IoT Microcontroller Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Type:

Based on the type, the market is segmented into 8 Bit, 16 Bit, and 32 Bit.

Trends in the type:

• The rising demand for improving performance in IoT-connected devices is driving the need for 32-bit microcontrollers.
• The deployment of IoT in consumer electronics, automotive, industrial, medical devices, and others is raising the need for 8-bit, 16-bit, and 32-bit microcontrollers.

The 32 Bit accounted for the largest revenue share of 45.91% in the year 2023.

• 32-bit microcontrollers have the ability to improve performance with enhanced features and are used in various embedded systems and applications for handling large amounts of data and performing high-speed processing.
• The application includes gaming systems, multimedia devices, high-end industrial automation, and advanced driver assistance systems (ADAS) among others.
• In November 2023, Renesas Electronics Corporation launched RX23E-B designed for high-end industrial sensor systems which features a 32-bit device for high-precision analog front end (AFE) and provides fast and accurate analog signal measurements.
• Thus, the ability to improve performance with enhanced features in various applications is driving the IoT microcontroller market trends.

The 8 Bit is anticipated to register the fastest CAGR during the forecast period.

• 8-bit microcontrollers have the ability to handle and process 8-bits of data due to the smaller width of the microcontroller which is suitable for simple and low processing power applications.
• 8-bit microcontrollers are majorly used in applications including smoke alarms, security, personal care, home appliances, and automobile electronic components.
• In November 2023, Silicon Labs expanded the microcontroller unit with the launch of the 8-bit microcontroller for catering to customers requiring optimal performance within budget.
• Therefore, the ability to handle low processing power applications such as smoke alarms, security, personal care, and others is anticipated to boost the IoT microcontroller market demand during the forecast period.

By Connectivity:

Based on the connectivity, the market is segmented into Wi-Fi, Bluetooth, ZigBee, cellular, and others.

Trends in connectivity:

• The ease of integration with Bluetooth, Wi-Fi, and ZigBee is increasing the use of wireless connectivity options to collect and analyze data from microcontrollers.
• The enhancement in connecting technology including 5G, blockchain, and edge computing is providing industry-specific solutions, sustainability, enhanced data analytics, and others.

Wi-Fi accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR during the forecast period.

• The rising demand for Wi-Fi 6 is due to the following factors including power-saving protocols, range enhancements, and spectrum additions as well as supporting high-throughput options for smartphones, laptops, and IoT devices.
• They offer a range of benefits including the secured protocol, enabling flexibility, reducing collisions, and improving the quality of service on the network.
• They are utilized in consumer electronics and other industrial applications that require longer-range, low-power connectivity solutions.
• In April 2021, Espressif Systems launched ESP32-C6 with features including a 32-bit RISC-V microcontroller, Wi-Fi 6, Bluetooth 5 (LE) SoC, and others. The Wi-Fi 6 is optimized to support IoT devices.
• Thus, the power-saving protocol and range enhancement factor in the Wi-Fi segment are driving the IoT microcontroller market expansion.

By Application:

Based on application, the market is segmented into industrial automation, smart home devices, advanced driver assistant systems (ADAS), wearable devices, medical devices, and others.

Trends in the application:

• The advanced driver assistant system (ADAS) is increasingly adopting IoT-based microcontrollers for enhancing voice-activated entertainment systems and autonomous driving capabilities.
• The trend towards Industry 4.0 is advancing microcontrollers with artificial intelligence and machine learning for managing automated manufacturing systems.

The industrial automation accounted for the largest revenue share in the year 2023.

• The rising demand for increasing productivity and reduced costs associated with human activity is boosting the need for automation in industries. The major purpose of a microcontroller is to interconnect components through a bus and provide safety by offering better control over machinery in industries.
• Further, rapid robust industrialization and the growing integration of IoT for remote monitoring and control of various heavy equipment are propelling the development of the IoT microcontroller market in industrial automation applications.
• In November 2021, ASIX Electronics Corporation launched the AX58400 EtherCAT Slave Controller with a Dual-Core MCU embedded with an ARM Cortex-M family dual-core microcontroller. The device is suitable for various industrial automation applications, including motion control, digital input and output control, sensor data acquisition, and robotics among others.
• Thus, the industrialization and integration of IoT with equipment to increase productivity and reduce costs is driving the IoT microcontroller market in industrial automation applications.

The smart home devices are anticipated to register the fastest CAGR during the forecast period.

• The smart home devices are embedded with IoT-based microcontrollers for remote monitoring and management of appliances and systems, including kitchen appliances, smart TVs, and others.
• Further, the growth of home automation and smart meter systems, along with IoT MCUs providing the ability to seamlessly manage and automate various home devices, is boosting smart home device applications.
• In April 2024, NXP Semiconductors launched the MCX MCU portfolio designed with Arm Cortex-M33-powered multiprotocol MCUs for smart home devices such as locks, lighting management, smart plugs, window coverings, and sensors.
• Therefore, the evolution of building automation and the ability to seamlessly manage and automate various home devices is driving the IoT microcontroller market opportunity for smart home devices during the forecast period.

By End Use:

Based on end-use, the market is segmented into Consumer Electronics, Automotive, Healthcare, Industrial, Energy & Utility, and Others.

Trends in the End-use:

• The trend towards remote patient monitoring systems is fueling the need for IoT-based microcontrollers in the healthcare sector.
• The trend towards the adoption of IoT MCUs in commercial vehicles for real-time tracking and fare collection is spurring the IoT microcontroller market trends.

The industrial segment accounted for the largest revenue share in the year 2023.

• The rising automation in various industries is boosting the need for IoT-based microcontrollers for seamlessly automating and controlling various components in the industry remotely.
• The major use of the integration is to enhance productivity and safety as well as improve the predictive maintenance feature for increasing the life of machinery.
• In January 2023, Syntiant Corp. launched NDP115 Neural Decision Processor embedded with Arm Cortex M0 microcontroller for applications including industrial solutions for predictive maintenance and consumer electronics.
• Thus, as per the analysis, the rising need for improving productivity and enhancing safety with predictive maintenance facilities is driving the IoT microcontroller market growth in the industrial segment.

The consumer electronics is anticipated to register the fastest CAGR during the forecast period.

• The role of IoT MCU is to optimize energy efficiency and enhance the performance and efficiency of consumer electronics.
• The smart thermostats used in homes are embedded with microcontrollers for remotely adjusting the room temperature and environment, majorly used in home applications as well as office spaces among others.
• Wearable devices such as fitness trackers and smartwatches rely on IoT MCU for monitoring vitals and providing notifications. Additionally, MCU ensures prolonged battery life and efficient performance for wearable devices.
• In June 2024, Innatera launched a neuromorphic microcontroller engineered with an always-on sensing feature for consumer electronics and IoT devices.
• Therefore, the ability to enhance performance and efficiency is anticipated to boost the market during the forecast period.