The IoT microcontroller market is growing tremendously due to increasing adoption of internet connected devices among consumers and enterprises. IoT microcontrollers are small low-power integrated circuits that are used for sensing, processing and controlling inputs and outputs in embedded systems and connected devices. They allow devices to connect, communicate and share data without human intervention. With increased connectivity through IoT devices, microcontrollers play a crucial role in collecting and processing data from various endpoints and transferring it to the cloud for storage and analytics. They add intelligence and connectivity to a wide range of devices including home appliances, wearables, industrial equipment, automobiles and more.
Global IoT microcontroller market is estimated to be valued at US$ 6.04 Bn in 2024 and is expected to reach US$ 14.85 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 13.7% from 2024 to 2031.
Key Takeaways
Key players operating in the IoT Microcontroller are Analog Devices Inc., Broadcom Inc., Espressif Systems (Shanghai) Co., Ltd., Holtek Semiconductor Inc., Infineon Technologies AG, Integrated Device Technology, Inc.,and Microchip Technology Inc.
The increasing demand for low-power microcontrollers from IoT device manufacturers is driving significant growth. Microcontrollers allow devices and systems to self-monitor and communicate wirelessly, optimize performance, trigger alerts and automate processes. This is fueling demand from a growing base of connected products and industrial equipment.
The IoT Microcontroller Market Growth is witnessing considerable technological advancements. New systems-on-chip integrate advanced features including integrated wireless modules, embedded security, enhanced memory and power savings. This allows for development of more powerful yet efficient microcontroller-based solutions. Edge computing capabilities in new devices is also improving real-time insights.
Market Trends
1. Integration of AI capabilities: Major players are integrating artificial intelligence and machine learning capabilities into microcontrollers using integrated accelerators and optimized instruction sets. This enables real-time data insights, predictive maintenance, and automation at the edge.
2. Popularity of low-power WAN technologies: Low-power WAN radios like LoRa and NB-IoT are gaining widespread adoption for microcontroller-based asset tracking and industrial IoT. This reduces device costs and improves battery life.
Market Opportunities
1. Growth in industrial automation: Widespread industrial digitalization and adoption of Industry 4.0 concepts will drive strong growth opportunities for microcontroller-based sensors, gateways, and machine control applications.
2. Expanding automotive electronics market: Increasing integration of connected vehicle technologies including advanced driver assistance, telematics, and infotainment will boost demand for sophisticated automotive-grade microcontrollers.
Impact of COVID-19 on IoT Microcontroller Market Growth
The COVID-19 pandemic has significantly impacted the growth of the IoT Microcontroller Market Regional Analysis. During the initial lockdown phases in 2020, the manufacturing and supply chain operations were disrupted globally. This resulted in declined production volumes and shortage of components. The demand from end-use industries such as automotive, industrial automation, consumer electronics also witnessed a downfall due to halted operations. However, with rapid digitalization during the pandemic, the scope of IoT applications expanded in various sectors. The use of IoT microcontrollers increased in applications developing solutions for remote working, telehealth, fleet management, and smart buildings. The demand for wearable devices for tracking health parameters also boosted the market growth. With economies restarting operations and vaccination drives aiding recovery, the IoT microcontroller market is presumed to regain momentum. The market is estimated to witness an annual growth rate of over 13% during the forecast period with increasing penetration of IoT across industries. Original equipment manufacturers are focusing on developing advanced and low-power microcontrollers to support next-generation connected devices and networks.
Europe Dominates IoT Microcontroller Market in Terms of Value
Europe currently dominates the global IoT microcontroller market and holds over 30% of the total market share in terms of value. The presence of leading microchip manufacturers and widespread adoption of IoT-based solutions across industries drive the European market. Germany, France, Italy, the UK are the major revenue generators. The automotive vertical being the pioneer in deploying connected vehicle technologies aids growth. The rising investments in smart infrastructure development also propels opportunities. Asia Pacific is identified as the fastest-growing regional market for IoT microcontrollers. Countries such as China, Japan, India are experiencing expedited digital transformation initiatives bringing untapped potential. Low manufacturing costs, budding automotive sector boosting connected mobility, and surge in consumer electronics also stimulate market expansion in the region. Robust government support promoting smart city Projects and Make in India further strengthen prospects in Asia Pacific.
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