Tag Archives: MEMS

Market Analysis

China Emerges as Worlds Fastest-Growing Automotive MEMS Market

Driven by the aggressive implementation of vehicle safety and pollution mandates, China has emerged as the world’s fastest-growing country for sales of automotive microelectromechanical systems (MEMS), according to a new IHS iSuppli Automotive MEMS Market Brief from information and analysis provider IHS.

China’s automotive MEMS market is expected to expand to $387.9 million in 2015, up from $194.3 million in 2010. This equates to a five-year compound annual growth rate of 14.8 % significantly higher than the worldwide average of 9%. “MEMS are a key enabling technology to improve the safety and reduce carbon emissions in motor vehicles,” commented Richard Dixon, senior analyst for MEMS and sensors at IHS. “With China’s car sales booming and its sensor usage soaring, the country’s automotive MEMS market is set for world-leading growth through the year 2015.”

Car market gets back in gear
The expansion of the global automotive MEMS market is being fueled by a revived passenger vehicle industry, which is projected to rebound from the economic slump. Production of passenger cars for the Chinese market is set to increase to 22.2 million units in 2015, up from 16.3 million in 2010.

Overall, China will remain the world’s third biggest user of automotive MEMS sensors during the five-year period, ahead of Japan and a collection of countries under the designation “Rest of the World.” North America will continue to lead the space, followed by Europe. Global automotive MEMS revenue is forecast to hit $2.9 billion in 2015, up more than 50 % from $1.9 billion in 2010.

Currently the largest automotive MEMS applications in terms of unit shipments are airbags, followed by silicon MEMS manifold absolute pressure (MAP) sensors needed for engine management. However, TPMS will outpace airbags in 2015.

One other application, electronic stability control to help prevent skidding in vehicles, is currently underpenetrated in China and will remain so unless there is a government mandate. Official government recommendations have set a national standard in China for TPMS, which should have come into effect during July but will ramp up in mid-2012. China is adopting TPMS ahead of Japan with an eye to the practical benefits that can be derived: The feature in vehicles not only saves lives but affects the environment, as correct tire pressure results in better mileage and less carbon emissions. China’s prominent role in implementing TPMS for its vehicles will accelerate the global TPMS market to a fitment rate of 73 % by 2015.

By next year, more high-end vehicle models in China will be equipped with TPMS ahead of other mandates, such as adaptive front headlights, brake assist and adaptive cruise control, IHS research indicates.

Market Analysis

Automotive MEMS Sensor Market to Reach Record High in 2010

Driven by the rapid recovery in automotive production and inventory rebuilding among sensor component suppliers, the market for automotive microelectromechanical system (MEMS) sensors will expand to record size in 2010, according to market research firm iSuppli, now a part of IHS Inc.

Marking a new high point for the industry, shipments of automotive MEMS sensors will reach 662.3 million units in 2010, up a robust 32.1% from 501.2 million units in 2009. The projected year-end levels – including the replenishment of inventory pipelines that were depleted during the recession of 2009 – will exceed even the pre-crisis high point in 2007 of 640 million sensors, iSuppli data research shows.

“The recovery in automotive MEMS shipments represents a happy turnaround from the depressed levels of 2009 when shipments cratered and reached a nadir, and the years ahead will provide additional room for expansion,” noted by Richard Dixon, Senior Analyst, MEMS and sensors at iSuppli.

Nonetheless, growth will slow in 2011, with shipments anticipated to climb just 7.3% as the market normalizes following the exuberance in 2010. Production then will pick up again in 2012, and growth rates end up north of 13% by 2014.

One significant engine of automotive MEMS growth is the use of sensors in passenger cars supporting mandated safety technologies such as electronic stability control (ESC) and tire pressure monitoring systems (TPMS).

