Japan MCU Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.20 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
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Japan MCU Market Analysis
The Japan microcontroller (MCU) market is valued at 2.87 billion in the current year and is projected to grow at a CAGR of 7.2% over the forecast period to become 4.43 billion by the next five years. Japan emerged as a significant hub for semiconductor manufacturing and semiconductor-based devices. The country has some of the most prominent electronics and automotive manufacturing companies. It contributes significantly through various applications of microcontrollers like industrial automation, automotive pharmaceutical, consumer electronics, robotics, and other end-user industries.
The rising consumer disposable income and their preferences for smart business environments and smart homes are crucial drivers for the growth of consumer electronics in Japan. Microcontrollers are used in many home appliances, such as washing machines, air conditioners, vacuum cleaners, refrigerators, motor control, front panel keypad control, analog sensor measurements, and LED/LCDs.
In addition, Japanese companies pay attention to constant innovation and upgrades to keep up with the global industrial development of microcontrollers. For instance, Renesas Electronics, a Japanese semiconductor manufacturer, has announced to invest more than 50% of its manufacturing capacity by 2023. The company will focus on producing high-end microcontrollers and other key components for automobiles and electronic devices. Renesas is targeting 40,000 200mm wafers per month by procuring more lines for outsourced production at chip foundries.
Due to COVID-19, the demand for microcontrollers has witnessed high growth in the medical device industry. As the pandemic significantly exposed Japan's lack of resilient healthcare infrastructure, higher investment in the healthcare sector is being observed, driving the adoption of advanced medical equipment and creating a favorable scenario for the studied market's growth. According to the Ministry of Health and Labor and Welfare (MLFW), Japan, the value of medical exports from the country had increased from JPY 951.53 billion (about USD 7.32 billion) in 2019 to JPY 973.38 billion (USD 7.5 billion) in 2020, and JPY 1,002.96 billion (about USD 7.7 billion) in 2021.
Fluctuating costs and a disrupted supply of raw materials are anticipated to restrain the growth of the studied market. Microcontrollers comprise several raw materials, like silicon, germanium, gallium arsenide, and silicon carbide. The increasing demand for consumer electronics and wireless communications and growing demand for energy-efficient microcontrollers factors, such as the shortage of silicon wafers coupled with the ROI metrics, will hamper the market growth.
The COVID-19 pandemic significantly impacted the Japan Microcontroller (MCU) market. The Japanese government is taking stringent measures to revive its industries, such as consumer electronics and automotive. Also, the government wishes to reduce the clustering of production facilities in one place to reduce production dependency on geographical constraints. In line with this, Japan announced a USD 2.2 billion stimulus package to help its manufacturers to shift their production facilities out of China as the pandemic disrupted the supply chain. The package specifies USD 2 billion for companies shifting production back to Japan.
Japan MCU Market Trends
Automotive Sector Holds Significant Market Share
The growing vehicle electrification and automation, stringent government regulations and consumer demand for increased safety, reliability, comfort, and efficiency, and increasing need for security across all automotive applications are major factors driving the adoption of automotive microcontrollers globally.
The significantly growing electric vehicle market, alongside the integration of MCU in the operational model, is expected to accelerate the demand for microcontrollers during the forecast period.
Growth in automotive microcontroller sales mainly depends on vehicle sales and production trends, along with the increase in semiconductor deployment per vehicle, driven by the proliferation of electronic features throughout the vehicle. Due to the high degree of regulatory scrutiny and safety requirements, the automotive industry is characterized by stringent qualification processes, zero-defect quality processes, functionally safe design architecture, high reliability, extensive design-in timeframes, and extended product lifecycle, which result in significant growth of microcontrollers in the sector.
Several automobile manufacturers are expanding their production facilities in Japan to meet the growing demand and stay ahead of the competition. For instance, in May 2022, Nissan and Mitsubishi launched mini-EV production in Japan. The new Kei EVs integrate both partners' electrification technology and Mitsubishi Motors' expertise in manufacturing minicars. They will mainly be sold in Japan as the Nissan Sakura and the Mitsubishi eK X (Cross) EV. Mini vehicles are prevalent in Japan, with sales OF 1.65 million units last year or over 37% of total vehicle sales.
Moreover, companies are launching new products to remain competitive. For instance, in September 2022, STMicroelectronics introduced Stellar P6 automotive MCU for EV platform system integration. Such developments are expected to boost the demand for microcontrollers over the forecast period.
Increasing Usage of Electronic Devices
The increasing demand for the Internet of Things and artificial intelligence in consumer electronics and home appliances is driving the demand in the microcontroller market. Further, the demand for smart buildings and home automation drives the market.
The country's microcontroller market is also driven by the increasing adoption of smart devices, including smartphones, as they can be conveniently connected to IoT devices. The Japan Smartphone Security Association (JSSEC) estimates that domestic smartphone users could reach 68.8 million by 2022.
Moreover, according to the same organization, the monthly domestic shipment volume of mobile phones in Japan reached 1.42 million units in July 2022 and 0.68 million in May 2022.
