Microcontrollers can be found in all of the major electronics end-markets, yet the most opportunities for revenue growth will continue to be seen in the Automotive and Industrial markets, with some growth coming from the Communications market, due to the increases demand for next-generation handset components; and as with other ICs, production continues to move into the Asia Pacific region.
 
These components are typically classified according to external data bus bit width. For example, microcontrollers are found in 4-bit, 8-bit, 16-bit, 32-bit, 64-bit, and 128-bit resolutions. For the purposes of this report, Databeans classifies microcontrollers into three categories, according to bit resolution: 8-bit (and below), 16-bit, and 32-bit (and above).
 
Microcontrollers can also be categorized according to consumption market. They are utilized in all of the major markets, including automotive, computer, consumer, communications and industrial. Microcontrollers are utilized in the designs of a broad range of electronic applications. In fact, potentially hundreds of them could be found in the typical modern household. Commonly found electronics such as televisions, microwaves, stereos, dishwashers, cell phones, air conditioners, security systems, and digital cameras all contain microcontrollers.
 
The microcontrollers market reached a value of $13.9 billion in 2007, achieving a 5 percent share of the overall semiconductor market. This year, Databeans is expecting flatter revenue growth as compared to last year. Microcontrollers can be characterized as a consistent and steady market in terms of ongoing revenue growth. Top microcontroller market players include Renesas, Freescale, NEC, Fujitsu, Infineon, and Microchip, constituting a combined market share of about 65 percent.