Global IoT Microcontroller Market Report and Forecast 2024-2032

Global IoT Microcontroller Market Size

The global IoT microcontroller market was approximately USD 6.54 billion in 2023. The market is further projected to grow at a CAGR of 9.4% between 2024 and 2032, reaching a value of around USD 15.04 billion by 2032.

IoT Microcontroller Market Growth

Microcontrollers or small computer chips are widely used in IoT for controlling and monitoring various systems and devices. Microcontrollers are incorporated in actuators, sensors, and several other electronic components. They are an integral part of IoT systems and help collect process, and transfer sensor data using wired or wireless communication protocols to other systems.

The growing adoption of streaming services, artificial intelligence (AI), and the expansion of digital content across the globe is contributing to a massive surge in the development and use of cloud infrastructures, which increases the IoT microcontroller market value. The increasing use of connected devices for homes and efficient services is driving the market demand.

IoT Microcontroller Market Trends

The rising concerns regarding security with the increasing number of connected devices are leading to the integration of hardware-based security features in microcontrollers. These security features such as cryptographic accelerators, secure boot, and hardware random number generators protect data and guarantee the integrity of communications, which can contribute to the growth of the IoT microcontroller market.

Microcontrollers are being designed with higher power efficiency, enabling IoT devices to operate for longer periods. Microcontrollers offer low-power operation modes that enable the conservation of energy. The optimisation of power consumption ensures the operation of devices even in remote or hard-to-reach areas.

Recent Developments

As per the IoT microcontroller market analysis, Infineon, a Germany-based chipmaker, announced in August 2023 that it aims to invest an additional €5 billion to expand the production facility of a 200-mm SiC fab in Kulim, Malaysia. The company intends to increase its annual revenue for silicon carbide before the end of the decade.

Industry Outlook

As per the IoT microcontroller industry analysis, the IoT MCU (Microcontroller Unit) penetration witnessed growth throughout the years. For instance, the growth rate for IoT MCU was 17.7% in 2019. This growth rate is estimated to be 27.6% in 2024 and 29.3% in 2025, showcasing a rise in the usage of IoT microcontrollers across the world.

Market players are readily expanding their product portfolios to include next-gen technology that can cater to intelligent applications. For example, NXP announced the launch of a new MCX microcontroller portfolio in 2022 which consists of four series of devices that are built on the same platform. These four series are the superior-performance MCX N series, analogue-focused MCX A series, low-power and wireless connectivity MCX W series and ultra-low-power MCX L series. This product portfolio is expected to enhance innovation in smart homes, smart factories, and smart cities, among others. These series of devices are optimal for the next generation of applications that require complex functionalities with superior performance, which contributes to the growth of the IoT microcontroller industry.

STMicro also announced that it has launched an STM32WBA series, which consists of microcontrollers such as STM32WBA55, which are suitable for usage in Matter border routers. These microcontrollers follow the US and EU cybersecurity regulations, which makes them suitable for several IoT applications in these regions, which can boost the IoT microcontroller industry revenue.

Growing Adoption of IoT Devices and Smart Technologies Drives Market Expansion

• The proliferation of Internet of Things (IoT) devices across various industries, including smart homes, industrial automation, and healthcare, significantly boosts the demand for IoT microcontrollers.

• Rising consumer preference for smart home devices, such as smart thermostats, lighting, and security systems, drives IoT microcontroller demand.

• Technological advancements in microcontroller design, including enhanced processing power and energy efficiency, support the development of more sophisticated and capable IoT devices.

• Government initiatives and investments in smart city projects further propel the adoption of IoT technologies and the demand for microcontrollers.

Challenges in the Market Due to Security Concerns, Integration Issues, and Power Consumption

• Increasing security concerns related to IoT devices, including data breaches and hacking, necessitate the development of secure microcontroller solutions and hinder IoT microcontroller demand growth.

• Integration issues between various IoT devices and platforms can complicate the implementation and scalability of IoT solutions, posing a challenge for microcontroller manufacturers.

• Power consumption and battery life of IoT devices are critical factors, requiring microcontrollers to be highly energy-efficient to support long-term usage.

• The rapid pace of technological change in the IoT sector demands continuous innovation and adaptation from microcontroller manufacturers.

Emerging Trends in the IoT Microcontroller Sector Focus on Miniaturization, Connectivity, and AI Integration

• The trend towards miniaturisation in electronic devices drives the development of smaller, more powerful microcontrollers suitable for compact IoT devices which boosts IoT microcontroller demand forecast.

• Increasing demand for enhanced connectivity options, such as Bluetooth, Wi-Fi, and LPWAN, leads to the integration of advanced communication protocols in IoT microcontrollers.

• Growing integration of artificial intelligence (AI) and machine learning capabilities in microcontrollers enables more intelligent and autonomous IoT applications.

• Focus on developing ultra-low-power microcontrollers to support energy harvesting and long-term deployment of IoT devices in remote locations.

Economic Fluctuations, Rapid Technological Advances, and Competitive Pressures Influence Market Dynamics

• Economic fluctuations and changes in consumer spending can impact the demand for IoT devices and consequently affect the IoT microcontroller market revenue.

