Market Overview
The Global
IOT Microcontroller Market is expected to reach a value of
USD 5.8 billion in 2023, and it is further anticipated to reach a market value of
USD 21.1 billion by 2032 at a
CAGR of 15.5%.
A Microcontroller Unit (MCU) is a self-contained computer, containing a single microchip or integrated circuit. Customized for specific functions, Internet of Things (IoT) microcontrollers smoothly integrate with warehouse items, as well as diverse devices, spanning industrial equipment, wearables, & home appliances, as the design allows for versatile applications across a wide range of interconnected devices.
Key Takeaways
- By Product, 32 Bit leads in 2023 & is anticipated to dominate throughout the forecasted period.
- In addition, 8 Bit is expected to have significant growth over the forecasted period.
- By Application, Industrial Automation takes the lead & drives the market in 2023
- Asia Pacific has a 41.2% share of revenue in the Global IOT Microcontroller Market in 2023
Market Dynamic
Wearables, intelligent devices smoothly integrated into clothing or worn as accessories, benefit from IoT integration due to sensor miniaturization & technological developments like AI, ML, & Big Data Analytics. Further, motivated by fitness goals, users track performance utilizing wearables, driving constant enhancements in ergonomics, material, battery life, storage, functionality, & usability. Also, users prioritize factors like size, weight, power consumption, durability, & reliability in purchasing decisions.
However, design challenges in high-speed & power-critical applications create a potential hurdle for the market. Manufacturers invest in research for affordable, small-sized microcontrollers, but high power consumption is anticipated to be a significant issue during the projection period, potentially restraining the market growth.
Research Scope and Analysis
By Product
In terms of product types, the 32-bit MCU category takes the lead in the 2023 IoT microcontroller market, expected to be the primary contributor. Also known for its adaptability in the Internet of Things applications, the 32-bit MCU efficiently processes multiple peripherals, finding broad use in industrial settings like factories & building automation. Moreover, its competitive pricing adds to its appeal. The capacity to execute arithmetic operations on 32-bit values allows these microcontrollers to perform tasks quickly, completing operations in fewer instruction cycles due to a bigger data bus. Further, growing demand for IoT applications has allowed continuous releases of 32-bit microcontrollers by businesses.
Moreover, the 8-bit MCU market is expected to have significant growth over the coming period, as highly used in low-power applications like connected devices & smart wearables, the 8-bit segment responds to the growing demand for wearables, mainly in the fitness sector driven by millennials. Further, the increased awareness of
health & fitness, fueled by concerns about lifestyle diseases, drives the adoption of wearables for tracking & monitoring activities, providing positive prospects for market growth in the coming years.
By Application
The market, based on application, is divided into smart homes, industrial automation, consumer electronics, & other categories. Among these, the industrial automation sector claimed the top spot in 2023, contributing significantly to overall revenue, which focuses on enhancing processes, boosting operational efficiency, & increasing productivity. IoT microcontrollers play a vital role by connecting diverse devices & systems, and facilitating live data monitoring & control, which reduces downtime, optimizes resource usage, and improves operational performance.
In addition, the smart home segment is expected for notable growth in the forecast period, which includes home appliances and is expected to see a growth in demand. Further developments in app-controlled smart devices, mainly via mobile apps, are driving the demand for secure, energy-efficient applications like
HVAC & energy management, lighting, and infotainment, which is anticipated to fuel the expansion of the smart home segment in the coming years.
The IOT Microcontroller Market Report is segmented on the basis of the following:
By Product
By Application
- Industrial Automation
- Smart Homes
- Consumer Electronics
- Smartphones
- Wearables
- Others
- Others
Regional Analysis
In the upcoming years, the Asia-Pacific region is set to continue to dominate the IoT microcontroller market, while holding a
substantial 41.2% share in 2023, which is primarily attributed to the strong contributions of China, India, and Japan, accounting for over half of the market. The driving factors include rising the need for smart wearables & significant government investments, mainly in smart city initiatives. Further, the recent trade agreement between China & ASEAN nations, along with increased disposable income in emerging economies like Vietnam, Malaysia, & Indonesia, is expected to make smart home gadgets more accessible, fostering market growth.
