May 15 (Reuters) - Worldwide semiconductor revenue is expected to fall 7.2% in 2019 after three straight years of growth, as the industry grapples with slowing smartphone sales and weak demand in China, research firm International Data Corporation (IDC) said on Wednesday.
"The current market downturn is being driven by a broad weakness in demand specifically centered in China and an ingestion of excess inventories in some of the major markets including automotive, mobile phones, and cloud infrastructure," Mario Morales, program vice president of Semiconductors at IDC said in a statement.
IDC's Semiconductor Applications Forecaster said revenue from the industry will, however, recover in 2020 and register a compound annual growth rate of 2% between 2018 and 2023, reaching $524 billion in 2023.
The research firm expects the market to bottom by end of third quarter in 2019, as the industry works through inventories and demand begins to gradually return.
IDC also expects market consolidation to accelerate once the industry gets more clarity on the trade tariff dispute between China and the United States.
Reporting by Arundhati Sarkar in Bengaluru; Editing by Shinjini Ganguli