SCOTTSDALE, Ariz., 15 Dec. 2007. Worldwide shipments of electronics systems will grow 5 percent in 2007 to $1.21 trillion from $1.15 trillion in 2006, predict analysts at IC Insights Inc. in Scottsdale, Ariz.
This year's shipment value represents the smallest annual percentage increase since electronics manufacturers recovered from the 2001-2002 downturn, analysts point out.
Electronic systems shipments will increase by an average 7 percent annually from 2006 and 2011, when the total will reach $1.60 trillion, IC Insights says in the 2008 edition of its IC Market Drivers report.
Driving growth in 2007 has been healthy demand for mobile communications handsets, consumer products, notebook PCs, wireless networks, and automotive electronics.
The 5 percent growth in 2007 contrasts with the total value of electronics systems shipments growth of 6 percent in 2006, 8 percent in 2005, 13 percent in 2004, and 10 percent in 2003, after falling 4 percent and 14 percent, respectively, in 2002 and 2001.
Looking ahead, IC Insights analysts predict electronics systems growth will strengthen through 2011, and the annual cumulative average growth rate (CAGR) will be 7 percent—the 25-year average CAGR for the electronic systems market.
The IC insights report also shows integrated circuit sales growing a modest 5 percent to $220.3 billion in 2007 compared to $209.5 billion in 2006, when the IC market rose 9 percent from the previous year. With electronic systems sales expected to grow 6 percent in 2008 to $1.29 trillion, IC markets are forecast to increase 10 percent to $243.4 billion next year, the report says.
Included among the fastest-growing electronics systems markets in 2007 are video game consoles (58 percent), cell phone handsets (9 percent), portable digital audio (13 percent), RFID (35 percent), smartcards (11 percent), wireless personal and local area networks (26 percent), high-definition DVD players (96 percent), and digital video surveillance systems (20 percent).
PCs remain the largest end-use segment for integrated circuits, accounting for about $73 billion—or 33 percent—of total integrated circuit sales in 2007. Projected growth of the PC IC market is forecast to equal the IC industry's 10 percent CAGR average in the 2006-2011 timeframe.
Cell-phone handset integrated circuits are second in size this year at nearly $35 billion—or 16 percent of the total, but growing at a faster 13 percent CAGR throughout the forecast period.
In comparison, digital TV IC sales are estimated at $6.4 billion in 2007 with a projected 19 percent CAGR in the five-year forecast period. The markets for 802.11 wireless network chipsets and Bluetooth integrated circuits are estimated at $1.7 billion and $1.9 billion in 2007, respectively, and growing at 14 percent and 17 percent CAGR in the report's five-year forecast period.
For more information contact IC Insights online at www.icinsights.com.
