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Rising Demand from Automotive Industry Boosts Global Market for Microcontrollers

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Published on : Mar 22, 2016

The global market for microcontrollers or MCUs has been witnessing rising demand primarily due to the rapid expansion of the automotive industry. MCUs are used in a considerable number in any average automotive to ensure that it functions effectively. Additionally, with the integration of the latest features such as GPS and keyless entry, vehicles now require MCUs embedded with support circuits more than ever. 

Microcontrollers are circuits used in specific application. These circuits are predominantly embedded inside the devices or equipment they control. Hence, these circuits are also called embedded controllers. MCUs include peripherals, processors, and memory. Since, these circuits are mostly integrated in devices those require real-time control and human interaction, the market for MCUs gains momentum in response to the rising demand for touch sensing technology.

According to a report published by Transparency Market Research, the global MCUs market, which in 2011 stood at US$15.7 bn, is expected to reach US$28.49 bn by 2018, rising at a CAGR of 9.0% between 2011 and 2018. In terms of volume, the market stood at 10.64 billion units in 2011 and is expected to reach 29 billion units by the end of 2018, exhibiting an impressive CAGR of 16.0% CAGR from 2012 to 2018. 

Rising Demand for Smartphones and Tablets Boosts Global MCUs Market

The rising demand for smartphones, phablets, tablets, and smart devices is anticipated to subsequently boost the market microcontrollers. Also since MCUs are also embedded in the most widely used consumer electronics products such as microwave ovens, washing machines, and television, rising demand from the consumer electronics market will in turn fuel demand from the market for microcontrollers. 

Fragmented Nature of the Market May Hamper its Growth

Despite exhibiting strong growth prospects, the market witnesses challenges due to its moderately fragmented nature and the complexity created due to the sheer volume of tasks carried out by any enterprise on a daily bases. While the cut-throat competition prevailing in the market may negatively affect the growth targets of the enterprises operating in the market, the rising demand for advanced healthcare equipment will create novel opportunities for these companies to capitalize on in the near future.