El Segundo, Calif.— OEMs in the Americas region, led by the United States, continue to spend the most on semiconductors for industrial electronics despite years of outsourcing and offshoring, according to an Industrial Electronics Market Tracker report from IHS. The report also finds that emerging economies are gaining share in industrial semiconductor purchases.
A key finding reveals that OEMs in the Americas region accounted for 36.3 percent of global spending on industrial semiconductors in 2012. Although the region's spending is expected to fall by nearly 1 percentage point to 35.5 percent by 2017, the Americas will continue to lead in semiconductor purchases.
The United States continues to be the No.1 purchaser of industrial chips with a 31.6 percent share of shipments in 2012, although market share slipped by one-tenth of a percentage point from 31.7 percent in 2011, according to IHS. Top U.S. spenders include General Electric, Honeywell, Halliburton, Johnson & Johnson, Boeing, Raytheon, and Agilent.
IHS defines the industrial electronics market as applications including building and home control, energy generation and distribution, manufacturing and process automation, medical electronics, military and civil aerospace, and test and measurement.
Other established regions—Europe-Middle East-Africa (EMEA) and Japan—will also see declines in share at the expense of growth in Asia-Pacific. The spending share for industrial semiconductors in the EMEA region— led by Europe— is expected to drop by 1.1 percentage points from 30. 4 percent in 2012 to 29.3 percent by 2017. The big buyers in Europe include Bosch, Thyssenkrup, Osram, Siemens, Hauser, Schneider Electric, Thales, Alstom, and EADS.
IHS forecasts that Japan will experience the biggest drop in OEM spend market share, declining 2.8 percentage points from 11.0 percent in 2012 to 8.2 percent in 2017. Some of the biggest spenders for industrial chips based in Japan include Panasonic, Mitsubishi, Toshiba and Hitachi.
“Although China has surpassed the United States as the world’s largest manufacturing country, the U.S. continues to lead in advanced production technologies,” said Robbie Galoso, principal analyst, electronics, for IHS, in a statement. “Because of this, the Americas region continues to lead in the purchase of semiconductors used for industrial applications. However, as manufacturing technology advances in emerging regions, chip spending is shifting away from traditional strongholds with mature economies.”
China is forecast to grow its OEM spend market to 15.7 percent, up from 12.9 percent, The rest of Asia-Pacific excluding China and Japan also will expand its market spend share to 11.3 percent, up from 9.4 percent. The largest spenders for industrial chips in China include Dahua, Ningbo Water Meter and Midea.
The top 10 spenders for industrial chips by country are the U.S., China, Japan, Germany, France, Switzerland, Taiwan, India, Canada, and South Korea.