Handset Motion Sensor Market to top $1 Billion by 2014

Next Generation Motion Sensors Will Allow Developers to Explore The Heights of Their Creative Imagination

LONDON, July 1, 2010 - Motion sensing components are rapidly becoming part of the handset
architecture and these will support the development of breakthrough
applications and engaging user interface experiences. In a recent study of
handset motion sensors (www.arcchart.com/reports/sensors.asp?ref=pr)
by ARCchart, the research firm expects the market for accelerometers,
gyroscopes, magnetometers (compasses) and pressure sensors to exceed $1
billion by 2014.

The study examines the technology behind these sensors, the factors
driving their incorporation into the handset, the vendor landscape and the
market opportunity. ARCchart concludes that the market for these handset
components will grow substantially over the coming five years. Combined
shipments of these components will grow from 271 million units in 2009 to 2.3
billion by 2014, with a combined market value of $1.1 billion. Accelerometers
are expected to see the greatest device penetration, with 55% of phones
containing this component by 2014, while pressure sensors will see the least
penetration. However, penetration in smartphones will be substantially higher
- 60% of these devices are expected to have a gyroscope in five years time.

The most significant factor that will drive demand for embedded motion
sensors will be the development of innovative applications such as augmented
reality and in-building navigation, which take advantage of the rotation,
acceleration, direction and altitude data generated by these sensors. In
addition, the advancements component vendors are making in combining multiple
sensors onto a single chip is helping reduce costs and improve time to
market.

Motion sensors represent a significant market opportunity for all
stakeholders across the handset value-chain, particularly for those
participating in the smartphone segment. Sensors were scarce three years ago,
with most component manufacturers focused on other industries such as
automotive and medical. However, with over a billion units soon to be
shipping annually, the mobile phone industry represents an enormous market
opportunity for sensor manufacturers.

"In a climate of increased competition and falling ASP, support for
advanced sensor interfaces, as Apple has done with gyroscopes in the iPhone
4, provides handset OEMs with clear technical differentiations, and also
helps drive the upgrade cycle," said Peter Crocker, the lead analyst on the
ARCchart study. "This is becoming particularly important in the smartphone
segment of the market which has become highly competitive."

Motion sensors provide developers with a rich set of tools for building
intelligent and intuitive media experiences and enhanced UI, navigation and
content creation functions on mobile devices. They will allow developers to
explore the heights of their creative imagination: one developer might
exploit an embedded pressure sensor for a stair-climbing game while another
may use the same component for a weather prediction application. Innovative
applications translate into higher app sales and increased revenue for
developers.

ARCchart is an independent research and consulting firm focusing on all
aspects of the wireless communications sector. These motion sensors findings
are included in the firm's Mobile Phone Sensors and Sensory Interfaces
(www.arcchart.com/reports/sensors.asp?ref=pr) study which provides an
analysis of the new range of embedded handset components fuelling the next
generation of intelligent mobile applications and enhanced UI experiences on
mobile. For more information visit www.arcchart.com or call
+44-33-00-88-1355.

For more information visit www.arcchart.com or call +44-33-00-88-1355.