High-end MEMS Market Set for Rapid Growth

Capitalizing on a gamut of hot-button issues ranging from global warming to aging populations, the market for high-value Microelectromechanical Systems (MEMS) is set for very rapid growth in a large number of highly diverse segments, according to the market research firm iSuppli Corp.

Revenue for high-value MEMS is projected to reach $1.6 billion in 2010, up 29.7 percent from $1.2 billion in 2009. Such revenue levels translate into equivalent MEMS shipments of 103.3 million units this year, compared to last year’s 86.8 million units.

High-value MEMS are defined as sensors and actuators for applications that are outside the high-volume consumer electronics and automotive volume markets, and instead address the industrial, medical, energy, optical telecom and aerospace-defense segments.

With the exception of the consumer-and-mobile MEMS market, the high-value MEMS space is the fastest-growing MEMS technology sector—ahead of the inkjet and automotive MEMS markets.

In 2014, high-value MEMS revenue will hit an estimated $2.6 billion, equating to a compound annual growth rate of 19.7 percent when measured from the starting year of 2009, supply chain research from iSuppli indicates.

“The rapid growth of high-value MEMS is being driven by global trends that highlight the unique value proposition that the tiny devices bring to countless applications,” said Richard Dixon, senior analyst at iSuppli. “For instance, MEMS microvalves, pressure sensors and flow sensors are used to help reduce energy consumption in industrial processes, residential heating and transportation systems. MEMS sensors and actuators also play an important role in less invasive monitoring procedures for patients and elderly people, while increasing the efficiency and comfort of drug delivery. And in China, fiber deployments in the country are helping stimulate the overall global optical MEMS market for telecommunications.”

In addition to the robust expansion expected for the years ahead, the high-value MEMS market is characterized by the large number of market niches in play; iSuppli currently tracks approximately 110 device and application cases in the various high-value MEMS segments.

For instance, while the top 20 suppliers for the overall MEMS market account for 79 percent of total revenue, the top 20 suppliers in high-value MEMS account for only 60 percent—leaving more market opportunities for many suppliers to compete in the space.

At present, the high-value MEMS supply chain comprises a wide variety of manufacturers, including large system companies with their own MEMS production like Honeywell Inc. and General Electric. The supply chain also includes big semiconductor companies like Analog Devices Inc. and Freescale Semiconductor; independent sensor suppliers such as VTI Technologies and Omron; specialized entities like MEMSCAP and many start-ups and fabless semiconductor firms.

Within the high-value MEMS market, industrial applications such as building automation and semiconductor manufacturing dominate, accounting for approximately 56 percent of overall high-value MEMS revenue projected for 2010.

Medical electronics are in second place, followed by aerospace-defense in third, and wired communications in fourth.

iSuppli

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