ARM Architecture

Microcontrollers Get a Raise from Automotive After 2021 Rebound

Common promoting costs for MCUs are anticipated to maneuver reasonably larger by means of 2026. Tight provides prompted ASPs to leap 10% in 2021—the largest enhance in 25 years, says quarterly replace.

March 30, 2022 — Microcontroller gross sales boomeranged again with sturdy progress within the financial restoration of 2021, when the MCU market climbed 23% to a record-high $19.6 billion after falling 2% within the 2020 outbreak 12 months of the Covid-19 virus disaster, in keeping with IC Insights’ 1Q Replace to its 2022 McClean Report. IC Insights is forecasting worldwide microcontroller gross sales to extend 10% in 2022 to achieve an all-time excessive of $21.5 billion (Determine 1), with automotive MCU progress outpacing most different end-use classes this 12 months.

Determine 1

A powerful 2021 rebound within the common promoting worth of microcontrollers lifted the ASP by 10% to $0.64, which was the pre-Covid-19 pandemic pricing common in 2019. The 2021 ASP enhance was the best annual progress fee for MCU promoting costs in additional than 25 years and resulted from tight provides of microcontrollers within the 2021 financial rebound. For 20 years, the MCU market has confronted important worth erosion, however the ASP decline slowed within the final 5 years. IC Insights now expects the ASP for MCUs to rise by a compound annual progress fee (CAGR) of three.5% between 2021 and 2026.

Bottlenecks in manufacturing and the availability chain held again whole MCU unit shipments progress to 12% in 2021, which raised worldwide deliveries of microcontrollers to an all-time excessive of 30.9 billion final 12 months. IC Insights’ forecast exhibits whole MCU shipments rising by a CAGR of three.0% within the five-year interval to 35.8 billion items in 2026.

Between 2021 and 2026, whole microcontroller gross sales are projected to extend by CAGR of 6.7% and attain $27.2 billion within the closing 12 months of the forecast. Within the subsequent 5 years, gross sales of 32-bit MCUs are anticipated to develop by a CAGR of 9.4% to hit $20.0 billion in 2026. In the meantime, 4/8-bit MCU gross sales are projected to indicate no progress over the subsequent 5 years, remaining caught at about $2.4 billion in 2026. Revenues for 16-bit microcontrollers are anticipated to rise by a CAGR of 1.6% within the 2021-2026 interval to $4.7 billion on the finish of the forecast.

The automotive droop and weak international financial system in 2019 contributed to a 9% drop in MCU shipments that 12 months, which was the worst unit decline because the 2009 semiconductor downturn (-11%). However surprisingly, MCU unit shipments rebounded in 2020, rising 8% regardless of the coronavirus disaster and widespread lockdowns to sluggish the pandemic. MCU demand within the 2020 virus disaster was pushed largely by gross sales of house leisure techniques and electronics being purchased by quarantined customers, together with large-screen TVs, Web of Issues-connected merchandise and extra sensors being packed into smartphones.

About 46% of microcontroller gross sales are generated by MCUs in “basic” embedded functions (together with smartphones, computer systems and peripherals, industrial makes use of, and client merchandise) whereas slightly over 40% come from automotive techniques, and 14% from the smartcard marketplace for banking, credit score and debit purchases, transit fares, identification playing cards, and different makes use of. Automotive MCU gross sales are anticipated to develop by a CAGR of seven.7% within the subsequent 5 years, whereas basic MCU revenues are forecast to extend 7.3%, and the smartcard section is projected to rise by an annual fee of 1.4% by means of 2026.

Report Particulars: The 2022 McClean Report

The McClean Report—A Full Evaluation and Forecast of the Semiconductor Trade, is now obtainable. A subscription to The McClean Report service consists of the January Semiconductor Trade Flash Report, which offers purchasers with IC Insights’ preliminary overview and forecast of the semiconductor business for this 12 months by means of 2026. As well as, the primary of 4 Quarterly Updates to the report was launched in February, with further Quarterly Updates to be launched in Could, August, and November of this 12 months. A person consumer license to the 2022 version of The McClean Report is obtainable for $5,390 and a multi-user worldwide company license is obtainable for $8,590. The Web entry password and the data accessible to obtain will probably be obtainable by means of November 2022.

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