Global Microcontroller (MCU) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Global Microcontroller (MCU) Market is segmented by Type (8-bit, 16-bit, 32-bit), Application (Automotive, Telecommunications Infrastructure, Defense and Aerospace, Mobility, Enterprise Data Processing, Medical, consumer, Smartcard & Secure MCU, Industrial), and Geography.

Market Snapshot

Microcontroller MCU Market
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: Asia-Pacific
CAGR: 10.1 %

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Market Overview

The global microcontroller (MCU) market will register a CAGR of 10.1% over the forecast period from 2020 to 2027. The industry scenario is constantly evolving, driven by Industry 4.0 and connected tech. Manufacturers are continually integrating new remote features to their products, and supply chain components for real-time monitoring and microcontrollers facilitate the ease of attaching compact control units to the systems.

  • Microcontroller refers to compact computing units that control several peripherals and embedded systems, including home appliances, motor vehicles, robots, industrial equipment, and other devices. The unit comprises a processing unit, Input/Output (I/O) ports, on-chip storage, wireless communication modules, and several other integrative modules, which can be introduced for achieving the custom functionalities.
  • The increase in the use of sensors for capturing data for monitoring various process elements is one of the fundamental driving forces for microcontrollers. The microcontroller is customized for specific usage, and the collected data is processed and shared with other aspects of the process chain. For instance, companies are looking forward to integrating RADAR, Lidar, and cameras to achieve a complete sense of the environment for autonomous vehicles and robots. These sensors are operated and interfaced with the help of microcontrollers dedicated to collecting, processing, and transferring data.
  • Furthermore, the required transfer speed and the amount of data processed make room for different types of microcontrollers belonging to different architecture scales. The market majorly uses 8-bit, 16-bit, and 32-bit based microcontrollers depending upon the need of the application. Companies offer customized and ready-to-use solutions for industries, following the semiconductor manufacturing standards of wafer diameter like 200 mm.
  • The COVID-19 pandemic witnessed an increment in the use of Work-from-Home electronics equipment, which shifted the focus of semiconductor manufacturing units to produce more equipment for the same. This turned the focus from other vital industries relying on microcontrollers and semiconductor chips, like automotive and industrial automation. The industry is rapidly distributing the supply chain allocation for reviving the affected industries. The process should follow through 2022 and mid-2023, witnessing promising prospects for microcontrollers globally.

Scope of the Report

Microcontroller Units, or MPUs, are the integrated circuits containing processing units, input and output ports, and other components on a single chip. MCUs are used extensively in today's IoT-powered and sensor-driven devices and products. The Global Microcontroller (MCU) Market is segmented by Type (8-bit, 16-bit, 32-bit), Application (Automotive, Telecommunications Infrastructure, Defense and Aerospace, Mobility, Enterprise Data Processing, Medical, consumer, Smartcard & Secure MCU, Industrial), and Geography.

Segmentation - By Product
8-bit
16-bit
32-bit
Segmentation - By Application
Aerospace and Defense
Consumer Electronics and Home Appliances
Automotive
Industrial
Healthcare
Data Processing and Communication
Other End-user Industries
Segmentation - By Geography
North America
Europe
Asia-Pacific
Rest of the World