Further, Europe emerges as the second-largest region in the IoT microcontroller market, including key markets like Germany, the UK, & France. Also, more than half of electricity meters in Europe have transitioned to smart meters, driven by ambitious grid modernization initiatives. Moreover, government investments in nations like Spain, France, and the U.K. are expanding the adoption of smart meters, creating favorable conditions for market participants to improve profitability & contribute to the overall growth of IoT microcontrollers in the forecast period.
By Region
North America
Europe
- Germany
- U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global IoT microcontroller market experiences a dynamic competitive landscape characterized by key players looking for market dominance, as intense competition centers around innovation, product versatility, & strategic partnerships. Further, as the demand surges, companies look to develop advanced features, ensure compatibility, and establish strong networks to capture a significant share in this rapidly evolving market.
In November 2022, Memfault, announced a partnership with the Infineon Technologies to boost developers' efficiency using Infineon products through the ModusToolbox, which focuses on empowering developers with advanced diagnostic capabilities, remote updating features from the Memfault platform, & better device observability.
Some of the prominent players in the global IOT Microcontroller Market are:
- Infineon Technologies
- STMicroelectronics
- Broadcom
- Microchip Technologies
- NXP Semiconductors
- Texas Instruments
- Renesas Electronics Corp
- Espressif Systems
- Holtek Semiconductor Inc.
- Nuvoton Technology Corp
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global IOT Microcontroller Market:
The COVID-19 pandemic & following economic downturn highly impacted the global IoT microcontroller market, as the supply chain was interrupted, production halted, & reduced consumer spending hampered market growth during the initial stages. However, the pandemic also increased the adoption of IoT solutions, creating opportunities for microcontroller market recovery, as industries focused on remote monitoring, healthcare, & home automation witnessed increased demand.
Further, companies reevaluated strategies to adapt to the new normal, highlighting digital transformation and IoT implementation. Even after economic challenges, the push for smart solutions & connectivity fueled a gradual resurgence in the IoT microcontroller market. As economies recover, the market is expected to benefit from the ongoing switch towards interconnected technologies & the growing importance of IoT in various sectors.
Recent Developments
- In June 2022, Soracom, a prominent global IoT connectivity solutions provider, officially integrated SPRESENSE from Sony Semiconductor Solutions into its Soracom Partner Space ecosystem, as Sony acknowledges it as the recommended connectivity partner for SPRESENSE microcontrollers, with aims to harness their combined expertise to enrich connectivity options for SPRESENSE microcontrollers.
- In March 2023, Data I/O Corporation, specializing in advanced security & data deployment solutions for microcontrollers, collaborated with Nuvoton Technology Corporation, to provide security deployment services for Nuvoton's M2354 Series-based IoT Security Microcontroller (MCU) series, while targets supporting OEMs in developing secure solutions for applications like building automation, metering, medical devices, & other sectors with stringent security demands.
- In February 2023, InnoPhase IoT, partnered with Eoxys, an IoT solution provider, & Nuvoton, a global microcontroller unit (MCU) supplier, as they introduced a ready-to-deploy solution for intelligent & secure IoT devices, which streamlines the development of smart and secure IoT devices across industries, facilitating quick time-to-market & empowering customers to launch innovative sensor-based products effectively.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 5.8 Bn |
| Forecast Value (2032) |
USD 21.1 Bn |
| CAGR (2023-2032) |
15.5% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Product (8 Bit, 16 Bit, and 32 Bit), By Application
(Industrial Automation, Smart Homes, Consumer
Electronics, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Infineon Technologies, STMicroelectronics,
Broadcom, Microchip Technologies, NXP
Semiconductors, Texas Instruments, Renesas
Electronics Corp, Espressif Systems, Holtek
Semiconductor Inc., Nuvoton Technology Corp, and
Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global IOT Microcontroller Market size is estimated to have a value of USD 5.8 billion in 2023 and is
expected to reach USD 21.1 billion by the end of 2032.
Asia Pacific has the largest market share for the Global IOT Microcontroller Market with a share of about
41.2% in 2023.
Some of the major key players in the Global IOT Microcontroller Market are Infineon Technologies,
STMicroelectronics, Broadcom, and many others.
The market is growing at a CAGR of 15.5 percent over the forecasted period.