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IoT Microcontroller Market Analysis

ID: MRFR//4432-HCR | 100 Pages | Author: Shubham Munde| May 2024

The growing integration of IoT technologies across several sectors is driving a revolutionary change in the market dynamics of the Internet of Things (IoT) microcontroller industry. IoT microcontrollers facilitate smooth data interchange and communication between connected devices by acting as their brains. The increase in demand for smart and connected devices in homes, businesses, and cities is a major driver of the market's growth. The growing need for microcontrollers with improved processing capabilities, reduced power consumption, and strong networking choices is a result of both businesses and consumers realizing the advantages of IoT applications.
The IoT microcontroller market is characterized by a competitive environment that is driven by increasing market entry, innovation, and product variety. Both well-established semiconductor firms and up-and-coming startups are competing to create microcontrollers that are more economical and efficient in order to satisfy the wide range of demands of the growing Internet of Things ecosystem. This rivalry is pushing the limits of downsizing, energy efficiency, and security feature integration, driving improvements in chip design. Consequently, the industry is seeing a constant flow of new product introductions and partnerships meant to get a competitive advantage.
A noteworthy feature of the market dynamics is the growing emphasis on security in the design of Internet of Things microcontrollers. Concerns over cybersecurity and data privacy have grown as linked devices proliferate. In response, producers are equipping their microcontrollers with strong security features including authentication procedures and encryption.
In addition to being a reaction to market needs, this change also shows how important it is for the industry as a whole to establish confidence in IoT solutions.
Moreover, the market for IoT microcontrollers is greatly impacted by the quick rise of IoT applications across a range of sectors. Smart homes, wearable technology, industrial automation, and healthcare are just a few of the industries that are adopting IoT microcontrollers due to their adaptability. A more specialized and segmented market landscape is the result of market participants' increased ability to customize their products to meet industry requirements as a result of this extensive integration.

Covered Aspects:

Report Attribute/Metric Details
Segment Outlook Type, End-User, and Region

Global IoT Microcontroller Market Overview:

IoT Microcontroller Market Size was valued at USD 1.68 billion in 2023. The IoT microcontroller market industry is projected to grow from USD 1.88 Billion in 2024 to USD 4.15 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.39% during the forecast period (2024 - 2032). The growing demand for smart devices and linked solutions, developments in edge computing and analytics, the increasing need for greater security in IoT applications, and the proliferation of IoT across industries are the primary market drivers of the IoT microcontroller industry.

IoT Microcontroller Market

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

IoT Microcontroller Market Trends

  • Increasing demand for wearable devices to drive market growth

Wearables are smart gadgets worn as jewelry, implanted in the user's body, or incorporated into clothing. Sensor miniaturization and advancements in cutting-edge technologies such as Artificial Intelligence, Machine Learning, and Big Data Analytics enable wearables to relate to IoT technology. Obesity, for example, motivates people to engage in fitness-related activities and track their progress with wearables. Wearables are constantly evolving in terms of ergonomics, product material, battery life, storage capacity, functionality, performance, and usability, having recognized that size, weight, power consumption, durability, ruggedness, reliability, and ease of use are some of the critical considerations end users make when purchasing wearable devices. The rising popularity of fitness wearables, especially among millennials, will likely promote wearable adoption, driving the market CAGR for IoT microcontrollers.

Several corporations, including Apple Inc and Google LLC, are spending heavily on developing wearable technology and introducing novel wearables. Wearables will evolve and offer numerous features as technology advances, adding to end-user comfort. Some main factors projected to boost wearable device adoption include in-store merchandising, the deployment of small sensors, the simplicity of paying with wearables, and the capacity of smartwatches to engage with end-users.

IoT can be used in various fleet management applications, such as asset tracking, fleet route planning, and predictive fleet maintenance, to increase operational flexibility and allow transportation and logistics companies to reduce capital expenditure (CAPEX) and operational expenditure (OPEX). IoT in fleet management is a new technology that enables great operational efficiencies in transportation and logistics. IoT technology combined with sensors, cameras, navigation systems, and mobile portable devices can assist in real-time vehicle data monitoring. IoT in fleet management has enabled easy tracking and monitoring of key vehicle data and driver performance. The increasing use of IoT in fleet management bodes well for the IoT microcontroller market revenue growth throughout the projected period.

