Product Code: 66887
The global MEMS packaging market is projected to grow at a CAGR of 17.8% during the forecast period (2021 - 2026). Owing to the increase in global demand for smart automotive solutions, the demand for MEMS packaging market is also expected to go up. The increasing market demand for connected devices and consumer electronics is expected to drive the market for sensors. Global industrial sensor usage is soaring due to the ever-increasing applications of sensors and government regulations, which in turn is expected to drive the demand for MEMs packaging. Gaming industry's growth is also likely to influence the market.
- Applications of various sensors in the automotive industry are rapidly growing owing to the introduction of smart automotive solutions; the industry is shifting towards providing connected vehicles and adopting ADAS. ADAS/AV market is expected to be USD 96 billion by 2025, according to Goldman Sachs. This, in turn, is expected to drive the demand for MEMS packaging market.
- The adoption rate of smartphones is increasing, and for MEMs sensors, mobile phone industry is the significant revenue-generating segment across the globe. According to Ofcom, UK's communications regulator, during the first half of fiscal 2018, UK's smartphone adoption rate stood at 78% an increase of 2% from 76% during the second half of fiscal 2017.
- MEMs packaging plays a vital role in the protection of the wafer and chipset structure from environmental factors along with providing other benefits such as conductivity, connective communication, etc. The complex manufacturing process involved in MEMs packaging is restraining the market growth; however, continuous innovation in the manufacturing process of chipsets is mitigating such restraints.
Key Market Trends
Growing Adoption of Smartphones and Connected Devices is Expected to Drive the Demand
- The global number of smartphone users is increasing significantly, and usage of smartphones for various purposes such as payments, gaming, photography, GPS, etc. is going up as well. To accomplish such capabilities in smartphones, sensors are incorporated into the hardware; this is expected to drive the market demand. According to Newzoo, the number of smartphone users during fiscal 2018 stood at 3 billion and is expected to reach 3.8 billion users by 2021.
- The ever-increasing use of sensors in the smartphones is providing intuitive capabilities to the devices, which are now capable of handling various sensitive operations and such operations require safety and privacy. According to FindBiometrics, mobile device fingerprint sensor unit shipment is expected to reach 1.6 billion by 2020.
- The increasing health consciousness amongst the global populous is driving the market for connected wearable devices, such devices use sensors to track biological data of users. The global demand for connected wearable devices is driving the demand for MEMs sensors. According to CISCO Systems, there will be 1.1 billion wearable devices globally by 2022.
North America Holds the Major Share of the Market
- Owing to the existence of countries which are one of the largest economies in the world; such as the US and Canada, the North America region holds a significant share of the electronics market. North America region holds the maximum share of the MEMS sensors market; owing to its significant global market share of smart electronic devices, IoT and Automotive industry. The region is expected to be one of the pioneers in adopting ADAS enabled vehicles and self-driven transportation solutions. According to Deutsche Bank, the US ADAS unit production volume is expected to reach 18.45 million by 2021.
- The region also holds a significant share of pure-play semiconductors foundry market and drives the demand for MEMs packaging market. According to IC insights Americas was the largest pure-play semiconductor foundry market worldwide and stood at USD 30.58 billion during fiscal 2018.
- However, the Asia-Pacific region shows the highest growth rate globally. Owing to the existence of countries such as China, Japan, Korea, and Taiwan which are home to an increasing number of semiconductor foundries are driving the market for MEMs packaging. According to Semiconductor industry association, China, Japan, Korea, and Taiwan are expected to hold 18.65%, 9.58%, 19.34%, and 11.65% of the global spending respectively on new semiconductor equipment during fiscal 2020.
The MEMS packaging market is moving towards consolidation format as the industry is capital intensive and major vendors in the market are banking on diverse product portfolio and product development to gain an edge and the innovation capabilities of any player are dependent on the investments into R&D. The industry's capital intensive nature poses an entry barrier to new entrants. Key players are ChipMos Technologies Inc., AAC Technologies, Bosch Sensortec GmbH, Infineon Technologies AG, Analog Devices, Inc., etc. A recent development in the market -
- June 2019 - AAC Technologies and Honda jointly launched a new brand of acoustic solutions for automotive which is named Personal Sound Zone (PSZ).
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TABLE OF CONTENTS
- 1.1 Scope of the Study
- 1.2 Key Study Deliverables
- 1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers
- 4.3 Market Drivers
- 4.3.1 Growing Smart Automotive Market
- 4.3.2 Increasing Smart Phone Adoption Rate & Connected Devices
- 4.3.3 Sensor Usage in Industries
- 4.4 Market Restraints
- 4.4.1 Complex Manufacturing Process
- 4.5 Industry Attractiveness - Porter's Five Force Analysis
- 4.5.1 Bargaining Power of Suppliers
- 4.5.2 Bargaining Power of Buyers
- 4.5.3 Threat of New Entrants
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Technology Snapshot
5 MARKET SEGMENTATION
- 5.1 By Sensor Type
- 5.1.1 Inertial Sensors
- 5.1.2 Optical Sensors
- 5.1.3 Environmental Sensors
- 5.1.4 Ultrasonic Sensors
- 5.1.5 RF MEMs
- 5.1.6 Others
- 5.2 By End User
- 5.2.1 Automotive
- 5.2.2 Mobile Phones
- 5.2.3 Consumer Electronics
- 5.2.4 Medical Systems
- 5.2.5 Industrial
- 5.2.6 Others
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia Pacific
- 5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 ChipMos Technologies Inc.
- 6.1.2 AAC Technologies Holdings Inc.
- 6.1.3 Bosch Sensortec GmbH
- 6.1.4 Infineon Technologies AG
- 6.1.5 Analog Devices, Inc.
- 6.1.6 Texas Instruments Incorporated.
- 6.1.7 Taiwan Semiconductor Manufacturing Company Limited
- 6.1.8 MEMSCAP
- 6.1.9 Orbotech Ltd.
- 6.1.10 TDK Corporation
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS