PORTLAND, Ore.—The micro-electro-mechanical system (MEMS) chip market will grow to over $7 billion in 2010, according to analysts at iSuppli Corp. and Yole Development, who spoke at the MEMS Executive Congress Wednesday (Nov. 3) in Scottsdale, Ariz.
Both analysts forecast double-digit growth over the next five years, but Yole's growth prediction outpaced iSuppli's, projecting a $16 billion market by 2014. ISuppli projects that the market will be worth about $10 billion in 2014.
One difference in the two forecasts is emerging MEMS markets in borderline device like electronic-compasses, which Yole counts but iSuppli does not include. Also, iSuppli only counts microfluidic devices cast on silicon substrates, whereas Yole includes microfluidics on polymer and glass substrates.
In addition, iSuppli is forecasting that revenue from some fast-growing MEMS markets, such as gaming consoles, will saturate and flatten over the next few years as sharp declines in per unit pricing offset growing unit sales.
"We believe that the gaming market's use of accelerometers and gyroscopes will saturate next year," said Jérémie Bouchaud, principal analyst for MEMS at iSuppli.
Micro-electro-mechanical system (MEMS) markets will experience double-digit growth, from about $7 billion in 2010 to over $12 billion by 2014, according to iSuppli.
However, both Bouchaud and Jean-Christophe Eloy, Yole's president and CEO, agreed that the markets for new types of MEMS devices will experience explosive growth over the next five years. In particular, optical MEMS devices are being resurrected after several false starts to be a driving force in telecommunications. Also, both see pico projectors ramping up for strong growth in the consumer sector.
In the medical and industrial sectors, what iSuppli calls "high-value MEMS" are expected to experience strong growth, including MEMS sensors whose aim is to reduce energy consumption in building automation and power-generation--which iSuppli predicts will grow at over 25 percent per year--and medical MEMS devices for diagnostics and drug delivery that iSuppli predicts will grow at over 30 percent per year.