In 2020 the market for microcontrollers will fall by 8 percent to $14.9 billion after dropping by 7 percent in 2019 from record high value of $17.6 billion in 2018, the market researcher estimates.
In 2019 the MCU market was hit by weakness in the global economy and the ubiquitious use of MCUs in vehicles, industrial and commercial equipment, home appliances, consumer electronics, and many other embedded systems applications has seen it impacted by the Covid-19 pandemic.
MCU market history and forecast by value, shipments and ASP. Source: IC Insights.
IC Insights is forecasting a rise of 5 percent in 2021 taking the MCU market back up to $15.7 billion in value, followed by increases of 8 percent in 2022 and 11 percent in 2023, when MCU revenues are forecast to hit the next record-high level of $18.8 billion.
In terms of units MCU shipments will fall by 8 percent in 2020 to 23.5 billion units after dropping 9 percent in 2019 and rising 9 percent in 2018. MCU shipments are forecast to rebound by 6 percent in 2021 to 24.9 billion units, followed by increases of 8 percent in 2022 and 10 percent in 2023, when worldwide MCU deliveries are projected reach a new record-high of level 29.6 billion.
The Covid-19 pandemic is hitting the major MCU end-use applications – including automotive, which is expected to account for 40 percent of microcontroller sales in 2020 ($6.0 billion), and industrial, which is forecast to represent 29 percent of the revenues this year ($4.3 billion).
These initial shocks from Covid-19 are likely to evolve into longer term weakness due to a slowing of the global economy.
Related links and articles: