October 27, 2011 — China will buy about 10% more micro electro mechanical systems (MEMS) in 2011 year-over-year, which is slower expansion than the 33% leap from 2009 to 2010. China’s efforts to dampen inflation are having an effect, shows data from the IHS iSuppli China Research report, which suggests that the market is "expanding at a healthy rate."
China MEMS revenue will reach $1.6 billion in 2011, growing to $2.6 billion in 2015, a 5-year compound annual growth rate (CAGR) of 12.1%.
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| Figure. China MEMS consumption (revenues). SOURCE: IHS iSuppli October 2011. |
The 33% growth seen in 2010 was driven by an expansion of China’s manufacturing capacity for MEMS-integrating products: mobile phones, automotive electronics, and consumer electronic devices. This, combined with financial incentives from a lending-inclined Chinese government, created an expansion that is unlikely to be repeated, IHS reports.
2011 and future revenue growth will come from 3 major trends: new consumer experiences, falling MEMS production costs, and rising demand for MEMS-heavy mobile electronics (smartphones and tablets). The decrease in production costs, IHS asserts, will result from an increase in suppliers and improvements to MEMS technology and production processes. Production costs will decrease quickly, IHS forecasts.
MEMS microphones, accelerometers and gyroscopes — integrated into mobile/consumer products — will grow the fastest in China’s MEMS market. IHS expects these MEMS to bring $1.3 billion in 2015 revenues, with a CAGR of 21% from 2011 to 2015. Automotive MEMS in China will see a 14% CAGR; industrial MEMS will hit 12% CAGR over the same period.
Read more in China is Ripe for Expected MEMS Market Growth in 2011 and Beyond at http://www.isuppli.com/China-Electronics-Supply-Chain/Pages/China-is-Ripe-for-Expected-MEMS-Market-Growth-in-2011-and-Beyond.aspx?MWX