Internet of Things Microcontroller Market

Date: 2/1/2016

Internet of Things (IoT) Microcontroller (MCU) Market Analysis by 8-bit, 16-bit, 32-bit and by Industrial Automation, Smart Home, Consumer Electronics Application

Internet of Things (IoT) Microcontroller (MCU) Market Size Is Expected to Reach USD 3,561.7 Million by 2022

  • Published by: Grand View Research, Inc.
  • Publishing Date: January 2016
  • ISBN Code: 978-1-68038-706-3

US IoT microcontroller market by application, 2012 - 2022 USD MillionIoT MCU market size is expected to reach USD 3,561.7 million by 2022. The rise of internet of things era has instigated an incessant demand for innovative products, which has placed pressure on systems designers to deliver breakthrough solutions consistently. Microcontroller miniaturization provides platform for system designers that primarily include use-cases for new emerging applications. This growing web for connected devices encompasses smartphones, televisions, tablets, home appliances, gaming consoles, smart meters, security systems, and is anticipated to positively impact the IoT microcontroller demand.

One key challenge that might withhold the proliferation of IoT MCU is power consumption. Almost all intelligent connected devices include billions of sensors, and some way or the other heavily rely on batteries for power. These batteries are expensive, toxic to the environment and need high maintenance. Therefore, microcontroller suppliers focus on introducing energy harvesting solutions/designs that are expected to eliminate the need for fixed power sources in these devices.

Security is another factor that may negatively impact demand for internet of things applications, on account of which suppliers focus on developing out of the box solutions without complex network set-up and gateways and/ or VPNs (Virtual Private Network).

Further Key Findings from The Report:

  • 32-bit segment is expected to grow at a CAGR exceeding 10% from 2015 to 2022. Previously, electronic designers largely used an 8-bit device often featuring the 8051 architecture; however, with advances in technology as well as growing scope of application areas, 32-bit MCUs have emerged as the most obvious choice. While these changes are already in progress, internet of things has also predominantly influenced how microcontroller technology develops.
  • In 2014, consumer electronics captured a sizeable market share accounting for over 30% of the overall revenue. Industrial automation is also expected to witness healthy growth underneath the IoT umbrella with the segment revenue exceeding USD one million by 2022.
  • Home automation is also being viewed as a very lucrative segment as internet of things has considerably changed ideas pertaining to home electronics design, wherein microcontrollers play a pivotal role. Several manufacturers have taken this as a potential market expansion strategy and offer an array of products suited for this purpose.
  • North America IoT microcontroller market accounted for more than 30% in 2014 owing to ongoing technological developments, and is expected to grow at a CAGR more than 9% from 2015 to 2022. Growing demand in the smart home segment is also expected to be a primary factor contributing towards regional market growth
  • High penetration of consumer electronics such as smart wearables, home appliances, smartphones, tablets, cameras, televisions, etc., is anticipated to fuel Asia Pacific internet of things MCU market over the forecast period.
  • The semiconductor industry is highly competitive and characterized by constant and rapid technological advancements, price erosion, shorter product lifecycles and evolving standards. The success of this market relies heavily on the manufacturer’s ability to invest in R&D and develop new products. Key players operating in this industry include ARM, NXP Semiconductors, Atmel Corporation, Infineon Technologies, Broadcom Corporation, Microchip Technology Inc., NXP Semiconductors., Silicon Labs, STMicroelectronics and Texas Instruments.