Asia-Pacific MCU Market Market Size

Asia-Pacific MCU Market Analysis

The Asia-Pacific Microcontroller (MCU) Market is valued at USD 13.07 billion in the current year and is expected to reach USD 21.47 billion, recording a CAGR of 8.34% during the forecast period. Microcontrollers are computing units that control various peripherals and embedded systems, such as domestic appliances, automobiles, robotics, industrial machinery, and other devices.

• The Asia-Pacific region is home to some of the biggest semiconductor manufacturers, such as TSMC, SMIC, SK and Hynix. The presence of these companies further supports the growth of the market studied in this region. Additionally, the region is witnessing growing IoT connections among consumer and enterprise sectors. The need for low-power, high-performance, and energy-efficient connected products is the major factor driving the growth of IoT microcontrollers in the region. Several companies are working toward innovating advanced products that cater to this demand.
• In June 2022, Soracom Inc., a global provider of advanced IoT connectivity, announced that SPRESENSE from Sony Semiconductor Solutions Corporation (SSS) joined the Soracom Partner Space ecosystem, and SSS identified Soracom as a recommended provider of connectivity for its SPRESENSE microcontrollers. SSS's SPRESENSE 6-core microcontroller board is intended for professional IoT use cases, with a streamlined form factor, ultra-low power consumption, multiple sensor inputs, internal GPS, and edge AI support. The solid computing performance and advanced power efficiency make SPRESENSE suitable for edge computing.
• However, the price fluctuation of raw materials tends to impact the market's growth. For instance, since the start of 2022, the price of gallium has climbed by 550 CNY/Kg, or 24.18%, according to trading on a contract for difference (CFD) that monitors the benchmark market for this commodity. Such a rise in the gallium raw materials will increase the cost of gallium arsenide, restraining MCU vendors from purchasing the material and further impacting the market from growing.
• In recent years, India has witnessed a notable surge in the usage of connected devices, including smart home devices and wearables. According to Cisco, India will have around 2.1 billion internet-connected devices by 2023. The country is also expected to cross the 900 million mark of internet users, according to the recently published Cisco Annual Internet Report (2018-2023), owing to the increased penetration of affordable smartphones and cheaper internet plans. Demand for connected devices will drive the market's growth during the forecast period.
• Post-COVID-19, investments in the digitization of global economies, the deployment of 5G technologies, and robust investments in data centers are the primary drivers behind the growth. The market saw significant growth by the end of 2022, owing to the increase in the demand for electronics, driven by the ongoing 5G smartphone ramp-up and the continued strength of HPCs.