Microcontrollers have become core building blocks of modern electronic products. Gaining momentum of IoT, cloud computing, smart consumer, lighting & power electronics, automation and wireless communication, have create a optimistic market for μcontrollers. India Microcontroller market shipments reached 4.1 million units in CY’Q4 2013, as per 6wresearch report. Let’s explore Indian μcontroller market with sectors differentials.
The microcontroller (MCU) is a ubiquitous semiconductor IC, present not only in electronics systems but also in nearly every machine/device/system/equipment used for applications as wide as agriculture to toothbrushes to space stations. Microcontrollers, which are one of the most widely used component in industries such as automobile and consumer electronics, have seen tremendous improvements in recent years in terms of increased number of applications as well as developments in technology. The driving factors for microcontrollers are growth of automotive industry, falling prices and increased adoption of touch-screen devices. The market faces limitation due to high competition in the market. Increasing adoption by Asian customers possess opportunities for future growth of the market. With the increased rate of consumer devices involving image, audio, and video processing, demand of digital signal processors have been positive. Also, the need for improved performance, fast time-to-market, increased customization, and lower risk of fatigue is profiting the Intellectual Property (IP) core chip companies tremendously. The ‘smart’ and ‘connected’ are the two key factors driving Microcontroller (MCU) market along with application like, IoT and wearable. Every application is becoming smart and better connected. Automotive and security/ID market is also pushing the growth. Much of the future of microcontroller market depends on user’s preference for IoT featured smart and connected devices, including mobile and wearable devices. As of now in early 2015, the momentum is good. Technological advancement in the automobile sector has given rise to the Microcontrollers, DSP, & IP-Core Chip Market. Consumers are demanding various solutions in automotive applications such as Advanced Driver Assistance Systems (ADAS), engine control unit, automotive infotainment, invehicle networking, and more, which has further lead the demand for microcontrollers. Smartphone market also witnesses the growth of the microcontroller market. Microcontroller is one of the important components in smartphone and is poised to witness major growth as the embedded processing is becoming more complex, which is further driving the market. Increasing the number of wireless devices and requirement of wireless infrastructure are increasing the demand of Digital Signal Processors (DSP). Wireless communication requires high signal performance at reduced power consumption, which has eventually enhanced the multi-core DSP market. IP video surveillance also drives the demand of DSPs that provide features such as remote monitoring, lower cost installation, and centralized backup and storage. EMITT Solutions estimates a total worldwide revenue of around 17 Billion US$ generated by microcontrollers in 2013. Due to the growth of IoT, connected home appliances in smart-home, solar power systems, smart energy systems and electricvehicles; EMITT Solutions forecasts a global microcontroller revenue growth of 15% in 2014 and 20% in 2015 and a shipment growth of 20% in 2014 and 30% in 2015. Though 8-bit microcontrollers are still very active, their share in the total microcontroller market is continuously falling. In 2014 EMITT solutions estimates the share of 8-bit microcontrollers in the total market to fall by 7-8%. Microchip and Atmel are the two top-leaders still maintaining some growth of shipment in the 8- bit microcontroller market. In the growing 32-bit microcontroller market, fast-growing ST Microelectronics and Texas instruments have increased their share significantly. However, Freescale Semiconductor and Renesas still remain at the top of the 32-bit microcontroller market. ST Microelectronics is the number one vendor of ARM Cortex based microcontrollers in 2013 with close competition from several vendors. With the growth in demand for devices with support of Internet of Things (IoT) feature, the Ethernet and other wireless interface such as ZigBee, Bluetooth featured integrated microcontroller chips are expected to be in demand in 2014 and 2015. Another important trend fast picking up is growth in use of devices called programmable SOC, which pack some amount of FPGA fabric as well as ARM Cortex based processor in hard form. The traditional microcontroller vendors are also adding an element of programmable silicon in their microcontrollers and traditional FPGA vendors launched chips combining both FPGA and ARM Cortex processor. The greater market success is that of FPGA vendors rather than MCU vendors. Key Highlights of μController market in CY F4 2013:
-More than 15 vendors shipped microcontrollers in Indian market
– Microcontrollers with 1024 bytes RAM, dominates India’s microcontroller market
– Microcontrollers with Flash Memory of less than 40 KB captured the major share
India μController Market overview by Mr. M N Vidyashankar, President, IESA
Microcontroller market is witnessing a very motivating appeal driven by IoT, automotive and other factors, global microcontroller market that was approx. 90 billion in Dec 2014 is expected to grow to 375 – 400 billion by 2020. Propionate growth graft we can see in India market that is expected to be approx. 15 billion dollars by 2020.. The interesting fact is that the market growth trend we are seeing has not been seen in last 5 years and projects bright turnouts in FY 2014 – 15 & 2015 – 16. The major sectors dominating μcontroller market are, Automotive, IoT & Industrial, Consumer & Smart grid & Medical electronics. If we state very specifically Indian market is expected to be 15 billion dollars by 2020, and the major differentials of the same could be defines as, – Automotive: 35% – IoT (in different segments): 30% – Consumer & Medical: 30% – Misc: 5% The most enhancing factors of Indian μcontroller market can be figured as: 1. Inclusive growth of automotive sector: Indian automotive market is seeing growth towards automotives & smart features in automotives that couples micro-controllers and embedded systems in every aspect of a car. Automotives are for-sure the biggest consumers of μcontrollers in India. Future trends like self-driving cars, V2V features and smart security will open new opportunities for μcontrollers on India roads. 2. IoT: Within the underline of IoT, cloud computing, smart grid and smart cities variable devices are the drivers of μcontroller market. Indian μcontroller market driven by IoT that is projected to approx. 15 billion US dollars by 2020 globally & close to 700 million dollars in India is fueling exponential growth of μcontrollers in India in next couple of years equipped in every phase of IoT net. In India govt. has initiated many smart cities projects that will incorporate micro-controller based advanced infrastructural & control aspects on every stage and it will a new market for controller industry to explore. The driving factors are: 1. Drastic trend towards up-ward automobiles 2. Medical electronics up gradations 3. New era of smart cities 4. Digital India campaign & increasing trend to wireless communication.
