New Technologies Promoting Market Development
The sensors market is highly competitive, dynamic, and diverse and at the same time is recognized as a growth market. Sensors are widely used from very simple functions to many critical applications in industries as diverse as oil and gas to automotive, food and beverage, and healthcare. The market is continuously evolving with the launch of new technologies and entry of new market participants. These factors have also resulted in a high degree of fragmentation with the presence of a large number of small regional participants.
With regard to various sensor segments, the semiconductor-based sensors market is growing at a compound annual growth rate (CAGR) of 16.8 percent. Applications such as in-vitro diagnostics, biochips, optical mouse, and micrometers are likely to witness a greater penetration of semiconductor-based sensors. "As for microscopic electro mechanical systems (MEMS) sensors, the Transportation Recall Enhancement, Accountability, And Documentation (TREAD) Act is driving the use of tire pressure sensors and electronic stability control systems in automotive applications," notes the analyst of this research service. "Growth factors for MEMS in the consumer segment include the use of accelerometers in computer notebooks and mobile phones for shock detection and tilt sensing and gyroscopes for image stabilization in mobile phone cameras."
Wireless Technology expected to Drive Future Growth
Wireless, fiber optic, smart sensors, and metal-oxide sensors are expected to define the marketplace of tomorrow. Wireless sensor networks are the future of the electronic world and will require the success of two new breakthrough technologies: Ultrawideband and WiMax (802.16). Ultrawideband creates a fast wireless connection that consumes about 10-4 the power of a cell phone, and WiMax promises 70 megabits per second across a 30-mile range. Overall, the intelligent sensor range is likely to be the fastest growing segment, growing at a CAGR of 8.0 percent between 2006 and 2013.
By 2013, oil and gas, water/wastewater, automotive, medical, and power industries are expected to be the top five end-user industries, with a revenue contribution of over 50.0 percent, compared to 35-40 percent in 2007. Eastern Europe, Asia Pacific, and Canada are among the fastest growing markets for sensors. "Given the high level of competency, it has become imperative that companies redefine their strategies to provide customers with reliable instruments that are easily operable," says the analyst. "Proactive monitoring of the evolving requirements of different end-user segments would go a long way in achieving any company’s growth objective."
Frost & Sullivan Research Service
Published: 12 Mar 2008