Revenue growth for sales of MEMS devices worldwide slowed dramatically in 2005, despite the fact that unit shipments were very strong, reports In-Stat. Nearly 1.8 billion MEMS devices were shipped in 2005, generating revenues of just under $7 B, the high tech market research firm says. In-Stat found that inventory backlogs, weakness in key markets and lower average selling prices all clearly had an effect. Despite projected unit shipment growth exceeding 11 percent over the next five years, revenues are forecast to increase at a compound annual growth rate of just 6.8 percent through 2010 due to continued price reductions, as well as the introduction of new MEMS devices with commodity-like pricing.

Recent research by In-Stat found the following:

  • The top 20 suppliers of MEMS devices maintained their dominance of the industry, accounting for more than 86 percent 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 displacedby the communications and industrial markets within the next five years.

  • With optical networks finally emerging as a growth segment, as well as the rapid integration of RF MEMS and microphones in cell phones, the communications market will be a key driver of overall growth.

The research, β€œAn Industry in Transition: 2006 MEMS Forecast,” covers the global market for MEMS. It provides a snapshot of the state of the MEMS industry and looks at a variety of trends and issues that will impact its future growth. The research contains more than 50 tables and charts quantifying the growth of MEMS, including worldwide forecasts by major device category, device type and key markets through 2010. It also includes lists of the top 20 suppliers in 2005, by both unit shipments and revenues.