The strongest growth products in 2014 are set to be accelerometers, gyrometers, actuators and magnetometers, all bouncing back from market declines in 2013 to record double-digit percentage growth in 2014, the market researcher said.
The 2013 weakness was due to a mix of economic uncertainty and inventory corrections but all three market segments will gain strength over the next several years as the global economy improves and unit demand bounces back, the IC Insights said.
In 2013 the three markets – denoted O, S and D – were limited to just 1 percent growth, lower than the overall semiconductor market of 4.7 percent Nonetheless this took them to $58.6 billion in 2013, surpassing the previous peak of $58.2 billion in 2012.
IC Insights expects total O-S-D revenues to show a more normal 8 percent growth rate in 2014, to reach $63.5 billion this year. Optoelectronics is forecast to grow about 9 percent to $31.6 billion, sensors/actuators climbing nearly 14 percent to $9.9 billion, and discretes will recover from a two-year decline, increasing 6 percent to $22.0 billion.
Growth should continue through 2017 when the IC Insights expects the next economic slump. The markets should show a compound annual growth rate (CAGR) of 6.4 percent over the period 2013 to 2018.