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.
The worldwide dollar market value for sensors is rising by a compound annual growth rate (CAGR) of 5.3% over the period 2015 to 2020 compared to an 8.9% annual rate from 2010 to 2015. Meanwhile sensor unit shipments are expected to climb by a CAGR of 12.4% in the five-year forecast period compared to a 20.5% rate of increase in the 2010-2015 period.
The sensor market grew by 1% in 2015 to reach $6.4 billion and will climb to $8.3 billion in 2020. Record sensor shipments are expected to continue for another five years, reaching 28.9 billion units in 2020.
The ASP for sensors moved from about $0.66 in 2010 to $0.40 in 2015. IC Insights reckons the sensor ASP will more than halve over the next five years to $0.29