After suffering a decline in 2023, the microelectromechanical systems (MEMS) market has forecast a 5% compound annual growth rate (CAGR) in the next five years, reaching 43 billion units shipping and revenues reaching $20 billion by 2029, according to new research from Yole Group.
Growth in MEMS devices — used in anything from smart devices, automobiles and aircraft — is due to the increased use of sensors in consumer electronics, autonomous driving, infotainment and comfort in cars, Industry 4.0 and the rise in artificial intelligence (AI).
“In 2023, the MEMS industry experienced a decline to $14.6 million (a 3% year-over-year decrease), primarily because of a downturn in consumer electronics and economic cycles,” said Pierre Delbos, technology and market analyst for MEMS and sensing at Yole Group. “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 $15.6 billion in revenue.”
Yole Group forecasts nearly 5 million MEMS wafers to be processed by 2029, up from 4 million wafers in 2023.
“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),” said Pierre-Marie Visse, senior technology and market analyst for MEMS and sensing at Yole Group. “Despite trends toward reshoring, mainland China is expected to increase its manufacturing share in the coming years.”
However, because the number of Chinese MEMS companies and foundries is increasing, if demand does not rise quickly, consolidation may be happening either by bankruptcy, thereby ceasing MEMS activities, or via mergers and acquisitions.
