Analog Market to Grow 17%

Online staff -- Electronic News, 3/28/2006

After a mostly flat 2005 for analog suppliers, the analog market is predicted to reach a new high of $37.5 billion, a 17 percent increase over 2005, according to a report from market research firm Databeans.

For 2005, Databeans said the analog market, which includes amplifiers, comparators, data converters, interface, analog power and ASSP/ASIC, constituted almost 14 percent of the overall semiconductors market.

The top 10 suppliers of analog products in 2005 controlled about two-thirds of the market, the firm noted, with the top five combining for a market share of almost 50 percent. According to Databeans, the top five analog suppliers continued to be, in order: Texas Instruments, STMicroelectronics, Infineon Technologies, Philips Semiconductors and Analog Devices Inc. TI commanded 14 percent market share, while STMicroelectronics followed closely behind with 13 percent market share (see chart below).

Both Maxim Integrated Products and Linear Technology moved up in the ranking, thanks to stronger bookings across several markets during the last half of the year.

For this year, Databeans predicts that analog will be much stronger, with the increased demand coming from portable consumer electronics, 3G handsets, network upgrades and PCs. Anything portable will need improved battery management, and higher processing performance will require faster data conversion and greater precision in amplification, the firm noted. On that, analog suppliers will have opportunities to increase revenue substantially and to expand gross margins, concluded Databeans.