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Duane Benson

10/29/2012 8:53 PM EDT

This really doesn't surprise me. With the Internet of Things coming on strong, I ...

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Communications to pass computers as top market for ICs

Dylan McGrath

10/29/2012 7:01 AM EDT

Automotive IC market growing
The computer IC market is forecast to represent 34 percent of the total IC market in 2016, down from 42 percent in 2011, IC Insights said. A 12 percent decline in the computer memory market is expected to cause the total computer IC market to decline by 9 percent this year, the second consecutive year of decline, according to the firm.

Meanwhile, IC Insights also forecast that the market for automotive ICs would grow 53 percent between 2011 and 2016, reaching $28 billion. Europe is the largest regional market for automotive ICs, accounting for 37 percent of the market in 2012, but the Asia-Pacific automotive is forecast to be nearly the same size as the European market, IC Insights said.

IC Insights further predicted an increase in demand for ICs in home healthcare and medical applications, driven in part by an aging population. Analog ICs are forecast to represent 45 percent of the total industrial IC market in 2012, and are forecast to account for the largest portion of the industrial IC market through 2016, IC Insights said.

The 2013 edition of IC Insights' "IC Market Drivers—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits" will be available starting next month, with prices starting at $3,190 for individual users.

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Duane Benson

10/29/2012 8:53 PM EDT

This really doesn't surprise me. With the Internet of Things coming on strong, I suspect that this trend will continue for quite a while.

However, as more things get connected, more things will have computing capability added in. As the computing capability in those devices grows, are the chips still considered communications? Or do they end up being classified as computers?

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