The IoT, wearable systems and automated embedded control have been driving unit shipments of sensors in the double digits. The demand for low-cost sensors continues to be one of the biggest drivers. With more competition, coupled with demand for lower cost sensors in high-volume applications, average selling prices (ASPs) fell from $0.66 in 2010 to $0.40 in 2015, according to IC Insights.
The latest research shows the biggest markets exerting more price pressure include wearables, IoT-connected applications and multi-sensor packages. Although prices keep falling for sensors, it puts these critical components in a better position for market adoption in a wide range of IoT applications. Sensor ASPs are forecast to drop at a CAGR of 6.3 percent over the next five years, settling at $0.29, according to IC Insights. ASPs for MEMS-based sensors are expected to fall by a CAGR of 5.7 percent to $0.45 in 2020 from $0.61 in 2015.
While lower ASPs for devices such as accelerometers and gyroscopes is good news for buyers, revenue growth is shrinking for suppliers. Revenue for sensors is expected to rise by a CAGR of 5.3 percent between 2015 and 2020, compared to 8.9 percent over the past five years, according to IC Insights. Compared to units, shipments are expected to grow at a 12.4 percent CAGR over the same forecast period, but still down from a 20.5 percent rate of increase over 2010 to 2015.
The sensor market is expected to reach $8.3 billion in 2020, up from $6.4 billion in 2015, according to IC Insights. Record shipment growth is forecast for another five years, reaching 28.9 billion units in 2020. Sensor sales are expected to grow by about three percent in 2016, reaching $6.6 billion with worldwide shipments increasing by 13 percent to nearly 18.2 billion units.
