LONDON After falling back by 1 percent in 2007 the analog semiconductor market is set to grow by 10 percent to rise above $40 billion in 2008, according to Databeans Inc.
After that the market will kick on to reach $69 billion in 2013 for a five year compound annual growth rate of 11 percent. This growth should be fuelled by continued demand for wireless products as well as healthy revenue growth for analog power products. Together these segments account for over 40 percent of the entire 2007 analog market.
However, the analog market underperformed the overall chip market in 2007 with a 1 percent drop from a total of $36.9 billion in 2006 to $36.5 billion in 2007. The top ten suppliers in 2007 were the same as in 2006. Texas Instruments retained its lead in market share, followed by STMicroelectronics and Infineon Technologies, both of whom showed substantial year-on-year growth. Also showing growth were Analog Devices, Maxim Integrated Products, and Renesas Technology. The only change in the ranking was that Maxim overtook Freescale Semiconductor to move from 8th position to 7th position.
NXP remains the market leader within the analog wireless segment, but they are facing increasing competition from STMicroelectronics and Infineon Technologies who both saw a growth in wireless market share.
Among standard linear products, data converters and amplifiers experienced the highest growth at 18 percent and 11 percent, respectively. Application-specific analog products lost 6 percent overall from 2006. However, the application-specific automotive segment had a strong year, seeing revenues grow 21 percent from $3.6 billion to $4.4 billion. Despite losses in revenue from 2006 to 2007, the consumer and computer segments are still strong contributors to the overall analog market with a combined market share of over 18 percent.
The overall outlook for the analog market is positive as electronics continue to have high demand for both application-specific analog products and standard linear products. A large expected increase in total analog shipments will more than offset the expected decrease in average selling price of application-specific products, resulting in revenue growth for the entire analog segment.