MEMS Market Set to Rebound in 2024, Predicts Yole

The MEMS market experienced a 3 percent annual decline in 2023, reaching a value of US$14.6 million. This decrease was primarily attributed to a downturn in consumer electronics and economic cycles. However, with global post-COVID inflation coming under control, growth is expected to resume in 2024. According to Yole, shipments are projected to increase by 9 percent year-over-year, totaling approximately 34 billion units.

The long-term growth prospects for the MEMS market are promising, driven by various factors such as the sensorization of consumer electronics, autonomous driving technologies, enhanced comfort features in cars, the advancement of Industry 4.0, and the increasing prevalence of artificial intelligence. These trends are expected to fuel the growth of the MEMS market in the coming years.

Yole's market forecast for the period from 2019 to 2029 predicts a 5 percent compound annual growth rate. By 2029, the market is projected to reach 43 billion units shipped, with an annual market value of US$20 billion. The number of wafers processed for MEMS is also expected to increase, from 4 million in 2023 to 5 million in 2029.

Currently, 60 percent of MEMS wafers are processed in North America and Europe, with Japan accounting for 19 percent. The remaining 21 percent are processed in Greater China and Southeast Asia, specifically in countries like Malaysia and Singapore. Mainland China is anticipated to expand its manufacturing share in the MEMS market in the near future.

The rise of Chinese MEMS companies and supporting foundries has led to a local oversupply in the market. If demand does not rise rapidly, Chinese firms may face the risk of bankruptcy or may need to pivot away from the MEMS market, as suggested by Yole. This situation could potentially result in MEMS consolidation within China, with fewer companies receiving state funds for support.