Top Ten Most Attractive Markets for MEMS/MST Devices

BioTechnology requires varying degrees of regulatory approvals and has tremendous up front costs. Experience in FDA, health care industry purchasing, and alliance building are a few examples of hurdles that need to be cleared to compete in this segment.

Natick MA - MicroElectroMechanical / MicroStructure Technology (MEMS / MST) are microscopic mechanical devices that are doing great things for the macroscopic world. If you have ridden in a car, used a computer, printed using inkjets, or flown on a plane, then the first generation of these tiny devices have served you well.

In fact, the rapid adoption of MEMS / MST devices into an expanding list of products is the main reason 3.4 billion units will be sold in 2002, generating over US$ 17 billion. Market forecasts expect these devices to reach 10.4 billion units in 2006, delivering in excess of US$ 34 billion in revenue, according to the recently released market study "MEMS and MicroStructures Technology: an Application and Market Evaluation, Second Edition", from Venture Development Corporation (VDC).

As for areas of opportunity, VDC's market attractiveness index identifies the top 10 near term opportunities in the MEMS / MST market:

1. Micro-fluidic biochips for medical diagnostics and drug discovery
2. Glucose micro-fluidic monitoring sensors
3. Tire pressure sensors
4. Hard disk drive heads
5. Consumer print heads for inkjet printers
6. Over the counter micro-fluidic testing devices for detecting medical conditions
7. Large format print heads
8. Devices that enable advanced automotive functions
9. ABS accelerometers and gyroscopes
10. Automobile mass airflow sensors

VDC's market attractiveness index ranks each product in the following segments:

- Dollar value of the market in 2001;
- Forecast dollar value of the market in 2006;
- Forecast dollar value growth rates;
- Competitive pressures in the product market; and
- Attractiveness of related opportunities for existing expertise.

Other points of interest:

- 6 of the top 10 product opportunities are among the largest dollar generating markets today;
- All categories will generate at lease US$ 250 million in 2006; and
- None are expected to grow less than 40% annually.

"Products in the BioTechnology arena generally have the greatest long term potential for revenue generation." VDC research analysts continue, "Just one application for Biochip, for example, is to detect viruses and bacteria that may have infected a human. If you multiply the number of diseases a person can contract by the number of humans on the planet, you have the total potential market for biochips in one application." Competitive barriers to entry in this grouping of products are diverse.

BioTechnology requires varying degrees of regulatory approvals and has tremendous up front costs. Experience in FDA, health care industry purchasing, and alliance building are a few examples of hurdles that need to be cleared to compete in this segment.

Manufacturers of automobiles have extensive experience at forcing lower prices from suppliers. This offers an opportunity for low cost manufacturers to quickly enter and dominate an evolving product segment such as tire pressure sensors as demand is only now beginning to materialize.

The VDC study, published in August 2002, gives detailed unit consumption, sales revenue, and average pricing trends for over 63 products categories across seven consuming industries. Industry coverage includes: information technology, biotechnology, automotive applications, consumer product applications, industrial applications, chemical analysis devices, and communications applications including RF MEMS and all-optical network MEMS / MST products. Product segments coverage includes: eleven categories of pressure sensors; four classes each for accelerometers, gyroscopes, RF MEMS, optical MEMS devices and six digital light projection MEMS classes are among the products covered in VDC's 372-page report.

About VDC

VDC is a technology market research and consulting firm that specializes in a number of industrial and commercial electronics, computing, communications, software and power systems markets. The company was founded in 1971.

The Electronics Components and Materials Practice at VDC analyzes global demand for a number of discrete and passive electronic components and advanced materials including MEMs, nanotechnologies, electromechanical and digital components. The Practice publishes an number of syndicated market research reports focusing on specific product segments and vertical markets. In addition, Practice Director John Gordon and his team support proprietary research and strategy consulting assignments for leaders in many electronic components and advanced materials markets.

About The Study

"MEMS and Microstructure Technology (MST): an Applications and Market Evaluation, Second Edition", Venture Development Corporation (VDC) is pleased to present the most comprehensive market research report available on the MEMS / MST industry. VDC has divided the industry into 63 product classifications, in 25 segments, within established and emerging categories, that cover commercial applications for MEMS / MST devices. The 372-page report is packed with 69 exhibits, technology and market segmentation, extensive discussions of the most important issues affecting the industry, and a list of over 3,100 MEMS / MST US patents.

For further information and pricing on "MEMS and MicroStructures Technology: an Application and Market Evaluation, Second Edition", please contact John A. Gordon, Senior Analyst, or Marc Regberg, Senior Vice President at:

Venture Development Corporation
Tel: 508.653.9000
Fax: 508.653.9836
Web: www.vdc-corp.com
E-mail: msr@vdc-corp.com or jgordon@vdc-corp.com

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Report Availability
www.vdc-corp.com/components/reports/02/br02-11.html

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