MCU market rebounds after 2013 slump

The rise is attributed to the growing popularity of Internet of Things applications and wearable technologies, as well as the strong recovery in the smartcard market. IC Insights' mid year update shows worldwide MCU sales rising by a compound annual growth rate (CAGR) of 4.6% in the next five years, reaching nearly $19.1billion in 2018. The market is projected to reach new record high sales each year in the forecast period, with the exception of 2017, when the market is expected to dip by 1% due to the next anticipated economic slowdown. After declining 7% in 2013, worldwide MCU shipments are now forecast to climb 12% in 2014 and reach 18.1bn units this year, thanks to a strong rebound in 8 and 32bit smartcard microcontrollers. Smartcard MCUs represent nearly half of all microcontrollers shipped worldwide but generate less than 20% of the total dollar sales volume due to their low average selling price. IC Insights' mid year update shows smartcard MCU shipments rising 20% in 2014 to 8.7bn units, after a 23% drop in 2013. The rest of MCU units are forecast to increase 6% to 9.4bn devices in 2014 after rising 12% in 2013. "Overall, an explosion of 32bit microcontroller shipments is reshaping the market as suppliers aggressively promote more powerful MCU designs that are cost competitive with 8 and 16bit devices," the market research firm said in a statement. Between 2013 and 2018, total 32bit MCU sales are expected to grow by a CAGR of 9.5%, reaching $11bn in 2018. IC Insights sees 4/8bit MCU sales falling by a CAGR of 1.3% to $3.7bn in 2018, with 16bit revenues growing at an annual rate of 0.3%, remaining at $4.2bn in five years.