IoT Microcontroller Market Analysis

• Increasing demand for wearable devices to drive market growth

Wearables are smart gadgets worn as jewelry, implanted in the user's body, or incorporated into clothing. Sensor miniaturization and advancements in cutting-edge technologies such as Artificial Intelligence, Machine Learning, and Big Data Analytics enable wearables to relate to IoT technology. Obesity, for example, motivates people to engage in fitness-related activities and track their progress with wearables.

Wearables are constantly evolving in terms of ergonomics, product material, battery life, storage capacity, functionality, performance, and usability, having recognized that size, weight, power consumption, durability, ruggedness, reliability, and ease of use are some of the critical considerations end users make when purchasing wearable devices. The rising popularity of fitness wearables, especially among millennials, will likely promote wearable adoption, driving the market CAGR for IoT microcontrollers.

Several corporations, including Apple Inc and Google LLC, are spending heavily on developing wearable technology and introducing novel wearables. Wearables will evolve and offer numerous features as technology advances, adding to end-user comfort. Some main factors projected to boost wearable device adoption include in-store merchandising, the deployment of small sensors, the simplicity of paying with wearables, and the capacity of smartwatches to engage with end-users.

IoT can be used in various fleet management applications, such as asset tracking, fleet route planning, and predictive fleet maintenance, to increase operational flexibility and allow transportation and logistics companies to reduce capital expenditure (CAPEX) and operational expenditure (OPEX). IoT in fleet management is a new technology that enables great operational efficiencies in transportation and logistics. IoT technology combined with sensors, cameras, navigation systems, and mobile portable devices can assist in real-time vehicle data monitoring. IoT in fleet management has enabled easy tracking and monitoring of key vehicle data and driver performance.

The increasing use of IoT in fleet management bodes well for the IoT microcontroller market revenue growth throughout the projected period.

The Global IoT Microcontroller Market Industry is poised for remarkable growth, with projections indicating a market size of 1.88 USD Billion in 2024 and an anticipated increase to 5.58 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 10.4% from 2025 to 2035. Such figures underscore the increasing relevance of microcontrollers in the IoT ecosystem, as they become integral components in a wide array of applications. This upward trend reflects the ongoing evolution of technology and the expanding role of IoT in everyday life.

The Global IoT Microcontroller Market Industry is witnessing a surge in demand for smart devices, driven by the increasing adoption of IoT applications across various sectors. As consumers and businesses alike seek to enhance connectivity and automation, the need for efficient microcontrollers becomes paramount. In 2024, the market is projected to reach 1.88 USD Billion, reflecting a growing trend towards smart home devices, wearables, and industrial automation. This demand is likely to propel the industry forward, as manufacturers innovate to meet the needs of an increasingly connected world.

Government initiatives aimed at promoting IoT adoption are playing a crucial role in shaping the Global IoT Microcontroller Market Industry. Various countries are implementing policies and funding programs to encourage innovation and development in IoT technologies. These initiatives often include tax incentives, grants, and research funding, which can stimulate growth in the microcontroller sector. As governments recognize the potential economic benefits of IoT, the market is likely to expand, with a projected CAGR of 10.4% from 2025 to 2035. This support could lead to increased investment in microcontroller research and development.

The Global IoT Microcontroller Market Industry is increasingly driven by a growing focus on energy efficiency and sustainability. As environmental concerns rise, consumers and businesses are seeking solutions that minimize energy consumption. Microcontrollers that facilitate energy-efficient operations are becoming essential in various applications, including smart grids and renewable energy systems. This trend is expected to contribute to the market's growth, as manufacturers prioritize the development of eco-friendly microcontroller solutions. The emphasis on sustainability may also lead to regulatory changes that further enhance the demand for energy-efficient microcontrollers.

The expansion of Industrial IoT applications is significantly influencing the Global IoT Microcontroller Market Industry. Industries such as manufacturing, logistics, and agriculture are increasingly adopting IoT technologies to enhance operational efficiency and reduce costs. Microcontrollers play a vital role in these applications, enabling real-time data collection and analysis. As industries continue to embrace digital transformation, the demand for robust and reliable microcontrollers is expected to rise. This trend may lead to a substantial increase in market size, with projections indicating a growth trajectory that aligns with the overall expansion of the Industrial IoT sector.

Technological advancements in microcontroller design and functionality are significantly influencing the Global IoT Microcontroller Market Industry. Innovations such as low-power consumption, enhanced processing capabilities, and integrated connectivity options are making microcontrollers more appealing for IoT applications. These advancements enable devices to operate more efficiently, thereby extending battery life and improving overall performance. As a result, the market is expected to grow substantially, with projections indicating a rise to 5.58 USD Billion by 2035. This evolution in technology is likely to attract new players and foster competition within the industry.

