SAN FRANCISCO—China's microcontroller market is expected to reach $4.7 billion in revenue in 2015, up by more than two-thirds from $2.8 billion in 2010, according to a new report by market research firm IHS iSuppli.
"Government plans designed to stimulate growth in the electronics business helped the China MCU market post robust growth last year, up 40 percent from $1.9 billion in 2009,” said Alex Liu, analyst for China electronics research at IHS. “Those initiatives, along with a strong recovery in spending from consumers and in the industrial sector, will help to expand the China MCU market to $4.7 billion by 2015."
Liu said the Chinese government is also making a $600 billion investment in the country’s infrastructure and emerging technologies and providing subsidies for home appliances and automobiles and stimulus programs for green technology.
The government’s moves helped mitigate the global economic downturn of late 2008 and 2009 in the China MCU space, which experienced a 12 percent decline during the period, compared to a decline of 23 percent in the global MCU market, according to IHS iSuppli.
But prospects for MCUs in China are up once again, IHS iSuppli said.
The largest market for MCUs in China is the industrial sector. In 2010, MCU revenue in this segment amounted to $783 million, which came from greater requirements of industry equipment for MCUs, particularly in information management, data processing and communication, according to IHS iSuppli. The firm expects the consumer electronics market for MCUs in China will grow at a compound annual growth rate (CAGR) of 10 percent in the next five years.
The automotive electronics market, the fastest growing market for MCU consumption in China, is expected to increase its demand for MCU, creating a 16.5 percent CAGR for MCUs in automotive electronics from 2011 to 2015, IHS iSuppli said.
The largest market in the foreseeable future for the China MCU market will be the 8-bit devices that are used in the consumer, data processing and industrial segments, IHS iSuppli predicted. But 8-bit MCUs gradually will lose share in various markets to higher-bit MCUs with their better performance and lower costs, the firm said.