Personal computing IC market to rise 6%

18th March 2014

IC Insights

Nat Bowers

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According to the 2014 edition of IC Insights’ 'IC Market Drivers - A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits', the IC market for total personal computing systems is forecast to increase 6% to $77.7bn (USD) in 2014 and climb another 6% in 2015 to $82.1bn (USD). This is just less than the 2010 record-high of $82.3bn (USD).

IC Insights has also forecast a new record high to be set in 2016, when sales reach $88.0bn (USD). Between 2012 and 2017, personal computing IC sales are projected to rise by a CAGR of 2.7%, totalling $85.0bn (USD) in the final year of the forecast (see figure 1, below).

Personal computing systems - standard PCs, tablets, and Internet/cloud-computing laptops - are forecast to remain the largest market for ICs with $77.7bn (USD) (27%) of total integrated circuit sales expected from these systems in 2014. When all computer systems are considered (e.g., mainframes, supercomputers, servers, printers, monitors, and other peripherals as well as personal computing products), 36% of all dollars spent on ICs is forecast to be for computer equipment in 2014, according the IC Market Drivers report.

Personal computing IC market to rise 6%, Figure 1

Figure 1

In the last three years (2011-2013), personal computing system IC sales were pulled down by declines in integrated circuit purchases for standard desktop and notebook PCs. After surging 27% in the 2010 recovery year, PC IC sales slid 8% in 2011 to $71.0bn (USD), followed by an 11% drop in 2012 to $63.3bn (USD). In 2013, PC IC sales dropped 8% to $58.1bn (USD). PC integrated circuit sales are expected to rise 3% in 2014 to $59.6bn (USD). In the 2012-2017 period, PC IC sales are projected to fall by a CAGR of -0.4% to $62.1bn (USD) in the final year of the forecast.

Meanwhile, tablet integrated circuit sales increased 37% in 2013 to $14.7bn (USD) from $10.7bn (USD) in 2012, when revenues surged 73% from $6.2bn (USD) in 2011. IC Insights is forecasting a 20% increase in tablet integrated circuit sales in 2014 to $17.6bn (USD), followed by 10% growth in 2015 to $19.5bn (USD). Between 2012 and 2017, tablet IC sales are expected to grow by a CAGR of 15.3% to $21.8bn (USD) in the final year of the forecast. The Internet/cloud systems segment is expected to generate $558m (USD) in IC sales in 2014, which will be a 37% increase from about $408m (USD) in 2013. IC sales for Internet/cloud computing systems are projected to grow by a CAGR of 28.7% in the forecast period, reaching $1.1bn (USD) in 2017.