As we enter the final stretch of what has been a generally disastrous year, we can take stock of the damage that Covid-19 has caused to the economy. New research from Technavio suggests that the microcontroller market might be one of the luckier sectors.
Microcontroller Market Highlights
Covid-19 has hit the global economy hard. But the microcontroller market has shown an unexpected resilience. With much of the tech sector fairing better than other parts of the economy, microcontroller sales have remained reasonably upbeat. The microcontroller markets’ predicted year-on-year growth for 2020 is 2.39%.
The anticipated growth has been driven primarily by 32-bit microcontrollers, which offer additional functionality at a relatively low cost compared to their 16-bit counterparts. They are also finding a natural home in applications where wireless systems monitoring is needed.
Combined with the abundance of sensors and other components you can augment them with, 32-bit microcontrollers are popular with professionals and hobbyists alike. Thanks to services like Octopart, which enables you to search for electronic parts online and find suppliers.
As the range of microcontroller-based products available to consumers and businesses has increased, both markets have seen strong growth. 32-bit microcontrollers dominate in these areas as well.
Regional Analysis
A significant majority of this years’ growth is coming from the APAC region. APAC alone accounts for 63% of the industry’s overall growth. This disparity reflects the high concentration of OEMs and ODMs across the sectors that APAC caters to. The Asia-Pacific region has been at the forefront of electronics manufacturing for decades now.
China, South Korea, and Japan are the big three for microcontroller manufacturing. However, Vietnam and Thailand have both becoming serious competitors in recent years. These three nations will be spearheading development in the region.
What Lies Ahead?
The microcontroller market’s strong performance suggests that this might be another sector that can weather the Covid-19 storm if businesses play their cards right. Forecasters are predicting a cumulative annual growth rate of just under 6% for the period forecast.
Not all segments of the microcontroller market will perform the same. In addition to the aforementioned regional variations, the 8-bit, 16-bit, and 32-bit microcontroller markets are courting different audiences. As time goes on, the overlap decreases and specialized boards within each category are becoming the norm.
About Technavio
All the facts and statistics outlined above come from a report issued by Technavio. Technavio is a global consultancy and technology research company. They specialize in identifying market trends and helping businesses to capitalize on them. To compile this report, Technavio employed 500 analysis specialists and drew in more than 17,000 reports covering 800 individual technologies. In other words, this was a very comprehensive study.
At the beginning of the Covid-19 pandemic, no one knew how the virus would ultimately impact the economy. Its effects have been uneven. Some sectors have been devastated while others have thrived. Most have suffered damage, but not to the same extent.
Technavio’s research suggests that the future is bright for the microcontroller market. Not only does it seem as if the market will survive, but it might be able to exceed growth forecasts. However, outside the APAC region, the market is not as prosperous.