Is the Cellphone Industry, the Next Big Growth Area for MEMS Devices?

Yole has released a report dedicated to MEMS devices for cell phone applications. This report focuses on the diffusion rate of MEMS in cell phone applications and how companies like Knowles Acoustics and Avago Technologies have increased their sales from US$ 1M sales to US$ 50 M.

Currently, the cell phone industry is seen as the largest growth opportunity for MEMS devices in the next five years. Few MEMS-based sensor and actuator companies have found the right business case to penetrate the wireless handset market. So far 12 MEMS devices have potential applications. For example, silicon microphones and FBAR/BAW filters have experienced incredible growth since their introduction in 2003 and now they are entering the maturity stage. While MEMS accelerometers are in a strong development stage, many other MEMS products are at the emerging stage, including: gyroscope, microdisplay, micro autofocus and micro zoom. Products not yet in the emerging stage are pressure sensors, micromirror, RF switch/varicaps, oscillators, and micro-fuel cells—which are expected to experience a longer time to market.

The cell phone industry represents a complex challenge for MEMS. On one hand, MEMS manufacturers are focused on finding the appropriate price, power and size to enter the cell phone market. At the same time, they face the challenge of meeting the implementation rate of their MEMS products in their business plans. In additional, wireless handset manufacturers experience very different product development cycles in MEMS than the IC industry, so they are concerned about finding the right MEMS partners and having access to a precise and reliable product roadmap.

A Market Opportunity Representing US$ 2.5B in 2012
A 40% CAGR growth rate for MEMS components in the cell phone market, according to Yole. In 2007, cumulative sales reached US$ 440M for only three MEMS products in cell phone applications (silicon microphones, FBAR/BAW filters, and accelerometers). The market opportunity will represent over US$ 2.5B by 2012. The growth results from both replacement products and new functions. MEMS are expected to become a key driver for innovation in the cell phone industry. New cell phone features are expected to account for 60% of the total MEMS market by 2012.

For more information on the report, please visit the company’s website.

Yole Développement