Internet of Things (IoT) Microcontroller Market Size, Share, By Product, Power Consumption, Application, and Region - Trends, Analysis, and Forecast till 2035

• The internet of things (IoT) microcontroller market size will surpass USD 29.8 billion by 2035.
• Projections indicate that the market recorded a valuation of USD 7.2 billion in 2024.
• It is advancing with a CAGR of 16.9%.

Internet of things (IoT) microcontroller is a compact integrated circuit that acts as the brain of IoT devices, which manages various functions, such as processing, communication, and control. The target market is as rapidly growing segment of the global electronics and technology industry driven by the proliferation of IoT devices across various sectors, including smart homes, industrial automations, healthcare, and transportation.

For instance, in May 2024, Peak XV Partners-backed fabless semiconductor startup Mindgrove Technologies launched commercial high-performance SoC (system on chip). Named Secure IoT, it is designed for IoT devices and will likely cost 30% less than other chips in similar segments. Secure IoT is a high-performance microcontroller clocked at 700 MHz.

Key Takeaways:

• Asia Pacific held the largest share of the market in 2024 due to their significant investments in IoT infrastructure and government initiatives that promote technological advancements across the region.
• North America is expected to be the fastest-growing region in the market during the forecast period as this region benefits strong technological capabilities with major industry players in the region.
• By power consumption, the ultra-low power microcontrollers is expected to account for the largest share of the internet of things (IoT) microcontroller market in the upcoming years as these microcontrollers are becoming essential for prolonging device operation without frequent recharging or battery replacement.

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Increasing Adoption of IoT Devices across Industries is Expected to Boost Market Growth

The rising demand for IoT devices in smart home, healthcare, manufacturing and transportation is a major factor that boosts the internet of things (IoT) microcontroller market growth. IoT microcontrollers enables the seamless operation of devices such as smart meters, wearable health monitors and also industrial automation systems.

• For instance, in October 2024, Qualcomm introduced a new portfolio for industrial IoT for the AI era, leading the transition to connected intelligent end points and empowering developers and enterprises to build the next generation of edge AI solutions across industries.

Advanced Developments in Microcontrollers is Expected to Fuel Market Expansion

The creation of microcontrollers that are more energy efficient and have more computing capability is fueling target market expansion. Further, longer battery life and support for intricate IoT applications are made possible by these advancements.  

• For Instance, in May 2024, Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, announced the launch of its latest microcontroller series, the RA0E1 MCUs. Designed to meet the needs of a wide range of general-purpose applications, the RA0E1 series promises to deliver exceptional performance with ultra-low power consumption, making it an ideal choice for energy-efficient designs. 

Restraints:

Component Shortages Can Hamper the Target Market Growth

The semiconductor industry has faced significant challenges due to component shortages exacerbated by the COVID-19 pandemic. These supply chain issues hinders the production and availability of IoT microcontrollers, which impacts overall target market growth.

• Counterbalance Statements: Utilizing AI and machine learning for demand forecasting significantly improves the accuracy of predicting supply chain disruptions. Further, advanced analytics helps identify potential shortages before they occur allowing companies to take proactive measures. 

Opportunities & Market Trends:

Expansion of Smart Home Appliances to Boost Future Growth Opportunities

The increasing consumer demand for smart home technologies is creating opportunities for IoT microcontrollers. As more household appliances such as refrigerators, washing machines, and security systems, integrate IoT capabilities for remote monitoring and control the need for microcontrollers that support these functionalities is surging. This major factor significantly boosts revenues for microcontroller suppliers as manufacturers seek to develop IoT enabled products.

The internet of things (IoT) microcontroller market is classified into product, power consumption, application, and region.

Product:

The internet of things (IoT) microcontroller systems market by product is categorized into 8-bit microcontrollers, 16-bit microcontrollers, 32-bit microcontrollers, and others. The 32-bit microcontrollers segment is expected to dominate the market over the forecast period as their ability to support more complex applications and advanced features, such as machine learning algorithms, and multi-sensor data fusion, which are increasingly required in IoT devices.

• For instance, in May 2024, Renesas Electronics Corporation has announced the launch of industry’s first general-purpose 32-bit RISC-V-based microcontrollers (MCUs) built with an internally developed CPU core. Renesas claimed to have independently built and tested a new RISC-V core that is currently integrated into a commercial product and accessible globally, despite the fact that multiple MCU providers have recently entered investment alliances to further develop RISC-V products.

Power Consumption:

By power consumption, the Internet of things (IoT) microcontroller market is segmented into ultra-low power microcontrollers, standard power microcontrollers, and others. The ultra-low power microcontrollers segment dominates the focused market share as there is a growing emphasis on energy conservation across electronic applications which leads to higher demand for ultra-low power solutions in various sectors.

• For instance, in October 2024, MIKROE launched the New LR 11 Click Board, Enabling Ultra-Low Power 915MHz LoraWAN Data Communications for IoT. The board incorporates Ezurio’s 453-00139R LoraWAN module, which integrates the Silicon Labs EFR32 System on Chip and the Semtech SX1262 radio. 

