Industrial segment is the bright spot in the Semiconductor’s market

9 June, 2016

IHS reports that Industrial Semiconductor sales rose by 1% in 2015, and are expected to grow at 8.4% annually until 2020

IHS reports that Industrial Semiconductor sales rose by 1% in 2015, and are expected to grow at 8.4% annually until 2020


The ongoing global instability, and especially the cooling in Chinese economic growth, pared with growing difficulties in the global semiconductor industry, do not bode well for the industry. Nevertheless, according to leading research group IHS, the revenues from the sale of industrial semiconductors rose by 1% in 2015. Considering the global economy’s unhappy state, and the 4% revenue decline reported for the overall semiconductor industry – this is not a bad result.

Year-over-year global industrial semiconductor revenue rose less than 1% in 2015 to reach $41.9 billion. This slight revenue increase in 2015 follows solid growth of 11.5 percent in 2014 and 9.8 percent in 2013. “The flat growth in the industrial semiconductor market last year is a bit discouraging, after a period of such robust growth, but there’s hope on the horizon,” HIS’s associate director, industrial semiconductors. “The industrial market showed resilience in 2015 and all signs are pointing to improving growth in the future.”

US demand for industrial semiconductors saves the day

While the continued weakness in overall industrial end-market demand caused by falling oil prices and the ongoing slowdown in China continued to weigh heavy the markets, it was the US who held to keep the total figure in the black. road-based growth in industrial electronics gained momentum in the semiconductor industry, especially in products used for commercial aircraft, LED lighting, digital-video surveillance, climate control, smart meters, traction, wireless application-specific testers and medical electronics.

Looking forward – HIS expects the current slump to end soon. The strong momentum, in the industrial electronics category is expected to continue, as the leading application growth driver in the semiconductor industry through 2020. In fact, the industrial semiconductor market is expected to grow at an 8.4 percent compound annual growth rate (CAGR) between 2015 and 2020.

2015 was a very turbulent year for industrial semiconductors producers. The field has seen a record number of mergers and acquisitions. While Texas Instruments managed to maintain its top position, there were many shifts and changes in the industry. For example, NXP rose from the 16th place to the 7th place, due to its merger with Freescale.

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