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Electronic systems sales reaches $1.21 trillion in 2007
By siliconindia
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Saturday, 15 December 2007, 14:48 IST
As per the recently released 2008 edition of IC Insights' IC Market Drivers report, worldwide shipments of electronics systems will grow by five percent in 2007 to a total value of $1.21 trillion from $1.15 trillion in 2006.
The report forecasts an average annual increase of seven percent for worldwide electronics systems growth between 2006 and 2011, with the total reaching $1.60 trillion. Growth in 2007 was mostly driven by healthy demand for mobile communications handsets, consumer products, notebook PCs, wireless networks, and automotive electronics. Included among the fastest-growing electronics systems markets in 2007 are video game consoles, cell phone handsets, portable digital audio, RFID, smart cards, wireless personal and local area networks, high-definition DVD players, and digital video surveillance systems.
The total value of electronics systems shipments grew by six percent in 2006, eight percent in 2005, 13 percent in 2004, and 10 percent in 2003, after falling four percent and 14 percent, respectively, in 2002 and 2001. Hence this year's shipment value represents the smallest annual percentage increase since electronics manufacturers recovered from the 2001-2002 downturn. IC Insights however believes electronics systems growth will strengthen through 2011, and the annual cumulative average growth rate (CAGR) will be seven percent ? the 25-year average CAGR for the electronic systems market.
The new IC Insights report also shows IC sales growing a modest five 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.
PCs remain the largest end-use segment for ICs, accounting for about $73 billion, 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. The cell-phone handset ICs are second in size this year at nearly $35 billion, 16 percent of the total, but growing at a faster 13 percent CAGR throughout the IC Insights' 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 ICs 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.