Market Trends of Global MEMS Packaging Industry
This section covers the major market trends shaping the MEMS Packaging Market according to our research experts:
Growing Adoption of Smartphones and Connected Devices is Expected to Drive the Demand
- The number of smartphone users is rising enormously worldwide. Consumers are switching to smartphones to access various functionality they offer, including connectivity, payment, gaming, photography, and GPS. As multiple sensors are integrated into the smartphone's hardware to enable such functionality, the growing number of smartphone users is expected to positively impact the studied market growth.
- According to Ericsson Mobility Report, smartphone subscription in India is expected to grow from 810 million in 2020 to 1.2 billion in 2026. With rural areas driving the sale of internet-enabled phones, demand for smartphones is expected to increase as Internet connectivity spreads further.
- Moreover, MEMS devices are also revolutionizing the consumer electronics market. Combining the MEMS microphones and CMOS image sensors found in all smartphones and tablets, the consumer electronic device manufacturing companies are turning the traditional devices into connected ones that can easily be remotely controlled through smartphones.
- The increasing health consciousness, especially after the outbreak of COVID-19, drives the market for connected wearable devices that use sensors to track users' biological data. As MEMS devices play an integral role in these devices, the increasing demand is expected to impact the studied market positively. For instance, according to CISCO Systems, the total number of wearable devices is expected to reach 1.1 billion globally by 2022.
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North America to Hold Significant Market Share
- The North American region traditionally has been a major shareholder of the global electronics industry owing to factors such as higher R&D capabilities, the presence of some of the biggest semiconductor and tech companies such as Intel, Dell, etc., along with higher penetration of electronic devices, IoT, and advanced automotive technologies. For instance, the region is considered one of the pioneers in adopting ADAS-enabled vehicles and autonomous transportation solutions. According to Deutsche Bank, ADAS vehicle production in the US is expected to grow to 18.45 million by 2021.
- Automotive companies are increasingly adopting MEMS devices to add unique functionality to their vehicles. For instance, MEMS-based LiDARs were an alternative to autonomous/driverless cars, industrial robots, UAVs, etc.; in September 2021, General Motors selected Cepton for the supply of MEME-based LiDAR for 2023 production. General Motor is expected to use the Cepton LiDAR to enhance ADAS capabilities for automatic emergency braking and pedestrian detection and to enable its upcoming Ultra Cruise system.
- Companies are also focused on innovating the latest sensors and are receiving recognition for their innovative products. For instance, in April 2022, Unisem, a North American and global semiconductor assembly and test services provider, won the Packaging Process Showdown at MEMS and SENSORS Technical Congress (MSTC) for its presentation, MEMS Cavity Packages.
- The recent push to the local semiconductor industry amid the global chip shortage has forced the governments in the North American region to increase their investment in the semiconductor and related industries. For instance, through a USD 240 million investment in early 2022, the government Canadian government has committed to work with local researchers and companies to strengthen Canada's position in the industryfurther. Such instances are expected to create a favorable market scenario for the growth of the studied market.
- Furthermore, the smartphone and consumer electronics also are among the leading industries driving the demand for MEMS devices which n turn is positively impacting the demand for packaging services in the region. For instance, according to the Consumer Technology Association (CTA), the 5G smartphone shipments in the United States was expected to reach 106 million in 2021.
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