According to a recent study from market research firm Global Market Insights, The global microcontroller market has gained considerable traction over the years due to the widespread use of these components in smart building automation systems. Automation systems like HVAC control, fire protection, and lighting systems, and security and surveillance technologies, are all integrated with microcontroller units.
Certain benefits of using microcontrollers include energy efficiency, stable output readings, and high precision input and output peripherals, all of which is integral for 24×7 monitoring and control applications. The growing adoption of advanced IoT technology in smart buildings has driven the demand for the product.
Reports estimate that the global microcontroller market could reach USD 20 billion in terms of valuation by 2027. An evident improvement in the disposable income of people across the globe has led to the developments in the consumer electronics industry in both developed as well as developing nations. As per a report furnished by the Indian Brand Equity Foundation, the consumer electronics and appliances sector in India is projected to rise from USD 10.93 billion in the year 2019 to USD 21.18 billion by 2025.
Latest trends anticipated in the microcontroller Market:
1) Rising adoption of industrial robots
According to the World Robotics 2020 report, 2.7 million industrial robots are operating in factories worldwide and have witnessed a year-on-year growth rate of 12% compared to 2018. The rising adoption of industrial robots is estimated to generate noteworthy growth opportunities for 32-bit microcontroller suppliers. Estimates further suggest that around 2 million new industrial robots are anticipated to be deployed by the year 2022.
2) APAC emerging as a lucrative market
The trend of smart cities public infrastructure development is steadily gaining grip across Asia Pacific. The rising adoption of public Wi-Fi infrastructure in India, South Korea, Japan, Singapore, and Taiwan is expected to offer new opportunities to microcontroller manufacturers.
Proliferation in the demand for consumer electronics and home appliances will also have a positive impact on microcontroller market of APAC. According to the Indian Brand Equity Foundation, the consumer electronics & appliances industry in India is expected to rise from USD 10.93 billion in 2019 to USD 21.18 billion in 2025.
3) Fading demand for 16-bit microcontrollers
Due to favorable cost and performance capabilities in comparison to 8-bit and 32-bit microcontrollers, the 16-bit microcontroller market is projected to augment over the estimated period. Reports indicate that the 16-bit segment held for over 20% market share in 2020. However, the market could expect a decline in growth in the coming future. The 16-bit MCUs involve programmable cycles and require more efficiency in comparison to 32-bit microcontrollers. This has led to declining demand for 16-bit MCUs in various end-use applications such as healthcare, electronics, and consumer electronics.
Microcontrollers find widespread usage in different home appliances and consumer electronics. Devices like smart TVs, washing machines, air conditioners, speakers, among many others are integrated with microcontrollers to enhance usability, connectivity, and device controlling applications. The growing adoption of consumer electronic devices and home appliances will propel the demand for microcontrollers.
Concerning the type of product, the market is segmented into 8-bit, 16-bit, and 32-bit. However, when compared to the 8-bit and 32-bit variants, 16-bit controllers have witnessed a decline in their demand due to their low operational efficiency and the need for high programmable cycles when compared to the 32-bit microcontrollers.
This has adversely affected the demand for 16-bit MCUs across many end-use applications like healthcare, industrial and consumer electronics industry. Although, technological advancements with the integration of built-in Flash memory in the 16-bit microcontroller variants will support its use in automobile electronics.