As per report from IHS Technology, The industrial electronics chip market rebounded in 2013 with revenue growth of nine percent, reaching $32.8 billion, after falling five percent in 2012. These chips are used in a variety of applications, including medical electronics, factory automation, energy distribution and generation, building and home control, test and measurements, and military and civil aerospace.
IHS forecasts the industrial electronics chip market to grow 11 percent in 2014, reaching $36.4 billion, thanks in part to strong growth in the U.S. and China. The report, “Stable Q4 Fuels Industrial Semiconductors’ Robust 2013 Growth,” from the Semiconductors & Components service of IHS, also finds that this market will continue to expand over the next four years, reaching $49.0 billion by 2018.
Two of the biggest growth drivers were the U.S. and China. Growth in the U.S. was driven by an improved economic climate and optimism thanks to a recovery in the residential housing space, added Galoso. Growth in China was also strong due to solid broad-based revenue increases in industrial segments such as medical electronics, energy, manufacturing, and building and home control. The report also notes growth in Western Europe “with leading companies like Siemens of Germany citing the economic rebound as a driver.”
In 2013, the top five spenders and influencers on the design of industrial electronics chips were the United States, China, Japan, Germany and France. Switzerland, Taiwan, South Korea, Canada and India make up the rest of the top 10.
As for product segment drivers, the report finds that sales related to LEDs aimed at the residential market enjoyed strong growth. LED companies that performed well in the fourth quarter include Cree, Osram, and Philips.
IHS projects LEDs to be the industrial electronics semiconductor product with the highest growth over the next five years, reaching $7.8 billion by 2018, as countries continue to ban incandescent lamps. Discrete semiconductors including thyristors, rectifiers and power diodes also are expected to be good growth drivers, reaching $7.3 billion by 2018.
