Microcontroller Market Share & Trends Analysis, By Product Type (8-bit Microcontroller, 16-bit Microcontroller, Others), By Application (Automotive Microcontroller, Consumer Electronics Microcontroller, Others) & By Region Forecast, 2021-2031

Market Snapshot

As of 2021, the global microcontroller market is estimated to be worth US$ 20 Bn. From 2021 to 2031, it is predicted to rise at a CAGR of 14%. Furthermore, the report anticipates sales to be valued at US$ 74.14 Bn by the end of the aforementioned forecast period. Automotive applications expect to remain high, growing at a staggering rate of 10% until 2031.

Key Points Covered in Microcontroller Industry Analysis

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Conditions
• COVID-19 Impact on Microcontroller Market and How to Navigate
• Recommendation on Key Winning Strategies

2016-2020 Microcontroller Market Analysis VS 2021-2031 Forecast

Historical analysis concludes that the market for microcontrollers exhibited a robust 11.1% CAGR, between 2016 and 2020. Vehicle networking, interactive safety systems, self-driving cars, and digitalization of automobile has resulted in a significant demand for microcontrollers.

The COVID-19 outbreak has had a significant influence on the semiconductor manufacturing industry around the world. The drop in microcontroller production and exports in nations like China, Germany, the United States, Japan, and South Korea, along with labor shortages, has considerably reduced global market revenues in 2020.

Microcontrollers are used in a variety of end-use industries, including automotive, medical devices, industrial equipment, military & defense, and consumer electronics. The variety of its applications is critical to the growth of the market, reflecting a CAGR of 14% between 2021 and 2031.

Increasing Scope of Microcontrollers in the Automotive Industry?

Automotive applications are in high demand due to greater vehicle automation. Commercial vehicles are integrating product features that allow consumers to control their vehicles at any time and from any location. Remotes with precision microcontrollers enable sophisticated autos, which will drive demand for this application type.

Automotive applications presently account for more than a third of the market and are anticipated to grow at a rate of more than 10% between 2021 and 2031. Consumer devices such as televisions, washing machines, and home security systems are rapidly incorporating smart features that allow customers to control their items from anywhere.

What Opportunities Lay in Store for Microcontroller Sales across the Medical Industry?

The increased demand from the medical industry around the world is a crucial driver driving market expansion. Medical equipment for therapy and diagnostics are very often complex computer-controlled, electro-mechanical systems relying on advanced semiconductor technologies and components to help deliver good quality care across hospitals, homes and other settings.

The recent COVID-19 pandemic has further accentuated the challenges needed to be surmounted by the global healthcare fraternity, especially with regard to managing patient and hospital workflow management. Hence, there is a growing demand for electronic medical devices that assess oxygen levels, temperature, blood pressure, sugar levels, and other parameters. Microcontrollers can help reduce the cost of medical devices while also providing precise patient readings and information.

For instance, The PIC18-Q40 family provides designers with advanced functional capabilities of CIPs that conduct important activities in a smart medical device with no coding or supervision from the CPU to sustain the operation.

Country-wise Analysis

How are Increasing Hybrid Electric Vehicle Sales Encouraging Demand for Microcontrollers in North America?

According to Fact.MR, the market for microcontrollers is anticipated to surge at a robust 9.5% CAGR until 2031. Growing popularity of electric, hybrid, and self-driving vehicles is the primary reasons for enhanced market growth across the continent.

The U.S Department of Energy estimates that the fleet of hybrid electric vehicles in the U.S, is the 2nd largest, with 5.8 million units sold as of December 2020. As of Q1 2021, sales of electrified vehicles surged 81%, with combined sales of EVs, hybrid and plug-in hybrids surpassing 300,000.

With this ever-increasing scope, manufacturers are introducing the most advanced and well-equipped microcontroller units. For instance, Cypress Semiconductors offers the TraveoTM 32-bit Arm Automotive Microcontrollers for ensuring cutting-edge performance, safety and security features.

