At the beginning of 2009, Semico predicted the exact month the semiconductor industry would rebound. The downturn is now firmly behind us, and much of that is due to strong growth in the consumer market, helping third quarter semiconductor revenues increase by 16.8%. Out of over 40 end-use markets, Semico has identified the top five that have contributed to the recovery and which will continue to provide large growth for the industry.
The five high growth markets revolve around the consumer’s home theater and their portable media, including DTVs, DVD video recorders, netbooks, portable navigation devices, and video game consoles. Combined, the total available market for these five markets is expected to increase from $31.514 billion in 2009 to $68.402 billion in 2013, a 21.4 percent CAGR.
“DTVs are the central unit to the home entertainment system, and often are purchased with another product, such as a video game console or DVD video recorder,” said Michell Prunty, Senior Consumer Analyst at Semico. “This symbiotic relationship has helped drive growth regardless of consumer confidence. Consoles have recently seen price drops, and smaller scale HDTVs have become more popular, trends that will continue to drive growth.”
The largest growth markets however, are netbooks and portable navigation devices, which will both see CAGRs over 30 percent. These two devices are relatively new compared to the PC and cell phone markets, and high growth is expected as penetration rates continue to increase.
Semico Research
