MEMS generated $7 bln in 2005
Revenue growth for sales of MEMS (MicroElectroMechanical Systems) devices worldwide slowed dramatically in 2005, despite the fact that unit shipments were very strong, reports In-Stat. Nearly 1.8 bln MEMS devices were shipped in 2005, generating revenues of just under $7 bln. Despite projected unit shipment growth exceeding 11% over the next five years, revenues are forecast to increase at a compound annual growth rate of just 6.8% through 2010 due to continued price reductions, as well as the introduction of new MEMS devices with commodity-like pricing. The Top 20 suppliers of MEMS devices maintained their dominance of the industry, accounting for more than 86% of total revenues in 2005. The Automotive and Computing segments, long mainstays of the MEMS industry in terms of both unit shipments and revenues, are projected to be displaced by the Communications and Industrial markets within the next five years.