The Growing Usage Of Connected Devices Will Contribute To The Growth Of The IoT Microcontroller Market: Cognitive Market Research

Global IoT Microcontroller Market Overview

Product Overview and Scope of IoT Microcontroller

The market for Internet of Things (IoT) microcontrollers had been expanding rapidly and experiencing considerable change across numerous industries. The digital revolution is being led by IoT microcontrollers, which are enabling the growth of smart gadgets, networked systems, and intelligent automation. They enable the integration of sensors, actuators, and communication interfaces, giving IoT devices the ability to gather and send data, make decisions in real-time, and communicate with the cloud and other IoT devices. 

The rising demand for smart and connected devices in industries like healthcare, automotive, industrial automation, agricultural, and consumer electronics are significant drivers of this market's rapid increase. For instance, in 2020, the number of connected devices was 8.6 billion which increased to 13.14 billion in 2022. Additionally, there has been a significant increase in the adoption of IoT across numerous verticals as a result of the growing emphasis on improving energy efficiency, optimizing resource use, and streamlining procedures. For instance, in 2023, according to the Australian Technology News the number of IoT connections grew by 18% in 2022 which reached 14.3 billion active IoT endpoints which is anticipated to increase by 16% in 2023. The IoT microcontroller market is experiencing intense competition, with well-established semiconductor companies, modern start-ups, and rising competitors. To meet the various demands of IoT applications, businesses are continuously spending in research and development and new product launches to provide more secure, cost-effective, and power-efficient microcontrollers. For instance, Renesas Electronic Corporation, a leading provider of innovative semiconductor solutions in 2022, launched two new cloud development kits, the CK-RA6M5 and CK-RX65N. These kits offer a full connectivity solution for the 32-bit RA and RX MCUs.

Global IoT Microcontroller Market –Industry Analysis

Market Drivers

• Growing Usage of Connected Devices

The growing usage of connected devices and an increase in cyberattacks on Internet of Things (IoT) devices are contributing to the growth of the IoT MCU market. In addition, there is an increasing demand for silicon manufacturers of microcontrollers (MCUs) to have security built into IoT devices. IoT devices are used in almost various types of industry verticals and consumer markets, with the consumer segment accounting for around 60 % of all IoT-connected devices in 2020. In addition, IoT devices in the consumer segment are consumer internet & media devices such as smartphones, where the number of IoT devices is expected to grow to over 17 billion by the end of 2030. Other IoT devices are connected vehicles, IT infrastructure, asset tracking & monitoring, and smart grid. With the growing security concerns, secure MCUs incorporate hardware-based cryptographic engines for secure key storage, encryption, and decryption operations. These capabilities enable secure communication between IoT devices and cloud servers, ensuring data privacy and integrity

• Growing Demand for Smart Gadgets

• Rising Adoption of Industrial Automation

Global IoT Microcontroller Revenue by Region (2018-2023)

Global IoT Microcontroller Revenue and Market Share (%) by Region (2018-2023)

Global IoT Microcontroller Revenue (USD Million) by Region (2018-2023)

Global IoT Microcontroller market was valued at USD 6,282.02 Million, in 2022 and is expected to grow at a CAGR of 13.37% over the forecast period, from 2023 to 2030.

Global IoT Microcontroller Market-Related Reports

•    Global Microcontroller Market
•    Global Smart Homes Market
•    Global Consumer IoT Market
•    Global Semiconductor Market

Global IoT Microcontroller Market Segmentation Analysis

Global IoT Microcontroller Market Segmentation Analysis by Application

•    Industrial Automation
•    Automotive
•    Smart Homes
•    Consumer Electronics
•    Others (Smart Utility, Smart Transportation & Logistics, Smart Retail, and Other Enterprise Application)

Global IoT Microcontroller Market, by Application

Source: Cognitive Market Research

Based on application, the smart homes segment is expected to grow at the highest CAGR during the forecast period. This is attributed to the increasing demand for smart household appliances. The rise in demand for safe, secure, and energy-efficient applications like lighting, infotainment, and HVAC and energy management. In addition, the increasing demand for smart microcontroller architecture. For instance, in 2019, NXP Semiconductors announced Alexa Voice Service (AVS) Integration for AWS IoT Core to facilitate the microcontroller-enabled smart home Internet of Things device with Alexa Built-in. iDevices, the smart home division of Hubbell Incorporated, launched Instinct, the smart light switch with Alexa Built-in. Furthermore, IoT microcontrollers are a suitable device that supports the desired protocol, such as Wi-Fi, Bluetooth, LoRa, or Zigbee, and program it with an IoT platform, such as Arduino, ESP32, or Raspberry Pi, that can connect to the cloud or a local server. Thus, smart homes IoT microcontrollers propel growth in the global market during the forecast period.

Global IoT Microcontroller Market by Product:

•    8 bits
•    16 bits
•    32 bits

Global IoT Microcontroller Market Players

•    Infineon Technologies AG
•    Microchip Technology Inc.
•    Broadcom
•    Renesas Electronics Corporation
•    Silicon Laboratories
•    Espressif Systems
•    Holtek Semiconductor
•    Nuvoton Technology Corporation
•    NXP Semiconductors
•    STMicroelectronics
•    Texas Instruments Incorporated
•    Others

Global IoT Microcontroller Manufacturers Profiles/Analysis

Infineon Technologies AG

Infineon Technologies AG Company Basic Information, and Sales Area

Business Segment/ Overview:

Infineon Technologies AG is a Germany based provider of semiconductor solutions. The company has organized its operations in four segments including Automotive, Industrial Power Control, Power & Sensor Systems and Connected Secure Systems. The company offers wide range of products including power, ASIC, battery management ICs, clocks & timing solutions, ESD and surge protection, HiRel, Memories, microcontroller, RF, security & smart card solutions, and others.

The product and services included in the portfolio finds its application in several sector, which includes automotive, industrial and power management, security solutions.

Business Strategy

Infineon Technologies AG has significantly invested in R&D to enhance its portfolio with new and innovative products. For instance, it has launched a new generation of its AURIX microcontroller family (MCU). The company focuses on the expansion of its operations across locations to enhance the growth of the company. For instance, it has expanded its existing backend operations in Indonesia: PT Infineon Technologies Batam to purchase real estate from PT Unisem, a member of Unisem Group.

Infineon Technologies AG has introduced advanced technologies, IoT, AI technology in several segments, which is expected to accelerate the growth of the company. The company is engaged in organic and inorganic development, which includes the acquisition of key manufacturers such as Cypress, which is expected to expand and strengthened the portfolio of the company. Infineon Technologies AG has received several accolades, which include awards and recognition, which is expected to enhance the brand recognition of the company. The company has established a significant hold in the market with the expansion of its business operation across regions.