Global revenues for optoelectronics, sensors and actuators, and discrete semiconductors (O-S-D) are expected to reach $66.4 billion in 2015, up three percent from 2014 when sales rose by nine percent, according to IC Insights. The two biggest contributors to slow growth are sensors/actuators and discretes, which have struggled with consistent growth after rebounding in 2014, said the market research firm.
IC Insights reports double-digit growth for several major product categories, including lamp devices, infrared circuits, and CMOS image sensors but single-digit declines in sales for nearly a dozen product categories including most sensors, diodes, rectifiers, and power transistors. “Power transistors, which account for more than half of discrete sales, have also seen tremendous swings in demand since 2010,” said IC Insights.
With IC sales expected to decline by one percent this year, the market share of O-S-D products is projected to reach nearly 19 percent of total semiconductor revenues in 2015, said IC Insights, which is expected to drop by less than one-half percent to $354.1 billion.
The good news is the sensor/actuator market is expected to strengthen in 2016 after increasing only two percent in 2015 “due to significant price erosion” for many sensor products. The segment is expected to reach $10.5 billion in 2016, up four percent from $10.1 billion in 2015.
IC Insights also expects the commodity discrete semiconductor market to rebound and grow three percent in 2016, reaching $22.2 billion. This follows a six percent drop in 2015 to $21.5 billion due to “a slowdown in equipment manufacturing and weakness in the global economy during the second half of this year,” said IC Insights.
Optoelectronics is expected to be the strongest growth segment in the O-S-D market during the second half of this decade, said IC Insights. Growth is primarily driven by increasing demand for CMOS image sensors in a range of embedded applications (such as automotive, medical, video-surveillance networks, and image recognition systems), and solid-state lighting products built with high-brightness LEDs, and laser transmitters in high-speed optical communication networks.