Revenue growth for sales of micro-electromechanical Systems (MEMS) devices worldwide slowed dramatically in 2005, despite the fact that unit shipments were strong, according to the research firm In-Stat. Nearly 1.8 billion MEMS devices were shipped in 2005, generating revenues of less than $7 billion.

Inventory backlogs, weakness in key markets and lower average selling prices all had an effect. Despite projected unit shipment growth exceeding 11% over the next five years, revenues are forecast to increase at a compound annual growth rate of just 6.8% through 2010 due to continued price reductions, as well as the introduction of new MEMS devices with commodity-like pricing.

The automotive and computing segments, long mainstays of the MEMS industry in terms of unit shipments and revenues, are projected to be displaced by the communications and industrial markets within the next five years.

The research report, "An Industry in Transition: 2006 MEMS Forecast" (#IN0603149ESCA), provides a snapshot of the state of the MEMS industry and looks at trends and issues that will impact the industry’s future growth.