Microcontroller Market

In 2022, the global microcontroller market was valued at USD 20.61 billion, and it is projected to grow at a CAGR of 11.0% from 2023 to 2030. The market growth is driven by the increasing adoption of microcontrollers in smart grid systems for smart meter applications and the rising demand for microcontrollers in the automotive and medical sectors. The healthcare industry's growing expenditure, driven by factors such as the increasing prevalence of immunodeficiency disorders, a growing elderly population, and diseases like diabetes and high blood pressure, has created a need for electronic medical devices. Affordable and reliable medical equipment is being introduced by manufacturers to meet this demand.

Microcontrollers are essential components in various medical devices, ensuring affordability and reliability. Devices such as blood glucose meters incorporate a significant number of microcontrollers, leading to high demand from the medical and healthcare industry. Additionally, companies in sectors like telecommunications, consumer electronics, and automotive are focusing on integrating artificial intelligence (AI) into their products. For example, Qualcomm Technologies, Inc. has made significant investments in on-device AI research and development.

Microcontroller manufacturers are actively developing innovative products and solutions, creating significant growth opportunities. The emergence of interconnected devices like smart meters, home appliances, security systems, tablets, gaming consoles, televisions, and smartphones has driven advancements in microcontroller technology. This, in turn, has fueled the demand for IoT microcontrollers.

The declining costs of processors and sensors, along with increased wireless connectivity, have facilitated the development of intelligent products capable of seamless communication without human intervention. Advancements in computing power and AI algorithms have enabled the integration of machine learning in various domains, leading to the rise of on-device AI. This progress is opening up new avenues for microcontroller utilization in fields such as medical, smart cities, smart factories, and IoT.

COVID-19 Impact

The COVID-19 pandemic has significantly impacted the microcontroller industry, affecting both production and demand. Global supply chain disruptions due to factory shutdowns and manufacturing facility closures have caused shortages of key components and materials, resulting in delays and bottlenecks in production. This has led to longer lead times and increased prices for microcontrollers and other electronic components.

The pandemic's impact on microcontroller trade was evident in 2020, with temporary production facility shutdowns and border closures affecting countries like China, Germany, the U.S., Japan, and South Korea. These countries, key suppliers of microcontrollers, experienced a decline in production and exports, contributing to an overall market contraction in the first and second quarters of 2020.

Report Coverage & Deliverables

The report provides a PDF version and an online dashboard, offering insights into competitive benchmarking, historical data, forecasts, company revenue shares, regional opportunities, latest trends, and market dynamics.

Product Insights

The microcontroller market is categorized into three product segments: 8-Bit, 16-Bit, and 32-Bit. In 2022, the 32-Bit segment accounted for the largest share, capturing 49.6% of the revenue. It is expected to have the highest CAGR of 11.8% throughout the forecast period. 32-bit microcontrollers have increased processing power and offer a wide range of cutting-edge peripherals, making them suitable for high-performance applications in industries such as industrial control, automotive, and complex embedded systems. The 16-Bit segment is projected to grow at a significant CAGR of 10.5% and is commonly used in automobile systems, consumer electronics, industrial automation, and medical equipment.

Application Insights

The market is segmented by application into consumer electronics & telecom, automotive, medical devices, industrial, aerospace & defense, and others. The consumer electronics & telecom segment dominated the market in 2022, capturing a revenue share of 32.6%. It is expected to grow at a CAGR of 11.5% during the forecast period. Microcontrollers are widely used in consumer electronics and telecom applications for data processing, function regulation, and device interaction. The automotive segment is anticipated to witness the fastest growth, with a CAGR of 12.6%, driven by their use in various automotive systems such as ADAS, ABS, airbag control, and entertainment systems.

Regional Insights

The Asia Pacific region held the largest market share in 2022, accounting for 58.1% of the revenue. It is projected to grow at the highest CAGR of 11.6% throughout the forecast period. The region has a significant electronics industry, particularly in countries like China, Japan, South Korea, India, and Taiwan. The automotive and industrial sectors are key users of microcontrollers in the region. North America is expected to grow at a considerable CAGR of 10.6%, driven by the demand for smart and connected devices, particularly in IoT applications. Key players in the region include Texas Instruments, Inc.; Microchip Technology Inc.; NXP Semiconductors N.V.; Renesas Electronics Corporation; and STMicroelectronics.

Key Companies & Market Share Insights

The market is characterized by consolidation, and competition is expected to intensify with the presence of multiple players. Leading companies in the market, such as STMicroelectronics, NXP Semiconductors, Renesas Electronics Corporation, Microchip Technology Inc., and Infineon Technologies AG, are making significant investments in research and development to incorporate advanced technologies into microcontrollers. These companies actively seek partnerships and collaborations to gain a competitive edge and capture a substantial market share.

In November 2022, Infineon Technologies AG partnered with REE Automotive Ltd., an automotive technology company, to collaborate on the development of the REE modular Electric Vehicle (EV) platform. This platform aims to provide versatility and adaptability for a wide range of electric vehicles, including commercial vans, robotaxis, and electric passenger shuttles. The collaboration between the two companies aims to create an innovative solution that can be flexibly utilized across different types of electric vehicles, offering improved efficiency and functionality.

Other 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., and Broadcom.

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 2023 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 Billion, 2023 - 2030)

• 8-Bit
• 16-Bit
• 32-Bit

Application Outlook (Revenue, USD Billion, 2023 - 2030)

• Automotive
• Consumer Electronics & Telecom
• Industrial
• Medical Devices
• Aerospace & Defense
• Others

Regional Outlook (Revenue, USD Billion, 2023 - 2030)

• North America
• Asia Pacific
• South America
• Middle East & Africa