Gartner Research

Market Trends: Startups and Small Customers Offer Semiconductor Vendors Fast and Stable Growth

Published: 29 July 2015

ID: G00279559

Analyst(s): Masatsune Yamaji

Summary

Startups and small companies dedicated to the electronics industry are becoming more important for semiconductor vendors to maintain fast and stable growth. However, semiconductor vendors need to change their sales strategy to succeed in this market.

Table Of Contents

Introduction

  • Methodologies and Definitions of the Small-Customer Market

Market Trend

  • Small Customers Account for Over 20% of Total Semiconductor Revenue Every Year
  • Direct Sales Are Less Profitable in Small-Customer Market
  • Four Types of Small-Customer Groups
  • General-Purpose Semiconductor Vendors Gain More Revenue From Small Customers
  • Small Customers Grow Fastest in Chinese Market
  • Greater Number of Customers in Americas, EMEA and Japan
  • Digital Marketing Is Key to Success in Small-Customer Market

Contrarian View

  • "Make in India" Policy Might Accelerate Small Customers in India, but Inhibit Chinese Market Growth

Vendors to Watch

  • General-Purpose Chip Vendors
  • SoC Vendors
  • Semiconductor Distributors
  • Emerging Customers and the Ecosystems

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