Analog and Mixed Signal Devices

Report Highlights

• Global shipments of analog and mixed signal ICs were $31.7 billion in 2005, increasing to $37 billion in 2006. By 2011, analog and mixed signal IC shipments will reach $67.6 billion, a CAGR of 12.8%.
• Standard ICs accounted for 45% of the total market for analog and mixed signal ICs in 2005, vs. 55% for application-specific ICs. The market for ASICS is growing at a somewhat faster rate than standard ICs, however, and by 2011 ASICs' market share is expected to reach 57%.
• Telecommunications, especially wireless telecommunications, is the single biggest user of analog and mixed signal ICs, accounting for an estimated 40% of the total market for these chips in 2005. This share will rise to 46% by 2011.

INTRODUCTION

Until relatively recently, some observers were predicting that the market for analog and mixed (analog/digital) signal devices would decline as more and more users turned to all-digital circuits to power their electronic devices. However, in spite of these grim predictions, the market for analog and mixed signal ICs has continued to grow-from roughly $24 billion in 2002 to$31.7 billion in 2005, a CAGR of nearly 10% per year.

Much of this growth is due to the fact that analog and mixed signal ICs are optimized for handling real-world signals such as voice, sound, pressure, temperature and electricity, and converting them into the ones and zeros of the digital world, where they can be processed rapidly by digital signal processors (DSPs) and back into real world signals again. All-digital circuits, in contrast, are ideal for storing and manipulating binary data to do everything from word processing and spreadsheet calculations to playing games, but they are ill-suited for communicating.

We live in an age of communications, and analog and mixed signal ICs are key technologies enabling high-growth applications in areas such as digital wireless communications, broadband access, digital audio, and high-resolution imaging. Analog and mixed signal ICs are also helping to protect and improve human health, as a key component of many implantable monitoring and prosthetic devices. Last but not least, they are contributing to economic efficiency and growth by enabling businesses to monitor and improve the efficiency of their processes.

SCOPE OF STUDY

This report contains:

• Information on the global market for analog and mixed signal ICs, with up-to-date market data, estimates, and forecasts to 2011
• The entire range of semiconductor products that are used to process analog signals alone or in combination with digital signals, including: power management ICs, data converters, amplifiers and comparators, switches and multiplexers, interfaces, application-specific ICs
• A discussion of major products and applications for analog and mixed signal devices
• A detailed review of important technologies and patents developed over the past several years, and a discussion of how each has had an impact on the market
• Profiles of the major businesses involved in the industry.

METHODOLOGY AND INFORMATION SOURCES

The findings and conclusions of this report are based on information gathered from industry sources, including manufacturers and users of analog and mixed signal ICs. Interview data were combined with information gathered through an extensive review of secondary sources such as trade publications, trade associations, company literature, and on-line databases to produce the market projections contained in this report.

The base-year for analysis and projection is 2005. BCC chose 2005 as the base year because at the time the report was prepared (in early 2007), complete year-end data for 2006 were not available from all sources. With 2005 as a baseline, market projections were developed between 2006 and 2011. These projections are based on a combination of a consensus among the primary contacts combined with our understanding of the key market drivers and their impact from a historical and analytical perspective. The analytical methodologies used to generate the market estimates are described in detail in the section on Detailed Market Projections.

All dollar projections presented in this report are in 2005 constant dollars, unless otherwise noted.

ANALYST CREDENTIALS

Andrew McWilliams, the author of this report, is a partner in the Boston-based international technology and marketing consulting firm, 43rd Parallel LLC. He is the author of numerous BCC Research reports, including several on topics related to this report: Microelectromechanical Systems (MEMS) Technology: Current and Future Markets; The Digital Home Entertainment Revolution: Technology Enablers; Digital Image Sensing, Storage and Transfer; Global Markets for Lithographic Chemicals; Nanosensors; Semiconductor Microlithography: Materials and Markets; Microelectronic Medical Implants: Products, Technologies and Opportunities; Prosthetics, Orthotics and Cosmetic Enhancement Products; Ultrapure Materials for the Semiconductor Industry.