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I AgreeAnalysis of Microcontroller market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
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.
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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.
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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.
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.
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.
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.
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.
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.
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.
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:
Attribute | Details |
Market Size Value in 2021 | USD 20 Billion |
Market Value Forecast in 2031 | USD 74.14 Billion |
Growth Rate | CAGR of 14% from 2021-2031 |
Forecast Period | 2021-2031 |
Historical Data Available for | 2016-2020 |
Market Analysis | US$ Mn for Value & Tons for Volume |
Key Regions Covered |
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Key Countries Covered |
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Key Segments Covered |
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Key Companies Profiled |
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Pricing | Available upon Request |
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According to Fact.MR, as of 2021, microcontroller sales will most likely reach US$ 20 Bn
By 2031, demand for microcontrollers will likely be valued at US$ 74.14 Bn
From 2021 to 2031, demand is predicted to rise at a compound annual growth rate (CAGR) of 14%
From 2016 to 2020, microcontroller demand surged at a CAGR of 11.1%
Increasing adoption to secure powertrains in automobiles is generating lucrative growth opportunities for microcontrollers
As per Fact.MR, North America will likely be the fastest growing market, registering a 9.5% CAGR
A CAGR of 5% has been projected for the European market for microcontrollers until 2031
Until 2031, sales of microcontrollers in Asia will likely surge at a CAGR of 6%
16-bit microcontrollers will be most sought after, capturing 49% revenue share
Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductor, Renesas Electronics Corporation, STMicroelectronics, and Texas Instruments Incorporated are some prominent microcontroller manufacturers