The 26thannual MEMS (microelectromechanical systems) Industry Commercialization Report Card Study for 2024 resulted in a final grade of B- for 14 critical success factors based on letter grades submitted by Study respondents. As such, the 2024 Study replicated the B- grade for both the 2022 [1] and 2023 [2] Report Cards. More important, however, were the detailed and insightful verbatims received from Study participants.
The MEMS Industry Commercialization Report Card was created in 1998 and has been conducted annually. In its 26th year, the 2024 aggregated grade was B-which it maintained from the previous year. One subject had a one grade decrease, two had a one grade increase and 11 remained constant.
Motivation and background
It was at the 1998 Hilton Head Conference, which successfully celebrated its 40th. anniversary this past June, where as a panelist I addressed the topic, ”Why are there not more MEMS millionaires?” The fact that the size of the semiconductor market at that time was many times that the size of the MEMS market might provide some explanation. After some discussion by industry experts, the conclusion was that there must be a basis for this problem, but what exactly?
Subsequently, Roger Grace Associates initiated an extensive research project on technology commercialization, including theory and several case studies which initially established nine “critical success factors” acknowledged as important to achieve successful commercialization. Five additional subjects were added by the year 2003 bringing the total to its current level of 14. Additionally, the Report Card commercialization “model” was created with the semiconductor industry providing a strong basis.
Why a report card?
There are currently over a dozen research reports available on the dollar volume and growth rate of the MEMS market which peg the 2024 market size at approximately $17 Billion and a CAGR from 2024 to 2030 at approximately 7%. However, the Report Card is unique in that it is an opinion survey which provides detailed personal objective and candid assessments of the current status of the commercialization success of the MEMS industry vis-à-vis inputs of thought leaders, literally providing a “vox populi” (voice of the people) assessment.
Benefits
The results of the Report Card from both grade and verbatim perspectives provides MEMS industry practitioners with an objective assessment snapshot vis-à-vis an opinion survey of the health of the MEMS industry--currently and historically. The Report Card is truly a “lessons-learned” vehicle whose results are especially relevant for startups where these “lessons learned” inputs can be valuable. Also provided are actionable strategies to gain competitive advantage in overcoming the barriers to the successful commercialization of MEMS. As the famous Spanish philosopher George Santayana stated in his 1905 book, The Life of Reason, ”Those who forget the past are condemned to relive it .”
Research methodology
The Report Card research methodology, unlike today’s popular political surveys which are based on a large number of randomly selected interviewees, is unique in that it uses a modified Delphi/Mass Observation-Attitudinal approach where a limited number of experts are asked their opinions on a specific subject. Noteworthy also is the average number of years of the Report Card’s respondents’ MEMS industry experience of 25 years, which equates to over 1,000 years of combined experience.
Results
As previously mentioned, the final aggregated grade was B- as it was in the previous two years. The individual grades summary follows:
- Two subjects had a one grade improvement…Profitability (from C to C+), Employment (from B- to B). One subject had a one grade decrease…V.C. Attraction (from C+ to C), which was its second straight year of its decreasing grade. Eleven subjects experienced no change in grade.
In the review of the past 26 years’ data, the grades were highly positively correlated with the socio-economic conditions for their respective reporting period. Noteworthy was the downward change of the aggregated final grades of 2008/2009 to C+ from the previous B- and more importantly the total number of grade changes per year as a result of the worldwide financial crisis and the downward change of the aggregated final grade from B- in 2020 to C+ for the year 2021 with Covid’s impact considered to be the major factor for the decline.
The 2024 Report Card exhibited only three yearly grade changes and only four in 2003 for the 14 subjects demonstrating industry stability and resilience versus that of 2001 where there were 13 negative grade changes as a result of COVID. Grade changes are shown by line on a yearly basis starting in 1998 with higher number of grade changes occurring in time of socio-economic crisis as in the economic downtown of 2008-2009 and COVID in 2020. Yearly positive and negative changes are shown using green bars for grade increases and red bars for grade decreases. The average number of grade changes per year was approximately seven.
Verbatims
Selected and unaltered verbatims on the 14 topics follow:
- Venture Capital Attraction (2023 Grade = C+, 2024 Grade = C, Change = minus 1)
“No longer at the cusp – more deals toward systems solutions”
“The Venture Capital arena today is increasingly dominated by AI and I believe that this is cooling hardware investments in MEMS even further. “
- Profitability (2023 Grade = C, 2024 Grade = C+, Change = plus 1)
“Fortunately, as compared to other business segments (such as inertials) we have been able to maintain our profitability since practically we have a duopoly (MEMS based and liquid crystal-based offerings). Obviously, this profitability will come down over time as we reach final ‘decline phase’ – fortunately, we are NOT there yet – but, understand it will occur. “
- Employment (2023 Grade = B-,2024 Grade = B, Change = plus 1)
“Fresh Ph.D. recruiting continued to show strength despite a down cycle in other sectors, elevating the overall grade.”
