As we anticipated in our previous report, 2024 will bring new opportunities for the MEMS industry. Global revenues reach $15.4 billion (+5% year-on-year), mainly due to the end of the "inventory effect" in the second quarter. In fact, shipments in 2024 reach 31 billion units. We expect even better performance in 2025, thanks to demand growth driven by all end-market megatrends and the market gradually returning to the "pre-COVID-19 landscape".

Application field requirements

In the consumer electronics sector, we still expect a general stagnation in the integration of new sensors in smartphones, while the market interest in MEMS devices in wearable devices (such as TWS headphones) will grow. We still expect AR/VR headsets to usher in a long-term development around 2030, which will bring huge market demand for LBS, inertial sensors and microphones. The focus on MEMS micro speakers in wearable applications may also bring good development opportunities for them, as their SMD integration characteristics and dust and moisture resistance make them an advantage for such applications. In addition, with the increasing global attention to indoor and outdoor air quality, products such as environmental sensors, flow sensors and pressure sensors will be used in air purifiers, thermostats and residential HVAC systems.

The overall automotive market is quite stable between 2023 and 2024. In addition, the automotive industry is undergoing profound changes. With the development of vehicle electrification, we expect the number of MEMS pressure sensors used in battery electric vehicles (BEVs) to decline first. However, other automotive fields are expected to see growth! ADAS and safety applications will require MEMS motion sensors for GNSS positioning, microbolometers for AEB, precise timing solutions, MEMS pressure sensors for thermal management, etc. Other applications, such as impact detection of battery packs or vehicle parking status monitoring, will also create opportunities for MEMS inertial sensors.

The trend towards Industry 4.0 and warehouse automation continues, and we will witness a long-term shift in the industrial end market from traditional ships, trucks, forklifts, etc. to automated guided vehicles (AGVs) and smart factory vehicles. With this, the number of motion sensors, microphones, ultrasonic sensors, etc. will undoubtedly increase. Machine health monitoring is a key application where inertial sensors can be used to sense vibrations, and microphones can also be used to sense vibrations, depending on their integration on the machine to be sensed.

The medical end market is also expected to bring sales growth to MEMS and sensors in the next few years. The biggest driving force will come from the emergence of OTC hearing aids, which will create a new market for MEMS microphones, micro speakers, and motion sensors. In addition, we predict that the use of ultrasound in diagnostics will expand, while handheld bedside ultrasound probes using CMUT and PMUT will also be used in telemedicine.

In the coming years, the growing global data traffic and huge investments in artificial intelligence will also drive the use of telecommunications equipment such as optical MEMS and MEMS-based oscillators. MEMS technology also brings good development opportunities for equipment such as cooling systems, because MEMS technology is smaller in size (mainly in thickness) compared to traditional technologies, which is a real advantage for micro-integration.

Driven by the current geopolitical situation, the defense and aerospace market will grow in 2024. Under this trend, there is a growing demand for precise positioning of drones or missiles and antenna stabilization, and MEMS technology can meet the needs of some applications. This is a good opportunity for MEMS technology because integration technology may become necessary.

Market Dynamics Manufacturers

As a result, we expect a 24-30 CAGR (revenue) of 3.7%, reaching 35 billion units and $19.2 billion in revenue by 2030!

2024 is a transformation year for most MEMS industry players. In fact, the end of the "inventory effect" in the second half of 2024 increases the demand for MEMS devices, especially in the consumer market. For the automotive market, 2024 remains generally stable, but the Chinese market is more attractive from a geographical perspective. We expect a more optimistic situation in 2025, thanks to demand growth driven by all end-market megatrends and the market returning to pre-COVID-19 levels.

In terms of manufacturers, the three giants Bosch, STMicroelectronics and TDK continue to lead the MEMS sensor market, while Broadcom and Qorvo lead the RF MEMS market. Bosch's revenue in 2024 reached $2 billion, a year-on-year increase of 12%. This is mainly due to the elimination of inventory effects, the company's large product portfolio (including smart sensors, which are in growing demand), and Bosch mainly serves the high-end market, whose end systems have been less affected than other markets in the past few years.

In 2024, the overall foundry business is quite stable compared to 2023 (revenue growth of 3.2% year-on-year). The business returns to growth thanks to the end of inventory effects and geopolitical situation.

The US-China trade war has accelerated the development of China's semiconductor and MEMS ecosystem. Therefore, through funding and incentives, the Chinese MEMS ecosystem is growing stronger.

Finally, 2024 is a transition year in terms of ecosystem development, but there are also some important news - for example, some players are still involved in 300mm MEMS manufacturing; players involved in the MEMS micro speaker industry have reached Munit production; and so on.

Technology Challenge Trends

Today, the challenges facing the MEMS market are changing with each passing day. To maintain industry growth, MEMS need to be optimized in terms of intelligence, size, power consumption, and cost. These demands have led to technology trends that are prevalent throughout the value chain, from design, integration to software.

The penetration of MEMS technology is still increasing, replacing traditional sensors and actuators. Currently, MEMS technology has been applied to a variety of sensors, and more recently, cooling systems and speakers have also begun to adopt MEMS technology. Miniaturization is often a key parameter for adopting MEMS technology for better integration into the final system.

From a technical perspective, the popularity of piezoelectric MEMS in applications such as PMUT, inkjet printheads, micromirrors, and RF MEMS is still increasing. Piezoelectric materials are also used in emerging devices such as MEMS cooling and MEMS microspeakers.

12-inch MEMS manufacturing is still a trend, and several manufacturers have participated in it. The motivation for using such large wafers to manufacture MEMS is easier integration with ICs, easier access to better performance devices, and larger chip sizes for specific applications. Larger wafer chip volume is not the main reason for manufacturers to participate.

In recent years, we can see that manufacturers are offering more than just "simple" sensors, but smart sensors that can provide a variety of functions. Bringing intelligence closer to the sensor has many advantages, such as standardization, size optimization, power consumption reduction, data privacy protection, and easier integration. By providing solutions instead of sensors, manufacturers can also improve profit margins in the value chain.

We can see that the MEMS industry is still introducing disruptive technologies. To succeed in this industry, you must meet market needs: a growing total market, technologies that can bring real added value to specific applications, and sufficient funds and support to maintain fierce competition in a mature industry. But with the emergence of all these new players, new technologies and megatrends, the future of the MEMS industry is bright!

Reference link

https://www.yolegroup.com/product/report/status-of-the-mems-industry-2025/?utm_source=PR&utm_medium=email&utm_campaign=PR_Status-of-the-MEMS-Industry_June2025

Source: Content compiled from Yole

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