Microcontroller Market Report 2025

The microcontroller market size has grown rapidly in recent years. It will grow from $24.74 billion in 2024 to $27.66 billion in 2025 at a compound annual growth rate (CAGR) of 11.8%. The growth in the historic period can be attributed to strong economic growth in emerging markets, a rise in industrialization, growth in electronics manufacturing, and increased automobile production.

The microcontroller market size is expected to see rapid growth in the next few years. It will grow to $44.88 billion in 2029 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to increasing demand for consumer electronics, a growing demand for electric vehicles, and government initiatives to propel the semiconductor industry. Major trends in the forecast period include a focus on new product launches, technological advancements, increasing use of microcontrollers in electric vehicles, new facility expansions, increasing investments, partnerships and collaborations, and mergers and acquisitions.

The increasing adoption of IoT technologies worldwide is fueling growth in the microcontroller market. The Internet of Things (IoT) consists of interconnected digital devices, machines, and objects that are assigned unique identifiers and can transmit and share data without requiring human-to-human interaction. Within the IoT ecosystem and smart objects, microcontrollers typically provide the computational capability. These devices function as scaled-down computers that control smart devices. For example, in January 2024, Eurostat, the statistical office of the European Union, reported that the number of battery-only electric passenger cars in EU countries rose from 1.9 million in 2021 to 3 million in 2022, marking an increase of 55%. As a result, the growing integration of IoT technologies on a global scale is expected to drive the expansion of the microcontroller market.

The surge in demand for electric vehicles (EVs) is set to drive the microcontroller market's growth in the foreseeable future. Microcontrollers play a crucial role in EVs by integrating with smart power and battery-management devices, contributing to efficient vehicle electrification. According to the World Economic Forum, approximately 4.3 million new battery-powered electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally in the first half of 2022. This marked a 75% year-over-year growth for BEVs and 37% for PHEVs. In India, retail sales of electric vehicles saw a remarkable 333% year-over-year growth, with 390,399 units sold in the first half of 2022, compared to 90,102 units in the same period in 2021. Hence, the rising demand for electric vehicles is anticipated to be a significant driver for the microcontroller market.

Technological advancement is a significant trend gaining traction in the microcontroller market. The integration of AI in vehicle manufacturing enables automakers to lower production costs and enhance safety on the factory floor. AI also aids in predicting malfunctions in automotive components. For instance, in May 2024, Mindgrove Technologies, an India-based technology company, launched Secure IoT, the first indigenous microcontroller chip. This chip is 30% cheaper than other options in its segment and can effectively power a wide range of electronic devices, from wearables to smart city infrastructure. The Secure IoT chip operates at a clock speed of 700 MHz, making it well-suited for demanding applications that require fast processing capabilities. It is built on the open-source RISC-V instruction set architecture, allowing for flexibility and customization across various applications and catering to a diverse range of devices. The chip is projected to be 30% less expensive than comparable options on the market, providing a more cost-effective solution for Indian Original Equipment Manufacturers (OEMs) without compromising performance.

Microcontroller manufacturers are actively pursuing technological advancements to enhance their market position. In April 2022, Arm, a UK-based semiconductor company, introduced Cortex-M85, its highest-performing Cortex-M microcontroller. The Cortex-M85 processor delivers a 30% performance uplift over the Cortex-M7 and a 20% improvement for machine learning workloads. It also incorporates Arm TrustZone support for enhanced security.

In November 2022, Infineon Partners, a Germany-based manufacturer of semiconductors and automotive solutions, announced a partnership with REE Automotive to promote sustainable mobility. The collaboration seeks to improve the flexibility and efficiency of electric vehicle (EV) manufacturing by leveraging REE's innovative REE corner technology, which integrates essential vehicle components into compact modules. REE Automotive is an Israel-based company specializing in fleet vehicle electrification.

Major companies operating in the microcontroller market include Microchip Technology Inc, NXP Semiconductors, STMicroelectronics, Infineon Technologies AG, Texas Instruments Incorporated, Renesas Electronics Corporation, Intel Corporation, Toshiba Electronic Devices & Storage Corporation, Broadcom Inc., ON Semiconductor, Cypress Semiconductor Corp, ARM LTD, Fujitsu Limited, Panasonic Corporation, Saankhya Labs, CDIL, MosChip Semiconductor Technologies, Silan, Dialog Semiconductor Plc, Maxim Integrated, Analog Devices Inc, Rohm Semiconductor, Nuvoton Technology Corporation.

North America was the largest region in the microcontroller market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the microcontroller market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microcontroller market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

A microcontroller refers to a compact integrated circuit designed to govern a specific operation in an embedded system. It incorporates a processor, memory, and input/output (I/O) peripherals on a single chip. Microcontrollers take inputs from the device they control and maintain control by sending signals to various parts of the device.

The primary product types of microcontrollers include 8-bit microcontrollers, 16-bit microcontrollers, 32-bit microcontrollers, and above microcontrollers. An 8-bit microcontroller features a CPU with an 8-bit bit-width. Internal operations are performed on 8-bit numbers, variables are organized in 8-bit blocks, and external I/O is accessed through 8-bit buses. In terms of memory, microcontrollers are categorized as embedded memory microcontrollers and external memory microcontrollers. The architectures employed in microcontrollers include AVR architecture, PIC architecture, ARM architecture, and others. Microcontrollers find various applications in automotive, consumer electronics and telecommunication, industrial, medical devices, aerospace and defense, and other domains.

The microcontroller market research report is one of a series of new reports that provides microcontroller market statistics, including microcontroller industry global market size, regional shares, competitors with a microcontroller market share, detailed microcontroller market segments, market trends and opportunities, and any further data you may need to thrive in the microcontroller industry. This microcontroller market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The microcontroller market consists of sales of vehicles, robots, office machines, medical devices, mobile radio transceivers, vending machines and home appliances. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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