LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global micro-electro-mechanical systems (MEMS) for mobile devices market to grow at a CAGR of over 9% by 2020, according to their latest report.
The demand for MEMS has risen in the wake of a shorter product replacement cycle for mobile devices. Technological advances have also compelled original equipment manufacturers (OEMs) to reduce product size and enhance product performance, thus resulting in a demand for more compact internal components like sensors, actuators, and microphones.
Two of the most important features of smartphones and tablets are navigation and gesture recognition, both of which are enabled by MEMS technology. The demand for these features in all new mobile devices has led to the growing use of MEMS in smartphones and tablets. According to Asif Gani, one of Technavio’s lead research analysts for embedded systems, the declining prices of smartphones are leading to increased demand for these mobile devices and their associated parts, including MEMS.
According to the new report by Technavio, the global MEMS market for mobile devices is segmented into smartphones and tablets. The growing demand for smartphones is driving the market for MEMS in these devices. The penetration of mobile devices is growing due to introduction of low-cost smartphones by new regional vendors such as Micromax and Lenovo, thus driving the market for associated parts such as MEMS devices.
Tablets such as the iPad, Nexus 7, and Samsung Galaxy Tab S 10.5 are driving the MEMS market in this segment. However, the revenue contribution from this segment is lower than that of smartphones due to the longer replacement cycle of tablets.
Geographically, APAC leads the global retail display market with more than 44% of the total market. China contributes the largest of any country in the region, accounting for about 47% of total revenue generated.
Technavio’s market research analysts have identified the following four factors as the driving forces behind the growth of MEMS for mobile devices:
- Consistently changing technology
- High demand for mobile device components from emerging markets
- Availability of low-cost smartphones
- Short replacement cycle of mobile devices
Consistently changing technology
With rapidly changing technology, new features and applications are being installed in mobile devices that require integration of MEMS. MEMS like accelerometers, gyroscopes, and oscillators consume less power and are used for tap, scroll, tilt, rotate, and switch display features in mobile devices. Microphones, which provide high-definition audio quality for video recording and improve accuracy of voice command functions, drive a large part of the MEMS market for mobile devices.
Technavio analysts expect growing global Internet penetration to boost the demand for smartphones integrated with MEMS devices during the forecast period. Smartphone manufacturers like Apple have contributed to the adoption of MEMS microphones by employing them in popular iPhone and iPad devices.
High demand for mobile device components from emerging markets
Emerging economies like China, India, Japan, Korea, and Taiwan are witnessing significant demand for mobile device components due to the high concentration of device manufacturers. Low labor costs, availability of resources, and the rising disposable income of people encourage manufacturers to set up new facilities in the region.
“As these countries are showing immense potential for growth in this market, the number of mobile device manufacturers in APAC is growing. New companies that have established a market presence within a short period include OnePlus, Oppo, and Xiaomi. This indirectly boosts the market for mobile device components in emerging countries,” says Asif.
Availability of low-cost smartphones
Smartphone manufacturing companies like Huawei, Lava, Oppo Electronics, Gionee, Xiaomi, and many other local brands are providing inexpensive smartphones that still offer all the features of a smartphone manufactured by Samsung or other prominent vendors.
Developing countries like China and India are major markets for cheaper smartphones. The cost of the internal components of smartphones is declining, which enables manufacturers to deploy advanced features in less-expensive models, thus boosting the market for components such as MEMS.
Short replacement cycle of mobile devices
The buying pattern of consumers is changing with rising disposable income levels and technological advances. Smart devices such as smartphones and tablets have short product replacement cycles, as most of these products are quickly cannibalized by newer versions. For instance, 70% of Apple's total iPhone sales are replacement sales, which is likely to increase to 80% in the coming years. This factor has been contributing significantly to the growing demand for semiconductor components such as MEMS.
Browse Related Reports:
- Global Optical MEMS Market 2015-2019
- Global MEMS Gyroscope Market 2015-2019
- Global MEMS Market for Consumer Electronics 2015-2019
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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