Consumer, mobile MEMS segments enjoy strong growth

The analyst cites increasingly diverse usage of the devices as the main driver. According to the report, global MEMS revenue accounted to $3.9billion in the first half of 2011 – up 7.2% from $3.6bn during the same period in 2010. IHS forecasts revenue of $7.9bn for the whole of 2011 – up 11.5% from $7.1bn in 2010. The most successful sectors were the consumer and mobile MEMS segments, although automotive sensor sales failed to match the previous year in terms of growth. As a result, many automotive companies have considered addressing this more lucrative segment. In the consumer and mobile MEMS market, STMicroelectronics led the field, with record revenue during the first two quarters of the year – up 155% in the first half compared to the same period in 2010. According to IHS, the record revenues are being driven by the fast adoption of 3-axis gyroscopes in the burgeoning markets for handsets and tablets. In the first half of 2011, new devices were introduced in the segment, such as MEMS joysticks for gaming, handsets and tablets and a new type of thermopile that measures the temperature of handset and tablet cases next to the processor. IHS forecasts that the market will generate 37% annual growth in 2011. IHS says there are a number of factors to blame for the struggling automotive MEMS sensors market, including lost production because of the Japanese earthquake. The peak of this impact occurred in the first half of 2011, with the overall loss in production said to total 2.8million cars. However, IHS believes 20% of this shortfall will be recovered in the second part of the year, resulting in an increase in automotive MEMS sensor demand. Jérémie Bouchaud, analyst at IHS says another factor affecting the market is the timing of safety mandates from various global governments, such as those requiring electronic stability control. "Mandates are essential drivers for automotive MEMS sensor sales," he said. "However, many of these mandates have deadlines that are one to two years in the future, allowing OEMs to slow their efforts to equip their cars in 2011, thus reducing demand for sensors." High value MEMS applications in the industrial, aerospace and medical markets continued the strong growth seen in 2010, with revenue growing by 31% in the first half of 2011. "This has encouraged many sensor companies, burned by the near collapse of the automotive market in 2009, to investigate this as a more stable area of growth, with potentially higher margins," stated Bouchard. "Growth is generally strong for both accelerometers and gyroscopes in the high value MEMS market. Many applications for gyroscopes are found in the industrial market, including machinery, off road equipment, ships, robots and platform navigation."