Application:

Based on application, the Internet of things (IoT) microcontroller market is segmented into consumer electronics, industrial automation, smart homes, smart transportation & logistics, smart utilities, and others. The industrial automation segment holds the dominant internet of things (IoT) microcontroller market share as the demand for IoT microcontrollers in industrial settings is further supported by investments in smart factories and Industry 4.0 initiatives.

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: This region is accounted to have a largest share in the target market due to the rapid technological advancements, industrial expansion, and a growing consumer base. For instance, Japan government focuses on smart city projects and precision technology to strengthen its position in the industry, whereas India is developing tech sector that offers chances for expansion through strategic alliances and efforts.

• For instance, in May 2024, India is finally set to have made-in-India microcontroller chip powering electronic devices. Mindgrove Technologies, incubated by IIT Madras Pravartak Technologies Foundation and IIT Madras Incubation Cell, and supported by Peak XV Partners, has launched Secure IoT, India’s debut high-performance SoC (system on chip).

North America: This is largest and fastest-growing region in target market as it is driven by major expenditures in infrastructural projects, growing use of smart gadgets and technological developments. This region will probably continue to be a vital center for the development of IoT technology as long as major companies keep coming up with new ideas and solving market issues.

Internet of Things (IoT) Microcontroller Market Report Scope:

Segmentation:

By Product:

• 8-Bit Microcontrollers
• 16-Bit Microcontrollers
• 32-Bit Microcontrollers
• Others 

By Power Consumption:

• Ultra-low Power Microcontrollers
• Standard Power Microcontrollers
• Others

By Application:

• Consumer Electronics
• Industrial Automation
• Smart Homes
• Smart Transportation & Logistics
• Smart Utilities
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the internet of things (IoT) microcontroller market include Microchip Technology Inc., NXP Semiconductors N.V., and Texas Instruments, among others. The focused market is very competitive with well-established companies, which always aims to have new ideas to take market share as the need for connected devices rises. To succeed in this ever changing industry, major companies must prioritize energy efficiency, cutting-edge connectivity, and strong security features.

For instance, in May 2024, Global semiconductor company Infineon Technologies has introduced the PSoC 4 High Voltage Precision Analog (HVPA)-144K microcontroller, with which it addresses the automotive battery management sector by integrating high-precision analog and high-voltage subsystems on a single chip. It provides a fully integrated embedded system for monitoring and managing automotive 12 V lead-acid batteries, which is critical for the 12 V power supply of vehicles' electrical systems. The new microcontroller is ISO26262 compliant, enabling compact and safe intelligent battery sensing and battery management in modern vehicles.

List of Key Players in the Market:

• Microchip Technology Inc.
• NXP Semiconductors N.V.
• Texas Instruments
• STMicroelectronics
• Infineon Technologies AG
• Espressif Systems
• Nordic Semiconductor
• Silicon Labs
• Renesas Electronics Corporation
• Cypress Semiconductor
• Analog Devices
• ARM Holdings
• Qualcomm Technologies, Inc.
• Hewlett Packard Enterprise (HPE)
• Honeywell International Inc.

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• In November 2024, Texas Instruments (TI) has launched two series of its C2000 real-time microcontrollers including a 64bit version with custom logic and one with a neural processor. The 200Mhz F29H85x series is built with three new 64-bit C29x digital signal processor cores with a context aware memory protection unit and custom logic, while the 150MHz TMS320F28P55x series is the first TI C28x real-time microcontroller with an integrated neural processing unit (NPU), enabling fault detections with high accuracy and low latency.
• In November 2024, Frontgrade Gaisler has launched its latest radiation-hardened microcontroller, the GR716B. Building on the success of the GR716A, this latest innovation is a step forward in the development of energy-efficient and adaptable microcontrollers for space applications. As missions grow in complexity and ambition, the industry sees a growing need for technologies that not only deliver dependable performance over long durations, but also have the capabilities to manage a multitude of tasks.
• In November 2024, STMicroelectronics has announced the general availability of STM32WL33 wireless microcontrollers (MCUs). These microcontrollers incorporate the latest-generation sub-GHz long-range radio, Arm Cortex-M0+ core, tailored peripherals for smart-metering applications and power-saving enhancements. The new MCUs significantly facilitate the design of wireless solutions, reduce the time to market, and extend battery life.
• In September 2023, Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, announced a new addition to its popular RL78 microcontroller (MCU) Family that includes 8- and 16-bit devices for power-sensitive applications. The RL78/G24 features the highest performance among all the devices in the RL78 family, boosting its performance with an application-specific Flexible Application Accelerator (FAA) and a fast CPU that can achieve an operating frequency of 48MHz.

Analyst View:

Internet of Things (IoT) Microcontroller market is poised for robust growth driven by the escalating adoption of connected devices across diverse industries. The rapid advancements in lower power, high performance microcontrollers, and their integration with edge computing and AI capabilities are transforming IoT solutions to be smarter, more energy efficient, and highly responsive, which further accelerates target market growth in coming years.

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