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Home appliance chip market crosses Rs.8,000 crore

Posted: 20 Jul 2011     Print Version  Bookmark and Share

Keywords:global  appliances  shipments 

IMS Research forecasts that the major home appliances (MHAs) semiconductor market will cross Rs.8,928.57 crore ($2 billion) in 2012, up from Rs.6,696.43 crore ($1.5 billion) in 2010.

Such components have a whole host of functions which includes the following: (1) controlling operation of the motor in an appliance; (2) sensing various operational parameters; (3) driving touch-control devices; (4) storing menus, languages and safety sub-systems; (5) maybe even someday communicating with the electricity grid; and (6) managing power, which accounts for most revenues.

Their growing use is driven by two factors: (1) increasing global unit shipments of MHAs, and (2) increased electronic content in them. Increased shipments of appliances are largely driven by the growing economies of China, India, and Latin America. Over the next five years, IMS Research forecasts unit shipments of global appliances to grow modestly at 4-6 per cent a year, contrasting with the revenues from their semiconductor content, which are forecast to grow at double that rate.

Analyst Liz Cruz says, "The second and more direct factor creating demand for semiconductors in appliances is the increased use of electronics in them, itself driven by several factors." The focus on energy efficiency in appliances has led to increased use of inverter-based variable-speed drives in them; and to improved power management. Specifically, the trend towards variable-speed motor control increases the demand for IGBT modules, which accounted for the most power semiconductor revenues in MHAs in 2010.

During the global recession, MHA makers began to focus on bringing design in-house and differentiating themselves from the competition through unique features. Two popular ways to achieve differentiation are through increased use of electronic controls and displays and through new safety features and programs (which require greater memory storage); these need more advanced microcontrollers. Cruz comments that "while the market is currently dominated by 8bit microcontrollers, IMS Research forecasts substantial growth for 16bit and 32bit types in most appliance categories."

IMS Research forecasts the market to grow to nearly Rs.13,392.86 crore ($3 billion) in 2015, or almost double the revenues in 2010.

For more statistics and forecasts, click here.





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