Communications and automotive applications are driving the global market for semiconductor chips, according to IC Insights: R. Colin Johnson
The communications and automotive IC markets are forecast to out-pace the growth of the total IC market through 2016 according to data in IC Insights’ soon-to-be-released IC Market Drivers 2013 — A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits. The communications segment is forecast to see a cumulative average annual growth rate of 14.1% from 2011-2016, almost double the 7.4% CAGR expected for the entire IC market during this timeframe. The automotive IC market is also expected to exceed total IC market growth during this period, growing at an average annual rate of 9.0%.
• The communications IC market is forecast to reach almost $160 billion in 2016, an increase of 94% from 2011. The Asia-Pacific region is forecast to represent 61% of the total communications IC market in 2012, increasing from 59% in 2011.
• At approximately $28.0 billion, the 2016 automotive IC market is forecast to be 53% greater than the size of the automotive IC market in 2011. Europe is the largest regional market for automotive ICs, accounting for 37% of the market in 2012. However, by 2016, the Asia-Pacific automotive market is forecast to be nearly the same size as the European market.
• An aging global population is driving demand for ICs in home healthcare and medical applications within the industrial segment. Analog ICs are forecast to represent 45% of the total industrial IC market in 2012, and are forecast to account for the largest portion of the industrial IC market through 2016.
• The worldwide government/military IC market is forecast to reach $2.46 billion in 2016 but represent only 0.7% of the total IC market at that time, the same percentage as in 2011.
• The computer IC market is forecast to represent 34.0% of the total IC market in 2016, down from 41.7% in 2011. A 12% decline in the computer memory market is expected to cause the total computer IC market to decline by 9% in 2012, the second consecutive year of decline.
• The 2011-2016 consumer IC market is forecast to register a 1.9% CAGR, slowest among all end-use categories and 5.5 points less than the total IC market. Japan, once the stronghold of the consumer electronics business, is forecast to hold less than half the share (22%) of the consumer IC market as compared to the Asia-Pacific region (50%) in 2012.