MEMS in Consumer Electronics Not Child's Play Anymore
In-Stat/MDR, Scottsdale, Ariz. -- Semiconductor International, 2/1/2003
As far as the consumer electronics market is concerned, MEMS are slowly heading in the right direction. The technology is moving forward in terms of device development — increased unit shipments and, most importantly, price reduction — all of which will allow MEMS companies to capture market share in a growing number of applications. As a result, unit shipments of MEMS devices for consumer electronics products are forecast to increase from 5.2 million in 2001 to 189.4 million in 2006, at a compound annual growth rate (CAGR) of 105.2%.
Unfortunately, commercialization could be hindered by the inability to capture several promising applications because of a method patent that has recently come to light. Nevertheless, trends indicate that MEMS devices will be integrated into consumer electronics products at an increasingly rapid pace because of their ability to leapfrog existing technologies at a similar (or better) price point, and create entirely new opportunities with a level of functionality that didn't exist before.
In-Stat/MDR has also found that:
- Those devices that will impact this sector the most consist of accelerometers, gyros, microphones, optical MEMS, rf MEMS, and others. Key applications include home theater, camcorders, digital televisions, cell phones, and electronic toys.
- Depending on whether the workability of certain MEMS devices that are currently in development can be proven, other applications with strong potential include MP3 players, digital cameras, portable DVD players, set top boxes, and PDAs.
- Revenues for MEMS devices for consumer electronics products will rise to $613.5M in 2006 (at a CAGR of 21.5%), up from $124.3M in 2001 — despite average selling prices that will decline fairly steeply throughout the forecast period.
This Market Alert is drawn from the In-Stat/MDR report, "MEMS and Consumer Electronics: Two Steps Forward, One Step Back?", which provides an overview of the consumer electronics market and what role MEMS technology will play through 2006. First is an overview of what occurred in 2002 (in terms of product development, customer wins, etc.); the report then takes a look at what one can expect to happen in 2003 and beyond. It also discusses the devices that are finding their way into consumer electronics, who's developing them, and what the competitive challenges are. Key applications being pursued are outlined, as well as where MEMS fit, and an opportunity outlook for each application segment is also presented. Finally, the report concludes with a worldwide forecast of unit shipments, average selling price, and revenues through 2006.
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