Equipment shipments to grow 6% in 2008
By Jim Carbone -- Purchasing, 1/3/2008 12:50:00 PM
The dollar value of worldwide shipments of electronics systems will grow 6% to $1.29 trillion in 2008, according to a new report by researcher IC Insights.Worldwide shipments grew 5% in 2007 to $1.21 trillion and will grow by about 7% per year through 2011 when they will reach $1.60 trillion.
Growth in 2007 was driven by healthy demand for mobile communications handsets, consumer products, notebook PCs, wireless networks, and automotive electronics. However, the year’s shipment value is the smallest annual percentage increase since the 2001-2002 electronics industry downturn.
In contrast, the total value of electronics systems shipments grew by 6% in 2006, 8% in 2005, 13% in 2004, and 10% in 2003, after falling 4% and 14%, respectively, in 2002 and 2001.
Looking ahead, IC Insights believes electronics systems growth will strengthen through 2011, and the annual cumulative average growth rate (CAGR) will be 7%-- the 25-year average CAGR for the electronic systems market.
The slower growth in 2007 resulted in semiconductor companies cutting back on capital expenditures in 2008 (see story p. xx). With electronic systems sales expected to grow 6% in 2008 to $1.29 trillion, IC markets are forecast to increase 10% to $243.4 billion next year.
Growth in 2008 will be driven by the same equipment segments that drove industry growth in 2007. Among the fastest-growing electronics systems markets in 2007 were video game consoles, cell phone handsets, portable digital audio, radio frequency identification systems, smart cards wireless personal and local area networks and high-definition DVD players.
PCs remain the largest end-use segment for ICs, accounting for about $73 billion, or 33%, of total integrated circuit sales in 2007. Cell-phone handset ICs were the second largest segment in 2007 at nearly $35 billion, or 16% of the total, but growing at a faster 13% compound annual growth rate.
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