March 23, 2012 — The global micro electro mechanical systems (MEMS) devices market will hit $11.3 billion by 2017, according to Global Industry Analysts Inc. (GIA).
In coming years, economies of scale will push costs of production lower, enabling faster replacement of current mass-market technologies with MEMS modules. High-volume manufacturing will gain in significance with the gradual commoditization of MEMS devices. MEMS manufacturing technologies like deep reactive ion etch (DRIE) and other process technologies in production and wafer-level bonding for MEMS packaging will positively benefit the market.
Increasing competition in the sector, along with technological advances and falling average selling prices (ASP), will help expand MEMS penetration into diverse applications.
Consumer and automotive electronics are primary growth drivers for MEMS devices, along with telecommunications and the medical end-use industries. MEMS are used in automotive electronics, hard disk drives (HDDs), wireless devices, medical equipment, smartphones and other portable electronics, among others.
Major MEMS players include Analog Devices Inc., Apogee Technology Inc., Bosch Sensortec, Colibrys Ltd., Coventor Inc., Epson Toyocom, Hewlett-Packard, InvenSense Inc., IntelliSense Software Corporation, Kavlico Corporation, Kistler Instrument Corp., LioniX BV, MEMSCAP S.A., Memsic Inc., Micralyne Inc., NeoPhotonics Corporation, Panasonic Corp., Sensonor Technologies, Silicon Microstructures, Inc., STMicroelectronics, TowerJazz, Texas Instruments Inc, among others.
In the medical industry, MEMS are being integrated into microfluidic devices, cancer detection, blood pressure monitoring, inhalers, microneedles, kidney dialysis, etc. MEMS-based insulin pumps and other forms of drug delivery boast enormous commercial potential in coming years. Improved medical & pharmaceutical infrastructure, and increased healthcare spending in emerging nations, will make China and India major medical MEMS spenders.
In the automotive industry, growth will stem from the use of MEMS sensors in government-mandated electronic stability systems (ESC) and tire-pressure monitoring systems (TPMS). More on automotive MEMS applications here.
Europe represents the largest market worldwide for MEMS. Asia-Pacific is forecast to emerge into the fastest growing market, with a projected CAGR of 12.2% over the analysis period. While all key end-user industries are busy recovering from the economic recession, in Europe the MEMS devices market is running into fresh set of challenges. The prolonged sovereign debt crisis, reduced consumer spending, slower economic growth, and troubles in the financial system of Europe are threatening the MEMS industry there, although GIA does not expect another cycle of downturn for the MEMS market. In Europe’s automotive industry, immediate production cutbacks are not likely. Shrewd expansion into developing countries to minimize risk exposure in domestic markets now has the automotive industry in the region better equipped to weather a possible Eurozone slowdown, and pockets of strength in places like Germany are buoying auto sales. Also, the 2007-2009 recession inspired adoption of leaner inventory holding strategies and restructured cost bases.
In the consumer electronics industry, there are emerging signs of consumers shifting to lower-priced products. The telecommunications industry in Europe has until now shown no signs of weakening.
In the industrial sector, despite the challenges ahead and uncertainties over the continued economic stability in Europe, most market indicators for the immediate-term future feature a largely positive outlook for the manufacturing industry in the year 2012.
GIA’s "Microelectromechanical Systems (MEMS) Devices: A Global Strategic Business Report" provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (in US$) for major geographic markets. End Use segments analyzed include Commercial/Industrial, Medical/BioMedical, Telecommunication, Computers, and Other Applications. The global MEM devices market is also analyzed by product categories, such as, Accelerometers, Gyroscopes, Inkjet heads, Wafer Probes & Optical MEMS, Pressure Sensors, and Others. Learn more at http://www.strategyr.com/MCP-1169.asp.