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


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


  • 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

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.