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Key Market Trends

Automotive Applications to Drive the MCU Industry

  • Introducing new-age technology in the automotive industry has encouraged the involvement of semiconductors and microcontrollers. According to IEEE Explore, an average of more than 50 Microcontroller Units (MCUs) are used in automobiles. The inclusions of connected tech, AI, autonomous driving, and other IoT services have created enormous demand for the deployment of MCUs.
  • The MCUs can be configured per any requirement based on the architecture's versatility and functionality. The input/output (I/O) ports, microprocessor, connectivity options, technological platform, range of operation, power consumption, and other differentiating factors add to the customizability and flexibility of use for the MCUs in automobiles. Each MCU serves a dedicated purpose.
  • In the wake of surging fuel prices and climate change, carmakers are optimizing fuel consumption by monitoring the fuel efficiency of vehicles in real-time with the help of Electronic Control Units (ECUs), which are forms of microcontrollers. An ECU is the central controlling unit in modern vehicles responsible for monitoring various vehicular functions like fueling, infotainment, remote functionality, autonomous driving functions, parking aids, and electronic driving aids (like lane-keep assist, park-assist features, etc.), and others. Hence, ECUs demand highly reliable and robust hardware to run compatible platforms and software to achieve the required crucial functions.
  • Autonomous vehicles and sensor-driven safety features like automatic brake assist, collision avoidance systems, etc., are the driving factors in the future of automobiles, incorporating MCUs. The MCUs housing sensors related to each function offer local computing followed by temporary data storage and transfer to the master controlling units or remote servers.
  • MCUs with automobile sensors also demand more robust and reliable quality promising accurate results and operation in various environmental constraints. For instance, in April 2022, Honda opted R-Car and RH850 by Renesas Electronics for use in the Honda SENSING 360 omnidirectional safety and driver assistance system. The 40 nm-process MCU provides good embedded security at low power consumption and high scalability for advanced automotive applications.
Microcontroller MCU Market

Asia Pacific to Exhibit the Fastest Growth in the Market

  • The Asia Pacific has emerged as a significant hub for semiconductor manufacturing and semiconductor-based devices. The region is home to some of the most prominent electronics and automotive manufacturing companies. Hence, the area contributes significantly through various applications of microcontrollers like automotive, industrial automation, pharmaceutical, consumer electronics, robotics, and other end-user industries.
  • China is one of the largest manufacturing giants dominating the region in the number of manufacturing units operational for many industries. With the US-China Trade war, China has been lately focussing on motivating domestic manufacturing of microcontrollers. Hence, local manufacturers are following large-scale policies of vehicle electrification and others, creating high demands for MCUs, and boosting domestic MCU manufacturing.
  • APAC comprises chief contract-based semiconductor manufacturers like Taiwan Semiconductor Manufacturing Company (TSMC). TSMC accounts for manufacturing more than 70% of the global microcontrollers sold by significant market players, like NXP Semiconductors, Texas Instruments, STMicroelectronics, etc. Other regional manufacturers comprise Foxconn, MediaTek, Qualcomm, and others, contributing significantly to the region's growth.
  • Companies in this region are looking at constant innovation and upgrades to keep up with global microcontrollers' industrial evolution. For instance, Japanese semiconductor manufacturer Renesas Electronics announced a higher investment in manufacturing capacity by more than 50% by 2023. The company will focus on producing more high-end microcontrollers and other vital components for cars and electronics. Renesas aims for 40,000 200mm wafers a month by procuring more lines for outsourced production at chip foundries.
Microcontroller Market

Competitive Landscape

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 are looking forward to strategic collaboration with other brands and joint product developments for coming up with problem-solving solutions.

  • May 2022 - NXP Semiconductors' Multi-Protocol i. MX RT crossover microcontroller, featuring an integrated time-sensitive switch for networking, unifies Industrial IoT Communication. NXP Semiconductors announced its new i. MX RT1180 crossover microcontroller. It is the first microcontroller with an integrated Gb time-sensitive networking (TSN) switch, allowing both industrial real-time and time-sensitive communications, supporting multiple communications protocols. It aims to bridge the gap between existing industrial and Industry 4.0 systems. The i.MX RT1180 provides the required connectivity, supporting multiple protocols. To accomplish this, driving a unified and safe industrial IoT communication environment at all edges of the plant.
  • April 2022 - STMicroelectronics, an international semiconductor provider, is serving customers across the electronics applications industry. Seong Ji Industrial, a global one-stop supplier of enterprise-grade wireless connectivity solutions, announced the LSM module series from SeongJi powered by ST’s STM32WL for sub-GHz LPWAN. The solution marks the world’s first Sigfox and LoRa System-on-Chip (SoC). The LSM100A, LSM110A, and LSM200A modules, powered by STM32WL, combine low power consumption, small size, and cost efficiency to optimize sub-GHz wireless connectivity catering to a broad spectrum of industrial and consumer applications. The modules support both Sigfox and LoRa LPWAN technologies.

