The MEMS and sensors market is impacted by a range of economic and geopolitical factors. Meeting future market demand will require innovation and workforce development.
The proliferation of connected devices and the rise of IoT applications have driven demand for microelectromechanical systems (MEMS) and sensors, which help enable the collection of real-time data and facilitate smart decision-making. As we delve into the current outlook for MEMS and sensors, it’s crucial to explore the target markets, manufacturing challenges, and need for ongoing innovation that will drive the industry forward.
Market Delineation
Deployed across a diverse array of industries, MEMS and sensor applications can be split, in general terms, between high-volume/low-cost – automotive and consumer electronics – and low-volume/high-value, including industrial, medical, and defense. Automotive demand for MEMS has increased with the rise of electric vehicles (EVs), autonomous driving, and advanced driver-assistance systems (ADAS). MEMS-based sensors enable precise measurement of acceleration, pressure, temperature, and other parameters, helping to enhance vehicle safety, performance, and efficiency.
During the COVID-19 pandemic, car sales declined while consumers’ purchase of IT infrastructure equipment, laptops, and phones for home office use shot up, boosting demand for RF MEMS, MEMS microphones, and a range of sensor types. The volume of MEMS being manufactured was at excess capacity, but lower car sales created overcapacity. Post-COVID, spending picked up, but now faces geopolitical and financial issues. In the U.S., inflation and high interest rates have affected costs and spending powers, causing people to hold onto cars, phones, computers, and other goods longer.
Going forward, the automotive market faces some additional challenges that must be addressed to spur the kind of widespread adoption that will benefit sensor makers. These include:
- Cost – in some regions, consumers are paying 2x the cost of a gas-powered car
- High depreciation – EVs currently lose about 50% of their value after a year of being driven
- Batteries – they are not eco-friendly, either to manufacture or to dispose of
On the low-volume/high-value side of the equation, the healthcare sector represents a significant market for MEMS and sensors, particularly in diagnostic devices, wearable health monitors, and implantable medical devices. Such life-critical applications are ideally suited for MEMS-based sensors, which enable the kinds of precise measurements and monitoring that are revolutionizing patient care and disease management.
Defense and aerospace are also significant contributors to the MEMS and sensors market, leveraging these devices for navigation, surveillance, remote sensing, and other applications. MEMS-based inertial measurement units (IMUs), pressure sensors, and temperature sensors are integral to the operation of military aircraft, drones, and satellites, providing critical data for situational awareness, target tracking, and mission planning. With geopolitical tensions driving increased defense spending, MEMS and sensors manufacturers will see heightened demand for advanced sensor technologies.
Geopolitical factors play a significant role in shaping the MEMS and sensors market landscape, influencing supply chain dynamics, regulatory policies, and market competitiveness. The ongoing trade tensions between the United States and China have led to disruptions in the semiconductor supply chain, impacting the production and availability of MEMS and sensor components. In response to these challenges, manufacturers are exploring strategies to diversify their supply chains, reduce dependency on specific regions, and enhance domestic production capabilities.
Manufacturing Challenges
Given their miniature size, MEMS and sensors pack a punch in terms of complexity. Manufacturing these tiny yet sophisticated devices presents myriad challenges, ranging from process intricacies to yield optimization. The delicate nature of MEMS structures requires precision at every step of the fabrication process, from wafer-level processing to packaging and testing. Moreover, ensuring uniformity and reliability across large-scale production runs remains a constant endeavor.
One of the primary manufacturing challenges in MEMS production is achieving high yield rates while maintaining cost efficiency. MEMS fabrication involves intricate lithographic processes, delicate etching steps, and precise material deposition, all of which contribute to production costs. Additionally, the heterogeneous nature of MEMS and sensors—incorporating various materials and functional components—further complicates manufacturing processes.
To address these challenges, manufacturers are continually innovating their fabrication techniques, leveraging advanced process technologies, and investing in state-of-the-art equipment. Companies like memsstar play a pivotal role in providing cutting-edge equipment and process solutions tailored to the unique requirements of MEMS fabrication, thereby enabling manufacturers to overcome manufacturing hurdles and meet growing market demands.
Need for Innovation and Innovators
Advances in packaging and assembly techniques, such as wafer-level packaging (WLP), chip-scale packaging (CSP), and 3D integration, are enhancing device miniaturization, reliability, and manufacturability. These innovations enable MEMS and sensors to be seamlessly integrated into compact, high-density electronic systems, catering to the demands of space-constrained applications.
The convergence of MEMS and other emerging technologies, such as AI, machine learning, and edge computing, holds promise for the future of sensing applications. By integrating MEMS with AI-driven analytics and edge processing capabilities, manufacturers can unlock actionable insights from sensor data in real time, enabling smarter decision-making and predictive maintenance.
With that said, ongoing innovation beyond evolutionary developments is vital to propelling MEMS and sensors technologies forward. However, this will require an influx of new “blood,” which creates new challenges. By 2030, according to a Semiconductor Industry Association (SIA) report issued last year, the workforce will grow by a third, to more than 460,000 jobs. However, 58% of these projected new jobs across manufacturing and design may go unfilled due to a lack of qualified engineers to replace those steadily retiring and taking accumulated industry knowledge with them. It’s therefore vital for the industry to attract, onboard, and train the next generation of experts.
Leading the Charge in MEMS Manufacturing
As a leading provider of MEMS manufacturing solutions, memsstar plays a crucial role in driving innovation and enabling the mass production of MEMS and sensor devices. With a comprehensive portfolio of process equipment and expertise in MEMS etch and deposition solutions, memsstar empowers MEMS manufacturers to achieve higher yields, improved performance, and faster time-to-market for their products. By partnering with memsstar, companies gain access to cutting-edge process technologies and industry-leading support, facilitating the development of next-generation MEMS devices for diverse applications.
As we navigate through the currents of technological innovation and market dynamics, opportunities for MEMS and sensors remain strong. By embracing innovation, fostering collaboration, and staying attuned to market demands, stakeholders in the MEMS and sensors ecosystem can unlock new opportunities and shape the future of sensing technologies.
