The MEMS market is expected to reach US$20 billion in 2029, with an estimated 5% CAGR from 2023 to 2029.
Although 2023 was a difficult year for MEMS players, Yole Group expects a return to a steady pace by 2025, paving the way for renewed growth and stability in the MEMS market.
To sustain growth in the MEMS industry, MEMS need to be optimized in terms of efficiency, form factor, cost, robustness, and intelligence. These needs create prevalent technology trends.
MEMS devices are integral to daily life, embedded in various systems such as smartphones, cars, and fighter jets. Due to their diverse applications, both their volumes and associated revenues can be substantial.
Pierre DelbosTechnology & Market Analyst, MEMS & Sensing at Yole Group
“In 2023, the MEMS industry experienced a decline to US$14.6 million (a 3% year-over-year decrease), primarily because of a downturn in consumer electronics and economic cycles. Despite this challenging year, the MEMS market is expected to grow again in 2024. Approximately 34 billion units are projected to be shipped in 2024 (a 9% year-over-year increase), resulting in US$15.6 billion in revenue.”
Long-term growth is anticipated, driven by major trends across all end markets, including the sensorization of consumer electronics, autonomous driving, enhanced comfort in cars, Industry 4.0, and the rise of AI. As a result, Yole Group expects a solid 5% CAGR23-29 in both revenue and volume, leading to almost 43 billion units shipped and revenues reaching US$20 billion by 2029.
In this context, Yole Group releases its annual market & technology report Status of the MEMS Industry 2024. This 2024 version provides the latest updates on MEMS market volumes, ASP s, and revenues for the calendar year 2023. It also gives an overview of the most promising growth opportunities and key market drivers for MEMS. It offers an overview of the wafer production levels by wafer size, technology, fab, location, etc. In addition, this study provides a detailed view of ecosystem development and technology trends. This report thoroughly summarizes the state of the MEMS industry as of 2023, taking into account the trends for each device/application.
TITRE DU VISUEL
june 2021
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Regarding overall production levels, Yole Group estimates that nearly 4 million wafers were processed in the MEMS industry in 2023, and we expect volumes to grow to 5 million by 2029.
“Geographically, at Yole Group, we believe that approximately 60% of these wafers are processed in Western countries (North America and Europe), around 19% in Japan, with the remainder in Greater China and Southeast Asia (Malaysia and Singapore). Despite trends toward reshoring, mainland China is expected to increase its manufacturing share in the coming years.”
The increasing number of Chinese MEMS companies and foundries is causing a significant local oversupply, which is currently reducing the margins of most players. If demand does not increase quickly, will we see more Chinese companies going bankrupt or ceasing MEMS activities? Alternatively, could this lead to greater consolidation within the Chinese ecosystem? How many of these companies will receive the financial support necessary to survive?
