MEMS revenue weak in 2005 despite strong shipment growth, says In-Stat

April 18, 2006 Scottsdale, AZ -- Worldwide revenue growth for sales of micro-electromechanical systems (MEMS) devices slowed dramatically in 2005, despite "very strong" unit shipments, according to a report from In-Stat, a high-tech market research firm. Nearly 1.8 billion MEMS devices were shipped in 2005, generating revenues of just under $7 billion, says the firm.

According to the report, inventory backlogs, weakness in key markets, and lower average selling prices all had a clear effect on the market. The firm says that, despite projected unit shipment growth exceeding 11% over the next five years, revenues for MEMS are forecasted to increase at a CAGR of just 6.8% through 2010 due to continued price reductions and the introduction of new MEMS devices with commodity-like pricing.

Also according to the report, the top twenty suppliers of MEMS devices maintained their dominance of the industry, accounting for more than 86% of total revenues in 2005; the automotive and computing segments, long mainstays of the MEMS industry in terms of both unit shipments and revenues, are projected to be displaced by the communications and industrial markets within the next five years.

The firm also forecasts that, with optical networking finally emerging as a growth segment, and with the rapid integration of RF MEMS and microphones in cell phones, the communications market will emerge as a key driver of overall growth.

The report, "An Industry in Transition: 2006 MEMS Forecast," presents an overview of the global MEMS industry and investigates trends that will impact the industry's future growth. The research contains more than 50 tables and charts quantifying the growth of MEMS, including worldwide forecasts by major MEMS device category, device type, and key markets through 2010. The report also lists the top twenty suppliers in 2005 by both unit shipments and revenues. The report is priced at $3,495.