Electronics systems sales worldwide are projected to fall 11% in 2009 to $1.11bn from a record-high $1.24bn in 2008, according to the 2010 edition of IC Insights' Integrated Circuit Market Drivers report.
This year's drop is only the third annual decline in the history of electronics systems sales. The other two declines occurred in the last recession when electronics systems sales plunged 14% in 2001 and then fell another 4% in 2002.
The electronics equipment market is forecast to rebound in 2010 with the total value of systems shipments growing 7% to $1.19bn. Another 9% increase in systems sales is expected in 2011, which will push worldwide electronics equipment revenues to a new record-high $1.29 billion, the report says.
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IC Insights sees the 2010 recovery year being led by 9% increases in revenues for communications systems and automotive electronics.
In the 2009 downturn, automotive and consumer electronics market segments were hit the hardest with sales dropping 17% and 13%, respectively.
Communications and computer/office equipment sales in 2009 are estimated to be down 12% and 11%, respectively, while industrial systems revenues (including those for medical gear) are on pace to fall 9% this year.
Government/military systems are the only major equipment segment to show growth in 2009, rising 3%.
Electronics systems sales are expected to increase by a compound annual growth rate (CAGR) of 3% per year in the 2008-2013 period.
IC Insights' report on 2009 IC sales shows the biggest decline in ICs for cellular-phone base stations (-30%) and automotive applications (-26%), while IC revenues grew the most in non-telephony handheld systems (+6%), thanks to an estimated 129% increase in chip sales for electronic book readers.
IC sales for personal computers and cellphone handsets-the two largest chip applications in the systems market-declined 9% and 3% in 2009, respectively.
e-book readers will be one of the fastest growing product categories in the coming years with IC sales for e-reader systems rising at a 60% CAGR in the 2008-2013 period.
Among other major chip applications, the 2008-2013 compound annual growth rate for IC sales are: 26% for RFID systems; 21% for non-telephony handheld computing devices (including e-book readers); 15% for wireless computer networks; 11% for smart cards, 10% for digital TVs; 9% for cellphone handsets, and 6% for PCs.