IoT Microcontroller Market

Global IoT Microcontroller Market Snapshot (2022-2032)

The global IoT microcontroller market was valued at US$ 4.6 Bn in 2021, and is expected to surge at a Y-o-Y rate of 8.7% to reach US$ 5 Bn in 2022. Furthermore, the industry is slated to flourish 3.4x until 2032, expected to reach US$ 17 Bn in value terms.

Report Attributes	Details
Documented Value in 2021	US$ 4.6 Bn
Anticipated Market Value in 2022	US$ 5 Bn
Projected Forecast Value in 2032	US$ 17 Bn
Global Growth Rate (2022-2032)	13% CAGR
Market Share of Europe in 2022	20%
Expected Growth Rate of Asia Pacific	12% CAGR (2022-2032)
Key Manufacturers of IoT Microcontrollers	Broadcom Espressif Systems (Shanghai) Co. Ltd. Holtek Semiconductor Inc. Infineon Technologies Microchip Technology Inc. Nuvoton Technology Corporation NXP Semiconductors Silicon Laboratories ST Microelectronics Texas Instruments Incorporated Renesas Electronics Corporation

Extensive reliance on the virtual space amid deepening internet penetration across multiple industrial domains has boded well for IoT microcontrollers’ market demand. It is expected that demand for IoT microcontrollers will expand the fastest in the smart homes segment, registering a CAGR of 13% throughout the period of assessment.

Demand Analysis of IoT Microcontrollers 2015-2021 vs. Future Outlook 2022-2032

According to Fact.MR- a market research and competitive intelligence provider- sales of IoT microcontrollers flourished at a CAGR of 10% from 2015 to 2021, reaching a valuation of US$ 4.6 Bn. The increasing number of IoT connections among consumer and enterprise sectors and the need for low-power, high-performance, and energy-efficient connected products are some of the primary factors to drive the market growth.

The COVID-19 pandemic further served to elevate growth prospects, as the imposition of strict lockdowns to arrest the spread of infections led to a spike in remote working arrangements. This heightened reliance on IoT enabled devices, including smartphones, tablets and laptops. At the same time, in the initial months, suppliers of microcontroller units had to navigate through demand and supply shocks brought about by the sudden closure of borders and disruption in logistics.

A growing preference for embedded Non-Volatile Memory (eNVM) solutions over System-in-Package (SiP) in high-end applications such as industrial automation, smart utilities, and smart transportation is expected to bode well for the IoT microcontroller market growth in forthcoming years. From 2022 to 2032, the market is projected to flourish at a CAGR of 13%.

How does the Development of Internet Connectivity Boost the IoT Microcontroller Market?

Development of Internet Connectivity in Technologically Advancing Nations to Fuel the Market in the Forecast Period

The increasing demand for cheap smart wireless sensor networks and the development of internet connectivity in technologically advancing countries are anticipated to be the key drivers of the market. Further, the growing number of IoT connections and increasing demand for low-power, energy-efficient connected products are other salient factors boosting the industry.

Moreover, the popularity of the Internet of Things (IoT) is expected to provide a significant boost to the market in the coming time. IoT is witnessing a wide range of applications such as; industrial automation, smart appliances, smart grids, and smart cities, which is anticipated to fuel the market significantly during the forecast period. In addition, the rising popularity of fitness apps and increasing awareness about physical fitness in emerging countries such as; India, China, and Japan are likely to drive the adoption of wearable technology, thereby expanding the market size during the forecast period.

What are the Factors Hampering the IoT Microcontroller Market?

High Power Consumption of IoT Microcontroller to Hamper the Market

The high power consumption of the microcontroller is anticipated to be a major factor hampering the market growth during the forecast period. Further, security concerns associated with IoT devices is another salient cause that can hinder market expansion. Furthermore, the outbreak of COVID-19 brought a negative impact on the industrial sector, affecting the microcontrollers and microprocessors. 

Although production has resumed, the shortage of semiconductors is likely to continue till 2023. Moreover, the fluctuations in selling prices of MCUs and the lack of components are anticipated to impede the market growth considerably. The manufacturers experienced various challenges to meet the supply and demand targets since several production facilities were suspended and the international borders were temporarily shut.

Country-Wise Analysis

How does the Presence of Developing Countries in APAC Boost the Market in the Region?

APAC to expand at a CAGR of 12% during the forecast period

As per the analysis conducted at Fact.MR, the APAC market is anticipated to expand at an approximate CAGR of 12% during the forecast period. The presence of developing countries such as; India, China, and Japan are likely to provide significant opportunities for expansion to the market. The estimation reveals that the growth driven by India, China, and Japan is nearly 50% of the global market share. The expansion of the market in APAC can be attributed to the increasing initiatives by the government to increase awareness about smart wearables.

