Insights has segmented the global microcontroller market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)
    • 8-bit
    • 16-bit
    • 32-bit

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Automotive
    • Consumer Electronics
    • Industrial
    • Medical Devices
    • Military & Defense

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • U.K.
        • Germany
    • The Asia Pacific
        • China
        • Japan
        • India
    • South America
        • Brazil
    • Middle East & Africa