After 2009 slump, electronics systems sales to set new sales record in 2011

SCOTTSDALE, USA: As a result of the worst economic recession in more than six decades, electronics systems sales worldwide are projected to fall 11 percent in 2009 to $1.11 billion from a record-high $1.24 billion in 2008, according to the just-released 2010 edition of IC Insights' Integrated Circuit Market Drivers report.

This year's drop is only the third annual decline in the history of electronics systems sales. The other two declines occurred in the last recession when electronics systems sales plunged 14 percent in 2001 and then fell another 4 percent in 2002.

The electronics equipment market is forecast to rebound in 2010 with the total value of systems shipments growing 7 percent to $1.19 billion. Another 9 percent increase in systems sales is expected in 2011, which will push worldwide electronics equipment revenues to a new record-high $1.29 billion, the report says. IC Insights sees the 2010 recovery year being led by 9 percent increases in revenues for communications systems and automotive electronics.

In the 2009 downturn, automotive and consumer electronics market segments were hit the hardest with sales dropping 17 percent and 13 percent, respectively, according the new IC Market Drivers report.

Communications and computer/office equipment sales in 2009 are estimated to be down 12 percent and 11 percent, respectively, while industrial systems revenues (including those for medical gear) are on pace to fall 9 percent this year. Government/military systems are the only major equipment segment to show growth in 2009, rising 3 percent, says the 525-page report.

With the 2008-2009 recession factored into the forecast, electronics systems sales are expected to increase by a CAGR of 3 percent per year in the 2008-2013 period.

IC Insights' new report shows 2009 integrated circuit sales declining the most for cellular-phone basestations (-30 percent) and automotive applications (-26 percent), while IC revenues grew the most in non-telephony handheld systems (+6 percent), thanks to an estimated 129 percent increase in chip sales for electronic-book readers. IC sales for personal computers and cellphone handsets—the two largest chip applications in the systems market—declined 9 percent and 3 percent in 2009, respectively.

The 2010 IC Market Drivers report shows e-book readers to be one of the fastest growing product categories in the coming years with IC sales for e-reader systems rising at a 60 percent CAGR in the 2008-2013 period.

Among other major chip applications, the 2008-2013 CAGR for IC sales are: 26 percent for RFID systems; 21 percent for non-telephony handheld computing devices (including e-book readers); 15 percent for wireless computer networks; 11 percent for smart cards, 10 percent for digital TVs; 9 percent for cellphone handsets, and 6 percent for PCs.