Strong growth to continue for MCU market

19 October 2005 News

Propelled by communications and consumer markets, worldwide microcontroller (MCU) units shipped between 2004 and 2009 will increase at a CAGR of 10,3%, reports In-Stat.

This forecast is more positive than the percentage may imply, since the estimated CAGR is referenced to microcontrollers' stellar performance in 2004, when the industry delivered 6,8 billion units, (a year-to-year upside of 35%), says the high-tech market research firm.

2004 finally delivered an upside for 4 and 8-bit microcontrollers that justifies some degree of optimism, it says. These microcontrollers will continue to grow in unit shipments at a CAGR of approximately 8%, but ASP erosion will steal much of the anticipated revenue glory.

In its recent report In-Stat also found the following:

* The 4-bit MCU market is all about the consumer sector. Watches is the #1 application, taking the lion's share of unit consumption. The highest unit growth is also found in the consumer sector, led by toys, battery chargers and personal care appliances.

* As one might imagine, smartcards are to 8-bit MCUs as watches are to 4-bits. However, there are a far larger number of 8-bit MCU applications with double digit CAGRs through 2009. Of the 93 applications examined for 8-bit MCUs, 21 of them had double-digit growth while only four applications were experiencing negative double-digit CAGRs.

* Price of the lower-end 8-bit micro-controllers will continue to target replacement of 4-bit devices in new designs.

www.instat.com

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