This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
OUTLINE
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The processor market revenue is projected to hit ~US$244 billion in 2024.
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In the first quarter, the semiconductor market slowed with half of the top processor companies seeing declines, yet most still reported Year-over-Year growth.
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The microcontroller market revenue is expected to reach ~US$27 billion in 2024.
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The future of the MCU market is expected to see a healthy recovery, though a return to pre-pandemic market size expectations will take much longer.
Yole Group has recently updated its two computing monitors: Processor Market Monitor and Microcontroller Market Monitor. Check out the Q2-2024 updates now!
AI shines, propelling high-end processors
According to Yole Group, in the Processor Market Monitor Q2 2024, generative AI training in data center applications is currently the most prominent compute application. More broadly, compute serves as the backbone of the digital economy, powering every digital device with some type of processor.
As the first wave of GenAI-enabled PCs and smartphones reaches the market, a crucial question arises: “Is the new user experience compelling enough to drive increased demand for these end systems?” The processors in these devices feature new SoC elements designed specifically for AI computation and will continue to improve with each generation…
The MCU market for 2024 turns out to be as slow as expected
The Microcontroller Market Monitor observes that the MCU market revenue for 2024 is projected to decrease slightly from 2023, by less than 3%, even though shipments are expected to increase by more than 3%. The Q2 2024 MCU market experienced seasonal growth tempered by broader market dynamics, with revenue growing by less than 3% and shipments rising by 8%. This trend is influenced by several post-pandemic adjustments. Prices are finally decreasing from the highs driven by supply chain disruptions, such as capacity shortages, shipping delays, and stockpiling. As these issues are resolved, the new pricing structure is being supported by an improved product mix, enhanced features, and advancements in cutting-edge processes for better performance. Demand for 32-bit multicore MCUs, shifts from smartcard to embedded security, and application-specific logic have all helped drive prices up. However, 2024 will continue to see these market drivers amid sluggish growth in high-performance sectors like automotive and increased price competition from new, subsidized market entrants. Recent high global inflation has led consumers to seek more affordable options, which, combined with these factors, will likely moderate overall MCU revenue in 2024 while shipments continue to grow at a modest pace…
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