The worldwide IoT microcontroller market accounted for US$ 4,389 Mn in 2021 and is expected to hit US$ 13,037 Mn by 2030, with a significant CAGR of 13.1% from 2022 to 2030.
The Internet of Things (IoT) idea has been widely utilized in different industries, including smart homes, smart cities, automation, consumer electronics, and so on, thanks to developments in communications, microelectronics, and information technology. Microcontrollers or MCUs are typically used in the Internet of Things (IoT) and smart gadgets to provide computing capability. These are essentially scaled-down computers that provide memory, processing power, and input/output peripherals to smart devices. Microcontrollers are built to execute certain tasks and can be found in a wide range of applications, including wearable gadgets, industrial machinery, warehouse inventory, home appliances, and much more. Thus, the integration of IoT in microcontrollers has been in demand due to its widespread applications in the digitally connected world.
Market Growth Drivers
|Market||IoT Microcontroller Market|
|Market Size 2021||US$ 4,389 Mn|
|Market Forecast 2028||US$ 13,037 Mn|
|CAGR||13.1% During 2022 - 2030|
|Analysis Period||2018 - 2030|
|Forecast Data||2022 - 2030|
|Segments Covered||By Product, By Application, By End-User, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Broadcom, Microchip Technology Inc., Espressif Systems (Shanghai) Co., Ltd, Infineon Technologies, Holtek Semiconductor Inc., Nuvoton Technology Corporation, STMicroelectronics, NXP Semiconductors, Renesas Electronics Corporation, Texas Instruments Incorporated, and Silicon Laboratories.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Covid-19 Impact on the Global IoT Microcontroller Industry
Microcontroller demand is expected to rise as the number of automotive applications (autonomous vehicles, electric vehicles, and so on), consumer electronics, medical devices, and other industrial uses increases. However, as more uncertainty abounds in the automotive and industrial sectors, microcontroller industry participants are having difficulty evaluating the demand, slowing GDP development in both developed and developing economies. On the other hand, IoT holds enormous promise for a wide range of industries, including manufacturing, healthcare, agriculture, transportation, and telecommunications. In the wake of the COVID-19 epidemic, the majority of governments throughout the world have allowed employees to work from home. According to data suggested by the International Trade Union Congress, 65 percent of countries favor working from home. To manage workers who work from home, companies are increasingly relying on remote-based workforce monitoring, this is driving up demand for IoT solutions. Thus, the impact of COVID-19 on IoT microcontroller was moderate in 2020.
Growing improvements in IoT technology is the primary factors driving the global IoT microcontroller market. IoT technology has reached its pinnacle, transforming a variety of industries by storing and processing data in a distributed manner while also improving output. The latest research data shows that there were more than 35 billion smart devices in 2021 and this number will climb up to 75 billion by 2025. Artificial intelligence, 5G, blockchain, and edge computing are major drivers of emerging IoT trends. The business value of IoT applications such as smart homes and buildings, smart wearables, autonomous automobiles, smart cities, smart factories, wireless sensors, location trackers, and much more may be found inside this interconnected web of technological breakthroughs.
In addition, the rising number of connected devices such as wearables and other consumer electronics is also one of the key aspects driving up the market demand. The market demand is being bolstered by the expanding popularity of connected devices and the rising need for smart devices in the healthcare sector. The growing demand for low-cost smart wireless sensor networks, as well as the expansion of internet connectivity in technologically emerging countries, is expected to drive the market in the coming years.
However, the IoT privacy and security concerns may hamper the market from growing. Because of the Internet of Things, a virus or ransomware infection can easily disable vital functions and services. For instance, in March 2018, a ransomware crippled Atlanta city's water services and ticket payment systems.
The global IoT microcontroller industry is segmented based on product, application, and geography.
Market By Product
In 2021, the 32-bit segment held a significant amount of share in the product type segment. 32-bit microcontrollers are capable of handling arithmetic operations of 32-bit values and thus they are faster compared to other microcontrollers. They take fewer instruction cycles to execute a function due to its wider data bus. Thus companies have been relentlessly launching 32-bit microcontrollers owing to the rising IoT requirements across the world. For instance, Renesas Electronics Corporation launched four latest RX651 32-bit microcontrollers catered in ultra-small 64-pin LQFP and BGA packages. These RX651 32-bit microcontrollers are ideal for compact IoT applications, without compromising performance.
Market By Application
Among applications, the segment of the smart home is likely to attain a considerable growth rate in the projected years. The hi-tech world is expanding and can provide many opportunities for businesses, and IoT for smart homes is no exception. The integration of IoT in smart homes has enabled easy control and monitoring, has enhanced security, efficiently saved cost and energy, and increased comfort in living. The Internet of Things vastly improves the ability to control and monitor all of the home's processes. Aside from lowering bills, energy savings help to reduce the negative impact on the environment and live a "greener" lifestyle. Thus, the smart homes application uses the most of IoT technology creating a high demand for the IoT microcontroller industry.
IoT Microcontroller Market Regional Overview
The growing semiconductor and consumer electronics industry in the Asia-Pacific boosts the regional market growth
The Asia-Pacific region is projected to account for a substantial market share in 2021 and is expected to register the fastest growth rate during the forecast period 2022 – 2030. End-user industries are increasingly adopting new technologies in the IoT microcontroller sector, notably in the growing economies of India and China, which is likely to enhance Asia-Pacific market demand. In addition, the government's increased initiatives to raise awareness about smart wearables can be credited with the market's expansion in the Asia-Pacific region.
Some of the top vendors offered in the professional report include Broadcom, Microchip Technology Inc., Espressif Systems (Shanghai) Co., Ltd, Infineon Technologies, Holtek Semiconductor Inc., Nuvoton Technology Corporation, STMicroelectronics, NXP Semiconductors, Renesas Electronics Corporation, Texas Instruments Incorporated, and Silicon Laboratories.
The estimated value of Global IoT Microcontroller Market in 2021 was accounted to be US$ 4,389 Mn and market projected to reach US$ 13,037 by 2030
The projected CAGR of Global IoT Microcontroller Market during the analysis period of 2022 to 2030 is 13.1%
The prominent players of the global IoT microcontroller market involve Broadcom, Microchip Technology Inc., Espressif Systems (Shanghai) Co., Ltd, Infineon Technologies, Holtek Semiconductor Inc., Nuvoton Technology Corporation, STMicroelectronics, NXP Semiconductors, Renesas Electronics Corporation, Texas Instruments Incorporated, and Silicon Laboratories.
Asia-Pacific held the dominating share for IoT microcontroller during the analysis period of 2022 to 2030
Asia-Pacific region exhibited fastest growing CAGR for IoT microcontroller during the analysis period of 2022 to 2030
Increasing advancement in the IoT, rising demand for wearables and other consumer electronics, and development of smart cities drives the growth of global IoT microcontroller market
Based on product, 32-bit segment held the maximum share for IoT microcontroller market in 2020