Mark E. Jagiela
Chief Executive Officer and President at Teradyne
Good morning, and thanks for joining us. In our call today, I'll summarize 2021's fourth quarter and the full-year, and then comment on our early view of 2022, Sanjay will then provide the financial details and review our updated earnings model and capital allocation plans.
While we forecast 2022 to be another solid year for Teradyne, overall sales will likely decline in the first half, as we believe SoC Test sales will be impacted by modest complexity growth in our largest market as the jump to three nanometer production is pushed to 2023. More on that in a minute.
Recapping 2021, we finished the year strong, bringing full-year sales. Non-GAAP earnings growth to 19% and sales growth to 20 -- sorry, the sales growth of 19% and GAAP earnings growth to 29% respectively. 2021's performance was a result of broad-based growth across our test and IA businesses. SemiTest sales grew about 17% with our UltraFLEX family contributing to the expansion into the compute sector and Eagle product lines serving the automotive and analog industrial sectors, growing nearly 90%.
For 2021, we estimate the SoC market was about $4.8 billion, up from $3.6 billion in 2020, which puts our market share at about 46% for the year. The memory market in 2021 was about flat with 2020, at approximately $1 billion. Our Magnum family continues to shine in the NAND segment and we are reinforcing our position in the DRAM segment as the industry prepares for LPDDR5 and DDR5 RAMs in 2022 and beyond. Our share remains at about 40%.
LitePoint Wireless test business had a great year, growing 25% from 2020. The global demand for connecting and tracking just about everything, machines, materials and people is nearly insatiable. LitePoint is well aligned to this trend, with products that simplify testing of the expanded range of wireless standards. Whether in networking with WiFi 6E and 7, in location tracking with Ultra Wideband and cellular with 5G or numerous other standards, the rate of technology change continues unabated, which is great for our business.
Moving to our Industrial Automation business, at UR, sales were up 41% from 2020. We continue to expand the number of UR Plus partners and certified plug-and-play apps, with assembly, machine tending and pelletizing among the most popular of the more than 375 available apps. We also continue to broaden our reach beyond existing markets, often with OEM partners. One exceptional example is our expansion into welding applications, where we finished the year with a growth of more than three times of our 2020 levels.
Welding applications now account for more than 6% of UR sales. At MiR, full-year sales grew 42% from 2020, on the strength of our new higher payload MiR250, 600, and 1350 kilogram AMRs. It's also notable that the value of MiR AMRs with advanced fleet management software is amplified as the size of the robot fleet grows. We saw this play out last year with large account sales, those with the potential to deploy hundreds of units, growing nearly 50% faster than the installed base at large.
Looking ahead to 2022, the long-term drivers that power our growth in test and industrial automation are strong. In fact, as you will hear from Sanjay, our updated 2024 earnings model reflects an expected higher growth in sales and profits for both areas.
However, in 2022, while the -- we expect our IA-business to power along with 35% plus growth. We see our SoC business likely contracting during the year, as the shift to three nanometer volume production is pushed to 2023. You can begin to see some of this effect in our 1Q guidance as we usually see the beginnings of our summer ramp in March.
We expect 2Q to show similar effects, as it's usually our peak tooling period for our largest market. As a result, we are modeling first-half sales down 15% to 20%. We don't expect the impact of this to extend in the second half, we expect demand to accelerate again in 2023 as we begin to see the complexity growth related to investments for three nanometer gate-all-around technologies and advanced packaging. Overall, we expect the 2022 SoC market to be similar in size to 2021, at approximately $4.6 billion to $5 billion.
Shifting to memory test, we expect the market in 2022 to be in the $900 million to $1.1 billion range, which with the midpoint that's similar to 2021. We expect spending will be weighted toward DRAM, as LPDDR5 adoption expands and DDR5 for server applications ramp.
In the past, a shift to spending in DRAM would be a significant headwind for us, but we expect we'll maintain our share at about 40% in 2022, as our Magnum EPIC DRAM tester grows in market popularity.
And System Test, after five years of high growth driven by the Storage Test product line, we expect 2022 to be a digestion year, with sales softening slightly. Wireless Test at LifePoint however, is expected to fill that revenue gap. So we expect the combined System Test and Wireless test will be about flat with 2021.
Shifting from test to Industrial Automation, our business outlook is brighter than ever. As I noted in our last call, the penetration rate of both collaborative robotic and autonomous mobile robots is under 3%. The economic environment is favorable with worker shortages, the movement of production capacity closer to end markets and a relentless drive for higher quality and safer operations, all helping to drive demand. The opportunity in front of us is immense and we are investing to exploit it to the fullest.
At the IA segment level, we've increased our long-term revenue growth rate and expect our sales in 2022 to grow more than 35% off of 2021. Sanjay will provide a long-term modeling details, but the key point is the investments we've made and continue to make position us for both, short and long-term success in this expanding market.
Expanding OEM relationships and served markets is a key part of our strategy. Like the welding initiative that is bearing fruit, we have several others in flight, one example is in e-commerce. One of our partners, Nimble Robotics uses AI, unique grippers and clever software on our Cobot platform to pick consumer goods at high-volume warehouse operations for numerous national brands. You may have seen the recent Wall Street Journal article, complete with photos of the solution in action. Their innovative solution dubbed, goods to robot, complement automated storage and retrieval systems widely used in e-commerce.
Our Cobot's ease of use and durability are a natural for this application. Well over 15 million items across 500,000 unique products have been picked to date, as Nimble executes an ambitious growth plan in the e-commerce space. Another driver of growth in IA has been the growing use of UR Cobots to improve the competitiveness of local manufacturing to support reshoring of production. Pentik, a Finnish maker of high quality ceramics is a good example. They've added automation to allow skilled crafts people to focus on high volume and high value tasks. While UR cobots due to repetitive and physically demanding ones, such as glazing and finishing of ceramics.
To summarize, 2021 was another year of impressive growth at Teradyne and caps a five-year stretch, where sales and non-GAAP earnings have grown at a compounded rate of 16% and 32% respectively. As we've said before, we've managed the business to a trend line model. Our updated 2024 earnings model shows improved growth trend lines, reflecting our increasing confidence in the business. These projections are not hockey sticks. They are consistent with our past performance and correlated to investment trends in semiconductor capacity and automation market drivers.
Along the way, we expect some years will perform above the trend line and the other years below. In Test, 2020 and 2021 were above trend line years, while 2022 will likely be below. These year-to-year swings in customer buying patterns are a part of our market dynamic.
Our underlying business model with outsourced manufacturing and Test is designed to efficiently absorb these dynamics. Also, our good and improving gross margins give us increasing leverage within this dynamic. The growth in volume and complexity of semiconductors that propels the test market is stronger than ever. Our Industrial Automation portfolio is well positioned against macro trends and back-to-high growth. All these dynamics should net out to attractive midterm growth of both sales and earnings.
With that, I turn it over to Sanjay for more details. Sanjay?
