LONDON Government and military applications and handheld computer equipment are set to be the winning equipment applications for ICs over the next three years, according to market research firm IC Insights Inc. (Scottsdale, Ariz.). In contrast office equipment, industrial and medical equipment sales will show low growth, the market researcher said.
The compound annual growth rates for the various market sectors quoted by IC Insights for the period 2008 to 2013 are generally low as the factor in a fall in the market for electronic equipment in 2009; only the third time in history this has happened. The fall is set to be of 11 percent to $1.11 trillion (1,000 million) from a record high of $1.24 trillion in 2008,
The other two declines occurred in the last recession when electronics systems sales plunged 14 percent in 2001 and then fell another 4 percent in 2002.
The electronic equipment market is forecast to recover in 2010 with a 7 percent increase in the total value of shipments to $1.19 trillion. Another 9 percent increase in systems sales is expected in 2011, which will push worldwide electronics equipment revenues to a new record-high of $1.29 trillion, according to the market researcher.
In the 2009 downturn, automotive and consumer electronics market segments were hit the hardest with sales dropping 17 and 13 percent, respectively. Computer and office equipment sales in 2009 are estimated to be down 12 percent and 11 percent, respectively, while industrial systems revenues (including those for medical gear) are on pace to fall 9 percent in 2009. Government and military systems is the only major equipment segment to show growth in 2009, rising 3 percent.
Communications systems and automotive electronics are set to lead the recovery in 2010, with both categories advancing by 9 percent.