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Global Oscillator Market - Trends, Drivers, Challenges, and Vendor Analysis Through 2021 | Technavio

The global oscillator market is expected to grow at a CAGR of over 10% during the period 2017-2021, according to a new market research study by Technavio.

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Technavio has published a new market research report on the global oscillator market 2017-2021 under ...

Technavio has published a new market research report on the global oscillator market 2017-2021 under their hardware and semiconductor library. (Graphic: Business Wire)

The report categorizes the global oscillator market by product (crystal oscillator and MEMS oscillator), by circuit type (temperature compensated, voltage controlled, and oven controlled), and by application (consumer electronics and telecom).

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Market driver: increase in industrial automation

Increasing automation of processes has led to an evolutionary change in industries. It involves combining digital and physical systems to enable M2M communications and improve the human-machine interface (HMI). Industry 4.0 defines the entire product lifecycle, where smart machines carry out manufacturing processes on their own, smart robots coordinate with humans to assemble products, and smart driverless transport vehicles operate logistics processes on their own. The combination of physical systems and cyber systems in industrial processes results in high efficiency, predictive maintenance of machines, greater safety, and increased profitability.

According to Chetan Mohan, a lead analyst at Technavio for embedded systems, “Due to less human engagement and high throughput, efficiency, reliability, and safety process, automation is increasingly being adopted in several industries. This trend is increasing due to requirements such as timing controllers, control systems, networking technologies, and software. The demand for oscillators is expected to rise due to the rise in industrial automation during the forecast period.”

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Market trend: high demand for processing power from technologically advanced gadgets

Functionalities of mobile phones have been transformed due to smartphones. Half of the total Internet traffic comes from mobile devices. With the rise in usage of these devices, the number of apps installed has also increased simultaneously. Delivery-based and gaming applications have led to need for location awareness services. Apps downloaded from Apple App Store, Google Play Store, and Windows Store require GPS-enabled location tracker feature to provide custom services to its users. Smartphones include high-powered cameras, built-in video and music players, personal digital assistants, advanced browsers, e-mail services, and mobile games with advanced graphics. These features require accurate and timely delivery of information, which creates a need for timing controllers, such as oscillators, to be a part of the chipset.

Market challenge: high investments in manufacturing facilities

The high initial capital investments pose a major challenge. A manufacturing plant set up would cost around USD 5-6 billion. Rapid advancement in technology has resulted in the upgradation of electronic devices which requires special manufacturing equipment. To cater to the growing demand, the focus of the vendors must be on capacity expansion and increase their R&D investments. Lack of significant investments by vendors could be at a disadvantage compared with other leading competitors. Top vendors are not able to introduce innovative products and gain profits.

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Key vendors in the market:

  • KYOCERA
  • Miyazaki Epson
  • Microchip Technology
  • NDK
  • SiTime (MegaChips)
  • Vectron International

The presence of several regional and global vendors makes the global oscillator market extremely competitive and highly fragmented. Vendors compete in the market based on price. The decline in cost per unit of the product has made it difficult for vendors to compete in the market. Growth in the fields of consumer electronics, telecom, and automotive markets in driving the market for oscillators.

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