Top Ten Most Attractive Markets for MEMS/MST Devices

1/15/2003 - MicroElectroMechanical / MicroStructure Technology (MEMS / MST) are microscopic mechanical devices that are doing great things for the macroscopic world. If you have ridden in a car, use a computer, print using inkjets, or flown on a plane, then the first generation of these tiny devices have served you well.

In fact, the rapid adoption of MEMS / MST devices into an expanding list of products is the main reason 3.4 billion units will be sold in 2002, generating over US$ 17 billion. Market forecasts expect these devices to reach 10.4 billion units in 2006, delivering in excess of US$ 34 billion in revenue, according to the recently released market study "MEMS and MicroStructures Technology: an Application and Market Evaluation, Second Edition", from Venture Development Corporation (VDC).

"It is unbelievable what MEMS / MST devices can do, and the products that they are in. The automobile and IT industries were the first to incorporate these devices into their products and account for the vast majority of consumption in 2001." Stated MEMS research analysts at VDC, "The future of this marketplace however is wide open as their cost reduction and performance improvement benefits reach dozens of new applications."

As for areas of opportunity, VDC's market attractiveness index identifies the top 10 near term opportunities in the MEMS / MST market:

  1. Micro-fluidic biochips for medical diagnostics and drug discovery
  2. Glucose micro-fluidic monitoring sensors
  3. Tire pressure sensors
  4. Hard disk drive heads
  5. Consumer print heads for inkjet printers
  6. Over the counter micro-fluidic testing devices for detecting medical conditions
  7. Large format print heads
  8. Devices that enable advanced automotive functions
  9. ABS accelerometers and gyroscopes
  10. Automobile mass airflow sensors

VDC's market attractiveness index ranks each product in the following segments:

Other points of interest:

"Products in the BioTechnology arena generally have the greatest long term potential for revenue generation." VDC research analysts continue, "Just one application for Biochip, for example, is to detect viruses and bacteria that may have infected a human. If you multiply the number of diseases a person can contract by the number of humans on the planet, you have the total potential market for biochips in one application." Competitive barriers to entry in this grouping of products are diverse.

BioTechnology requires varying degrees of regulatory approvals and has tremendous up front costs. Experience in FDA, health care industry purchasing, and alliance building are a few examples of hurdles that need to be cleared to compete in this segment.

Manufacturers of automobiles have extensive experience at forcing lower prices from suppliers. This offers an opportunity for low cost manufacturers to quickly enter and dominate an evolving product segment such as tire pressure sensors as demand is only now beginning to materialize.

The VDC study, published in August 2002, gives detailed unit consumption, sales revenue, and average pricing trends for over 63 products categories across seven consuming industries. Industry coverage includes: information technology, biotechnology, automotive applications, consumer product applications, industrial applications, chemical analysis devices, and communications applications including RF MEMS and all-optical network MEMS / MST products. Product segments coverage includes: eleven categories of pressure sensors; four classes each for accelerometers, gyroscopes, RF MEMS, optical MEMS devices and six digital light projection MEMS classes are among the products covered in VDCís 372-page report.

Venture Development Corporation, a technology market research and strategy firm, was founded in 1971. Over the years, VDC has developed and fine-tuned a unique and highly successful methodology for realistically forecasting and analyzing highly dynamic technology markets. VDC has extensive experience in providing multi-client and proprietary analysis in the MEMS/MST market. VDC also offers proprietary market research and a wide range of strategy consulting services in the areas of industrial measurement and control, factory automation, communications, electronic components, retail automation, power equipment, embedded systems and software, AIDC and RF technology.

About The Study
"MEMS and Microstructure Technology (MST): an Applications and Market Evaluation, Second Edition", Venture Development Corporation (VDC) is pleased to present the most comprehensive market research report available on the MEMS / MST industry. VDC has divided the industry into 63 product classifications, in 25 segments, within established and emerging categories, that cover commercial applications for MEMS / MST devices. The 372-page report is packed with 69 exhibits, technology and market segmentation, extensive discussions of the most important issues affecting the industry, and a list of over 3,100 MEMS / MST US patents.

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