As per The Business Research Company‘s microcontroller market forecast, the global microcontroller market size will grow fromย $19.5 billionย in 2022 toย $22.1 billionย in 2023ย at a compound annual growth rateย (CAGR) of 13%.ย The microcontroller market size is then expected to grow toย $36.5 billionย in 2027ย at aย CAGR of more than 13.3%.
The growth in the market is attributed to theย growing demand for electric vehiclesย (EVs), creative lucrativeย microcontrollers market opportunitiesย for players. Automotive microcontrollers are integrated with smart-power and battery-management devices in EVs for efficient vehicle electrification. For example, inย October 2022, according to the World Economic Forum, around 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. BEV sales grew by 75% on the year and PHEVs by 37%.ย Therefore, the increasing demand for electric vehicles is expected to propel the growth of the microcontroller market during the forecast period.
Microcontroller technology is utilized in electric vehicles to enable the efficient management of several complex components in automobiles, improving the driving experience for drivers. The use of automotive microcontrollers has expanded as a result of advancements in the automation sector and the advent of advanced driving systems.ย Microcontroller manufacturersย are focusing on developing more innovative and advanced products to keep up with the rising demand.
For instance, inย February 2022, STMicroelectronics, aย Switzerland-based electronics and semiconductor manufacturer, launched new automotive microcontrollers designed for centralized (domain and zonal) electronic architectures and electric vehicles (EVs). These automotive microcontrollers make EVs more accessible and allow for a longer range and quick charging.
STMicroelctronics holds the third largestย automotive microcontroller market share. The company’s strong position in the market is due to its well-defined business strategy that focuses on enhancing its business operations through strategic collaborations and partnerships. For instance, inย March 2022, STMicroelectronics partnered with Winbond Electronics Corporation for combining STM32 devices with Winbond’s specialty memory ICs in smart consumer and industrial applications. The partnership aims at offering various features including IoT-security hardware, advanced peripherals, and high-efficiency power conversion circuitry on-chip.
The global microcontroller market is segmented –
1) By Product Type: 8-Bit Microcontroller, 16-Bit Microcontroller, 32-Bit Microcontroller
2) By Memory: Embedded Memory Microcontroller, External Memory Microcontroller
3) By Architecture: AVR Architecture, PIC Architecture, ARM Architecture, Other Architecture
4) By Application Outlook: Automotive, Consumer Electronics and Telecommunication, Industrial, Medical Devices, Military and Defense
The top growth potential in the microcontroller market segmented by product type will arise in theย 32-bit and aboveย microcontroller segment, which will gainย $7.1 billionย of global annual sales by 2027. As per theย microcontroller market statistics, theย Chinaย market will gain the most atย $5.2 billion.
To capitalize on these high growth segments and regions, The Business Research Company recommends player adopt market-trend-based strategies such as focusing on new product launches, technological advancements, new facility expansions, increasing investments, partnerships and collaborations and merger and acquisitions.
