Total production value of electronic systems is set to decline by 2% in 2015, marking the fourth time in history the sector has seen a decline, according to recent market research from industry firm IC Insights. Total production value for 2015 is estimated at $1.4 trillion and forecast to reach $1.6 trillion—a 2% compound annual growth rate (CAGR)—through 2019.
Despite the decline this year, cell phones continue to drive the market, accounting for 18% of total electronic systems sales compared with 13% for standard PCs. Cell phones eclipsed PCs in market growth in 2013, and the trend is predicted to continue. Cell phone sales will rise by a CAGR of 2.9% between 2014 and 2019, while standard PC revenues are expected to slump by an annual rate of -1.7%, the researcher said.
Looking ahead, IC Insights says the market for systems related to the Internet of Things will show the most growth through 2019, rising an average of 21% yearly.
“Aside from this one high-flying market, however, no other system category is forecast to average annual growth of more than 7%,” according to IC Insights. “In fact, the standard PC, tablet, and game console system markets are forecast to decline through 2019.”