European microcontrollers face rising competition from mainland China

While 2022 ended on a positive note, the 2023 MCU market is expected to dip in the first half and gradually recover in the second. However, this recovery won’t be enough to prevent a slight overall decline. Replacement cycles from the COVID-19 pandemic-driven buying spikes are expected to persist. Inflation and global conflicts will continue through 2023, but signs of a recession are diminishing, announces Yole Intelligence.

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“The overall sentiment points to a small decline in MCU revenue to US$22.9 billion,” according to Tom Hachenberg, principal analyst, computing & software, within the semiconductor, memory & computing division at Yole Intelligence. “The short-term forecast is cautious due to ongoing global economic volatility, with inflation expected to decrease slightly, potentially signaling a modest recovery by 2025. MCU revenue is projected to reach about US$32 billion by 2028.”

Global MCU shipments are benefiting from a strong second half of 2023, but the weak first half is expected to lead to a decline to 26.5 billion units. The short-term MCU market for 2022 to 2028 faces uncertainty due to global geopolitics, while long-term demand for MCUs remains strong, driven by automation and connectivity, and is expected to grow to over 36.7 billion units by 2028.

Yole Intelligence recently releases its report on the microcontroller industry, which aims to provide a thorough presentation of the MCU market to companies, institutions, and individuals that need detailed, actionable market data for critical business decisions.