Internet of Things (IoT) Microcontroller Market Report 2026

The internet of things (iot) microcontroller market size has grown rapidly in recent years. It will grow from $6.52 billion in 2025 to $7.46 billion in 2026 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to rise in smart device adoption, growth in connected consumer electronics, increased industrial automation, demand for wearable technology, early adoption of wireless communication, improvements in low-power microcontroller design, advancements in embedded systems, growth of home automation, increased use in automotive electronics, development of cloud-based IoT platforms.

The internet of things (iot) microcontroller market size is expected to see rapid growth in the next few years. It will grow to $12.71 billion in 2030 at a compound annual growth rate (CAGR) of 14.2%. The growth in the forecast period can be attributed to expansion of smart cities, adoption of ai-driven iot solutions, growth in industrial iot deployment, increase in connected automotive applications, advancements in edge computing, growth of healthcare iot devices, expansion of 5g connectivity, rising demand for energy-efficient solutions, integration with blockchain for security, adoption in precision agriculture. Major trends in the forecast period include energy-efficient microcontrollers, low-power edge computing, wireless connectivity optimization, miniaturized device integration, real-time data processing.

The growing demand in the electronics industry is expected to drive the expansion of the internet of things (IoT) microcontroller market. The electronics industry designs, manufactures, and sells components and devices used in consumer products, industrial systems, and advanced technologies. Its growth is fueled by rising global demand for semiconductors, driven by their increasing use in artificial intelligence, electric vehicles, and consumer electronics. IoT microcontrollers support the development of smart, connected devices by integrating processing, connectivity, and control into compact chips, enabling real-time data exchange, automation, and advanced functionalities. For example, according to the Semiconductor Industry Association, global semiconductor sales reached $49.1 billion in May 2024, up 19.3% from $41.2 billion in May 2023 and 4.1% from $47.2 billion in April 2024. The rising electronics industry demand is therefore propelling growth in the IoT microcontroller market.

Companies in the IoT microcontroller market are developing ultra-low-power microcontrollers to enhance energy efficiency, extend battery life, and support complex IoT applications across smart homes, healthcare, and industrial automation. Ultra-low-power microcontrollers operate with minimal energy consumption, ensuring long-lasting performance in battery-powered or energy-harvesting devices. In March 2025, STMicroelectronics launched the STM32U3 series, designed for remote and sustainable IoT applications. These MCUs use near-threshold chip design and AI-driven adaptive voltage scaling to achieve high performance-per-watt efficiency, with a Coremark-per-milliwatt score of 117, twice that of the previous STM32U5 series. They operate at extremely low power, with dynamic consumption down to 10 µA/MHz and a stop current of 1.6 µA.

In October 2024, Qualcomm Inc. partnered with STMicroelectronics to advance next-generation industrial and consumer IoT solutions. The partnership integrates Qualcomm’s AI-powered wireless connectivity technologies with STMicroelectronics’ STM32 microcontroller ecosystem, enabling faster, cost-effective deployment of advanced IoT solutions enhanced by edge AI. STMicroelectronics manufactures IoT microcontrollers that support smart, connected, and energy-efficient device applications across industries.

Major companies operating in the internet of things (iot) microcontroller market are Intel Corporation, Qualcomm Technologies Inc., Broadcom Inc., Advanced Micro Devices Inc., Texas Instruments Inc., MediaTek Inc., STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, Microchip Technology Incorporated, ON Semiconductor Corporation, Realtek Semiconductor Corporation, Nuvoton Technology Corporation, Silicon Laboratories, Nordic Semiconductor ASA, ELAN Microelectronics Corporation, Espressif Systems ShanghAI Co. Ltd., China Micro Semiconductor Co. Ltd., Holtek Semiconductor Inc., CML Microsystems Plc, Segger Microcontroller Systems GmbH.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the IoT microcontroller market by increasing the cost of imported semiconductors, sensors, and connectivity modules, thereby affecting manufacturing and pricing strategies. The automotive, industrial, and consumer electronics segments are most affected, particularly in regions like Asia-Pacific and North America, which are key manufacturing and assembly hubs. While tariffs pose cost challenges, they also encourage local production and supply chain diversification, leading to innovation in energy-efficient and locally sourced microcontroller solutions.

The internet of things (IoT) microcontroller market research report is one of a series of new reports that provides internet of things (IoT) microcontroller market statistics, including internet of things (IoT) microcontroller industry global market size, regional shares, competitors with an internet of things (IoT) microcontroller market share, detailed internet of things (IoT) microcontroller market segments, market trends and opportunities, and any further data you may need to thrive in the internet of things (IoT) microcontroller industry. This internet of things (IoT) 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.

An Internet of Things (IoT) microcontroller is a compact, energy-efficient computing unit that enables data processing and communication within connected device networks. Serving as the core of IoT systems, it manages data operations and supports network connectivity, facilitating seamless interaction between digital platforms and physical environments.

The main components of an IoT microcontroller include a processor, sensors, connectivity integrated circuits, memory devices, logic devices, and others. The processor, or CPU, executes instructions, performs calculations, and manages data flow. Products include 8-bit, 16-bit, 32-bit, and 64-bit microcontrollers, as well as embedded and external memory microcontrollers. IoT microcontrollers are applied across healthcare, consumer electronics, industrial and automotive sectors, banking, financial services and insurance (BFSI), retail, automation, and more.North America was the largest region in the internet of things (IoT) microcontroller market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the internet of things (iot) microcontroller market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the internet of things (iot) microcontroller market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The internet of things (IoT) microcontroller market consists of revenues earned by entities by providing services such as microcontroller design, semiconductor manufacturing, firmware development, internet of things device integration, and wireless connectivity. The market value includes the value of related goods sold by the service provider or included within the service offering. The internet of things (IoT) microcontroller market also includes sales of development kits, power management units, security modules, and communication systems. 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.

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