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Smartphone & Tablet PCs - Growth Drivers of Semiconductor Industry

Published By : IndustryARC | Published On : 02-02-2013
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The sales of smartphones and Tablet PCs along with other devices lile e-readers, ultrabooks and notebooks will be a major growth driver to the semiconductor industry. The electronic content present in these high end devices like application processors, baseband and connectivity ICs, sensors and power management ICs will be the key contributing factor to the increased revenues. IndustryARC expects these electronic components to contribute to around $130bn in revenues to the semiconductor industry in 2013 and this is expected to increase to around $230bn by 2016 directly. The communication industry will also need to increase the spending on infrastructure to support this ecosystem and indirectly the sale of devices like routers, femtocells and baseband stations will again contribute to the semiconductor industry.

Smartphones and Tablet PCs are disruptive technological devices in the communication industry which are increasingly contributing to the semiconductor industry revenue wise. The Semiconductor industry is a $300bn market currently and its traditional growth rate has been around 3 to 4% per year for the past 10 years. These two portable digital communication and computing devices are expected to increase this growth rate significantly in the coming years. While smartphones are replacing the feature phones, tablet PCs are being bought in place of laptops and in some cases desktop PCs. IndustryARC expects the sales of smartphones to increase at a CAGR of 28% and tablet PCs at 47% during 2012 – 2016. This phenomenon depicts the general technology trend of new products replacing the previous generation products.