Worldwide industrial semiconductor revenues grew by 11.8 percent year over year, reaching $49.1 billion in 2017, according to the latest analysis from IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions. Industrial electronics equipment demand was broad-based, with continued growth in commercial and military aircraft, LED lighting, digital signage, digital video surveillance, climate control, smart meters, traction, photovoltaic (PV) inverters, human machine interface and various medical electronics like cardiac equipment, hearing aids, endoscopy and imaging systems. The industry is expected to grow at a compound annual growth rate (CAGR) of 7.1 percent through 2022.
Optical semiconductors delivered excellent performance, due to the continued strength of the general LED lighting market. Power discretes demand has ramped up in industrial motor drives, EV chargers, PV inverters, traction and lighting equipment. General purpose analog has a strong five-year growth in various industrial markets, especially in factory automation, power and energy, and lighting. Microcontrollers (MCUs) are also projected to experience broad-based growth in the long term, thanks to advances in power efficiency and integration features.
“The resilient economy in the United States, and strong demand in China, carried the lion’s share of industrial equipment demand in 2017,” said Robbie Galoso, associate director and principal analyst, industrial semiconductors, for IHS Markit . “A European resurgence also provided a strong tailwind for semiconductor growth.”
Global industrial semiconductor market share rankings
Strategic acquisitions continued to play a major role in shaping the overall semiconductor market rankings in key industrial semiconductor segments. All the following top 10 industrial semiconductor suppliers achieved revenue growth in 2017:
Although not part of the top 10 ranking, China’s massive investments in LED manufacturing were especially noteworthy. Chinese firm MLS rose from 18th to 13 th place, after posting 50 percent revenue growth and reaching $1 billion in 2017. MLS beat out other leading general lighting LEDs suppliers Nichia, Osram and Cree.
Industrial Semiconductor Intelligence Service
IHS Markit offers complete research on the semiconductor market for industrial electronics, including competitive analysis on top suppliers and purchasers. The “ Industrial Semiconductor Intelligence Service ” also includes in-depth analysis of key industrial products categorized by revenue, units, average selling price (ASP) forecast and typical semiconductor bill of materials.
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