Technological innovations and improved price/performance ratios to spur growth in sales of microsystems

Citation

(1999), "Technological innovations and improved price/performance ratios to spur growth in sales of microsystems", Assembly Automation, Vol. 19 No. 4. https://doi.org/10.1108/aa.1999.03319dab.001

Technological innovations and improved price/performance ratios to spur growth in sales of microsystems

Keywords Micro machining

The range of applications for microsystems has expanded significantly in recent years. A whole raft of new technologies has been introduced to the microsystems market and are expected to continue to develop as technology advancements are progressing. Furthermore, research projects herald an era of new innovations, products and recognition of the advantages these devices offer.

Technological evolution is the main driving force behind growth in the European microsystems market. The success of several mass markets, improvements in wafer technology and batch manufacturing as well as packaging, coupled with the rising number of technology providers, have all contributed to making this technology more accessible at an affordable price.

According to a new study by Frost & Sullivan, the international marketing consulting company, the prospect of a higher level of specifications and legislation impacting the market in the future is likely to boost end-user and consumer confidence in microsystems. Rising interest in miniaturisation technology is expected to result in the injection of much needed capital for further investments in R&D, vital for continued market growth.

Competition is expected to increase in the more established markets as a substantial number of manufacturers consider performance enhancements of their product range more crucial than price reductions, the study continues.

Victoria Whiting, Research Analyst at Frost & Sullivan, says:

The main challenge for manufacturers is the identification of niche markets that have the capability to develop rapidly and that display mass market potential. A number of manufacturers are involved with competitors and research institutes in order to cut costs and to instigate cross-fertilisation by gaining knowledge, technology and expertise from one another. These manufacturing clusters are essential if European companies are going to compete against the well-established research laboratories from the USA and Japan.

The European microsystems market is further driven by improved price/performance ratios, rising interest in microsystems, expanding application areas, established silicon manufacturing techniques, integrating partnerships between academia and industry and clean technology, all of which are forecast to push revenues in the total market for microsystems from US$1.26 billion in 1998 to a level of US$2.23 billion by the end of the study period in the year 2005 (Figure 1). Andreas Themis, joint author of the study, continues:

Miniaturisation offers a way forward towards the reduction of industrial and medical waste and materials, smaller factory sizes, improvements in medical treatment and diagnosis as well as many other environmental, industrial and commercial advantages

The IT peripherals sector accounts for the lion's share of the total microsystems market due to the decline in average price, which has led to increased saleability, growing acceptance of microtechnology and the advantages offered by the new technology.

The IT peripherals sector's vast market potential, coupled with improved product performance, is expected to fuel growth in this market over the forecast period.

Figure 1 The European market for microsystems (per cent of revenues by application - forecast for the year 2005)

Meanwhile, the main trends influencing the automotive sector include declining prices, growing acceptance of the technology, rising demand for added car features, the continued success of MAP sensors and airbags and the introduction of side airbags into the marketplace.

New products and applications for microsystems are expected to be revealed in the automotive sector, which is anticipated to have a major impact on the market in the latter part of the forecast period in order to meet the demands of automotive manufacturers in their quest to produce "the car of the future".

Over the next few years, a slow decline in revenue share is expected to affect the microsystems market for process control and aerospace applications, ranking in third position, due to faster growth areas in other markets as well as the slow adoption of microsystems in industry.

The majority of revenues in the overall market stem from the mass market sectors such as inkjet printer heads, read-write disk drive heads, and airbag sensors. These markets are dominated by the large multinational players and are mostly closed to outside competition. However, many smaller companies operate within the emerging and niche markets such as medical surgical equipment, chemical sensing and tailor-making microsystems for specific applications. Victoria Whiting adds:

The addition of integrated sensors to microelectronics allows information gathering to occur in highly integrated systems, in addition to the more traditional roles of information processing and communication. The emergence of microactuators promises to exert significant measures of control over non-electronic events at very small sizes. Also, the ability to carry out sensing and actuating at low cost in distributed systems promises to significantly buoy microelectronic applications

Efforts are being made in low-temperature wafer-to-wafer bonding applicable to the realisation of wafer-level device encapsulation as well as to the creation of advanced batch-fabricated microstructures, Frost & Sullivan's study concludes.

For further information contact Frost & Sullivan's Public Relations Department. Tel: +44 (0) 171 915 7824; Fax: +44 (0) 171 730 3343; e-mail: kristina.menzefricke@fs-europe.com