For only the third time ever, the sales of electronic systems declined in 2009, according to US analysts IC Insights. The only two previous years of declining sales were in 2001 and 2002.
Whereas the 2001 decline was 14%, and the 2002 decline was 4%, the 2009 decline was 11%.
Next year the electronics equipment market should grow 7% to $1.19 trillion, and that should be followed by another 9% increase in 2011.
The 2009 decline was led by automotive and consumer electronics which dropped 17% and 13%, respectively.
Communications and computer/office equipment sales were down 12% and 11%, respectively.
Industrial systems revenues (including those for medical gear) fell 9%.
Electronics systems sales are expected to increase by a CAGR of 3% per year in the 2008-2013 period.
For ICs, the biggest decliner market was cellular-phone base stations (-30%) and automotive applications (-26%).
IC sales for personal computers and cellphone handsets--the two largest chip applications in the systems market--declined 9% and 3% in 2009, respectively.
The biggest growth markets for ICs were in non-telephony handheld systems (+6%), thanks to an estimated 129% increase in chip sales for electronic book readers.
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.
The 2008-2013 CAGR 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.
David,
Am I missing something here? You said for the "third time ever" electronics systems sales dropped. Are you saying the decline of 1985 - 1986 was just a bad dream? Or interpreting the meaning of "sales" in a different way?
Good point Barbara, '85 was a terrible year for semiconductor sales, particularly because memory prices tanked horribly, but I didn't realise overall system revenues went down. You may well be right. I was accepting Bill McLean's judgment.
Hi David - in your posting above (2010-2013 Will Be Good Years For IC Growth) you stated:
Next year the electronics equipment market should grow 7% to $1.19 trillion.
However, in your 12-18-09 article posted on the EW website (Third decline in electronic system sales) you invoke billions as shown below:
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.
Note that you got it right in your above blog (the units associated with electronic systems sales are, in fact, trillions of dollars) but since you followed IC Insights release (posted in their Research Bulletin of 12-17-09 on their website) they got it wrong (billions should be trillions!) and therefore corrections are needed in both of the two latter postings - yours and IC Insights.
Happy holidays, Mike C.
Thanks Mike, funnily enough the EW report on the IC Insights figures was written just before you came out with your corrective email and my post was written just after. So it's thanks to you that at least one of them was right. However after the EW story was written I left the office and can't access the system remotely so have been unable to change the original story. But many thanks for pointing out the original error