SCOTTSDALE, Ariz., August 19 -- Although a number of significant milestones were achieved in 2002, this past year was one of the toughest for those in the microelectromechanical systems (MEMS) industry, according to a report by market research firm In-Stat/MDR. The company said that year over year, revenues grew just 4.4 percent, from $3.8 billion in 2001 to $3.9 billion in 2002, even though unit shipments increased 47.6 percent.
However, according to Marlene Bourne, an analyst with In-Stat/MDR, "A number of governments, who believe that this technology of the future cannot be ignored, are well on their way to creating the infrastructure necessary to ensure that they won’t be left behind. Future regional competitiveness may very well be a direct result of the significant level of spending that is taking place right now in China, India, Mexico, Taiwan and other countries."
Despite the mixed news, the company said MEMS remain a solid business opportunity, for both customers and suppliers. It said revenues will increase at a compound annual growth rate (CAGR) of 15.9 percent to $8.3 billion in 2007, with unit shipments growing at a CAGR of 26.1 percent, from 1.0 billion units in 2002 to 3.3 billion units in 2007.
The report, "Got MEMS? 2003 Industry Overview and Forecast" (#IN030601EA),looks at a variety of trends and other parameters, indicating success and change in the MEMS industry. Forecasts for MEMS devices and markets are provided through 2007.
MEMS are devices containing extremely small mechanical elements, which are usually integrated together with electronic processing circuitry.
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