Microcontroller Market To Generate Revenue Worth $43.61 Billion by 2030

The global microcontroller market was valued at $18.8 billion in 2021, and it is projected to reach $43.61 billion by 2030, witnessing a CAGR of 9.80% during the forecast period. This is ascribed to the increasing adoption of medical devices, smart meters, and smart grid systems, the surging demand from the automotive and consumer electronics industries, the growing penetration of smartphones, and the increasing need for industrial automation, across the world.

Automotive Industry To Witness Highest Growth Rate

Based on application, the automotive category is expected to grow at the highest CAGR, of around 10%, over the forecast period. This can be due to the increased need for microcontrollers for improved automotive safety features, entertainment systems, convenience functions, and government pollution control mandates. This application field is also predicted to increase significantly in the coming years, as a result of the mandatory integration of ADASs in vehicles. The ADAS technology helps to improve driver safety by delivering features such as parking assistance, lane departure alerts, and collision avoidance systems.

Moreover, strict regulatory frameworks for environmental concerns and favorable government policies are scaling up the demand for energy-efficient automobiles, such as hybrid and electric vehicles, which are also prompting manufacturers to employ microcontroller units extensively.

Additionally, technological improvements in self-driving cars, vehicle connection, and interactive safety systems in vehicles are predicted to propel the automotive sector. Thus, vehicle advances have boosted the need for microcontrollers, which will drive the growth of the market in the coming years.

North America Accounted for Second-Largest Market Share

Geographically, the North American microcontroller market held the second-largest revenue share in 2021, and it is predicted to grow at a substantial CAGR during the forecast period. This is due to the increasing smartphone penetration and other consumer electronic products and the growing end-use industries in the region.

The market in Europe holds a significant share. This is primarily driven by the presence of major automotive and equipment manufacturers in the region. Luxury car manufacturers, such as BMW, Mercedes-Benz, and Porsche, have their manufacturing plants in Europe, which drives the demand for microcontrollers for automotive applications.

When it comes to choosing luxury automobile manufacturers, European buyers prioritize the powertrain, followed by interior design and functionality, driving performance, external design, and overall ownership experience. Furthermore, modern microcontroller units are being installed in order to meet emission reduction requirements. For instance, the European Union Commission plans to reduce greenhouse gas emissions by at least 55% by 2030 putting Europe on a responsible road to achieving climate neutrality by 2050.

Major players operating in the microcontroller market include Analog Devices Inc., Microchip Technology Inc., Panasonic Corporation, Renesas Electronics Corporation, STMicroelectronics N.V., NXP Semiconductor, Infineon Technologies AG, Samsung Semiconductors, Texas Instruments Incorporated, and Intel Corporation.