Preliminary research of Fairfield Market Research indicates a promising growth outlook for global microcontroller market during the course of next few years.
Soaring Demand from Consumer Electronics, and Industrial Sectors to Foster Microcontroller Market Growth
Rapid advancements and innovations in the automotive industry are the main drivers of the microcontroller market growth. In addition, the trend toward using automated machinery and equipment for work, expanding the range of electronic goods, and technological advancements are other major drivers. Future growth possibilities for the worldwide microcontroller market are anticipated to come from the rising demand for electric vehicles, and hybrid automobiles. The microcontroller market value would rise due to rising demand for linked devices, and IoT technology adoption. Long-term lucrative growth prospects for the microcontroller market will also be produced by increasing the use of external flash memory for microcontrollers. It is projected that both the consumer electronics, and industrial sectors will grow greatly and quickly. Cell phones, and smart clothes further add to the significance of microcontroller market. Increasing use of smartphones, and wearable technologies thus tend to significantly impact the market performance. As of 2021, 6,259 million people used smartphones, according to Ericsson, and by 2027, that number is expected to reach 7,690 million.
To get more clients, leading manufacturers of microcontrollers are concentrating on designing affordable microcontrollers. A variety of general-purpose Industrial and Internet of Things (IoT/IIoT) applications can be made possible by introducing new products that target power-conscious end nodes, another significant development in the microcontroller market. Inorganic techniques, including mergers and acquisitions, increasingly dominate the microcontroller market. Consider the first Wi-Fi 6E client device, BCM4389, which Broadcom Inc. unveiled in February 2020. The BCM4389 is a smartphone combo chip that provides more than 2 Gbps speeds and improved battery life for smartphones and upcoming augmented reality (AR), and virtual reality (VR) devices.
Microcontroller Market: COVID-19 Impact
The COVID-19 epidemic has hampered the global supply chain for raw materials and components. COVID-19 has led to a decline in semiconductor sector sales, significantly influencing the microcontroller market. According to the Semiconductor Industry Association, the COVID-19 pandemic's impact on international trade prompted a 3.6% reduction in global semiconductor sales in the first quarter of 2020. Additionally, several significant consumer electronics producers have ceased production due to various lockout scenarios. This has further reduced microcontroller adoption, slowing the market's development in the short term. However, the COVID-19 pandemic's impact on auto sales is slowing the growth of the microcontroller market in the near term. By the end of 2021, it is projected that a gradual easing of government restrictions on lockdowns will bring back the sales demand for automobiles.
Growing Adoption of Advanced Driver Assistant Systems (ADAS) Technology to Drive Microcontroller Market Growth
In the last three years, there has been a noticeable demand for advanced driver assistance systems (ADAS), which provide automated monitoring, braking, warning, and steering functionalities. Over the coming ten years, this demand is expected to grow. Consumer interest in safety applications and legislative requirements that lower accidents, protect drivers, and boost car demand are major factors in the spike in demand for these systems. The development of automotive technologies that would allow ADAS's products to be used in the production of fully automated vehicles is the main focus of international and regional MCU and other semiconductor component original-equipment manufacturers (OEMs) and their suppliers.
The bulk of manufacturers is focused on the investigation and creation of sophisticated driver-assistance technologies. For instance, Infineon's scalable AURIX family microcontrollers are well known for being appropriate for ADAS applications and cameras, 2D/3D (TOF), radar (24GHz, 77GHz, 79GHz), and sensor fusion applications. The AURIX multicore microcontrollers unit is integrated with NVIDIA's autonomous vehicle computing platform, which is anticipated to be used globally in numerous data fusion automotive architectures. As a result, developing marketing strategies for consumer awareness is anticipated to increase demand for ADAS technology while providing plenty of microcontroller market opportunities to automotive and microcontroller manufacturers worldwide.
Surge in Need for Portable Medical Devices to Boost Microcontroller Market Growth
In light of the sudden emergence of the COVID-19 pandemic, medical equipment original equipment manufacturers (OEMs) are solely concentrating on developing cutting-edge healthcare solutions for treating and monitoring patients suffering from common illnesses, thus improving the quality of healthcare devices at a reasonable price. Due to their ultra-low power operation and integration of high-performance analog peripherals, MCUs play a significant role in portable medical devices. This results in the medical instruments' batteries lasting longer. The MCU provides digital filtering and processing of the patient's condition and shows the parametric results of physiological data, including heart rate, blood pressure, blood oxygen level, and lung capacity. Spirometers, heart rate monitors, pulse oximeters, personal blood pressure monitors, and other medical devices frequently employ MCUs. The expansion of the microcontroller market is anticipated to be driven by smart wearable medical devices based on embedded technology that is anticipated to help individuals become more conscious of their health.
