Microcontroller Global Market Report 2024

The microcontroller market size has grown rapidly in recent years. It will grow from $22.33 billion in 2023 to $25.14 billion in 2024 at a compound annual growth rate (CAGR) of 12.6%. The growth observed in the historic period can be attributed to factors such as strong economic growth in emerging markets, an increase in industrialization, growth in electronics manufacturing, and increased automobile production.

The microcontroller market size is expected to see rapid growth in the next few years. It will grow to $40.64 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The anticipated growth in the forecast period can be attributed to factors such as an increasing demand for consumer electronics, a growing demand for electric vehicles, and government initiatives to propel the semiconductor industry. Key trends expected in the forecast period involve a focus on new product launches, technological advancements, an increasing use of microcontrollers in electric vehicles, new facility expansions, growing investments, partnerships and collaborations, and merger and acquisitions.

The global expansion of IoT technologies is driving the growth of the microcontroller market. The Internet of Things (IoT) comprises interconnected digital devices and objects with unique identifiers, capable of transmitting and sharing data autonomously. Microcontrollers, which function as scaled-down computers, power the computational capabilities of smart devices in IoT and smart object ecosystems. An article by DataPort, a Germany-based public-sector IT services provider, revealed that the incorporation of IoT technology has enhanced efficiency for 83% of businesses. As of 2021, over 10 billion IoT devices were in use, and predictions suggest that the number will surpass 25.4 billion active IoT devices by 2030.

The surge in demand for electric vehicles (EVs) is set to drive the microcontroller market's growth in the foreseeable future. Microcontrollers play a crucial role in EVs by integrating with smart power and battery-management devices, contributing to efficient vehicle electrification. According to the World Economic Forum, approximately 4.3 million new battery-powered electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally in the first half of 2022. This marked a 75% year-over-year growth for BEVs and 37% for PHEVs. In India, retail sales of electric vehicles saw a remarkable 333% year-over-year growth, with 390,399 units sold in the first half of 2022, compared to 90,102 units in the same period in 2021. Hence, the rising demand for electric vehicles is anticipated to be a significant driver for the microcontroller market.

Technological advancement stands out as a prominent trend in the microcontroller market. The integration of artificial intelligence (AI) in vehicle manufacturing offers benefits such as cost reduction and a safer factory floor. AI also aids in predicting malfunctions in automotive parts. Waymo's announcement of launching fully driverless vehicles powered by AI is a notable example of this trend.

Microcontroller manufacturers are actively pursuing technological advancements to enhance their market position. In April 2022, Arm, a UK-based semiconductor company, introduced Cortex-M85, its highest-performing Cortex-M microcontroller. The Cortex-M85 processor delivers a 30% performance uplift over the Cortex-M7 and a 20% improvement for machine learning workloads. It also incorporates Arm TrustZone support for enhanced security.

In August 2021, Analog Devices, a US-based semiconductor company, acquired Maxim Integrated for an undisclosed amount. This strategic acquisition positions Analog Devices as a high-performing semiconductor company with a revenue of $9 billion. Maxim Integrated, based in the US, specializes in mixed-signal integrated circuits.

Major companies operating in the microcontroller market report are Microchip Technology Inc., NXP Semiconductors, STMicroelectronics, Infineon Technologies AG, Texas Instruments Incorporated, Renesas Electronics Corporation, Intel Corporation, Toshiba Electronic Devices & Storage Corporation, Broadcom Inc., ON Semiconductor, Cypress Semiconductor Corp, ARM Ltd., Fujitsu Limited, Panasonic Corporation, Saankhya Labs, CDIL, MosChip Semiconductor Technologies, HiSilicon, Will Semiconductor, Zhixin Semiconductor, Wingtech, UNISOC, Sanechips, YTMC, GigaDevice, CR Micro, Silan, Dialog Semiconductor PLC, Amkor Technology, ASML Holding NV, KLA-Tencor, Hitachi High Technologies Corporation, Maxim Integrated, Analog Devices Inc., Rohm Semiconductor, Nuvoton Technology Corporation, Mitscholl Electronics co. LLC, Cinoteck, MEP DIgital Systems (Pty) Ltd., Inotech, Tempe Technologies.

North America was the largest region in the microcontroller market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microcontroller market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microcontroller market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary product types of microcontrollers include 8-bit microcontrollers, 16-bit microcontrollers, 32-bit microcontrollers, and above microcontrollers. An 8-bit microcontroller features a CPU with an 8-bit bit-width. Internal operations are performed on 8-bit numbers, variables are organized in 8-bit blocks, and external I/O is accessed through 8-bit buses. In terms of memory, microcontrollers are categorized as embedded memory microcontrollers and external memory microcontrollers. The architectures employed in microcontrollers include AVR architecture, PIC architecture, ARM architecture, and others. Microcontrollers find various applications in automotive, consumer electronics and telecommunication, industrial, medical devices, aerospace and defense, and other domains.

The microcontroller market research report is one of a series of new reports that provides microcontroller market statistics, including microcontroller industry global market size, regional shares, competitors with a microcontroller market share, detailed microcontroller market segments, market trends and opportunities, and any further data you may need to thrive in the microcontroller industry. This microcontroller market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The microcontroller market consists of sales of vehicles, robots, office machines, medical devices, mobile radio transceivers, vending machines and home appliances. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.