The United States leads growing global industrial semiconductor market

The industrial semiconductor market will post an 8 percent compound annual growth rate (CAGR), as revenue rises from $43.5 billion in 2014 to $59.5 billion in 2019. Increased capital spending and continued economic growth, especially in the United States, will spur demand and industrial semiconductor sales growth, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight. Commercial aircraft, LED lighting, digital video surveillance, climate control, traction and medical devices are driving most of the global demand for industrial semiconductors.

The greatest semiconductor growth will come from LEDs, which is expected to reach $14.5 billion in 2019, stemming from the global LED lighting boom. Discrete power transistors, thyristors, rectifiers and power diodes are expected to hit $7.8 billion in revenue, due to the policy shift toward energy efficiency in the factory automation market.

According to the IHS Industrial Semiconductors Intelligence Service, analog application-specific integrated circuits (ICs) can expect strong growth through 2019, reaching $4.7 billion in industrial markets, especially in factory automation, power and energy, and lighting. Growth will primarily come from various power management product portfolio offerings and device integration from Texas Instruments (TI), Analog Devices (ADI), NXP and other leading semiconductor firms. Microcontrollers (MCUs) are also expected to experience robust growth in the long term, growing from $4.4 billion to $6.3 billion, thanks to advances in power efficiency and integration features.

Total industrial original equipment manufacturing (OEM) factory revenue is forecast to grow at a CAGR of 5 percent, reaching $670 billion in 2019. Industrial OEM factory revenues specifically grew 6 percent in 2015 driven by increased sales in building and home-control, and military and civil aerospace sectors. High-growth categories include LED lighting, climate control, digital video surveillance products and commercial aircraft.

With its comparatively strong global economy, the United States accounted for 30 percent of all semiconductors used in industrial applications in 2015. China was the second largest industrial chip buyer, purchasing about 16 percent of all industrial semiconductors last year.

“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, industrial semiconductors, IHS Technology. “Strong industrial equipment demand will further boost sales of optical semiconductors, analog chips and discretes, which are the three largest industrial semiconductor product segments.”

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

NEW PRODUCTS

Edwards launches new vacuum pumps at SEMICON China 2016
03/15/2016Edwards announced the availability of two new vacuum pump product families at SEMICON China: the iXM Series for semiconductor etch and chemical v...
Low-outgassing Faraday Isolators to improve lifetime and reliability of optical systems
02/18/2016Qioptiq, an Excelitas Technologies company introduces the LINOS Low-outgassing Faraday Isolators, the first of th...
Versatile high throughput SEM from JEOL
11/04/2015JEOL's new JSM-IT100 is the latest addition to its InTouchScope Series of Scanning Electron Microscopes....