Despite tough economic conditions overall, MicroElectroMechanical systems (MEMS) continues its upward trek, according to In-Stat/MDR, Scottsdale, Ariz. The market research firm reports that every major market has now embraced the technology and that mature segments will see relatively low compound annual growth rates (CAGRs), and that in others, such as the communications and consumer markets, MEMS has only just begun to scratch the surface. As a result, worldwide revenues for MEMS are forecast to grow from $3.9 billion in 2001 to $9.6 billion in 2006.

In-Stat/MDR reports that while VC funding is certainly down, it is by no means out, and MEMS start-ups continue to emerge. However, considerable fab overcapacity currently exists, and it appears that the situation will only worsen over the next year.

In-Stat/MDR also found that the shift from sensor-driven revenues to non-sensor-driven revenues is continuing. In 2001, non-sensor devices comprised nearly a third of total MEMS revenues, whereas by 2006, they will account for almost half.