Analog Market Update: Making Digital Systems Come Alive (2020)

Analog ICs are critical to nearly all electronic devices. The global electronics market is expected to consume over 160 billion Analog ICs in 2020. This translates to several Analog ICs per electronic device but is down 1.5% compared to 2019 unit sales. While Analog ICs are essential to electronic systems, this will mark the second year in which revenues and units both register declines. That has not happened before during the past 20 years. The Analog average selling price has been dropping for five years and is expected to fall to only $0.318 in 2020.

The Analog market is very competitive, and many Analog products utilize old process technologies. Mature process technologies and long-lived products have helped companies to remain profitable even with these low ASPs. However, in 2020 the pandemic caused interruptions in the supply chain, manufacturing and ultimately sales. In addition, trade restrictions and uncertainties continue to cause Analog sales to diverge from traditional patterns.  

Semico’s 2020 Analog forecast anticipates an eventual return to established trends; however, sales will slow compared to historical averages. Over the next five years, Analog sales growth is expected to be a 2.9% CAGR in dollar terms and 5.2% in unit terms. That compares to a 4.0% revenue CAGR and an 8.5% unit CAGR over the past five years.