Date: 08/09/2010

IMS: Automotive sensor market to grow by an average of 10% over the next eight years

IMS Research in a report titled "The World Market for Automotive Sensors" predicts that unit shipments of automotive sensors will grow at an average annual rate of almost 10% over the next eight years. One major factor driving this increase in demand is legislation. Regulations on emissions and fuel economy are becoming stricter in many parts of the world which will lead to high growth in demand for products such as exhaust-gas temperature sensors that measure parameters associated with fuel consumption and engine emissions. Other relevant legislation includes that on the fitment of electronic stability control, which is driving demand for gyros, low-g accelerometers, and steering angle sensors. The report forecasts that unit shipments of steering angle sensors will grow by an average of more than 12% a year.

IMS says that along with legislations other factors such as grow demand for sensors used in convenience and comfort applications also contribute to the growth in market. For example, the number of vehicles with hard-top electric roof systems is increasing, driving demand for the many position sensors they use. Another example is in-vehicle air quality systems that use sensors to detect harmful gases entering the vehicle cabin and, if detected, close the air inlet automatically. The report forecasts that unit shipments of air quality sensors will more than quadruple over the next eight years.

IMS also says that despite the growth prospects, automotive sensor suppliers still have to meet many challenges. They face significant price pressure, the market remains intensely competitive, and demand is declining for some applications using sensors.