Microcontrollers expected to grow as IoT increases
With the increasing interest in connected cars, smart wearables and building automation, IoT﻿ applications are predicted to increase at a compound annual growth rate (CAGR) of 11% between now and 2020. This is a great deal more in comparison with ﻿the microcontroller market, which is projected to have a CAGR of just 4% for the next four years. IoT﻿ has a positive correlation with the microcontroller market and so the MCU market is expected to grow ﻿﻿from $1.7bn (2014) to $2.8bn (2019). 

The interest in connected cars, wearable electronics and building automation means these IoT applications are expected to grow at a compound annual growth rate (CAGR) of 11% over the next five years, according to market watcher IHS.

This is significantly more than the MCU market in general which is expected to grow at a CAGR of just 4% through 2019.

“What some still consider to be only hype surrounding emerging IoT trends has already begun disrupting the MCU market,” said Tom Hackenberg, senior analyst for IHS Technology. “The IoT trend has a strong relationship with the MCU market, as the small nodes used for connectivity, and sensor hubs to collect and log data, are primarily based on MCU platforms,” said Hackenberg.

The IoT related MCU market was worth $1.7bn in 2014 and predicted to reach $2.8bn in 2019.









According to Hackenberg, the industry’s challenge is to quantify this new opportunity, “since IoT is a conceptual trend, not a device, application or even a new feature.”

According to IHS, those semiconductor suppliers adopting loT-focused strategies are: Atmel, Broadcom, Cisco Systems, Freescale Semiconductor, Infineon Technologies, Intel, Microchip Technologies, NXP, Qualcomm, Renesas Electronics and Texas Instruments.