Furthermore, several electronic device manufacturers are expanding their presence in Japan, creating a high demand for microcontrollers. For instance, in December 2022, Kyocera, a leading supplier of electronic devices, mobile phones, automotive components, semiconductor packages, and others, announced to build a new manufacturing plant in Japan to advance its business expansion goals. The company aims to increase international and domestic production capacity through this plant.
Companies in the market are developing new products to provide their customers with various solutions. For instance, in June 2022, NXP Semiconductor announced a new MCX portfolio of microcontrollers developed to advance innovation in smart homes, smart factories, smart cities, and many emerging industrial and IoT edge applications.
Japan MCU Industry Overview
With their wide-scale availability of offerings, the wide range of applications of microcontrollers contributes to intense rivalry among the key market players. The major providers are in the process of the constant evolution of products, following different strategies to capture the market. The players look forward to strategic collaboration with other brands and joint product developments to develop innovative solutions.
June 2022: Renesas Electronics Corporation announced a strategic partnership with Cyberon Corporation to provide voice user interface (VUI) solutions for customers using Renesas' entire RA MCU line. The customers will have complimentary access to Cyberon's command-based VUI toolchain, enabling them to add voice recognition to various endpoint applications in home appliances, building automation, industrial automation, wearables, and many more.
April 2022: STMicroelectronics NV extended Microsoft Azure RTOS development across its high-performance, mainstream, ultra-low-power, and wireless microcontrollers. The Azure RTOS suite is fully supported in the STM32CubeIDE tool and the STM32CubeMX initializer, which can directly configure Azure RTOS components.
Japan MCU Market Leaders
Infineon Technologies AG
Analog Device Inc.
Texas Instruments Incorporated
NXP Semiconductor
Microchip Technology Inc.
*Disclaimer: Major Players sorted in no particular order
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Japan MCU Market News
- June 2022: NXP launched its new MCX Portfolio of Microcontrollers for the Next Era of Advanced Industrial and IoT Edge Computing. The MCU portfolio features four new series of devices built on a common platform and supported by NXP's widely adopted MCUXpresso suite of development tools and software to simplify product development. They are intended to advance innovation in smart homes, factories, cities, and many emerging industrial and IoT edge applications.
- April 2022: Toshiba released a new M3H group of ARM Cortex-M3 Microcontrollers in the TXZ+TM Family Advanced Class, optimized for the main control of industrial and consumer equipment and motor control.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Macro Trends on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Digitization Across Industries
5.2 Market Challenges
5.2.1 Fluctuating Cost and Supply of Raw Materials
6. MARKET SEGMENTATION
6.1 By Product
6.1.1 4 and 8-bit
6.1.2 16 bit
6.1.3 32 bit
6.2 By Application
6.2.1 Aerospace and Defense
6.2.2 Consumer Electronics and Home Appliances
6.2.3 Automotive
6.2.4 Industial
6.2.5 Healthcare
6.2.6 Data Processing and Communications
6.2.7 Other End-use Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Elan Microelectronics Corporation
7.1.2 Infineon Technologies AG
7.1.3 Microchip Technology Inc.
7.1.4 NXP Semiconductors NV
7.1.5 Renesas Electronic Corporation
7.1.6 STMicroelectronics NV
7.1.7 Texas Instrument Incorporated
7.1.8 Toshiba Electronic Devices & Storage Corporation
7.1.9 Intel Corporation
7.1.10 Silicon Labs
7.1.11 Analog Device Inc.
7.1.12 Broadcom Inc.
7.1.13 ON Semiconductor Corporations
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Japan MCU Industry Segmentation
A microcontroller is a small computer on a single VLSI-integrated chip. They differ from desktop computers in that they are typically dedicated to a single function and are mostly embedded in other devices (cell phones, consumer electronics, etc.).
Japan Microcontroller (MCU) Market is segmented by Type (4 and 8-bit, 16-bit, 32-bit), Application (Aerospace And Defense, Consumer Electronics And Home Appliances, Automotive, Industrial, Healthcare, Data Processing And Communication). The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| By Product | |
| 4 and 8-bit | |
| 16 bit | |
| 32 bit |
| By Application | |
| Aerospace and Defense | |
| Consumer Electronics and Home Appliances | |
| Automotive | |
| Industial | |
| Healthcare | |
| Data Processing and Communications | |
| Other End-use Industries |
Frequently Asked Questions
What is the current Japan MCU Market size?
The Japan MCU Market is projected to register a CAGR of 7.20% during the forecast period (2024-2029)
Who are the key players in Japan MCU Market?
Infineon Technologies AG, Analog Device Inc., Texas Instruments Incorporated, NXP Semiconductor and Microchip Technology Inc. are the major companies operating in the Japan MCU Market.
What years does this Japan MCU Market cover?
The report covers the Japan MCU Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan MCU Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan MCU Industry Report
Statistics for the 2024 Japan MCU market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan MCU analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
