The number of MEMS (Micro Electro Mechanical Systems) sensor devices, which power many location-based services and Augmented Reality apps on mobile, will reach 4bn over the next five years, according to a report from Juniper Research, as the cost of production drops.

“MEMS sensors, especially accelerometers and gyroscopes, have experienced a dramatic reduction in price over the past few years,” says report author Nitin Bhas. “Increasingly, vendors need to create or add value to their products by incorporating more functions into a single MEMS device, thereby further reducing size, complexity, and cost”.

Annual revenues generated by MEMS devices built into mobile phones – including accelerometers, gyroscopes, magnetometers and others, such as pressure, humidity & temperature sensors – will exceed $6bn (£3.7bn) by 2016, the report says.

However, the MEMS in Mobile report warns that the devices will see a declining revenue share in the market – reaching 60 per cent in 2016 – as other categories, including Audio & RF, begin to contribute towards the total.

The full report can be downloaded here. An accompanying free whitepaper is available here.