The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

New Technologies Cause Automotive Sensor Markets to Thrive

3 May 1999

Frost & Sullivan - Despite Intense Price Pressure, New Technologies Cause Automotive Sensor Markets to Thrive
    MOUNTAIN 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