Microcontroller Market Trends

Growth Drivers

• Increasing IoT (Internet of Things) devices - There is widespread adoption of microcontrollers in IoT systems owing to their affordability, compact size, and energy efficiency. It acts as a communication channel between the external environment and IoT devices. According to Research Nester analysis, in 2022 the global IoT connections showed a significant growth rate of 18.0% and achieved more than 14 billion active IoT endpoints.
  
  Additionally, microcontroller technology has advanced significantly as a result of the rise of an interconnected device network that includes smart meters, household appliances, security systems, tablets, game consoles, televisions, and smartphones. It is anticipated that this will increase demand for IoT microcontrollers.
   
• Demand for technology-based medical devices - There is a rising advancement of technology in medical devices and equipments that include wearables, diagnostic tools and medical implants.  People are becoming aware of their health and are using several wearable medical devices such as blood pressure monitors, heart rate monitors, spirometers, and many more.
  
  Furthermore, the National Library of Medicine in 2020 concluded that about 1/3^rd of U.S. adults use wearable healthcare devices, of which about 47% use these devices daily. These technologies assist patient care, increase diagnostic precision and offer a range of treatments. As a result, microcontrollers are in demand to manage and control these devices fostering microcontroller market expansion.
   
• Rising government initiatives - The automotive industry is shifting toward automation, connectivity, and electrification. Microcontrollers play a crucial role in these innovations, as they are used in essential parts of many automotive control systems, such as airbags, infotainment, advanced driver-assistance systems (ADAS), and anti-lock brakes. Several governments are strategically investing to boost domestic automobile manufacturing. For instance, the Government of India approved the Production Linked Initiative (PLI) in 2021 to provide a budgetary outlay of USD 3.5 billion from 2022 to 2027. This is projected to drive the automobile manufacturing value chain in the country, in turn, aiding the microcontroller market expansion.

Challenges

• Rising security concerns - The expansion of IoT connected devices and applications is increasing the risk of security breaches. When designing microcontrollers, security is the priority to prevent data breaches and unauthorized access. Furthermore, the microcontroller industry is subject to several laws and regulations from the automotive and medical device sectors. Manufacturers may find it costly and time-consuming to comply with these regulations, thus, hindering industry growth.
   
• Operational failure - To function consistently, an MCU requires a stable power network. When external interference continuously interrupts the MCU's power supply, the MCU may enter failure mode. A drop in the operating voltage may result in an MCU freezing or acting strangely.