June 15, 2011 -- A major consolidation is coming to the industrial micro electromechanical systems (MEMS) market in the next 12-18 months, predicts business consulting firm Frankfurt Partners. The industrial MEMS market is both highly attractive and highly fragmented.
Hundreds of companies, inhabiting several market segments, make up the industrial MEMS contingent, said Rene Meister, managing director, Frankfurt Partners. The majority of industrial-focused MEMS companies have less than 1% market share.
The industrial MEMS sector is "close to a tipping point," said Meister, predicting major consolidations in Europe and elsewhere in 12-18 months. Cross-industry consolidation, mostly by semiconductor companies acquiring emerging MEMS companies, has already begun.
The overall MEMS market is growing rapidly: total MEMS market size was about $8 billion in 2010, up more than 12% from last year. By 2015, it will surpass $16.5 billion, at a CAGR of 15.9%. No company has more than 10% market share. The top 10 MEMS companies, with the exception of Bosch, are consumer-market focused.