The United States and Europe have led the adoption of legislation on such safety systems and other countries like Australia and Canada have quickly followed suit. However, similar mandates are now being adopted in South Korea and are expected in Japan, accelerating overall adoption rates worldwide. The extra opportunity from both ESC and TPMS for automotive MEMS suppliers to Japan and Korea will correspond to additional revenue of $120 million in those regions alone for the next five years.

China will also account for a large portion of the automotive MEMS action. Compared to U.S. or European vehicles, the electronics content of low- and mid-range vehicles in China is about 50% or less, but sensor penetration will steadily increase – first in power train application in order to reduce carbon emissions that choke Chinese cities and as safety sensors for additional airbags & ESC systems.

Among the new applications providing suppliers greater production opportunities for automotive MEMS sensors, the most prominent include usage of gas sensors to control air quality in the cabin; infrared thermopiles to monitor temperature; microbolometers to aid night-vision systems and MEMS oscillators to boost rear-view cameras.

iSuppli notes that some consumer-oriented MEMS sensor suppliers are making inroads into the automotive market, widening the pool of players participating in the space.

In particular STMicroelectronics – the leading MEMS supplier for consumer and mobile application and which so far has targeted non-safety critical applications in automotive such as car alarms and navigation – has now entered the airbag market with a high g accelerometer.

Market Analysis

Demand Surges for MEMS That Address Critical Issues

Leave a comment

According to the market research firm iSuppli Corp., capitalizing on a gamut of hot-button issues ranging from global warming to aging populations, the market for high-value Micro Electro Mechanical Systems (MEMS) is set for very rapid growth in a large number of highly diverse segments.

Revenue for high-value MEMS is projected to reach $1.6 billion in 2010, up 29.7 percent from $1.2 billion in 2009. Such revenue levels translate into equivalent MEMS shipments of 103.3 million units this year, compared to last year’s 86.8 million units.

High-value MEMS are defined as sensors and actuators for applications that are outside the high-volume consumer electronics and automotive volume markets, and instead address the industrial, medical, energy, optical telecom and aerospace-defense segments.

With the exception of the consumer-and-mobile MEMS market, the high-value MEMS space is the fastest-growing MEMS technology sector — ahead of the inkjet and automotive MEMS markets.

iSuppli’s supply chain research indicates that in 2014, high-value MEMS revenue will hit an estimated $2.6 billion, equating to a Compound Annual Growth Rate of 19.7 percent when measured from the starting year of 2009.

“The rapid growth of high-value MEMS is being driven by global trends that highlight the unique value proposition that the tiny devices bring to countless applications,” said Richard Dixon, PhD, Senior Analyst (MEMS & Sensors) at iSuppli. “For instance, MEMS micro valves, pressure sensors and flow sensors are used to help reduce energy consumption in industrial processes, residential heating and transportation systems. MEMS sensors and actuators also play an important role in less invasive monitoring procedures for patients and elderly people, while increasing the efficiency and comfort of drug delivery. And in China, fiber deployments in the country are helping stimulate the overall global optical MEMS market for telecommunications.”

In addition to the robust expansion expected for the years ahead, the high-value MEMS market is characterized by the large number of market niches in play; iSuppli currently tracks approximately 110 device and application cases in the various high-value MEMS segments.

For instance, while the top 20 suppliers for the overall MEMS market account for 79 percent of total revenue, the top 20 suppliers in high-value MEMS account for only 60 percent—leaving more market opportunities for many suppliers to compete in the space.

At present, the high-value MEMS supply chain comprises a wide variety of manufacturers, including large system companies with their own MEMS production like Honeywell Inc. and General Electric. The supply chain also includes big semiconductor companies like Analog Devices Inc. and Freescale Semiconductor; independent sensor suppliers such as VTI Technologies and Omron; specialized entities like MEMSCAP and many start-ups and lesser known semiconductor firms.

Within the high-value MEMS market, industrial applications such as building automation and semiconductor manufacturing dominate, accounting for approximately 56 percent of overall high-value MEMS revenue projected for 2010.Medical electronics are in second place, followed by aerospace-defense in third, and wired communications in fourth.