The company says that industrial semiconductor revenues rose less than 1% in 2015 to reach $41.9billion. This follows growth of 11.5% in 2014 and 9.8% in 2013.
“Flat growth in the industrial semiconductor market last year is a bit discouraging, after a period of such robust growth,” said Robbie Galoso, IHS’ associate director, industrial semiconductors, “but there’s hope on the horizon. The industrial market showed resilience in 2015 and all signs are pointing to improving growth in the future.”
Broad based growth in industrial electronics gained momentum in the semiconductor industry, especially in products used for commercial aircraft, LED lighting, digital video surveillance, climate control, smart meters, traction, wireless application specific testers and medical electronics. However, weakness caused by falling oil prices and the slowdown in China – especially in factory automation and power and energy markets – stalled demand.
Texas Instruments maintained its position as the largest industrial semiconductor supplier, followed by Infineon Technologies and Intel. STMicroelectronics dropped to fourth place, while Analog Devices remained in fifth position.
Merger and acquisition activity in 2015 impacted some leading companies, according to Galoso. “Strategic acquisitions will continue to play a major role in shaping the overall semiconductor market rankings in key industrial semiconductor segments.”
An example is the merger between Freescale and NXP, which put NXP in seventh position. “The company will have a stronger presence in nearly all semiconductor device categories, especially in microcomponents, analogue and sensors,” Galoso noted.
Demand for industrial semiconductors is expected to grow at a compound annual growth rate of 8.4% until 2020, IHS predicts.
