The world’s integrated circuit (IC) market is expected to grow 6 percent next year, reflecting an improving global economy, a research report said yesterday.
In the report, market information advisory firm IC Insights said the IC market is expected to grow 7.4 percent on average between last year and 2016, more than double the average growth of 3.3 percent recorded in the 2006-2011 period.
On the back of a stronger economy, revenue for the electronic systems segment of the IC sector is expected to rise 5 percent next year, compared with a year-on-year increase of 3 percent forecsast for this year IC Insights said.
Last year, sales in the electronic system segment rose 6 percent from 2010, advisory firm said.
IC Insights said global GDP is likely to grow 3.2 percent next year, higher than an estimated 2.6 percent growth for this year. If the forecaset is correct, next year’s GDP growth would still be 0.3 percentage points below the long-term average.
In the electronic systems segment, revenue from communications products is expected to grow 6 percent year-on-year next year to US$424 billion, becoming the largest revenue earner, IC Insights said.
The advisory firm said if this happens it would be the first time communications products had topped the computer sector in terms of sales generated.
Revenue for the computer sector for next year is expected to rise 4 percent from this year to US$420 billion.
Sales in the consumer product category next year are expected to rise 4 percent to US$197 billion, while automotive product revenue is forecast to grow 3 percent to US$170 billion, the report said.
Meanwhile, sales in the industrial product category are expected to rise 6 percent to US$118 billion for next year from this year, while revenue in the government/military category is likely to grow 3 percent to US$92 billion, IC Insights said.