MEMS market will return to growth in 2024, says Yole

Market news | July 1, 2024

By Peter Clarke

MEMS Yole

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The annual global market for MEMS components is set to grow by 6.8 percent in 2024 to reach US$15.6 billion, according to Yole Group.

This follows a 3 percent annual decline in 2023 to a value of US$14.6 million. That decline was primarily due to a downturn in consumer electronics and economic cycles. With global, post-covid inflation coming under control, growth is expected to resume in 2024. Yole reckpns shipments will increase by 9 percent year-over-year to approximately 34 billion.

Long-term growth is anticipated driven by the sensorization of consumer electronics, autonomous driving, enhanced comfort in cars, Industry 4.0, and the rise of AI.

MEMS market forecast 2019 to 2029. Source: Yole Group.

Yole predicts a 5 percent compound annual growth rate over the period 2023 to 2029 which would raise the market to 43 billion units shipped in 2029 and an annual MEMS market value of US$20 billion. Nearly 4 million wafers were processed for MEMS in 2023 and that is expected to rise to 5 million wafers in 2029.

Yole reckons 60 percent of MEMS wafers are processed in North America and Europe and 19 percent in Japan. The remaining 21 percent are processed in Greater China and Southeast Asia (Malaysia and Singapore). Mainland China is expected to increase its manufacturing share in the coming years.

There are increasing numbers of Chinese MEMS companies and supporting foundries causing a local oversupply. If demand does not increase quickly, Chinese companies are set to go bankrupt or pivot out of the MEMS market, according to Yole.

This could also lead to MEMS consolidation within China based on fewer companies receiving state funds in support.