The IoT microcontroller market is expected to generate $13,898.0 million in revenue by 2030, expanding substantially during 2022–2030, due to the growing technological advancements, surging demand for connected devices, increasing adoption of smart meters in smart grid systems, and shifting inclination toward industrial automation.
The microcontroller demand is predicted to grow at an exponential rate in the next few years due to the rapid improvements in IoT applications aimed at delivering technologically advanced smart devices to a wide range of consumers. Furthermore, the increasing demand for automation across various applications is expected to push the adoption of smart devices, which will have a favorable effect on the microcontroller market.
The COVID-19 pandemic boosted the market growth even further, as strict lockdowns were implemented to prevent the virus spread, leading to an increase in remote working arrangements. As a result, IoT-capable gadgets, such as smartphones, tablets, and laptop computers, have grown in importance. At the same time, in the early months, microcontroller unit suppliers had to deal with demand and supply shocks brought on by unanticipated border closures and shipping disruptions.
The 32-bit microcontroller category dominated the market in 2021 as these variants are the most compatible with IoT applications. They are commonly used in industrial applications such as automation systems since they efficiently process multiple peripherals and are also reasonably priced.
The industrial automation category had a market share of more than 30% in 2021. It is credited to the technological advancements in Industry 4.0, which have resulted in a rapid transformation of industries toward smart manufacturing. Moreover, the increasing rate of digitization in various aspects of manufacturing, surging demand for data analytics, burgeoning need for predictive maintenance, and advancements in industrial networking infrastructure are all contributing to the booming demand for IoT microcontrollers for industrial automation.
The market's rise in APAC can be attributed to the government's intense initiatives to raise awareness about smart wearables. In addition, over the projected period, the development of digital infrastructure, urbanization, and rapid deployment of public Wi-Fi hotspots are expected to boost the market growth.
In order to acquire a competitive advantage, market participants have regularly engaged in product launches.
For example, in August 2021, Espressif Systems (Shanghai) Co. Ltd. introduced the ESP32-H2, a RISC-V-based SoC with IEEE 802.15.4 + Bluetooth 5 (LE) connection. Low-power SoC and security for connected devices are provided by a single-core 32-bit RISC-V microcontroller.
In December 2020, Espressif Systems (Shanghai) Co. Ltd. launched the ESP32-C3, a RISC-V-based microcontroller. The ESP32-C3 has Wi-Fi and Bluetooth 5 connection, as well as ample storage and software compatibility for secure IoT applications.