Market for Semiconductors in Appliances Forecast to be Over $2 Billion Next Year
Date: 14 July 2011

Austin, TX – 14^th July 2011. IMS Research forecasts the market for semiconductors in major home appliances (MHAs) will be worth more than $2 billion in 2012, up from $1.5 billion in 2010. Such components have a whole host of functions including: controlling operation of the motor in an appliance; sensing various operational parameters; driving touch-control devices; storing menus, languages & safety sub-systems; maybe even someday communicating with the electricity grid; and managing power, which accounts for most revenues.

Their growing use is driven by two factors: increasing global unit shipments of major home appliances, and increased electronic content in them. Increased shipments of appliances are largely driven by the growing economies of China, India, and Latin America. Over the next five years, IMS Research forecasts unit shipments of global appliances to grow modestly at just 4 – 6% a year, contrasting with the revenues from their semiconductor content, which are forecast to grow at double that rate.

Analyst Liz Cruz goes on to say that “the second and more direct factor creating demand for semiconductors in appliances is the increased use of electronics in them, itself driven by several factors.” The focus on energy efficiency in appliances has led to increased use of inverter-based variable-speed drives in them; and to improved power management. Specifically, the trend toward variable-speed motor control increases the demand for IGBT modules, which accounted for the most power semiconductor revenues in major home appliances in 2010.

During the global recession, MHA makers began to focus on bringing design in-house and differentiating themselves from the competition through unique features. Two popular ways to achieve differentiation are through increased use of electronic controls & displays and through new safety features & programs (which require greater memory storage); these need more advanced microcontrollers. Cruz comments that “while the market is currently dominated by 8-bit microcontrollers, IMS Research forecasts substantial growth for 16-bit and 32-bit types in most appliance categories.”

Increased shipments of major home appliances and the increased electronic content in them will continue to drive semiconductor use in appliances. IMS Research forecasts the market to grow to nearly $3 billion in 2015, or almost double the revenues in 2010. 

Editors Note :

For more information please contact:
Elizabeth Cruz
elizabeth.cruz@imsresearch.com

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, custom research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan, South Korea, and Japan. To find out more, contact IMS Research: enquiries@imsresearch.com; T: +44 (0) 1933 402255; http://imsresearch.com

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