Mobile phones will remain IC market driver
The total annual production value of electronic systems is projected to increase 5 percent in 2014, compared to 2013 to $1.49 trillion and climb to about $1.82 trillion in 2018, which represents a compound annual growth rate (CAGR) of 5.2 percent from $1.41 trillion in 2013, according to IC Insights.
Figure 1 compares the relative market sizes and projected growth rates through 2018 of 10 major systems segments that occupy a large part of the electronics systems market. The Internet of Things is expected to display the highest compound annual growth rate (CAGR) at 21.1 percent.
Fig. 1: Systems markets by end use (in $bn) and their growth rates to 2018. Source: IC Insights.
In 2014, cellphone handsets are expected to account for 18 percent of worldwide electronic systems sales ($265.2 billion) versus standard PCs being 13 percent ($196.0 billion) of the total. In 2013, PCs represented 15 percent of worldwide systems sales while cellphones were slightly less than 18 percent of the total, IC Insights said.
IC sales into cellphones will grow 11 percent in 2014 to $70.7 billion from $63.5 billion in 2013. Cellphone IC sales are forecast to rise another 11 percent to $78.4 billion in 2015. Standard PC IC sales will pull out of a two-year tablet-induced slump (-11 percent in 2012 and -10 percent in 2013) to grow 4 percent in 2014, reaching $59.1 billion, according to the market research firm. PC IC sales are forecast to grow 2 percent in 2015 to $60.6 billion.
Fig. 2: IC markets by end use (in $bn) and their growth ratrs to 2018. Source: IC Insights.
The personal computer (desktop and notebook) dominated IC sales for the last twenty years but this has now been eclipsed by the mobile phone, which is likely to dominate for the next decade.
Even though the Internet of Things segment is expected to show the highest growth for IC sales – a CAGR of 22.3 percent – the market will still only be worth $7.4 billion of annual IC sales versus the mobile phone segment which is set to command $100 billion of annual IC sales in 2018, according to the IC Insights numbers.
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