Recent Development

  • April 2022 - The microcontroller family of STMicroelectronics, the STM32, received Microsoft Azure RTOS development changes. STM32Cube tools and expansion packages design Azure RTOS high-quality middleware for MCUs ranging from entry-level to high-performances. The company has extended support for Microsoft Azure RTOS in the STM32Cube development environment, covering additional high-performance, ultra-low-power, mainstream, and wireless microcontrollers (MCUs) from the STM32 family. Users can leverage the qualities of Azure RTOS, the convenience of STM32Cube, and the flexibility of the STM32 family to optimize MCU properties, now choosing from over 700 MCUs in the STM32 Arm Cortex-M portfolio.
  • January 2022 – Infineon Technologies AG, as a global player in automotive semiconductors, announced the extension of its AURIX™ microcontroller family and the availability of the first samples of its new AURIX TC4x family of 28 nm microcontrollers (MCUs) for next-generation eMobility, ADAS, automotive E/E architectures, and affordable artificial intelligence (AI) applications.
  • September 2021 - Texas Instruments (TI) and Delta Electronics partner to design an enterprise-grade server power supply unit (PSU) leveraging TI's gallium nitride (GaN) technology and C2000™ real-time microcontrollers (MCUs). The developed solution will feature an 80% enhancement in power density with 1% improved efficiency — up to 99.2% — compared to enterprise server power supplies using traditional architecture. Data centers will be explicitly utilizing the designed solution. Delta Electronics is a global power- and thermal management solutions provider and a major AC/DC, DC/DC, and DC/AC power systems provider catering to many applications.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumption And Market Definition

    2. 1.2 Scope of the study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power Of Suppliers

      2. 4.2.2 Bargaining Power Of Buyers

      3. 4.2.3 Threat Of New Entrants

      4. 4.2.4 Threat Of Substitutes

      5. 4.2.5 Intensity Of Competitive Rivalry

    3. 4.3 Value Chain Analysis

    4. 4.4 Assessment of the Impact of Covid-19 on the Market

    5. 4.5 Technology Snapshot

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Emergence of Internet of Things (IoT)

      2. 5.1.2 Increasing digitalization across industries

    2. 5.2 Market Challenges/Restraints

      1. 5.2.1 Disruptions in supply chain

      2. 5.2.2 Declining prices of microcontrollers in recent years

  6. 6. MARKET SEGMENTATION

    1. 6.1 Segmentation - By Product

      1. 6.1.1 8-bit

      2. 6.1.2 16-bit

      3. 6.1.3 32-bit

    2. 6.2 Segmentation - By Application

      1. 6.2.1 Aerospace and Defense

      2. 6.2.2 Consumer Electronics and Home Appliances

      3. 6.2.3 Automotive

      4. 6.2.4 Industrial

      5. 6.2.5 Healthcare

      6. 6.2.6 Data Processing and Communication

      7. 6.2.7 Other End-user Industries

    3. 6.3 Segmentation - By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia-Pacific

      4. 6.3.4 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Cypress Semiconductor Corporation

      2. 7.1.2 Infineon Technologies AG

      3. 7.1.3 Microchip Technology Inc.

      4. 7.1.4 NXP Semiconductors

      5. 7.1.5 Renesas Electronics Corporation

      6. 7.1.6 STMicroelectronics

      7. 7.1.7 Texas Instruments Incorporated

      8. 7.1.8 Toshiba Electronic Devices & Storage Corporation

      9. 7.1.9 Intel Corporation

      10. 7.1.10 Zilog, Inc.

      11. 7.1.11 Analog Devices, Inc.

      12. 7.1.12 Broadcom Inc.

      13. 7.1.13 ON Semiconductor

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The The Global Microcontroller (MCU) Market market is studied from 2020 - 2027.

The The Global Microcontroller (MCU) Market is growing at a CAGR of 10.1% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductors N.V., STMicroelectronics N.V., Texas Instruments Incorporated are the major companies operating in The Global Microcontroller (MCU) Market .

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