Microcontroller Market Remains Influenced by Lack of Standardization
Designing an effective framework for protecting intellectual property rights is considered insufficient throughout the microcontroller sector, with Southeast Asian nations and India emerging as the hub for rising small and medium enterprises (SMEs). The World Intellectual Property Organization (WIPO) report claims that the effectiveness of the IP framework in Vietnam, Indonesia, Malaysia, Thailand, and the Philippines falls short of the highest international standards, hindering the development of the semiconductor industry and other manufacturing sectors. The manufacturers of microcontrollers have fewer opportunities to participate in knowledge-intensive manufacturing value chains due to inadequate and ineffective IPR protection, and enforcement frameworks, which results in a loss of economic growth, technology transfer, and employment opportunities.
32-bit Microcontrollers Dominant in Sales, Increased Demand for Automotive Modules for Electric or Hybrid Vehicles Fsvours Microcontroller Market
Based on product, the microcontroller market is segmented into 32-bit, 16-bit and 8-bit. The 32-bit category dominated the market over the forecast period. More complex Internet of Things applications, Industry 4.0 machinery, tiny implantable medical devices, etc., require higher functional capabilities. Due to the increased demand for automotive modules that produce electric or hybrid vehicles, lighting systems, etc., 16-bit MCUs held the second-highest market share. The production of microcontrollers with Bluetooth and WIFI, which have the greatest applications in the automotive, consumer electronics, and medical sectors, is anticipated to increase due to key industry players. Additionally, the 8-bit MCUs market is anticipated to show stable CAGR growth throughout the projected period since these MCUs have simple programming interfaces and can be used in low-power applications.
With Mounting Use of Embedded Systems in Automotive Parts, Automotive Applications Continue to Dominate Microcontroller Market
Based on application, the microcontroller market is segmented into automotive, powertrain and chassis, body electronics, safety and security systems, infotainment and telematics, industrial, military & defense and medical devices. The automotive category held the largest market share in 2021 and is anticipated to increase significantly over the next several years to maximize the utilization of the embedded systems used in the production of automotive parts and to achieve a position of technological leadership on a global scale; the industry is choosing to embrace modern technology, which will help drive the growth of microcontroller market. As a result, the demand for consumer electronics is rising globally. Furthermore, the necessity of working from home is noticeably increasing across developed and developing economies. The MCU is crucial in providing digital filtering and processing of the patient's condition and displaying the parametric results of physiological data, such as heart rate, blood pressure, blood oxygen, lung capacity, and many more. As a result, the medical devices segment is anticipated to experience a significant CAGR in the forecast period.
With Rising Popularity of Electric, Hybrid, and Self-driving Cars, North America Leads the Pack in Microcontroller Market
Over the forecast period, it is anticipated that the North American microcontroller market will account for the largest revenue share. Increased market growth across the region is primarily due to the rising popularity of electric, hybrid, and self-driving cars. With 5.8 million units sold as of December 2020, the US Department of Energy believes that the hybrid electric vehicle fleet in the US is the second largest. Sales of electrified vehicles increased 81% as of Q1 2021, with EV, hybrid, and plug-in hybrid vehicle sales totaling more than 300,000. Manufacturers are releasing the most cutting-edge and feature-rich microcontroller devices with this expanding scope. To provide cutting-edge performance, safety, and security features, Cypress Semiconductors, for instance, offers the TraveoTM 32-bit Arm Automotive Microcontrollers.
The European microcontroller market is anticipated to experience stable revenue growth throughout the forecast period. The European market is driven by significant vehicle and equipment manufacturers. There is a demand for automotive microcontrollers since luxury automakers like BMW, Mercedes-Benz, and Porsche have manufacturing facilities all around Europe. European consumers place a high value on the powertrain when choosing luxury car brands, followed by interior & functional design, driving dynamics, external design, and overall ownership experience. To meet emissions reduction goals, modern microcontroller units are also being mounted. For example, the European Commission has set a goal to reduce greenhouse gas emissions by 2030 by at least 55%. Furthermore, The need for advanced MCUs has been rising throughout the region over the past ten years because European nations like Germany, France, and Italy are well-known global automobile production hubs. Additionally, Europe's biomedical, bioengineering, and metallurgical industries are improving their manufacturing techniques, enabling them to provide highly advanced medical equipment to end customers worldwide.
Global Microcontroller Market: Competitive Landscape
In September 2021, STMicroelectronics introduced new software packs and tools called STM32 ecosystem extensions to jump-start mass-market application development with STM32U5 extreme low-power microcontrollers. Similarly, in January 2021, TXZ+ family advanced class microcontrollers were expanded into 5 additional groups by Toshiba Electronic Devices & Storage Corporation. The group of M3H is based on the Arm Cortex-M3 core, while the M4K, M4G, M4M, and M4N groups are based on the Arm Cortex-M4 core. These MCUs are appropriate for various uses, including motor control, connected IoT devices, cutting-edge sensing capabilities, etc.
Some players in the microcontroller market include Fujitsu Semiconductor Limited, Cypress Semiconductor Corporation, Infineon Technologies AG, NXP Semiconductors, Microchip Technology Inc., Renesas Electronics Corporation, TE Connectivity Ltd. and STMicroelectronics.
Global Microcontroller Market is Segmented as Below:
Key Elements Included In The Study: Global Microcontroller Market
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