Global Microcontroller (MCU) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 31.45 Billion |
| Market Size (2029) | USD 51.81 Billion |
| CAGR (2024 - 2029) | 10.50 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Global Microcontroller (MCU) Market Analysis
The Global Microcontroller Market size is estimated at USD 31.45 billion in 2024, and is expected to reach USD 51.81 billion by 2029, growing at a CAGR of 10.5% during the forecast period (2024-2029).
- Microcontrollers act as computing units, managing a diverse array of peripherals and embedded systems. These systems range from household appliances and vehicles to robots and industrial equipment. By integrating components like processor units, input/output (I/O) ports, on-chip storage, and wireless communication modules, microcontrollers can be customized for specific functions. A primary driver for the surge in microcontroller use is the increasing dependence on sensors for data collection and operational oversight. Programmed for distinct applications, these devices enable seamless data exchange within operational sequences.
- Microcontrollers are prevalent in robotics, automotive, consumer electronics, and medical devices. Their affordability, energy efficiency, and compact size make them the go-to choice for embedded systems. Beyond these fields, microcontrollers find applications across a spectrum of industries, including home automation, manufacturing, automotive, smart energy, communications, and Internet of Things (IoT) deployments.
- Factors like the rise of the Internet of Things (IoT), the demand for cost-effective energy-efficient computing, and advancements in wireless communication technologies are propelling the popularity of microcontrollers. With companies increasingly leveraging IoT for digital transformation, the outlook for IoT microcontrollers remains bright. As IoT technologies evolve, these microcontrollers will be pivotal in enhancing connectivity and intelligence across a multitude of IoT applications.
- Technological strides in IoT applications, aiming to deliver interconnected devices globally, are set to boost the demand for microcontrollers (MCUs). Ericsson forecasted a near doubling of globally connected devices from 2022 to 2028, driven by a surge in short-range IoT devices, projected to reach 28.72 billion by 2028. This market expansion may be further supported by the rising adoption of IoT in both consumer and enterprise sectors, emphasizing the need for energy-efficient, high-performance connected products.
- The global microcontroller (MCU) market analysis encompasses various categories, including 4- and 8-bit, 16-bit, and 32-bit microcontrollers tailored for diverse applications. A hallmark of the microcontroller market is the regular introduction of new products by leading industry players. For instance, in March 2023, STMicroelectronics launched the STM32WBA52 microcontrollers, driven by the Arm Cortex-M33 core, targeting applications in portable medical devices, sensors, and smart homes.
- Significant growth in the microcontroller market is expected to be driven by the automotive and consumer electronics sectors. Microcontrollers are vital for managing systems like the engine, transmission, and brakes in automobiles. Growth is further bolstered by rising investments in electric vehicles (EVs), autonomous driving, and surging EV sales. Beyond automotive, microcontrollers are integral to consumer electronics, including smartphones and tablets, with demand spurred by the adoption of 5G and IoT technologies.
- Microcontrollers, with their advanced architecture, cannot directly interface with higher-powered devices and face operational limitations due to restricted execution capabilities. Built using complementary metal-oxide-semiconductor (CMOS) technology, they are also vulnerable to static charge damage.
- The COVID-19 pandemic significantly disrupted the supply chain and production of the market studied. However, the supply chain has shown signs of recovery with digitalization and automation. Key growth drivers include global investments in digitization, the rollout of 5G technologies, and robust investments in data centers. By the close of 2022, the market was poised for even more pronounced growth, spurred by heightened electronics demand, 5G smartphone ramp-up, and the enduring strength of high-performance computers (HPCs).
Global Microcontroller (MCU) Market Trends
Automotive to Hold Significant Market Share
- The automotive microcontroller market is poised for significant expansion during the forecast period. Microcontrollers, compact electronic components, are pivotal in managing and regulating various systems within automobiles. These low-power integrated circuits are tailored for embedded systems' real-time data processing and control. Applications of microcontrollers in the automotive sector span advanced driver assistance systems (ADAS) and anti-lock braking systems (ABS) to airbag control, entertainment systems, and gearbox control.
