It’s no secret that Internet of Things (IoT) systems and connected devices in general have experienced significant growth. This includes home automation systems, smart meters, wireless sensors, and wearable devices. The basis of many of these devices are basic microcontrollers (MCUs), particularly in automobile engine-control systems, medical devices, office machines, power tools, remote controls, and other portable devices. Some of the leading companies in the global IoT MCU market are Texas Instruments, STMicroelectronics, Infineon, Freescale, and Atmel.

A new research report by Transparency Market Research (TMR) called The IoT MCU Market – A Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016–2024 offers strategic insights into the market.

The increasing installation of smart meters across different residential and commercial sectors is triggering the demand for IoT MCUs. However, the potential high power consumption of some of these devices coupled with their high cost is negatively influencing market growth. The security issues related to IoT devices is another key factor restraining the global IoT market.

Based on product type, the global IoT microcontroller market can be divided into 8-, 16-, and 32-bit MCUs. The latter accounted for the leading market share last year. The higher performance and larger memory footprint of typical 32-bit “IoT” MCUs enable extensive use across various applications. In addition, the price delta between 32 bits and 8 and 16 bits is shrinking.

We segment the markets into automotive, consumer electronics, medical devices, smart grid, and smart home products. The rising proliferation of smart electronic devices worldwide such as computers, mobile phones, tablets, and wearables is contributing to the growth of the segment. The continuous advancements in connected home appliances are also instrumental in the growth of this segment. The healthcare segment is likely to expand at a noteworthy growth rate during the forecast period. This growth can be attributed to the increasing investments on healthcare IT infrastructure across the globe.

In terms of geography, the key markets analyzed here are North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa. North America is anticipated to dominate throughout the forecast period. The presence of a large number of manufacturers and rapid technological advancements pertaining to smart devices are driving the North America market for IoT microcontrollers. Another factor assisting the growth of this region is the rising investments in projects such as smart grids and smart homes.

Asia Pacific is poised to rise at a significant CAGR during the same period owing to the increasing penetration of automation in the automotive industry and the growing demand for consumer electronics.

Khusro Khan is a web analyst at Transparency Market Research.