Automotive Market will dominate Global μController industry
To improve safety and enhance the enjoyment of driving, automobiles increasingly rely on sophisticated microcontrollers, dense flash memory and efficient analog products for a myriad of functions, including electronic controls, chassis and safety systems, powertrain and hybrid systems, and driver information systems. India is one of the biggest in-car entertainment markets in Asia-Pacific region. Over the years, India’s automobile sector has witnessed tremendous growth; however, during 2012-14, market registered sluggish demand, which affected the sales of passenger car segment in the country. This resulted into weaker demand for in-car entertainment systems. Driven by enhancements to emissions control and safety, as well as connectivity to the cloud and personal portable devices, the automotive semiconductor market is expected to reach $41 billion by 2021, up from $27.5 billion in 2013, according to Strategy Analytics, and the demand for microcontroller and power semiconductors will drive more than 40 percent of revenues. The automotive microcontroller market recovered in 2014 with shipments increasing by 16 percent to a new record high of 18.6 billion units, compared to the previous annual peak of 17.3 billion in 2012, according to IC Insights. Worldwide MCU shipments are forecast to grow 12 percent in 2015 with a 7.9 percent CAGR in the next five years, reaching 27.3 billion units in 2019. The market research firm forecasts worldwide microcontroller sales rising by a CAGR of 4.2 percent between 2014 and 2019, reaching $19.5 billion in 2019. Increasing installation of car entertainment systems in mid-size car segment would drive the growth of the market over the next six years. Further, with increasing competition and decline in average selling prices of in-car entertainment systems, the market would grow in the coming years. According to 6Wresearch, India In-Car Entertainment market is projected to grow at a CAGR of 5.3% during 2015- 21. In India’s in-car entertainment market, head unit and speaker have prominently fueled the growth of the overall market; however, emerging market of infotainment systems would drive the market in forecast period. The market for infotainment systems is increasing owing to rising consumer awareness, declining prices and growing concept of connected car in the country. In India, infotainment system market is witnessing growth in OEM segment, where car manufacturers are collaborating with the systems manufacturers to install these devices in mid-size car segment. Amongst all regions, northern, southern and western regions have generated majority of the market revenues of the overall market, whereas western region is expected to grow at relatively higher growth rate.
μControllers in IoT (Smart Cities, Industrial & Home Automation) Market
Microcontrollers are an essential element to control the operation of a machine using a fixed program that is stored in ROM and that does not change over the lifetime of the system. As industrial environments become more advanced and connected, automation technology is developing at a rapid pace. The industrial segment is the second major sector followed by automotive segment in terms of revenue share in 2013. In industrial sector, microcontrollers allow feedback control mechanisms and industrial automation to shore up advanced sensors. Commissioning of Smart Grid Projects to Create Market Opportunities in Advanced Metering Infrastructure and Grid Equipment” provides key information and analysis on the market opportunities in the global microcontroller (MCU) industry. Growing demand for devices such as smart electricity meters is expected to drive the market over the forecast period. This is mainly because these devices incorporate embedded systems in order to ensure accurate and desired functionality. The demand for smart meters is expected to continue increasing over the forecast period, on account of energy efficiency initiatives on a global level, thus giving impetus to the embedded systems market. Technological advancement as well as decreasing prices of microcontroller units is also expected to favorably impact the market over the forecast period. Embedded systems are used in numerous end-use industries; as a result, increasing demand from application areas such as healthcare and consumer electronics is expected to fuel market growth over the next six years. μcontroller usage in smart grid sector is increasing, as they provide greater reliability in power generation. Technology trends driving growth in the segment are: – Steady growth of devices connected to IP networks – Continued miniaturization of silicon chips, coupled with decreasing prices of components – Wearable wireless sensors as well as in-body sensors are expected to witness increased demand over the next six years – Demand for consumer electronics expected to continue increasing, particularly in developing markets – Mitigation of security risks due to high degree of connectivity is essential for market growth.
μControllers in Consumer & Medical Market
Consumer electronics products are increasingly popular as digital cameras, DVD recorders, printers and even light bulbs become more cost-effective and environmentally friendly. The improved quality and advanced features of such devices are made possible by advanced microcontrollers, flash memory and analog products. Consumer electronics occupied over 20% of the global market share in 2013. Increasing proliferation of these devices and technological advancement are expected to give impetus to the market over the forecast period. According to VDC Research, the market for embedded processing technologies is expected to grow to $40 billion by 2017 at a CAGR of 6.9%. As stated by Grand view report, the healthcare industry is expected to be the fastest growing segment over the forecast period. Medical electronics in particular have been gaining popularity in the past few years. Increasing healthcare expenditure has been generating need for affordable and superior medical equipment. Handheld and portable devices are made possible by embedding microcontrollers and ensuring miniaturization. These small-sized devices have witnessed high demand since they allow they allow remote monitoring and diagnostics.
Conclusion
Next 5-10 years will be a promising era for Indian micro-controller market, driven by increasing trend towards, intelligent cars, technocrat gadgets, IoT and smart cities. The futuristic opportunities in the country have already attracted global players in the industry to Indian sub-continent and it is expected that in coming times India will be among the biggest market conquered by automobiles for micro-controllers.
