April 30, 2012 — Mobile augmented reality and location-based services will be powered by more than 4 billion micro electro mechanical systems (MEMS) sensor devices — accelerometers; gyroscopes; magnetometers; pressure, humidity, and temperature sensors — by 2016, reports Juniper Research in “MEMS in Mobile.”

These inertial or motion sensors are already standard components in smartphones, tablets, and other mobile electronics, accounting for much of the MEMS device market volume. Annual revenues generated by MEMS devices built into mobile phones — sensor, audio, display, and RF uses — will exceed $6 billion by 2016.

Through 2016, MEMS will be integrated increasingly into these mobile devices, differentiating mobile device manufacturers with new capabilities and functionalities.

However, unit prices for MEMS devices are declining rapidly, reaching a lowest possible price point over the medium term in the next few years. MEMS sensor devices will witness a declining revenue share in the market (reaching 60% in 2016), as other categories including Audio & RF begin to contribute towards the total.

Vendors need guaranteed sales volumes to commit to price reductions, which will keep some newer application areas in flux.

Accelerometers and gyroscopes saw dramatic price reductions over the past few years, said Nitin Bhas, author of MEMS in Mobile. “Vendors need to create or add value to their products by incorporating more functions into a single MEMS device, thereby further reducing size, complexity, and cost.”

Also read: MEMS for mobile electronics

Access the report: MEMS the Word in Mobile. Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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