- Advancements in automation and strict adherence to safety regulations are propelling the growth of the microcontroller market. Microcontrollers enhance a vehicle's performance, safety, and convenience by processing sensor data, facilitating communication between electronic systems, and managing actuators. Original equipment manufacturers (OEMs) typically embed around 25 to 35 electronic control units (ECUs) in standard vehicles. These ECUs, powered by microcontrollers, oversee functions like the powertrain, suspension, brakes, and more.
- In recent years, the automotive industry's growing reliance on electronic components has led to a surge in demand for automotive microcontrollers. The rise of electric vehicles (EVs), connected cars, and autonomous driving technologies has been instrumental in this market's expansion. Furthermore, escalating consumer demands for enhanced safety, comfort, and entertainment have intensified the need for advanced microcontroller solutions.
- Globally, the demand for microcontrollers is set to rise, driven by the surge in new energy/electric vehicles (NEVs) and advancements in autonomous driving. The International Energy Agency (IEA) projects that electric car sales in the Net Zero Scenario could constitute about 65% of total car sales by 2030. To meet this target, electric car sales must grow at an average rate of 25% annually from 2023 to 2030, leading to an anticipated global electric car stock of nearly 350 million vehicles by 2030.
- Countries including China, Japan, India, the United States, and several EU states are heavily investing in boosting electric vehicle (EV) production. Such initiatives are likely to escalate the demand for Motor Control Units (MCUs) in the automotive industry. The advent of connected cars and EVs has empowered microcontrollers to bolster communication between various vehicle components, enabling features like vehicle-to-vehicle (V2V) communication and over-the-air (OTA) updates.
- Numerous companies are actively investing in product innovations in response to the surging demand for microcontrollers in the automotive realm. In May 2024, Infineon Technologies launched the PSoC 4 High Voltage Precision Analog (HVPA)-144K microcontroller, tailored for the automotive battery management sector. This state-of-the-art microcontroller integrates high-precision analog and high-voltage subsystems on a single chip and meets ISO26262 standards, ensuring efficient and secure battery management in modern vehicles.
- Additionally, in April 2024, Infineon Technologies AG announced its robust growth trajectory in the automotive semiconductors market for 2023. The company's success is largely attributed to its AURIX and TRAVEO microcontroller families. These families are steering the automotive industry toward a future of autonomy, connectivity, and electrification, boasting enhanced power, performance, and cutting-edge features like AI-based modeling and cybersecurity.
Asia-Pacific聽to Experience Significant Market Growth
- Asia-Pacific has solidified its status as a pivotal hub for semiconductor manufacturing and the production of semiconductor-based devices. Home to leading electronics and automotive firms, the region plays a vital role across diverse industries, including automotive, industrial automation, pharmaceuticals, consumer electronics, and robotics.
- Growing investments in the consumer electronics sector, particularly in countries like India and China, are set to propel market growth. GSMA forecasts India will rank as the world's second-largest smartphone market by 2025, with a projected 1 billion devices in use. By 2025, India is also expected to have 920 million unique mobile subscribers, 88 million of whom will be on 5G. Ericsson notes that the share of smartphone subscriptions in India will rise from 82% in 2023 to 93% by 2029, with total mobile subscriptions in the region hitting 1.27 billion by 2029.
- Furthermore, surging EV sales and investments in the EV sector across APAC nations are anticipated to fuel market growth. For example, China stands out as a global leader in EV production and consumption. Huawei forecasts that by 2030, autonomous vehicles will account for over 10% of global new vehicle sales. China's EV penetration is set to rise by 25% by the end of the forecast period. This growth is expected to boost demand for semiconductors in advanced driver-assistance systems (ADAS) and, consequently, for microcontrollers (MCUs) across various countries.
- India is on the brink of significant market growth, spurred by surging demand for electric vehicles (EVs) and proactive government initiatives. The nation aims for ambitious EV sales targets by 2030: 30% for private cars, 70% for commercial vehicles, 40% for buses, and a striking 80% for two- and three-wheelers. This ambition translates to a goal of 80 million EVs on Indian roads by 2030. Further underscoring its commitment, India strives for 100% local EV production under the 'Make in India' initiative. The Ministry of Road Transport and Highways proudly announced surpassing 1 million EV sales in under nine months in 2023, a feat that took the entirety of 2022.