IoT Microcontroller Market Segment Insights:

IoT Microcontroller Type Insights

The IoT microcontroller market segmentation, based on type, includes 8-bit, 16 bits, and 32 bits. The 32 bits segment dominated the market, accounting for 42% of market revenue (0.6 billion). The 32 bits microcontroller is the most compatible with IoT applications. It effectively handles many peripherals and is widely used in industrial applications such as factory automation, grid infrastructure, and building automation applications. The 32 bits microcontrollers offer higher processing power and memory capacity than lower-bit microcontrollers, enabling them to handle complex IoT applications requiring advanced computing capabilities.

Figure 1: IoT Microcontroller Market, by Type, 2022 & 2032 (USD billion)

IoT Microcontroller Market, by Type, 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

The 8-bit type segment is expected to grow at the fastest CAGR in the IoT microcontroller industry in the coming years. The 8-bit segment is widely employed in low-power applications like smart wearables and linked gadgets. The increased popularity of fitness wearables, particularly among millennials, is projected to promote wearable adoption. Obesity and other lifestyle diseases drive people to engage in various fitness-related activities and track their progress using wearables, which bodes well for market growth in the coming years.

IoT Microcontroller End-User Insights

Based on end-user, the IoT microcontroller market segmentation includes consumer electronics, automotive, industrial automation, and healthcare. The consumer electronics category generated the most income (34%). Employees were forced to work remotely due to the COVID-19 outbreak. This has increased demand for smart devices like smartwatches and fitness trackers. Increased fitness and health awareness among millennials will drive wearables sales over the next several years. As a result, adopting low-power microcontrollers (MCUs) combined with short-range wireless connectivity, particularly 8-bit integrated with KNX/Bluetooth/Zigbee/Wi-Fi-based protocols, is likely to drive IoT MCUs sales in the forecast period.

IoT Microcontroller Regional Insights

By Region, the report provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. The North American IoT microcontroller market accounted for USD 0.68 billion in 2022 and will likely exhibit a significant CAGR growth in the study period. North America holds the largest market share globally, owing to an increased need for smart home initiatives and increased demand for IT requirements, which drives market demand to this region. Edge computing and analytics advancements fuel demand for IoT microcontrollers in North America. Edge computing is processing data closer to the point of generation, allowing for real-time data processing, analytics, and decision-making at the network's edge. Microcontrollers with increased processing power, memory, and security features are being deployed to meet the needs of edge computing, fueling the regional demand for advanced microcontrollers. Another driver for the North American IoT microcontroller market is the demand for increased security in IoT applications.

Also, the major countries studied in the market report are the U.S., German, Canada, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.



Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

The European IoT microcontroller market accounts for the second-largest market share. More than 50% of European power meters have been replaced by smart meters as part of aggressive grid modernization efforts. The government's favorable investments have accelerated the installation of smart meters across European countries like France, Spain, and the United Kingdom, supporting market growth during the projection period. All these aspects are projected to create chances for market participants to increase profitability, which bodes well for the growth of the IoT microcontroller market throughout the forecast period. Further, the German IoT microcontroller market held the largest market share, and the UK IoT microcontroller market was the fastest-growing market in the European region.

The Asia-Pacific IoT Microcontroller Market is expected to grow at the fastest CAGR from 2023 to 2032. China, India, and Japan accounting for more than 50% of the market share, are the main growth drivers. This can be attributed to the emerging demand for smart wearables and favorable government investment to boost smart city initiatives. The RCEP (Regional Comprehensive Economic Partnership) trade agreement with China & ASEAN countries, combined with rising disposable income in emerging economies such as Vietnam, Malaysia, and Indonesia, is expected to drive consumer demand for affordable smart home devices over the forecast period. Moreover, China’s IoT microcontroller market held the largest market share, and the Indian IoT microcontroller market was the fastest-growing market in the Asia-Pacific region.

