Return to historic growth rates for OSD

IC Insights O-S-DThe market for opto,  sensors, actuators, and discrete semiconductors (O-S-D) should grow 8%  this year, says IC Insights, after two years of being stalled by economic uncertainty.

Nonetheless O-S-D sales crept to an all-time high of $58.6 billion in 2013, compared to the previous peak of $58.2 billion in 2012, when revenues also grew about 1% from record levels in 2011.

2013 was a slightly weaker repeat of 2012 with all three O-S-D market segments being undermined by the shaky global economy and high levels of caution among systems makers, who reined in component purchases and kept inventories low.

During 2013, the biggest and typically fastest-growing product categories in optoelectronics, sensors/actuators, and discretes suffered from slowdowns in unit-volume demand and sharply lower selling prices.

year slump ending in 2014 with all three market segments gaining strength over the next several years as the global economy improves and unit demand bounces back.
IC Insights expects total O-S-D revenues to rise by a more normal 8% growth rate in 2014, reaching a fourth consecutive record-high level of $63.5 billion this year.

Opto is expected to grow 9% to $31.6 billion;

Sensors/actuators to grow nearly 14% to $9.9 billion;

Discretes, after two-year decline, increasing 6% to $22.0 billion).

The 2014 O-S-D Report shows all three O-S-D market segments steadily gaining momentum until 2017, when the next economic slump is expected.

After growth slows to about 2% in 2017, total O-S-D sales are projected to rise 6% in 2018, reaching $86.4 billion, which represents a CAGR of 6.4% in the five-year forecast period of the new report.

The 2013 slowdown in O-S-D growth was unusual in a number of ways, says IC Insights.

For the first time in six years, O-S-D growth lagged IC sales—0.7% versus 4.7% for integrated circuits, which got a tremendous boost from a 32% increase in DRAM revenues during 2013.

Despite weaker growth, combined O-S-D sales accounted for 18.0% of the semiconductor industry’s total sales of $325.1 billion in 2013 compared to marketshares of 16.0% in 2003 and 14.6% in 1993.

On the strength of optoelectronics and sensors, total O-S-D sales have outpaced the

Among the 2013 bright spots in the O-S-D markets were optical network laser transmitters, which saw sales surge 48% to $1.0 billion, and pressure sensors, which climbed 18% to a record-high $1.3 billion last year.

Laser transmitter growth is being driven by strong investments in high-speed optical networks, which are needed to keep up with worldwide increases in Internet traffic, tremendous growth in video streaming and downloading transmissions, and the spread of new online cloud-computing services.

Pressure sensor sales were driven higher by strong demand from the automotive industry and new end uses in portable systems (such as smartphones and wearable personal activity trackers) and medical applications, according to the 2014 O-S-D Report.

The strongest growth drivers in O-S-D during the next five years are expected to be: high-brightness LEDs for solid-state lighting; laser transmitters for faster optical networks; MEMS-based accelerometers, gyroscopes, and pressure sensors for highly adaptive embedded control and location-aware cellphones and other portable systems; CMOS imaging devices for machine vision, medical systems, and new human-recognition interfaces; and power transistors for hybrid and electric vehicles, energy-saving electronics, and more efficient battery management solutions.

Tags: global economy, IC Insights, market segments, pressure sensors

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