- Data from the Federation of Automobile Dealers' Association (FADA) highlights a robust 49.25% Y-o-Y surge in India's electric vehicle sales, totaling 1,529,947 units in 2023, up from 1,025,063 units the previous year. E-commercial vehicles saw a remarkable 114.16% increase, with sales jumping from 2,649 units in 2022 to 5,673 in 2023. Electric passenger vehicles also showcased impressive growth, reaching 82,105 units in 2023, a 114.71% rise from the 38,240 units sold in 2022. Such surging EV demand and sales in the region are poised to bolster the market for MCUs.
- Asia-Pacific has long been a cornerstone of global economic growth, thanks to its diverse industrial supply chains. With major industrial hubs in countries like India, China, and Japan, the region is a dominant player on the world stage. Regional governments are actively enhancing industrial manufacturing capabilities by integrating advanced technologies. As investments surge in sectors like healthcare and communications, the market is poised for further expansion.
Global Microcontroller (MCU) Industry Overview
The microcontroller (MCU) market is dominated by players like Analog Devices, STMicroelectronics, and NXP Semiconductors. The most in-demand electronic components are the microcontrollers, which have a wide range of applications across many key industry verticals: healthcare, IT and telecommunications, military and defense, automotive, and consumer. The major providers are in the process of the constant evolution of products, following different strategies to capture the market. The players are looking forward to strategic collaboration with other brands and joint product developments to come up with problem-solving solutions.
Global Microcontroller (MCU) Market Leaders
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Infineon Technologies AG
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Microchip Technology Inc.
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NXP Semiconductors N.V.
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STMicroelectronics N.V.
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Texas Instruments Incorporated
*Disclaimer: Major Players sorted in no particular order
Global Microcontroller (MCU) Market News
- May 2024: IIT Madras-incubated semiconductor startup Mindgrove Technologies introduced Secure IoT, India's inaugural commercial high-performance microcontroller SoC. Based on the open-source RISC-V instruction set architecture (ISA), this chip is anticipated to enhance cost efficiency for Indian OEMs producing advanced devices. Mindgrove Technologies stated that secure IoT will be priced 30% lower than competing chips in its category.
- March 2024: Renesas Electronics Corporation unveiled the RA2A2 microcontroller (MCU) Series powered by the Arm Cortex-M23 processor. These energy-efficient devices feature a 24-bit Sigma-Delta analog-to-digital converter (SDADC), along with a unique dual-bank code flash and bank swap capability that simplifies the process of integrating firmware over-the-air (FOTA) updates for smart energy management, building automation, medical devices, consumer electronics, and various other IoT applications that require firmware updates.
- March 2024: Toshiba Electronic Devices & Storage Corporation ("Toshiba") commenced the mass delivery of the SmartMCD鈩� Series of gate driver ICs with embedded microcontroller (MCU). The first model, "TB9M003FG," is appropriate for sensorless control of three-phase brushless DC motors utilized in automotive scenarios, which include water and oil pumps, fans, and blowers. This amalgamation will result in smaller system sizes and fewer components needed while achieving advanced and intricate motor control for various automotive motor applications.
- March 2024: STMicroelectronics unveiled a cutting-edge device that surpasses expectations by merging the performance, scalability, and security of microprocessor-based systems, which are usually more intricate, with the simplicity and integration of microcontrollers (MCUs). By utilizing these innovative STM32H7 MCUs, manufacturers of smart appliances, smart-building controllers, industrial automation, and personal medical devices can enhance their products faster and with reduced costs in response to the growing demands of end users.
Global Microcontroller (MCU) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power Of Suppliers
4.2.2 Bargaining Power Of Buyers
4.2.3 Threat Of New Entrants
4.2.4 Threat Of Substitutes
4.2.5 Intensity Of Competitive Rivalry
4.3 Value Chain Analysis
4.4 Assessment of the Impact of Macroeconomic Trends on the Market
4.5 Technology Snapshot
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Emergence of Internet of Things (IoT)
