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Home > Press > Commodity-Level Prices and Tough Economic Conditions Slowing MEMS Growth

Abstract:
Research and Markets (www.researchandmarkets.com/reports/c93017) has announced the addition of "2008 MEMS Forecast" to their offering.

Commodity-Level Prices and Tough Economic Conditions Slowing MEMS Growth

DUBLIN, Ireland | Posted on May 28th, 2008

Although revenues for MEMS (micro-electro-mechanical systems) reached record levels in 2007, aggressive price reductions, legal wrangling, and rising pressure from competitive non-MEMS technologies took their toll on the MEMS industry. While sales of sensors for industrial automation surged, it wasn't enough to make up for significant revenue shortfalls in other core segments. Revenues for MEMS as a whole rose just 5.8% in 2007 to $8.6 billion, with numerous markets experiencing retrenchment.

Declines in automotive production, saturation of the consumer ink jet market, a change in direction for digital TVs, and even ongoing legal disputes are being compounded by record energy prices, low consumer confidence and recessionary conditions.

The march toward commodity-level pricing for tri-axis accelerometers (and gyro sensors) over the past two years means that the onus for growth now lies in driving unit shipments … a tough prospect in the short term. Those in the know have already turned their attention to industrial automation, and the combined use of GPS, RFID and MEMS sensors are projected to have a significant impact on commercial applications.

Beyond automation, there are a number of areas to watch. The shift from televisions to "pico-projectors" is rapidly evolving, and optical networking is making a comeback. RF MEMS may reach a turning point in 2009, but as with microphones, there are inherent business model problems. MEMS suppliers must also not dismiss the impact nanomaterials may eventually have on this industry.

Despite a few bright spots, overall near-term growth is projected to remain minimal. As a result, unit shipments of MEMS devices are forecast to increase at a CAGR of 6.4% through 2012, with revenues forecast to increase at a CAGR of 5.5% during the same period.

Some of the companies highlighted in the 2008 MEMS Forecast include: Analog Devices, Avago Technologies, Dell, FLIR Systems, FormFactor, Freescale Semiconductor, Emerson Electric, GE, Hewlett-Packard, Honeywell, Illumina, Infineon Technologies, Kodak, Microvision, Qualcomm, Schneider Electric, STMicroelectronics, Texas Instruments and Yokogawa.
CONTENTS:
Executive Summary
Methodology
A Look Back - The Past Twelve Months
- Acquisitions
- IPOs
- Venture Capital Funding
- Supplier Rankings
A Look Ahead - The Next Few Years
- The Nanotechnology Angle
- 2008 Forecast
Forecast by Product Category
- Overall Revenue
- Overall Unit Shipments
- Inertial Sensors
- Inertial Sensor Forecast
- Pressure Sensors
- Pressure Sensor Forecast
- Microfluidics
- Microfluidics Forecast
- All Other MEMS Products
- All Other MEMS Forecast
Forecast by Market
- Overall Revenues
- Overall Unit Shipments
- Automotive
- Computing
- Consumer
- Industrial
- Medical

--TABLES AND FIGURES ALSO INCLUDED--

####

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Laura Wood, Senior Manager,
Fax: +353 1 4100 980

Copyright © Business Wire 2008

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