Low-Power Microcontrollers Is Fueling The Growth Of The Internet Of Things Microcontroller Market

Global IoT microcontroller market is estimated to be valued at US$ 6.04 Bn in 2024 and is expected to reach US$ 14.85 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 13.7% from 2024 to 2031.

Key Takeaways

Key players operating in the IoT Microcontroller market are Analog Devices Inc., Broadcom Inc., Espressif Systems (Shanghai) Co., Ltd., Holtek Semiconductor Inc., Infineon Technologies AG, Integrated Device Technology, Inc.,and Microchip Technology Inc.

The growing demand for connected and smart devices across various industries is driving significant growth of the IoT microcontroller market. With the proliferation of IoT applications, the need for low-cost microcontrollers that offer wireless connectivity and local processing is increasing.

Major players in the IoT Microcontroller Market Growth are also focusing on global expansion to tap the potential of IoT adoption in developing economies. Partnerships with regional technology players and support for various wireless technologies are strategies followed by companies to establish presence worldwide.

Market Drivers

The rising adoption of wireless connectivity solutions for diverse IoT devices is a key factor accelerating the IoT microcontroller market. Microcontrollers integrated with technologies such as WiFi, Bluetooth, and cellular enable cost-effective internet connectivity for appliances, sensors, and industrial equipment. This fuelling demand for systems-on-chip with integrated wireless capability.

Impact of current geopolitical situation on IoT Microcontroller Market growth

The ongoing geopolitical tensions and conflicts have impacted the growth of the global IoT microcontroller market. The trade restrictions and economic sanctions imposed by major countries have disrupted the supply chain and logistics of semiconductor chips and raw materials. This has constrained the production and availability of IoT microcontrollers for various applications. Furthermore, the shifts in regional trade policies and agreements have necessitated manufacturers to diversify their sourcing strategies and onshore chip manufacturing units across different geographic markets. This transition has posed significant operational and technological challenges for established players in the short run. However, the demand for domestically produced IoT devices and sensors has grown in many local and regional markets. To sustain future growth, companies need to develop global and regional partnerships, expand local manufacturing capabilities through strategic investments, and gain policy support in priority areas such as industrial IoT and smart infrastructure. They also need to closely monitor shifts in government subsidy and taxation policies impacting various application sectors.

Geographical regions with major concentration of IoT Microcontroller Market value

The IoT microcontroller market in terms of value is majorly concentrated in North America and Asia Pacific regions currently. North America accounts for the largest share due to high penetration of IoT solutions across sectors such as automotive, industrial automation, healthcare, and smart homes in developed countries like the US and Canada. Asia Pacific is the second largest regional market led by increasing industrial and infrastructure development activities in major economies including China, Japan, and South Korea. Moreover, the region is a major production and export hub for various electronic components including microchips. Governments in several Southeast Asian countries are also supporting digital transformation of key industries through initiatives like Industry 4.0 and Make in India, thereby creating new growth avenues.