Microcontroller Market Outlook by Product (8-bit Microcontroller, 16-bit Microcontroller, 32-bit Microcontroller), Application (Automotive, Consumer Electronics & Telecom, Industrial, Medical Devices, Aerospace & Defense) - Global Industry Demand Forecast to 2030

Market Overview

The global microcontroller market size stood at $18.80 billion in 2021, and it is projected to reach $43.61 billion by 2030, growing at a CAGR of 9.8% during 2021–2030. The growth of the industry can be primarily attributed to the rising demand for microcontrollers in the automotive industry, the growing adoption of healthcare & medical devices, and the surging penetration of IoT devices.

Furthermore, the increasing awareness of smart energy management with the introduction of smart grids, the rising energy costs, and the growing sustainability concerns are pushing large-scale power system migration from conventional to smart grid systems, which, in turn, will fuel the market growth in the coming years. Moreover, the surging consumer electronics sector, growing adoption of industrial and home automation systems, and increasing deployment of 5G networks are also driving the need for microcontrollers.

Additionally, technological advancements in self-driving automobiles, connectivity of vehicles, interactive safety systems in vehicles, and increasing sales of EVs are expected to fuel the automotive industry. Such advancements in the industry increase the demand for microcontrollers.

32-Bit Microcontroller Accounted for Largest Market Share

The microcontroller market is categorized into 8-bit, 16-bit, and 32-bit microcontrollers, based on product. Among these, the 32-bit microcontroller category held more than 40% revenue share in 2021, and it is expected to grow at a CAGR of more than 10% during the forecast period. This growth can be attributed to the surging usage of 32-bit microcontrollers in the automotive sector and the continuous decrease in prices of these products. Further, strict government regulations and quality standards for emissions are projected to boost the adoption of these microcontrollers across the world.

Moreover, a 32-bit microcontroller has on-chip memory, peripheral integration, and a high-performance communication interface. The 32-bit technology streamlines product design and reduces material costs, and it includes 32 parallel data transfer routes. Also, the controllers are chosen by automobile and medical device manufacturers, due to their high processing power, the proper degree of interfaces, and low power consumption, and these can efficiently manage several peripherals.

In addition, the 16-bit microcontroller category held the second-largest market share in 2021. This is due to the increasing demand from the automotive industry for the manufacturing of electric vehicle modules along with the continuous decrease in the average selling prices. A 16-bit microcontroller can handle data with 16 bits, allowing it to manage a larger amount of data and computations at the same time. It also requires less power and operates at a quicker clock speed than an 8-bit microcontroller. Moreover, the 16-bit microcontroller improves engine drag torque control (EDTC) and antilock braking system (ABS).

On the other hand, the 8-bit microcontroller category is predicted to grow at a significant CAGR over the forecast period. This can be attributed to the extensive usage of these controllers in low-power-consuming devices such as smart wearables and connected peripherals. Furthermore, the growing inclination for fitness wearables among millennials, as well as the rising lifestyle diseases, encourages people to engage in different fitness-related activities and track their progress using smart wearables. Thus, this factor is projected to fuel the demand for microcontrollers in the market in the coming years.

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Consumer Electronics & Telecom Contributes the Highest Revenue Share

The market is divided into automotive, consumer electronics & telecom, industrial, medical device, aerospace & defense, and others, based on application. Out of these, the consumer electronics & telecom category is dominating the market, with more than 40.0% share in 2021, and it is projected to grow at a substantial CAGR over the forecast period. This is due to the rising popularity of consumer electronics, such as computers, TVs, cameras, and smartphones, along with the miniaturization of electronic devices. Furthermore, the development of microcontrollers with near-field communication (NFC), Bluetooth, and ZigBee, among other wireless interfaces, is predicted to have a favorable influence on the electronics industry across the world.

The consumer electronics market is heavily influenced by customers’ preference for more innovation and advanced technology that helps in meeting daily life necessities in less time. Moreover, consumers today are increasingly concerned about getting more for their money. With the rapid development in the sector, consumers nowadays becoming more interested in portable and lightweight electronic products. Also, the rising investment by manufacturers toward the development of various new consumer electronic products is driving the market in this category.

APAC Is the Market Leader

The APAC microcontroller market accounted for the largest revenue share, of around 40.0%, in 2021, and it will grow at a CAGR of more than 10.2% during the forecast period. This is attributed to the rapid growth in automobile sales and the rising demand for high-end consumer electronics, in the region. In addition, the proliferation of startups in developing countries, including China and India, which offer essential microcontroller solutions, along with innovative add-on products and services, such as entertainment and GPS navigation systems, is contributing to the market growth in APAC.

Moreover, the rising disposable income, the introduction of technologically advanced gadgets, and the decreasing prices of consumer electronics are some other factors that drive the demand for microcontrollers in a variety of applications in the region.

North America accounted for the second-largest revenue share in 2021, owing to the presence of a large customer base for consumer gadgets and the rising demand for smart wearables, medical devices, sensors, and other IoT-enabled products in the U.S. and Canada, which, in turn, boost the need for microcontrollers in the region.

Rising Adoption of Medical Devices Is Driving the Market

The medical devices industry is expected to see increased demand for microcontrollers, due to the high requirement for accuracy in medical procedures, increased R&D investments for the development of advanced medical equipment, and government support for medical automation. Furthermore, the growing geriatric population and increasing cases of chronic diseases, such as diabetes and high blood pressure, along with rising coronavirus infection, are some other factors that increase the demand for electronic medical devices around the world, which, in turn, drive the growth of the market.

32-bit MCUs are commonly used in portable medical equipment such as pulse oximeters, blood-glucose monitors, blood pressure monitors, and portable EKG/ECG monitors. They are smaller in size and consume only up to 5 V for operations. Moreover, microcontrollers can reduce the cost of medical equipment while also providing reliable readings and information about the patient's status, which results in their high adoption among medical equipment manufacturers.

Top Players in the Microcontroller Market Are:

• Analog Devices Inc.
• Panasonic Corporation
• Microchip Technology Inc.
• Renesas Electronics Corporation
• NXP Semiconductor
• STMicroelectronics N.V.
• Infineon Technologies AG
• Texas Instruments Incorporated
• Samsung Semiconductors
• Intel Corporation

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Product

• 8-bit Microcontroller
• 16-bit Microcontroller
• 32-bit Microcontroller

Based on Application

• Automotive
• Consumer Electronics & Telecom
• Industrial
• Medical Devices
• Aerospace & Defense

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Spain
  • Italy
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia