Sales of sensors made with microelectromechanical systems (MEMS) technology are expected to grow by 4% in 2016 to $4.8 billion with unit shipments increasing 10% to 7.6 billion. MEMS-based sensor sales will rise with a compound annual growth rate of 5.5% in the next five years to $6.1 billion in 2020 with unit shipments growing by an annual rate of 11.9% to nearly 13.4 billion. ASPs for MEMS-based sensors are expected to decline to $0.45 in 2020 from $0.61 in 2015.
Overall sensors will enjoy double-digit percentage annual increases in shipments with demand being strong for low-cost sensors for wearables systems, the Internet of Things and automated embedded control. However, that move to low-cost has also produced steep price erosion in several product categories, the market researcher asserts.
These sharply falling average selling prices (ASPs) can be seen in accelerometers, gyroscope chips, and magnetic-field measuring devices and this is capping annual growth of total sensor revenues in the low- to mid-single digit range.