Market research and consulting firm, Fact MR, forecasts the global market for IoT microcontrollers to flourish at a CAGR of 13%, reaching $17bn by 2032. Extensive reliance on the virtual space amid deepening internet penetration across multiple industrial domains has boded well for IoT microcontrollers’ market demand.
Historically, from 2015 to 2021, sales of IoT microcontrollers were at a CAGR of 10% to $4.6bn. Prospects further heightened during the COVID-19 pandemic, as the imposition of mandatory lockdowns led to a shift towards remote working. This led to increased reliance on IoT enabled devices, including smartphones, laptops and tablets.
Furthermore, the rapid development in IoT to offer technically developed devices is another salient cause that is likely to boost the market in the forecast period. Moreover, the rising popularity of fitness apps and the growing awareness about physical fitness are likely to provide significant opportunities for expansion in the forecast period. In addition, the increasing demand for low-power and energy-efficient connected products is predicted to fuel the industry significantly.
The market study also states that 32-bit IoT microcontroller sales will expand at a 15% value CAGR across the period of assessment, of Europe will account for 1/5th of global market demand for IoT microcontrollers in 2022, with the Asia Pacific to post significant gains, expected to surge at a rate of approximately 12% until 2032. Fact MR also expects that the market for IoT microcontrollers is likely to expand 3.4x until 2032.
Rising penetration of internet enabled devices, attributed to massive technological advancements, is widening the scope for high grade semiconductor manufacturing. This is providing a major impetus to IoT microcontroller sales, with manufacturers introducing high grade products, says the research firm.
Players in the global IoT microcontroller market focus on expanding their global reach through various strategies, such as partnerships and collaborations. The players are also making a significant investment in R&D to add innovations to their products which would help them in strengthening their position in the global market. Some of the recent developments among the key players are:
• In May 2020, NXP Semiconductor announced a collaboration with OKdo to develop E1, which is a single-board computer (SBC). The SBC comprises NXP’s LPC55S69 Microcontroller, which offers a high-performance and assists the companies to increase their consumer base.
• In February 2022, Infineon Technologies, a German Chipmaker announced its plan to invest more than 2 Bn Euros in a new frontend fab in Kulim, Malaysia. The investment is expected to offer an additional 2 Bn Euros in annual revenues from gallium nitride and silicon carbide.
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