MCUs are suffering the most among major IC product categories in the Pandemic, according to the Mid-Year Update of IC Insights’ 2020 McClean Reporton integrated circuits.

The mid-year forecast shows worldwide MCU sales falling 8% in 2020 to $14.9 billion after dropping 7% in 2019, when the weak global economy lowered the microcontroller market from record-high revenues of $17.6 billion in 2018 (Figure 1).

Figure 1

A modest recovery in MCU is now expected in 2021 with sales rising 5% to $15.7 billion, followed by increases of 8% in 2022 and 11% in 2023, when MCU revenues are forecast to hit the next record-high level of $18.8 billion.

IC Insights’ Mid-Year Update shows microcontroller shipments falling 8% in 2020 to 23.5 billion units after dropping 9% in 2019 and rising 9% in 2018.

MCU shipments are forecast to rebound by 6% in 2021 to 24.9 billion units, followed by increases of 8% in 2022 and 10% in 2023, when worldwide MCU deliveries are projected reach a new record-high of level 29.6 billion.

Ironically, the pervasiveness of  MCUs in systems is playing against MCUs in the coronavirus crisis, which has crippled most end-use market applications this year.

Computer demand is getting a lift from increased Internet usage by consumers, schools, and businesses in the virus pandemic, but these systems are expected to only account for 4% of MCU sales in 2020.

The pandemic is pulling down the major MCU end-use applications—including automotive, which is expected to account for 40% of microcontroller sales in 2020 ($6.0 billion) and industrial, which is forecast to represent 29% of the revenues this year ($4.3 billion).