Microcontroller Market Size & Share, Global Market Research and Industry Forecast Report, 2020-2027 (Includes Business Impact of COVID-19)

  • TBI48983
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel
                                              

Industry Insights, Market Size, CAGR, High-Level Analysis: Microcontroller Market

The global microcontroller market size was valued at USD 20.82 billion in 2019 and is expected to expand at a CAGR of 10.8% from 2020 to 2027. Globally, more than 30 billion units of microcontrollers shipped in 2019. The significant growth in automotive, consumer electronics, and healthcare sectors can be attributed to the rising product demand. Microcontrollers Units (MCU) 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 fuel the demand. Rising awareness regarding smart energy management with the emergence of smart grids is expected to further fuel the demand for MCUs. Rising demand from the medical and automotive sectors across the globe is the critical factor is boosting the market growth. Growing percentage of geriatric population and the occurrence of diseases such as diabetes and high blood pressure, is anticipated to contribute to the demand for electronic medical devices to measure blood pressure and sugar levels. Microcontrollers can reduce the cost of medical devices and help provide accurate reading and medical information. As such, the demand from medical equipment manufacturers is anticipated to witness a considerable rise in near future. Microcontrollers find application in automotive, industrial, telecommunications, healthcare, and consumer electronics devices. 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 fuel the product demand. 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 further drive the market growth. The smart grid technology combines electrical network and digital communication to facilitate remote control facility. It uses smart meters and the 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 considerably drive the market. 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 microcontroller units is rapidly growing. Increasing competition has led to the reduced product prices, which is anticipated to further fuel the demand. The declining average selling prices coupled with high demand from major application areas is also expected to drive the market.

Product Insights of Microcontroller Market

Based on the product, the microcontroller market is segmented into 8-bit, 16-bit, and 32-bit. 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 MCU comprises a low gate count, software simplicity, and lesser complexity, which makes it cheaper than the other types of microcontrollers. However, the 8-bit MCU segment is expected to witness slower growth owing to processing speed, which generally runs at 8 MHz and does not have substantial internal Random-Access Memory (RAM). The automotive industry, owing to their specific requirements for the technologies, use 16-bit and 32-bit MCUs in a large scale. The 16-bit product segment dominated the market in terms of revenue in 2019. However, the 32-bit segment is expected to expand at the highest CAGR from 2020 to 2027. 32-bit MCUs have a higher processing power than their counterparts and consumes less power. Furthermore, the increasing popularity of 32-bit MCUs owing to the decreasing unit price is expected to drive the segment growth further.

Application Insights of Microcontroller Market

Based on the application, the market is segmented into automotive, consumer electronics, industrial, medical devices, and military and defense. The automotive segment dominated the market in terms of revenue in 2019. This application sector is expected to have a 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. The consumer electronics application segment is expected to lead the market in terms of CAGR from 2020 to 2027. This growth is driven by miniaturization of consumer devices and increasing adoption of cameras, televisions, washing machines, and microwave ovens, among other consumer electronic devices. Medical segment is also 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 required in advanced medical equipment.

Regional Insights of Microcontroller Market

North America held the largest share exceeding 35% in 2019, and it is estimated to maintain its dominance over the forecast period. The primary factor that drives the regional market is the prevailing large consumer base for tablets, smartphones, and other consumer electronics. Moreover, growing penetration of IoT ecosystems in homes and corporate places in the region has led to the rise in demand for smart electricity gadgets, smart wearables, sensors, medical devices, and other IoT enabled devices, which is expected to drive the regional market growth over the forecast period. Europe market 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 the region, which is anticipated to drive the demand for microcontrollers from the automotive application. However, the Asia Pacific regional market is expected to witness a significant gain in the revenue share from 2020 to 2027. The proliferation of start-up business ventures that offer the essential microcontroller services, in the developing economies such as India along with the innovative add-on services and products such as insurance, GPS navigation, and entertainment systems, are some major factors attributing to this growth.

Market Share Insights of Microcontroller Market

The key MCU manufacturers include Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductor, Renesas Electronics Corporation, STMicroelectronics, and Texas Instruments Incorporated. The top five participants accounted for more than 50% of the overall market share in 2019. The players are actively engaged in collaborations and partnerships to develop new products. For instance, in December 2018, Silicon Storage Technology (SST), a subsidiary of Microchip, announced a partnership with SK hynix system ic. Through this partnership, the companies aimed at the development of a low-power and cost-effective embedded flash memory solution for the customers. Moreover, the companies are actively expanding their geographical presence by opening new operations facilities and thereby increasing their customer base.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Microcontroller Market Research 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 2016 to 2027. For the purpose of this study, this market research report has segmented the global microcontroller market report on the basis of product, application, and region:

Product Outlook (Revenue, USD Million, 2019 - 2030)

  • 8-bit
  • 16-bit
  • 32-bit

Application Outlook (Revenue, USD Million, 2019 - 2030)

  • Automotive
  • Consumer Electronics
  • Industrial
  • Medical Devices
  • Military & Defense

Table of Contents
Chapter 1 Methodology and Scope                 1.1 Market Segmentation                 1.2 Report Scope                 1.3 Research Methodology                 1.4 Research Scope and Assumptions                 1.5 List to Data Sources                 1.6 List of AbbreviationsChapter 2 Executive Summary                 2.1 Market Outlook                      2.1.1 Microcontroller shipments (2016 - 2027)                 2.2 Segmental OutlookChapter 3 Market Variables, Trends & Scope                 3.1 Market Lineage Outlook                      3.1.1 Parent market outlook  
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