IoT Microcontroller Key Market Players & Competitive Insights

The IoT microcontroller industry is witnessing significant growth, driven by the increasing adoption of IoT across industries and the growing demand for smart devices and connected solutions. Leading market players are investing in R&D activities to produce innovative, low-power, and energy-efficient IoT microcontrollers and expand into new application categories to maintain existing customers while attracting new ones. Continuous technological advancements, product launches, and strategic collaborations characterize IoT microcontroller industry market developments.

Manufacturers in the IoT microcontroller industry are heavily spending in R&D to develop microcontrollers with advanced features such as increased processing power, improved energy efficiency, enhanced security, and integrated connectivity options to cater to the evolving requirements of the IoT ecosystem. Key companies in the IoT microcontroller industry also focus on designing products that adhere to regional regulatory norms to reduce the risk of losing revenue due to regulatory infractions. Major players in the IoT microcontroller market, including Atmel, Infineon, Texas Instruments, Intel, Fujitsu Ltd, and others, are attempting to increase market demand by investing in R&D facilities.

Synaptics Inc (Synaptics) designs and manufactures specialized semiconductor solutions. The company's product line includes fingerprint biometric sensors, touch controller ICs, display drivers ICs, integrated touch and display ICs, touchpad modules, multimedia processors, and imaging, among other things. ClearPad, TouchView, ClearView, ConnectSmart, TouchPad, and SecurePad are some of the products offered by Synaptics. The company's solutions are used in smartphones, tablets, PC notebooks, laptops, cars, headsets & wearables, PC accessories, smart homes, docking stations, and other applications. It has offices in Japan, South Korea, Switzerland, India, Poland, the United Kingdom, Hong Kong, China, Taiwan, and the United States. Synaptics is headquartered in San Jose, California, USA. Synaptics purchased Broadcom's wireless IoT unit in July 2020. The acquisition allows the former company to expand its market position in consumer IoT application areas. Broadcom can also concentrate on its core skills, semiconductor solutions, and infrastructure software.

Nuvoton Technology Corporation, headquartered in Hsinchu, Taiwan, is a leading semiconductor company. The company was formed in 2008 and has quickly established itself as a major player in the semiconductor sector. Nuvoton specializes in microcontroller design and production, audio and video solutions, and system-on-chip (SoC) products. Nuvoton provides various microcontroller products to industries and applications such as IoT, industrial automation, consumer electronics, and automotive. Nuvoton Technology Corporation introduced the NuMicro® M0A23/M0A21 family MCU in April 2021. The MCU can be used in automotive and industrial applications. The MCU is excellent for compact form factor applications such as automotive lighting, battery management systems, body control, power applications, and ultrasonic radar control and is available in SSOP20 TSSOP28 packages.

Key Companies in the IoT microcontroller market include

  • Atmel (U.S)

  • Freescale (U.S.)

  • Infineon (Germany)

  • ST Microelectronics (Switzerland)

  • Texas Instruments (U.S)

  • Fujitsu Ltd (Japan)

  • Microchip Technology (U.S.)

  • Samsung Group (South Korea)

  • Intel Corporation (U.S.)

IoT Microcontroller Industry Developments

February 2022: Infineon Technologies, a German chipmaker, revealed plans to invest over 2 billion Euros in a new frontline fab in Kulim, Malaysia. The investment is estimated to generate an additional 2 billion Euros yearly revenue from gallium nitride and silicon carbide.

May 2020: NXP Semiconductor and OKdo have announced a collaboration to build the E1, a single-board computer (SBC). The SBC is built around NXP's LPC55S69 Microcontroller, which provides outstanding performance and helps businesses expand their customer base.

February 2020: Broadcom Inc revealed the first Wi-Fi 6E client device, the BCM4389. The BCM4389 is a smartphone combo chip with over 2 Gbps speed and improved battery backup for smartphones and future AR (Augmented Reality) and VR (Virtual Reality) devices.

IoT Microcontroller Market Segmentation:

IoT Microcontroller Type Outlook

  • 8-bit

  • 16 bits

  • 32 bits

IoT Microcontroller End-User Outlook

  • Consumer Electronics

  • Automotive

  • Industrial Automation

  • Healthcare

IoT Microcontroller Regional Outlook

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • France

    • The U.K.

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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