How is the Luxury Vehicles Market Stimulating Microcontroller Uptake in Europe?

According to Fact.MR, the market for microcontrollers in Europe is expected to grow at a CAGR of 5% from 2021-2031. The presence of major automobile and equipment manufacturers drives the European market. Luxury automobile manufacturers such as BMW, Mercedes-Benz, and Porsche have manufacturing sites throughout Europe, which generates demand for automotive microcontrollers.

While purchasing luxury car brands, European consumers attach significant importance to powertrain, followed by interior design & functionality, driving performance, exterior design and overall experience of ownership. Furthermore, advanced microcontroller units are also being mounted so as to fulfil emissions reduction targets. For instance, the European Commission has planned to curtail greenhouse gas emissions by at least 55% until 2030.

In the past decade, Freescale Semiconductor introduced a family of 32-bit automotive microcontrollers with integrated emissions control technology. These are engineered to help reduce carbon dioxide emissions, enabling cost-effective yet sophisticated engine control designs for emerging markets. The MPC563xM family includes three 32-bit powertrain MCUs designed to help improve the efficiency and performance of small engines scaling from one to four cylinders. Built on Power Architecture technology, the MPC563xM devices not only offer enhanced powertrain functionality, such as on-chip emissions control, but they also address the cost constraints of engine and transmission suppliers.

What Supports Increasing Microcontrollers Sales across Asia?

The constantly developing consumer electronics industries, as well as the presence of prominent market participants such as Yamaichi Electronics Co., Ltd and Fujitsu Semiconductor Limited, are expected to drive significant growth throughout the projection period.

The emergence of start-up business initiatives in developing economies such as India that provide vital microcontroller services, as well as creative add-on services and products such as insurance, GPS navigation, and entertainment systems, are some of the primary drivers influencing this growth.

The region would see rapid adoption of IoT across a wide range of applications, including smart appliances, industrial automation, home automation, smart grids, and smart cities. This expansion has resulted in an increase in the use of microcontrollers’ quotation. A CAGR worth 6% is projected for the region.

Category-wise Insights

Will ADAS Installation Sustain Microcontroller Demand in the Automotive Sector?

In terms of sales, the automotive segment is projected to dominate the market, accounting for 30.5% revenue until 2031. This high share is due to increased demand for MCUs for greater automotive safety features, convenience functions and entertainment systems. Because of the Advanced Driver Assistance System (ADAS), this application sector is also predicted to increase significantly.

Image sensors are used in ADAS technology to increase driver safety by providing features like lane departure warnings, parking assistance, and collision avoidance systems. Stringent regulatory standards aimed at increasing road safety for drivers and pedestrians are projected to fuel growth even further.

Why are 16-bit Microcontroller Units Most Preferred?

In terms of sales, the 16-bit sector will dominated the market in 2021, accounting for 49% of revenue. This large share can be attributed to the increasing use of these MCUs in automotive applications as well as the continuously reducing average selling prices.

The 16-bit product segment has the largest market share, majorly attributed to reduce engine drag, improve torque control, enhancement of antilock braking systems, installing EDS and mounting traction control systems.

Competitive Landscape

Prominent manufacturers are focused on introducing new product lines, with added new and diverse features. Furthermore, strategies such as collaborations and acquisitions are also sought after. Notable developments in the industry are as follows:

• In October 2020, Infineon Technologies launched the TraveoTM II Body microcontroller family for next-generation vehicle electronic systems. The product line aims to address a broad variety of automotive applications, including body control modules, door, window, sunroof and seat control units
• In January of 2021, Microchip Technology introduced AVR® microcontrollers (MCUs). They are a good choice for a range of embedded system designs because they provide unrivaled performance, power efficiency, and adaptability. Because of their highly adjustable peripherals and the industry's most code-efficient architecture, they can bring numerous functions to a single chip with minimal programming.

Report Scope

Key Segments Covered

• Product Type

  • 8-bit Microcontroller
  • 16-bit Microcontroller
  • 32-bit Microcontroller

• Application

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