Semiconductor demand from industrial applications continues to sizzle in 2018, says IHS

Benefitting from broad-based demand growth generated by a plethora of applications, the global industrial semiconductor market expanded by 10.8% to reach US$52 billion in 2018, according to IHS Markit.

The industry is expected to grow at a CAGR of 5.8% through 2023, IHS said.

Fast-growing applications for industrial chips in 2018 included networking devices, commercial and military aircraft, LED lighting, digital signage, digital video surveillance, climate control, smart meters, traction, photovoltaic (PV) inverters and human-machine interface systems. Various types of medical electronic devices also helped propel growth, such as hearing aids, endoscopy and imaging systems.

"Within the industrial semiconductor business, the markets for general-purpose analog ICs and optical semiconductors delivered stellar performances in 2018," said Noman Akhtar, analyst, industrial semiconductors and sensors at IHS. "Sales of these parts benefitted from the continued strength of the general LED lighting market, along with various other industrial segments, especially in factory automation, power and energy and power discretes. Demand in 2018 was also high for industrial motor drives, electric vehicle (EV) chargers, PV inverters, traction and commercial lighting equipment."

Microcontrollers (MCUs) for industrial applications are also projected to experience broad-based growth in the long term, thanks to advances in digitalization, power efficiency, connectivity and other features, IHS said.