Automotive Innovations within the electronics industry

ANALYSIS-MARKET-TRENDS

IMS Research - Report

Growth in the market for automotive sensors

It isn’t easy being an automotive sensor supplier. Intense competition, significant design challenges and price pressure are a part of everyday business. Overall, the automotive sensor market is forecast to grow at an average rate of around 3% a year over the next eight years. However, a new report from IMS Research finds there could be rich rewards for well-placed suppliers as demand for some types of automotive sensor will grow much faster.

So, what is driving this increase in demand? Well, according to report author, Jon Cropley, “many convenience and comfort applications that use sensors are becoming more popular. One example is in-vehicle air-quality systems. They use sensors to detect harmful gases entering the vehicle cabin and, if detected, close the air inlet automatically”. IMS Research forecasts the market for air-quality sensors will grow by an average of over 17% a year, over the next eight years.

Climate-control systems are becoming more common and more advanced, sometimes offering separate zones for individual passenger comfort. This is boosting demand for climate-control temperature sensors. The number of vehicles with hard-top electric roof systems is also increasing and, consequently, so is demand for the many position sensors they use.

The report also finds that legislation is a factor boosting demand for automotive sensors. For example, laws on fitment of electronic stability control have been introduced, and are anticipated in many regions. This is driving demand for yaw-rate sensors and low-g accelerometers (providing an interesting market opportunity for MEMS suppliers). Standards on emissions and fuel economy are also becoming stricter throughout the world. This means a high growth in demand for sensors, like exhaust-gas temperature sensors, that measure parameters associated with fuel consumption and engine emissions.

Not that the market for every type of automotive sensor is growing. Demand is declining for some applications using sensors; for other sensors, suppliers are achieving little better than commodity prices. Nevertheless, the report finds that there are opportunities. Suppliers just need to be in the right place at the right time.