Reversing a disappointing decline in 2012, the global market for industrial electronics semiconductors was up 11% in 2013.
Global industrial electronics chip revenue for 2013 amounted to $33.7 billion, a solid rise from $30.4 billion in 2012, according to a report from IHS Technology.
And the growth is expected to continue with the annual revenue forecast to grow 9% to $36.8 billion in 2014. Looking even further ahead, IHS is predicting $45 billion by 2018.
“The market’s persuasive bounce-back is due to a strengthening global economy, coupled with higher purchasing confidence across all geographical regions,” said Robbie Galoso, principal analyst for industrial electronics at IHS.
“While the field may not sound as sexy or attention-grabbing as some of the more popular markets around, like wireless or consumer, there is no underestimating the power or sheer breadth of its applications, ranging from home automation to the medical field, to energy, to aeronautics and military purposes, and much more.”
The better results were led by the improved housing market in the U.S., which fueled the expansion of industrial electronics usage in the building and home control segment. China was another source of growth in the broad- medical electronics and factory automation sectors.
Even a beleaguered Europe was a happy contributor, with 13 of its countries figuring among the top 20 global industrial electronics markets, IHS reported.
Results by Segments
The building and home control totaled $10.1 billion, or nearly a third of the industry’s entire takings. Lighting was a prominent performer, especially in the light-emitting diode (LED) sector, as were security systems used in applications like video surveillance and fire alarms.
Also obtaining high marks last year were the military and civil aerospace segment, as well as medical electronics. In the former, a robust commercial avionics sector drove expansion that compensated for headwinds encountered in the military sphere because of the U.S. federal budget sequestration. In the latter, the diagnostic-therapy-patient monitor market continued to perform well.