By Region, the report provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. The North American IoT microcontroller market accounted for USD 0.68 billion in 2022 and will likely exhibit a significant CAGR growth in the study period. North America holds the largest market share globally, owing to an increased need for smart home initiatives and increased demand for IT requirements, which drives market demand to this region. Edge computing and analytics advancements fuel demand for IoT microcontrollers in North America.

Edge computing is processing data closer to the point of generation, allowing for real-time data processing, analytics, and decision-making at the network's edge. Microcontrollers with increased processing power, memory, and security features are being deployed to meet the needs of edge computing, fueling the regional demand for advanced microcontrollers. Another driver for the North American IoT microcontroller market is the demand for increased security in IoT applications.

Also, the major countries studied in the market report are the U.S., German, Canada, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: IOT MICROCONTROLLER MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

The European IoT microcontroller market accounts for the second-largest market share. More than 50% of European power meters have been replaced by smart meters as part of aggressive grid modernization efforts. The government's favorable investments have accelerated the installation of smart meters across European countries like France, Spain, and the United Kingdom, supporting market growth during the projection period. All these aspects are projected to create chances for market participants to increase profitability, which bodes well for the growth of the IoT microcontroller market throughout the forecast period.

Further, the German IoT microcontroller market held the largest market share, and the UK IoT microcontroller market was the fastest-growing market in the European region.

The Asia-Pacific IoT Microcontroller Market is expected to grow at the fastest CAGR from 2023 to 2032. China, India, and Japan accounting for more than 50% of the market share, are the main growth drivers. This can be attributed to the emerging demand for smart wearables and favorable government investment to boost smart city initiatives. The RCEP (Regional Comprehensive Economic Partnership) trade agreement with China & ASEAN countries, combined with rising disposable income in emerging economies such as Vietnam, Malaysia, and Indonesia, is expected to drive consumer demand for affordable smart home devices over the forecast period.

Moreover, China’s IoT microcontroller market held the largest market share, and the Indian IoT microcontroller market was the fastest-growing market in the Asia-Pacific region.

The IoT microcontroller industry is witnessing significant growth, driven by the increasing adoption of IoT across industries and the growing demand for smart devices and connected solutions. Leading market players are investing in R&D activities to produce innovative, low-power, and energy-efficient IoT microcontrollers and expand into new application categories to maintain existing customers while attracting new ones. Continuous technological advancements, product launches, and strategic collaborations characterize IoT microcontroller industry market developments.

Manufacturers in the IoT microcontroller industry are heavily spending in R&D to develop microcontrollers with advanced features such as increased processing power, improved energy efficiency, enhanced security, and integrated connectivity options to cater to the evolving requirements of the IoT ecosystem. Key companies in the IoT microcontroller industry also focus on designing products that adhere to regional regulatory norms to reduce the risk of losing revenue due to regulatory infractions. Major players in the IoT microcontroller market, including Atmel, Infineon, Texas Instruments, Intel, Fujitsu Ltd, and others, are attempting to increase market demand by investing in R&D facilities.

Synaptics Inc (Synaptics) designs and manufactures specialized semiconductor solutions. The company's product line includes fingerprint biometric sensors, touch controller ICs, display drivers ICs, integrated touch and display ICs, touchpad modules, multimedia processors, and imaging, among other things. ClearPad, TouchView, ClearView, ConnectSmart, TouchPad, and SecurePad are some of the products offered by Synaptics. The company's solutions are used in smartphones, tablets, PC notebooks, laptops, cars, headsets & wearables, PC accessories, smart homes, docking stations, and other applications. It has offices in Japan, South Korea, Switzerland, India, Poland, the United Kingdom, Hong Kong, China, Taiwan, and the United States.

Synaptics is headquartered in San Jose, California, USA. Synaptics purchased Broadcom's wireless IoT unit in July 2020. The acquisition allows the former company to expand its market position in consumer IoT application areas. Broadcom can also concentrate on its core skills, semiconductor solutions, and infrastructure software.

Nuvoton Technology Corporation, headquartered in Hsinchu, Taiwan, is a leading semiconductor company. The company was formed in 2008 and has quickly established itself as a major player in the semiconductor sector. Nuvoton specializes in microcontroller design and production, audio and video solutions, and system-on-chip (SoC) products. Nuvoton provides various microcontroller products to industries and applications such as IoT, industrial automation, consumer electronics, and automotive. Nuvoton Technology Corporation introduced the NuMicro® M0A23/M0A21 family MCU in April 2021. The MCU can be used in automotive and industrial applications.

The MCU is excellent for compact form factor applications such as automotive lighting, battery management systems, body control, power applications, and ultrasonic radar control and is available in SSOP20 TSSOP28 packages.