|[July 29, 2013]
IDC Forecasts Worldwide Semiconductor Revenue Will Grow 6.9% and Reach $320 Billion in 2013
SAN MATEO, Calif. --(Business Wire)--
Semiconductor revenue worldwide will see improved growth this year of
6.9% and reaching $320 billion according to the mid-year 2013 update of
Applications Forecaster (SAF) from International Data Corporation (IDC).
The SAF also forecasts that semiconductor revenues will grow 2.9% year
over year in 2014 to $329 billion and log a compound annual growth rate
(CAGR) of 4.2% from 2012-2017, reaching $366 billion in 2017.
Continued global macroeconomic uncertainty from a slowdown in China,
eurozone debt crisis and recession, Japan recession, and the U.S.
sequester's impact on corporate IT spending are factors that could
affect global semiconductor demand this year. Mobile phones and tablets
will drive a significant portion of the growth in the semiconductor
market this year. The industry continued to see weakness in PC demand,
but strong memory growth and higher average selling prices (ASPs) in
DRAM and NAND will have a positive impact on the semiconductor market.
For the first half of 2013, IDC (News - Alert) believes semiconductor inventories
decreased and have come into balance with demand, with growth to resume
in the second half of the year.
"Semiconductors for smartphones will see healthy revenue growth as
demand for increased speeds and additional features continue to drive
high-end smartphone demand in developed countries and low-cost
smartphones in developing countries. Lower cost smartphones in
developing countries will make up an increasing portion of the mix and
moderate future mobile wireless communication semiconductor growth. PC
semiconductor demand will remain weak for 2013 as the market continues
to be affected by the worldwide macroeconomic environment and the
encroachment of tablets," said Nina
Turner, Research Manager for semiconductors at IDC.
According to Abhi
Dugar, research manager for semiconductors, embedded system
solutions, and associated software in the cloud, mobile, and security
infrastructure markets, "Communications infrastructure across
enterprise, data centers, and service provider networks will experience
a significant upgrade over the next five years to support the enormous
growth in the amount of data and information that must be managed more
efficiently, intelligently, and securely. This growth is being driven by
continued adoption of rich media capable mobile devices, movement of
increasingly virtualized server workloads within and between
datacenters, and the emergence of new networking paradigms such as
software defined networking (SDN) to support the new requirements."
Regionally, Japan will be the weakest region for 2013, but IDC forecasts
an improvement over the contraction in 2012. Growth rates in all regions
will improve for 2013 over 2012, as demand for smartphones and tablets
remain strong and automotive electronics and semiconductors for the
industrial market segment improve in 2013.
Other key findings from IDC's Semiconductor Application Forecaster
Semiconductor revenue for the computing industry segment will log
year-over-year growth of 2.0% for 2013 and will show a slow CAGR of
only 0.9% for the 2012-2017 forecast period. Semiconductor revenue
from mobile PC demand will register year-over-year growth of -0.6% in
2013, only returning to positive growth in 2015.
Semiconductor revenue for the mobile wireless communications segment
will grow 10.3% year over year in 2013 with a CAGR of 5.2% for
2012-2017. Semiconductor revenue for 4G phones will experience an
annual growth rate of 121.8% in 2013 and a CAGR of 37.9% for 2012-2017.
Media tablets, e-Readers, blu-ray DVD players, and set-top boxes will
continue to drive above average semiconductor revenue growth. Sales of
CRT and rear projection TVs, HD receivers, digital video and still
cameras, and DVD recorders and players will continue to erode.
Overall, semiconductor revenue for the consumer segment will record
year-over-year growth of 15.0% in 2013 and a 2012-2017 CAGR of 7.5%.
The 4.3% year-over-year growth in 2013 in wired communications
infrastructure semiconductors will be driven primarily by enterprise
switches and routers, security appliances, and service provider
switches and routers. Optical transport equipment, TDM and VoIP IMS,
service provider head-end access equipment, and consumer network will
also grow in 2013 over 2012, but to a lesser extent.
Driven by the increase in semiconductor content in automobiles (i.e.
applications such as in-vehicle infotainment, automobile body
electronics, and driver safety systems), semiconductor revenue for the
automotive segment is expected to grow 5.3% in 2013.
Regionally, Asia/Pacific will experience year-over-year growth of 6.9%
in 2013 and a CAGR of 4.9% for 2012-2017.
The IDC report, Worldwide IDC Semiconductor Market Forecast,
2012-2017: Midyear Update (IDC #242375), contains additional detail
about the worldwide semiconductor market forecast, forecast by industry
and device type, top 10 device applications by revenue for 2013, and top
5 device applications by 2013 year-over-year growth.
Semiconductor Applications Forecaster database serves as the basis
for all IDC semiconductor supply-side documents, including market
forecasts and consulting projects. This database contains revenue data
collected from over 100 of the top semiconductor companies for 2007-2012
and market history and forecasts for 2009-2017. Revenue for over twelve
semiconductor device areas, four geographic regions, seven industries,
and more than 65 end-device applications are also included in the
database. For more information about the SAF, please contact Nina Turner
International Data Corporation (IDC) is the premier global provider of
market intelligence, advisory services, and events for the information
technology, telecommunications, and consumer technology markets. IDC
helps IT professionals, business executives, and the investment
community to make fact-based decisions on technology purchases and
business strategy. More than 1,000 IDC analysts provide global,
regional, and local expertise on technology and industry opportunities
and trends in over 110 countries. For more than 49 years, IDC has
provided strategic insights to help our clients achieve their key
business objectives. IDC is a subsidiary of IDG, the world's leading
technology media, research, and events company. You can learn more about
IDC by visiting www.idc.com.
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