For instance, the recent trade agreement, Regional Comprehensive Economic Partnership (RCEP) among the APAC countries aims to create pocket-friendly smart home devices. In addition, increasing internet penetration and the growing application of smartphones in these developing countries are projected to grow the market significantly. According to IAMAI-Kantar ICUBE 2020 report, the number of active internet users in India is anticipated to surge by 45% in the coming 5 years and reach 900 million by 2025 against 622 million in 2020.

What is the Role of Europe to Drive the IoT Microcontroller Market?

France, U.K, and Spain to Make Significant Contribution in Boosting the Market in Europe

According to Fact. MR, Europe is anticipated to have secured a market revenue surpassing 20% in 2022. As a part of the initiative of the government, 50% of the electricity meters have been replaced by smart electricity meters.

Furthermore, the government is also making significant investments in the installation of smart meters across European countries such as; the UK, France, and Spain. Furthermore, the rising popularity of fitness apps in countries such as; Poland, the UK, after the outbreak of COVID-19, has also played a significant role in boosting the market in Europe.

Category-Wise Analysis

Why is the Smart Homes Segment and Consumer Electronics Segment Expected to Gain Traction?

Increasing Advancements in Smart Devices to Boost the Segment during the Forecast Period

As per the observations at Fact. MR, the smart home segment is anticipated to have secured a market value of US$ 1 Bn in 2022 while recording a CAGR surpassing 13% during the forecast period. The expansion of the segment can be attributed to the increasing advancements in smart devices, which are likely to strengthen the segment in the coming time. Such developments in smart devices generate the need for secured and energy-efficient applications such as HVAC, which can propel the industry notably.

On the other hand, the consumer electronics segment expanded considerably after the outbreak of COVID-19, which resulted in remote working culture. The pandemic created the demand for fitness trackers and smart wearable. Moreover, the growing awareness about fitness among the youth is another salient cause strengthening the segment during the forecast period.

Based on Products, Which Segments are expected to boost Market Growth?

32 Bit MCU Segment to Record the Highest CAGR of 13% owing to its IoT Applications

As per the analysis at Fact. MR, the 32 Bit MCU is anticipated to dominate the market by exhibiting the highest CAGR of 15% during the forecast period. The 32 Bit is widely used for IoT applications. It has an extensive application in building automation and factory automation and is economic as well.

On the other hand, the 8 MCUs segment is projected to witness a CAGR of 11% during the forecast period. The 8-bit segment is majorly used for connected devices and smart wearables. The increasing demand for fitness wearables among the youth owing to the growing cases of obesity, diabetes, etc is predicted to make a significant contribution in boosting the segment in the assessment period.

Competitive Landscape

Players in the global IoT microcontroller market focus on expanding their global reach through various strategies, such as; partnerships, collaborations, and partnerships. The players are also making a significant investment in R&D to add innovations to their products which would help them in strengthening their position in the global market. Some of the recent developments among the key players are:

• In May 2020, NXP Semiconductor announced a collaboration with OKdo to develop E1, which is a single-board computer (SBC). The SBC comprises NXP’s LPC55S69 Microcontroller, which offers a high-performance and assists the companies to increase their consumer base. 
• In February 2022, Infineon Technologies, a German Chipmaker announced its plan to invest more than 2 Bn Euros in a new frontend fab in Kulim, Malaysia. The investment is expected to offer an additional 2 Bn Euros in annual revenues from gallium nitride and silicon carbide.

IoT Microcontroller Market- Report Scope

Attribute	Details
Historical Data Available For	2015-2021
Projected Forecast Period	2022-2032
Market Analysis	US$ Mn for Value and Units for Volume
Key Regions Covered	North America South America Europe Asia Pacific Middle East & Africa
Key Segments Covered	Product Application Regions
Key Countries Profiled	U.S Canada Brazil Mexico Germany France U.K China Japan India GCC South Africa Turkey

Key Segments Covered in the IoT Microcontroller Market Study

• By Product :

  • 8 Bit IoT Microcontroller
  • 16 Bit IoT Microcontroller
  • 32 Bit IoT Microcontroller

• By Application :

  • IoT Microcontroller for Industrial Automation
  • IoT Microcontroller for Smart Homes
  • IoT Microcontroller for Consumer Electronics
    • Smartphones
    • Wearables
    • Others
  • IoT Microcontroller for Other Applications