Electronics Production | December 17, 2007
Worldwide shipments of electronics<br>systems will grow 5% in 2007
Worldwide shipments of electronics systems will grow 5% in 2007 to a total dollar value of $1.21 trillion from $1.15 trillion in 2006, according to the IC Insights’ IC Market Drivers report.
The new report forecasts an average annual increase of 7% for worldwide electronics systems growth between 2006 and 2011, when the total will reach $1.60 trillion. Growth in 2007 has been driven by healthy demand for mobile communications handsets, consumer products, notebook PCs, wireless networks, and automotive electronics. However, this year’s shipment value represents the smallest annual percentage increase since electronics manufacturers recovered from the 2001-2002 downturn. In contrast, the total value of electronics systems shipments grew by 6% in 2006, 8% in 2005, 13% in 2004, and 10% in 2003, after falling 4% and 14%, respectively, in 2002 and 2001. Looking ahead, IC Insights believes electronics systems growth will strengthen through 2011, and the annual cumulative average growth rate (CAGR) will be 7%—the 25-year average CAGR for the electronic systems market. The new IC insights report also shows integrated circuit sales growing a modest 5% to $220.3 billion in 2007 compared to $209.5 billion in 2006, when the IC market rose 9% from the previous year. With electronic systems sales expected to grow 6% in 2008 to $1.29 trillion, IC markets are forecast to increase 10% to $243.4 billion next year, according to the 500-plus-page IC Market Drivers report. Included among the fastest-growing electronics systems markets in 2007 are video game consoles (58%), cell phone handsets (9%), portable digital audio (13%), RFID (35%), smartcards (11%), wireless personal and local area networks (26%), high-definition DVD players (96%), and digital video surveillance systems (20%). Figure 1 compares the size and growth rates of systems and selected IC market segments, respectively, based on the forecasts from the 2008 IC Market Drivers report. PCs remain the largest end-use segment for ICs, accounting for about $73 billion—or 33%—of total integrated circuit sales in 2007. Projected growth of the PC IC market is forecast to equal the IC industry’s 10% CAGR average in the 2006-2011 timeframe. Cell-phone handset ICs are second in size this year at nearly $35 billion—or 16% of the total, but growing at a faster 13% CAGR throughout the forecast period. In comparison, digital TV IC sales are estimated at $6.4 billion in 2007 with a projected 19% CAGR in the five-year forecast period. The markets for 802.11 wireless network chipsets and Bluetooth ICs are estimated at $1.7 billion and $1.9 billion in 2007, respectively, and growing at 14% and 17% CAGR in the report’s five-year forecast period.
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