The worldwide market for semiconductor components used in industrial applications is expected to rise by 12.9 percent in 2014 to $38.5 billion, up from $34.0 billion in 2013. This will follow on from 11.4 percent expansion for the market in 2013, according to IHS Technology.
This 2014 growth figure is an upward revision from 9 percent growth figure given in February 2014 (see Industrial chip market to grow 9% in 2014, says IHS ).
The two top geographical markets, the United States and China, will propel the 12.9 percent growth with their own revenue increases of 13 and 17 percent, respectively. The US market is about 30 percent of the global market and twice the size of the second-placed Chinese market. The US market will hit about $11 billion in 2014 compared with China's faster growing $5 billion. These two regions saw sales surge in the second quarter of 2014 making up for a decline in that quarter in Europe, IHS said.
Strong end markets include factory automation, building and home controls and commercial aircraft and following a seasonally slow first quarter a 7 percent sequential increase in industrial chip sales has kept the global market on an upward path.
Generous Chinese government stimulus programs in several markets are engendering broadbased strength for various industrial electronics areas, said Robbie Galoso, a principal analyst for IHS, in a statement. LEDs for lighting applications are one type of component that is helping drive the industrial sector. Sales of LEDs for lighting will attain 12.4 percent growth IHS.
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