The research firm Strategy Analytics is out with a new study of the automotive sensor market and one of the key points they make is that “emerging markets are looking to reduce vehicle emissions and have plans to implement more stringent emission (including CO2) regulations.”
More regulation creates more need for sensors to measure and help reduce vehicle emissions.
The study, “Automotive Sensor Demand Forecast 2012 to 2021: Growth Driven by Safety and Electrification,” details growth in demand for automotive sensors, which is driven by growing demand for safe, fuel efficient and clean vehicles worldwide.
Strategy Analytics predicts that the market for automotive sensors will grow at a compound annual rate (CAGR) of 5.9%, expanding from $18.1 billion in 2013 to $24.1 billion in 2018. Planned vehicle safety, emission and fuel economy enhancements will drive automotive sensor shipments to over 5.7 billion units and be worth over $25.8 billion in 2021.
“Global automotive sales continue to rebound from economic downturn – especially in NAFTA and the emerging BRIC regions,” says Mark Fitzgerald, Associate Director, Automotive Practice, who wrote the study. “This, combined with vehicle makers increasing use of sophisticated electronic systems to create vehicles that are safer, fuel efficient and environmentally friendly, is creating a demand for a higher number of sensors per-vehicle.”
Though overall production numbers remain low throughout the forecast period, hybrid, plug-in hybrid and pure electric vehicles have very high sensor content for motor speed sensors as well as sensors to monitor the battery/electrical system.
Powertrain Sensor Demand
Fitzgerald said powertrain sensor demand continues to be driven by a combination of increasing vehicle production worldwide as well as the increased use of precise electronic control and the increasing use of sensors needed to meet current and future emissions regulations and fuel consumption targets.
The strong growth dual-clutch transmissions, often replacing manual transmission applications with minimal sensor content, is driving the demand for additional powertrain sensors such as clutch/shift fork position and input and output shaft speed sensors.
“In established markets, growth is more concentrated on high-technology solutions such as electric and hybrid-electric vehicles and advanced driver assist safety systems (ADAS),” said Ian Riches, Director of Strategy Analytics’ Global Automotive Practice. “Emerging market growth is fueled strongly by increasing vehicle production, as well as greater electronic content.”