SAN FRANCISCO—The industrial semiconductor market is expected to grow at a compound annual growth rate (CAGR) of 8% between 2014 and 2019, when it is projected to be worth $59.5 billion, according to a forecast from market research firm IHS Inc.
IHS (Englewood, Colo.) predicts that increased capital spending and continued economic growth, especially in the U.S., will spur demand for industrial semiconductors. The firm lists commercial aircraft, LED lighting, digital video surveillance, climate control, traction and medical devices as the drivers for most of the global demand for industrial ICs.
IHS estimates that the United States remains the largest market for industrial semiconductors, accounting for 30% of all chips used in industrial applications in 2015. China was the second largest industrial IC market, accounting for 16% of the global total, according to IHS.
Robbie Galoso, IHS
“Robust economic growth and increased capital spending in the United States is good news for industrial semiconductor suppliers, because they have the world’s largest industrial equipment makers, including General Electric, United Technologies and Boeing,” said Robbie Galoso, associate director for industrial semiconductors at IHS Technology, in a statement. “Strong industrial equipment demand will further boost sales of optical semiconductors, analog chips and discretes, which are the three largest industrial semiconductor product segments.”
LED lighting is expected to be the largest driver of industrial semiconductor growth. The LED market is forecast to be worth $14.5 billion in 2019, thanks to a boom in global LED lighting, IHS said.
The microcontroller market is expected to grow from $4.4 billion in 2014 to $6.3 billion in 2019, thanks largely to advances in power efficiency and integration, IHS said.
IHS projects that analog application-specific ICs will grow strongly through 2019, reaching $4.7 billion in industrial markets, especially in factory automation, power and energy and lighting. IHS expects growth to come primarily from power management products and device integration from firms such as Texas Instruments Inc., Analog Devices Inc., NXP Semiconductors NV and others.
The market for discrete power transistors, thyristors, rectifiers and power diodes is expected to grow to $7.8 billion in 2019, due to the policy shift toward energy efficiency in the factory automation market, IHS said.
—Dylan McGrath covers the semiconductor industry for EE Times.