5.1.2 Increasing digitalization across industries
5.2 Market Challenges/Restraints
5.2.1 Disruptions in supply chain
5.2.2 Declining prices of microcontrollers in recent years
6. MARKET SEGMENTATION
6.1 By Product
6.1.1 8-bit
6.1.2 16-bit
6.1.3 32-bit
6.2 By Application
6.2.1 Aerospace and Defense
6.2.2 Consumer Electronics and Home Appliances
6.2.3 Automotive
6.2.4 Industrial
6.2.5 Healthcare
6.2.6 Data Processing and Communication
6.2.7 Other Applications
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Infineon Technologies AG
7.1.2 Microchip Technology Inc.
7.1.3 NXP Semiconductors
7.1.4 STMicroelectronics
7.1.5 Texas Instruments Incorporated
7.1.6 Renesas Electronics Corporation
7.1.7 Cypress Semiconductor Corporation
7.1.8 Toshiba Electronic Devices & Storage Corporation
7.1.9 Intel Corporation
7.1.10 Zilog Inc.
7.1.11 Analog Devices Inc.
7.1.12 Broadcom Inc.
7.1.13 ON Semiconductor
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Global Microcontroller (MCU) Industry Segmentation
A microcontroller, often referred to as a compact computer, is embedded within a single VLSI integrated circuit (IC) chip. It encompasses one or more CPUs (processor cores), memory, and programmable input/output peripherals. In today's world, these components play a pivotal role in IoT-driven and sensor-based instruments.
The microcontroller (MCU) market is segmented by type (8-bit, 16-bit, and 32-bit), application (defense and aerospace, consumer electronics and home appliances, automotive, industrial, healthcare, data processing, and communication, and other applications), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers market size and forecasts for all the above segments in value (USD).
| By Product | |
| 8-bit | |
| 16-bit | |
| 32-bit |
| By Application | |
| Aerospace and Defense | |
| Consumer Electronics and Home Appliances | |
| Automotive | |
| Industrial | |
| Healthcare | |
| Data Processing and Communication | |
| Other Applications |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Global Microcontroller (MCU) Market Research Faqs
How big is the Global Microcontroller Market?
The Global Microcontroller Market size is expected to reach USD 31.45 billion in 2024 and grow at a CAGR of 10.5% to reach USD 51.81 billion by 2029.
What is the current Global Microcontroller Market size?
In 2024, the Global Microcontroller Market size is expected to reach USD 31.45 billion.
Who are the key players in Global Microcontroller Market?
Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductors N.V., STMicroelectronics N.V. and Texas Instruments Incorporated are the major companies operating in the Global Microcontroller Market.
Which is the fastest growing region in Global Microcontroller Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Microcontroller Market?
In 2024, the Asia-Pacific accounts for the largest market share in Global Microcontroller Market.
What years does this Global Microcontroller Market cover, and what was the market size in 2023?
In 2023, the Global Microcontroller Market size was estimated at USD 28.15 billion. The report covers the Global Microcontroller Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Microcontroller Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the MCU Market Growth?
Major factors driving the Microcontroller (MCU) Market growth are a) Increasing demand for automotive applications c) Rising use of smart home devices d) Advancements in IoT technology
What challenges are faced by the MCU Market?
Key challenges faced by the MCU Market are a) Supply chain disruptions b) Increasing raw material costs c) Intense competition among market players
Global Microcontroller (MCU) Industry Report
The global microcontroller market is experiencing robust growth, driven by increasing demand in sectors such as automotive, consumer electronics, and healthcare. Microcontrollers are essential for managing operations in smart devices, medical equipment, and automotive systems, enhancing functionality and efficiency. Significant innovations, including IoT and AI integration, are expanding the capabilities of microcontrollers in smart applications and connected devices. The automotive sector, a major contributor to market expansion, relies heavily on microcontrollers for advanced driver-assistance systems and electric vehicles. The healthcare sector also benefits from these components in developing sophisticated medical devices that ensure precision and connectivity. The Asia Pacific region, with its strong semiconductor manufacturing base and rapid technological adoption, is a dynamic growth area. Overall, the microcontroller market is set for continued growth, driven by innovation and expanding applications in key industries. For detailed statistics on the MCU market share, size, revenue growth rate, and a market forecast outlook, access a free report PDF download from 糖心vlog传媒鈩� Industry Reports. This analysis provides an in-depth look at the microcontroller market share by company and historical overview, essential for stakeholders in the MCU market.
