07 Jun 2018
Photonics companies notable among IHS Markit’s “Top 20”; China’s investment in LED is eclipsing western players.
Worldwide industrial semiconductor revenues grew by 11.8 percent year over year, reaching $49.1 billion in 2017, according to the latest analysis from market research company IHS Markit.
The top three players by value of sales are: Texas Instruments, which maintained its position as the largest industrial semiconductor supplier; the acquisition of Linear Technology catapulted Analog Devices into second position, with its combined sales of $2.8 billion; while Intel ranked third, as the company’s Internet of Things division continued to generate double-digit revenue growth. IHS notes that Intel also has strengths in factory automation, video surveillance and medical segments.
Generally, industrial electronics equipment demand was broad-based, with continued growth in commercial and military aircraft, LED lighting, digital signage, digital video surveillance, climate control, smart meters, traction, photovoltaic inverters, human machine interface and various medical electronics like cardiac equipment, hearing aids, endoscopy and imaging systems.
IHS commented that “the industrial semiconductor market is expected to grow at a compound annual growth rate of 7.1% through 2022.”
Optical semiconductors delivered what IHS Markit called “excellent performance”, due to the continued strength of the general LED lighting market. The report states, “Power discretes demand has ramped up in industrial motor drives, EV chargers, PV inverters, traction and lighting equipment.”
Also, general purpose analog can expect a strong five-year growth period in various industrial markets, especially in factory automation, power and energy, and lighting. Microcontrollers (MCUs) are also projected to experience broad-based growth in the long term, thanks to advances in power efficiency and integration features.
Robbie Galoso, associate director and principal analyst, industrial semiconductors, for IHS Markit, said, “The resilient economy in the United States, and strong demand in China, carried the lion’s share of industrial equipment demand in 2017. A European resurgence also provided a strong tailwind for semiconductor growth.”
Notable photonics players
In the report’s various listings and data sets, the Global industrial semiconductor market share rankings contain a number of notable photonics-heavy manufacturers. Among the top 10 industrial semiconductor suppliers achieving significant revenue growth in 2017 are:
Although not part of the top 10 ranking, China’s massive investments in LED manufacturing were especially noteworthy, comments IHS. Chinese firm MLS rose from 18th to 13th place, after posting 50 percent revenue growth and reaching $1 billion in 2017. MLS beat out other leading general lighting LED suppliers such as Nichia, Osram and Cree.
IHS Markit is a global provider of critical information, analytics and solutions for the major industries and markets. The company delivers analysis to customers in business, finance and government, to improve operational efficiency and provide insights that can lead to well-informed decisions.