Contact:
Marlene Bourne, President & Principal Analyst
Phone: 480-695-0521
Email: memsgrl@gmail.com
Aggressive Price Reductions Could Paralyze MEMS Revenue
Growth Warns Bourne Research
The push to reach ever-lower price thresholds may indeed
open the door to more applications, but at what cost? In
her 8th consecutive annual MEMS forecast, industry analyst
Marlene Bourne provides her perspective on the opportunities
and challenges that lay ahead for the MEMS industry.
SCOTTSDALE, Ariz., (PRWEB) April 30, 2008 – Although
revenues for MEMS (micro-electro-mechanical systems) reached
record levels in 2007, aggressive price reductions, legal
wrangling, and rising pressure from competitive technologies
took their toll on the MEMS industry, according to Bourne
Research LLC. The market research firm reports that while
sales of sensors for industrial automation surged, it wasn’t
enough to make up for significant revenue shortfalls in
other core segments. Revenues for MEMS as a whole rose
just 5.8% in 2007 to $8.6 billion, and the outlook is mixed.
“The consumer electronics market, particularly cell
phones, is a double-edged sword,” said Marlene Bourne,
president & principal analyst of Bourne Research. “One
can’t argue with the lure of a billion unit market,
and the rush to reduce MEMS prices to ever-lower levels
will indeed open the door to more applications, but at
what cost?”
Bourne cautions that the resulting “commoditization” of
MEMS sensors may result in near-term revenue paralysis
since unit shipments currently aren’t sufficient
to offset the lower prices. Those in the know have already
turned their attention to industrial automation, and the
combined use of GPS, RFID and MEMS sensors are projected
to find the greatest traction in commercial equipment.
Tellingly, five of the top ten suppliers of MEMS devices
are leaders in industrial sensing – most of whom
are missing from other widely publicized rankings.
The 2008 MEMS Forecast is the 8th consecutive annual forecast/market
assessment personally developed and written by Marlene
Bourne, a highly respected industry analyst who published
her first MEMS forecast nearly 15 years ago. The report
also found that:
• Declines in automotive production, saturation
of the consumer ink jet market, and a change in direction
for digital TV – the three largest revenue streams
for MEMS – will continue to have a dampening effect
on revenue growth for the next few years.
• The shift from televisions to “pico-projectors” is
rapidly evolving (as is the competition), and optical networking
is making a comeback. RF MEMS may reach a turning point
in 2009, but as with microphones, there are inherent business
model problems.
• MEMS suppliers must not dismiss the impact nanomaterials
are starting to have on this industry – both from
a complementary and competitive perspective.
• Despite a few bright spots, overall near-term
growth is projected to remain negligible. Unit shipments
of MEMS devices are forecast to increase at a CAGR of 6.4%
through 2012, with revenues forecast to increase at a CAGR
of 5.5% during the same period.
The report, 2008 MEMS Forecast, details venture capital
funding for 2007, provides a definitive ranking of MEMS
suppliers based on actual 2007 revenues, and outlines growth
opportunities and challenges over the next five years,
including specific examples of nanotechnology’s impact.
The forecast includes unit shipments and revenues by major
device category and end-use market through 2012.
Some of the companies highlighted in the report include:
Analog Devices, Avago Technologies, Dell, FLIR Systems,
FormFactor, Freescale Semiconductor, Emerson Electric,
GE, Hewlett-Packard, Honeywell, Illumina, Infineon Technologies,
Kodak, Microvision, Qualcomm, Schneider Electric, STMicroelectronics,
Texas Instruments and Yokogawa.
The 2008 MEMS Forecast is priced at $3495; members of
the MEMS Industry Group are eligible for a 10% discount.
For more details, or to obtain a table of contents, please
contact Bourne Research at 480-695-0521.
About Bourne Research LLC
Bourne Research LLC is a trusted source of business and
market intelligence for global leaders seeking strategic
information on emerging technology trends and their business
impact. Its founder, Marlene Bourne, is a highly respected
industry analyst with nearly 15 years of experience following
the development of emerging technologies, and is internationally
recognized as one of the leading experts on MEMS (micro-electro-mechanical
systems) and its convergence with nanotechnology.
Bourne Research helps its clients identify
market trends and end-use issues, gauge current and emerging
applications, assess the competitive landscape, analyze
potential partners, and consider other factors to help
successfully grow their businesses. For more information
about Bourne Research, as well as its reports and services,
please visit: www.bourneresearch.com