• Rapid technological advancements in the IoT space require microcontroller manufacturers to continuously innovate and stay ahead of the competition.

• Intense competition from global semiconductor companies drives the need for differentiation through improved performance, energy efficiency, and security features.

Key Players in the Global Market and Their Strategic Initiatives

Texas Instruments Incorporated

• Enhanced Connectivity Solutions: Developed IoT microcontrollers with advanced connectivity options such as Wi-Fi, Bluetooth, and Zigbee to support a wide range of IoT applications which fuels the demand of IoT microcontroller market. 

• Energy Efficiency: Focuses on creating ultra-low-power microcontrollers that extend battery life for IoT devices, catering to the growing demand for energy-efficient solutions.

Microchip Technology Inc.

• Security Features: Invests in integrating advanced security features into its IoT microcontrollers to protect against cyber threats and ensure data integrity.

• Ecosystem Development: Expands its development ecosystem by providing comprehensive software and hardware tools, making it easier for developers to create IoT solutions, which boosts IoT microcontroller market opportunities.

NXP Semiconductors N.V.

• Edge Computing Capabilities: Enhances IoT microcontrollers with edge computing capabilities, allowing for real-time data processing and analytics at the device level.

• Strategic Partnerships: Forms strategic partnerships with leading tech companies to co-develop and market innovative IoT solutions, expanding its market reach.

Renesas Electronics Corporation

• AI Integration: Integration of artificial intelligence (AI) capabilities into IoT microcontrollers is a crucial trend in IoT microcontroller market, enabling smarter and more autonomous IoT devices.

• Global Expansion: Pursues global market expansion by establishing new R&D centres and manufacturing facilities in key regions, enhancing its production capacity and innovation capabilities. 

IoT Microcontroller Industry Segmentations

Based on product, the market is segmented into 8 Bit, 16 Bit, and 32 Bit. On the basis of application, the market can be bifurcated into smart homes, industrial automation, and consumer electronics, among others. The major regional markets for IoT microcontroller are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global IoT microcontroller industry, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Qualcomm Incorporated 

• Intel Corporation  

• Microchip Technology Inc. 

• STMicroelectronics N.V. 

• Texas Instruments Incorporated 

• NXP Semiconductors N.V. 

• Infineon Technologies AG 

• Renesas Electronics Corporation 

• Holtek Semiconductor Inc. 

• Silicon Laboratories Inc. 

• Others

IoT Microcontroller Market Share by Application

Industrial automation is gaining traction and is being fuelled by the rising demand for improved productivity, efficiency, and cost reduction. Currently, more than 380,000 robots are incorporated in factories across the globe. Furthermore, the automotive sector is considered the largest user of robotic equipment, constituting about 70% of the sector.

As per the IoT microcontroller market dynamics and trends, With the evolution of technology, homes are being increasingly connected, providing various benefits like conveniences. IoT is considered the backbone of smart homes. It connects various devices in homes such as smartphones to the thermostat, and voice assistants to the doorbell, among others, hence improving their overall efficiency.

IoT Microcontroller Market Regional Analysis

The Asia Pacific represents a considerable portion of the IoT microcontroller market share. The growing economies of China and India are witnessing a transition towards automated industrial operations, and increasing use of electronic devices such as smartphones, and wearables. The presence of favourable government initiatives such as Made in China (MIC) 2025 and, the Production Linked Incentive (PLI) scheme in India is contributing to the expansion of automation in manufacturing and industrial sectors, boosting the demand for IoT microcontrollers.

China, a global electronics manufacturing hub, currently assembles more than half the mobile phones, a majority of printed circuit boards, and two-fifths of all semiconductors globally. The expansion of the consumer electronics sector in China is further aiding the IoT microcontroller market growth.

Competitive Landscape

Renesas Electronics Corporation is a Japanese company engaged in providing microcontrollers, analogue, power, and SoC products for a wide range of applications, including automotive, industrial, home electronics, office automation, and information communication technology. The Renesas RA microcontroller kit helps users develop sophisticated IoT and embedded systems applications.

Holtek Semiconductor Inc., established in 1998, is a prominent manufacturer of professional micro-controller IC design. The company specialises in the design, development, and sales of 8-bit and 32-bit MCU ICs and peripherals. The company offers its solutions to various sectors, including voice, communications, computer peripherals, home appliances, health measurement, automotive, industrial control, and security surveillance.

NXP Semiconductors N.V., headquartered in the Netherlands, is a renowned provider of embedded controllers for both the industrial and consumer markets. NXP provides a wide portfolio of 8-, 16- and 32-bit platforms with significant edge low-power, analogue, control and communications IP. The company has operations in more than 30 countries globally, with about 34,000 employees.

Other IoT microcontroller industry players include Qualcomm Incorporated, Intel Corporation, Microchip Technology Inc., STMicroelectronics N.V., Texas Instruments Incorporated, Infineon Technologies AG, and Silicon Laboratories Inc., among others.

Key Highlights of the Report

IoT Microcontroller Market Report Snapshots

IoT Microcontroller Market Size

IoT Microcontroller Market Growth

IoT Microcontroller Market Trends

IoT Microcontroller Companies

IoT Microcontroller Market Regional Analysis