“Despite a difficult hiring environment and generally more layoffs than hiring, hiring still exists throughout the industry. Companies still need to backfill key roles or hire to service customers. This leads to a lot of competition for a less than normal number of open positions.”
In addition, the survey respondents noted several Chips Act and AI-related items in their verbatims. More noteworthy ones include:
- Chips Act
“To meet the increase in MEMS R&D, it follows that industry infrastructure should receive more investment, particularly with the Chips Act.”
- AI
“With the fusion of AI and MEMS, many new opportunities will arise. This will drive market research.”
Is MEMS a mature technology?
In my June 26 presentation on the Report Card at Sensors Converge 2025 [4], I opined that MEMS/silicon is the second wave of the sensor’s product life cycle (based on its technology platform) with the previous wave being that of mechanical sensors (e.g. LVDT). This is followed by the successive waves of printed/flexible/stretchable sensors followed by functional/smart fabric sensors. It is interesting to note that my detailed assessment of more than 10 different independent market studies demonstrated that the average compounded annual growth rate (CAGR) for MEMS from 2024-2030 was approximately 7% with a total worldwide market value of approximately $17B (US) in 2024. Additionally, CAGR in the 2010-2020 time frame was also in the 7% range.
This is a major departure from the substantial double-digit MEMS growth rates experienced in the 1990’s, I deduce from this and from several other criteria that there is a strong indication that MEMS is in the mature phase of its technology life cycle, having successfully passed through its introduction and growth phases. Many current innovation successes occurring in its mature phase have moved primarily to incremental advances from that of being disruptive which occurred in MEMS’ earlier years.
The Report Card Study for 2024 also included a question on the MEMS position in the technology life cycle. The results showed that 71% of the respondents strongly agreed or somewhat agreed with MEMS being in the mature phase of its technology life cycle. A future report on the results of the MEMS technology life cycle survey’s findings is currently in development…please stay tuned!
Summary and conclusions
The results of the 2024 Report Card produced a total aggregated grade of B-, identical to that of the previous two years. There was little change in the individual grades (three). Four grade changes occurred in 2023 compared with 10 total grade changes in 2022 and 13 total grade changes in 2021 (an all-time high) …thus inferring existing commercialization stability /maturity at this time. It is interesting to note that the 2024 Report Card results have significantly demonstrated the resilience of the MEMS industry to bounce back in a relatively short time from the major impact of Covid, as seen by the dismal individual grades of the 2021 Report Card versus that of the next two years. These Report Card results can serve as judicious guidance and a pragmatic “lessons learned” for MEMS industry practitioners, especially those involved in startups.
Additionally, in reviewing the grade changes, CAGR history and projections and the results of the opinion study, it appears that MEMS has entered its mature period in the sensors technology life cycle which will require a modification of organizations strategies and tactics to continue to be successful.
Most noteworthy were the insightful verbatims provided on all 14 subjects, many of them reflecting the impact of AI and the Chips Act on the grades and opinions on MEMS maturity.
A copy of the Report Card Final Report providing all verbatims and details on the existing opportunities for successful MEMS commercialization, challenges it faces and the recommended strategies to overcome them is available from Roger Grace Associates upon request at [email protected]
Now that you have my take on the topic of MEMS technology maturity, I am interested in your opinions, which are respectfully solicited.
Contact me at [email protected].
References
[1] R. Grace; Study Sees Positive Turnaround in MEMS Commercialization; Fierce Electronics; August 1, 2023; www.rgrace.com.
[2] R. Grace; 2023 MEMS Commercialization Grade Weighs in at B- Again; Fierce Electronics; July 19, 2024; www.rgrace.com.
[4] R. Grace; Results of the 2024 MEMS Industry Commercialization Report Card Study: Has MEMS Reached Mature Status; Sensors Converge; June 26, 2025; www.rgrace.com.
Roger H. Grace is president of Roger Grace Associates in Bonita Springs , FL, which he founded in 1982 . It provides a broad spectrum of marketing consulting services including custom market research, integrated marketing communications (iMARCOM) including branding and positioning and new business development to the sensor, MEMS, IC and capital equipment suppliers.
Grace was bestowed the inaugural Sensor Industry Impact Award by Sensors Expo in 2016 and the Lifetime Achievement Award in 2025. His educational background includes B.S.E.E. and M.S.E.E. (as a Raytheon Company Fellow) degrees from Northeastern University where he was awarded the Engineering Alumni of the Year Award in 2004. He was a visiting lecturer at the University of California at Berkeley College of Engineering from 1990 to 2003. [email protected]/www.rgrace.com