TechNavio: Mobile device semiconductors, touch panel displays to see healthy growth
Two key mobile device components--semiconductors and touch panel displays--are forecast by TechNavio to experience healthy growth rates over the next few years.
The market for mobile device semiconductors is expected to increase at an 8 percent compound annual growth rate (CAGR) through 2016, while the market for touch panel displays is forecast to increase at a strong 17.7 percent CAGR over the same time period.
Key players in the semiconductor market are Broadcom, Qualcomm and Texas Instruments. Other vendors participating in the market are Infineon Technologies, MediaTek, RF Micro Devices, Skyworks Solutions and STMicroelectronics, relates TechNavio.
The semiconductor market has seen greater investment in research and development (R&D). At the same time, the industry's cyclical nature, which affects vendor revenue, could slow market growth, TechNavio observes.
"The R&D investments by vendors have enabled them to capture a significant market share and gain a competitive edge over other vendors in the global semiconductors for wireless communication devices market. Therefore, the increasing R&D spending by market vendors is a positive trend that is expected to contribute to the growth of the market during the forecast period," comments an analyst from the TechNavio team who prepared the report.
Key players in the touch panel display market are Chimei Innolux, Nissha Printing, TPK Holding, Wintek and Young Fast Optoelectronics. Other vendors active in the space include AimCore Technology, eGalax-eMPIA Technology, J Touch and Sintek Photronic.
TechNavio notes that the market has been seeing a shift toward single glass touch panel displays, but the high cost of glass touch panel displays could dampen market growth.
"Vendors are increasingly adopting single glass touch panel displays as such displays are attributed with features such as high transmitting capabilities and low cost. Apple is in the process of adopting in-cell touch panel displays for its next-generation iPhones because of their higher yield rate when compared to double glass touch panel displays and single glass touch panel displays. Thus, the increasing preference for single glass touch panel displays is one of the major factors contributing to the growth of the market," comments a TechNavio analyst.