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The interface market will enjoy higher growth this year at about 20 percent for revenue and 23 percent for units shipped, as suppliers will be expected to keep pace with the increased demand coming from the end product markets for communications, consumer, and computing applications, as newly designed models are introduced and R&D teams begin focusing more heavily upon future generation electronics.
The current global market for interface products is valued at an estimated $5.4 billion, and it has the potential to exceed $7.8 billion by 2015. It is growing at a compound annual growth rate of 8 percent for the forecasted period. Shipments are expected to equal revenue in terms of growth, as manufacturing costs for these products will continue to decline, yet new product development will lead to balance in the market by way of higher pricing for the latest and most advanced components.
There is a great deal of outsourcing associated with computer, communications, and consumer electronics, which are the largest markets for interface. Outsourcing has become a favored strategy of OEM customers, as the evolving market has required larger volume and more efficient production operations. Companies are able to now focus more intently upon R&D, sales, and marketing. High-speed and mobile communications, portable PC form factors, along with the continuing convergence of data, voice, video, and audio into consumer electronics are fueling this market.
Databeans segments the interface market into three major product categories: Analog, Digital Interconnect, and USB Controllers.
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