New Technologies Cause Automotive Sensor Markets to Thrive
3 May 1999
Frost & Sullivan - Despite Intense Price Pressure, New Technologies Cause Automotive Sensor Markets to ThriveMOUNTAIN VIEW, Calif., May 3 -- Vehicles contained few sensors before the electronics revolution. But the increasing need to reduce emissions, improve fuel economy and enhance safety has driven the market for automotive sensors in electronic systems. These systems manage vehicle functions more precisely than the mechanical and manual systems they replace. New strategic research conducted by Frost & Sullivan (http://www.frost.com), North American Automotive Sensor Markets, estimates revenues for this market at $1.9 billion in 1998. North American-made vehicles all have electronically-controlled engines and airbag systems, and most have automatic transmissions, which are usually electronically controlled. In addition, many vehicles contain electronically-controlled braking systems and steering, suspension, and climate control systems, all of which utilize sensors. Although the automotive sensor market is dynamic in terms of technologies and new applications, revenues are expected to contract in 1999 and 2000 due to a projected slowdown in vehicle production and price pressures, says Frost & Sullivan Analyst Joerg Dittmer. Growth is anticipated to resume late in the 1999-2005 forecast period as a result of several new sensor applications that will be introduced. New sensing applications predicted to drive the market include capacitive, infrared and ultrasonic sensors for occupant detection, strain gauges for occupant detection, and infrared, ultrasonic and microwave radar systems for obstacle detection. In addition, technologies such as on-chip signal conditioning and wire or fiber-optic multiplexed buses have advanced as electronic systems become increasingly sophisticated. Price is the major competitive factor because auto makers, who buy in large volumes, are extremely price sensitive. The result is that suppliers must maximize efficiency in all aspects of their operations. Suppliers optimize operations through continuous improvement programs which help them maintain slim profit margins even as they accommodate auto makers' requests for annual price reductions, says Dittmer. This new research, North American Automotive Sensor Markets, is the third annual automotive sensors publication written by Frost & Sullivan's Dittmer. The study focuses on the market for original equipment sensors used on cars and light trucks up to 14,000 pounds. The research is organized by sensor function because sensors of a particular type may be applied to several vehicle systems. The sensors discussed include position, speed, pressure, temperature, accelerometer, oxygen, oil condition, torque and yaw rate sensors. Simple switches and thermostats are not covered. Frost & Sullivan presents Market Engineering awards to recognize companies that have made positive contributions to the automotive sensors market. Winners are selected from an in-depth analysis of the market competitors and interviews with those companies that make up the industry. Frost & Sullivan is pleased to present the 1999 Market Engineering Product Innovation Award to Continental Teves for its development of tires that function as part of a sensor system. In addition, the recipient of the 1999 Market Engineering Entrepreneurial Company Award is Siemens Automotive for its occupant position sensing based on strain gauges located in seat tracks, and for its side-impact airbag system based on pressure sensors in the door cavities. This automotive industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help market participants navigate successfully through the automotive sensors market. The companies participating in this market include: AB Automotive Inc., Allegro MicroSystems Inc., Alps Automotive Inc., American Electronic Components Inc. (AEC), Analog Devices Inc., Bourns Sensors & Controls Inc., Breed Technologies Inc., Control Devices Inc., CTS Automotive Products, Delphi Automotive Systems, Denso International America Inc., Eaton Corporation Actuators & Sensors Division, EG&G IC Sensors, Fenwal Electronics Inc., First Inertia Switch, Hamamatsu Corporation, Hi-Stat Manufacturing Co. Inc., Hitachi Automotive Products (USA) Inc., Honeywell Inc., Humirel Inc., Integrated Sensor Solutions (ISS), IRC Inc., Kavlico Corporation, Keystone Thermometrics, LucasVarity Automotive Control Systems, Magna-lastic Devices Inc., Methode Electronics Inc., MicroSensors Inc., Motorola Inc., Nonvolatile Electronics Inc. (NVE), NTK Oxygen Sensors and NGK Spark Plugs, Optek Technology Inc., Panasonic Automotive Electronics Company, Pierburg Instruments Inc., Pollak Division of Stoneridge, Robert Bosch Corporation, Ruf North America, Siemens Automotive Corporation, Spectrol Electronics Corporation, SSI Technologies Inc., Systron Donner/Inertial Division, TEMIC Automotive of North America Inc., Texas Instruments Inc., TRW Automotive Electronics Group, VDO Control Systems Inc., Visteon Automotive Systems, Wabash Technologies Corporation, Related Companies: Analog Associates, Argonne National Laboratory, BEI Duncan Electronics Division, BSRS Restraint System LP, Continental AG, Continental Teves Inc., Delphi Delco Electronics Systems, Delphi Energy & Engine Management Systems, Delphi Interior Systems, Fasco Controls Corporation, Honeywell Sensors, Irvine Sensors Corp., Kearney-National Inc., LucasVarity plc, Motorola Inc., Multicraft International, Nartron Corporation, NGK Spark Plugs (U.S.A.) Inc., Omron Automotive Electronics Inc., Robert Bosch Corporation, Schrader-Bridgeport International Inc., Siemens Corporation, SmarTire Systems Inc., TRW Inc., TRW Vehicle Safety Systems Inc., Valeo Electronics, VDO North America LLC, Industry Organizations: ABS Education Alliance, American National Standards Institute (ANSI), American Society of Mechanical Engineers (ASME), Association of International Automobile Manufacturers, Inc. (AIAM), Automotive Parts and Accessories Association (APAA), Berkeley Sensor and Actuator Center (BSAC), Center for Sensor Materials (CSM), Institute of Transportation Engineers, Instrument Society of America (ISA), Insurance Institute for Highway Safety/Highway Loss Data Institute (IIHS/HLDI), International Organization for Standardization (ISO), Motor and Equipment Manufacturers Association, Inc. (MEMA), Office for the Study of Automotive Transportation (OSAT), Original Equipment Suppliers Association, Roger Grace Associates, Society of Automotive Engineers (SAE), Society of Manufacturing Engineers (SME), Specialty Equipment Market Association (SEMA), Industry Publications: Chilton's ECN -- Electronic Component News, Control Engineering, Design Engineering, Design News, EDN, Electronic Design, Electronic Products Magazine, Fiber Optic Sensors & Systems, Hansen Report on Automotive Electronics, IAN -- Instrumentation and Automation News, I&CS -- Instrumentation & Control Systems, Measurements and Control, Photonics Spectra Magazine, Research & Development, Sensor Business Digest, Sensor Technology, Sensors Magazine, Ward's Auto World, Government Agencies: California Air Resources Board (CARB), California Environmental Protection Agency, Federal Highway Administration (FHA), National Highway Traffic Safety Administration (NHTSA), National Vehicle and Fuels Emissions Laboratory, U.S. Department of Transportation (DOT), U.S. Environmental Protection Agency (EPA). Frost & Sullivan is an international marketing consulting and training company that monitors the automotive industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series of online research subscriptions such as the Automotive OEM Custom Subscription, and to support industry participants with customized consulting needs. Visit Frost & Sullivan's web site: http://www.frost.com North American Automotive Sensor Markets Report: 5919-18 Publication Date: April 1999 Price: $3950