Frost & Sullivan: Intense Price Competition Forces Automotive Sensing Manufacturers Into Research and Development
23 March 1998
Frost & Sullivan: Intense Price Competition Forces Automotive Sensing Manufacturers Into Research and Development
MOUNTAIN VIEW, Calif., March 23 -- Traditionally, the only
sensors on automobiles were the fuel level sensor and a coolant temperature
switch or sensor that sent signals to dashboard indicators. But with the
introduction of electronic systems came the need for more sensors to provide
input to control modules.
Strategic research conducted by Frost & Sullivan (http://www.frost.com), North
American Automotive Sensor Markets, projects that total market revenues will
rise from $2.2 billion in 1997 to $2.4 billion in 2004. This study discusses
the North American market for original equipment sensors used in cars and
light trucks to 14,000 pounds.
A major negative trend in the automotive sensors market is that prices are
expected to continue to decline due to intense competition. Market
participants are attempting to survive by strategically cutting costs,
primarily by taking advantage of economies of scale to reduce manufacturing
costs. Also, in some cases, one sensor is replacing several switches or
sensors, which constrains the market.
However, new sensing applications and new technologies for old
applications are potential growth areas. Auto makers may incorporate extra
powertrain sensors to reduce emissions. The desire for greater safety, comfort
and convenience are likely to spur demand for more sensors. In addition,
possible future sensing applications include torque sensing for use with
electric steering systems, oil condition sensing to indicate when engine oil
needs to be changed, and pedal position sensing for drive-by-wire systems.
Technologically, there is a shift from electromechanical to electronic silicon
micromachined accelerometers. Hall effect sensors may soon be used for wheel
speed sensing in stability systems, and giant magnetoresistive speed sensors
may be introduced for engine and wheel speed sensing. Also, it is likely that
magnetoelastic, single-point torque sensing will be used in electric steering
systems.
Although most companies in the automotive sensors market compete in just a
few segments, competition is fierce. New competitors would find it difficult
to enter this market, unless offering unique technology. Competition from
current market participants is more likely. Manufacturers must either develop
better quality, less expensive sensors for existing applications, or develop
sensors for new applications, to stay competitive.
Frost & Sullivan's study of the North American Automotive Sensor Markets
is unique because it provides an overview of the entire market as well as
profiling eight subsegments: Fuel system, exhaust system, powertrain,
steering system, suspension system, braking system, airbag system and climate
control system sensors. The report provides unit shipment, price and revenues
forecasts, technology trends, competitive issues and strategies.
Companies participating in this market include: Alps Automotive, Inc.,
American Electronic Components, Inc., Analog Devices, Inc., BEI Duncan
Electronics, Borg-Warner Automotive, Bourns, Inc., Breed Technologies, Inc.,
Control Devices, Inc., CTS Automotive Products, Delphi Chassis, Delphi Delco
Electronics Corporation, Delphi Energy and Engine Management Systems, Delphi
Packard Electric Systems, Denso International America, Inc., Eaton
Corporation, Eaton VORAD Technologies, LLC, EG&G IC Sensors, EXAR, Fenwal
Electronics, Inc., First Inertia Switch, Hamamatsu Corporation, Hi-Stat
Manufacturing, Hitachi Automotive Products (USA), Inc., Honeywell, Inc., ITT
Automotive, Inc., Kavlico Corporation, Keystone Thermometrics, Lucas Control
Systems, LucasVarity, Methode Electronics, Inc., MicroSensors, Inc., Motorola
Sensor Marketing Group, Multicraft International, Nartron Corporation, NGK
Spark Plug (USA), Inc., Nonvolatile Electronics, Inc. (NVE), Optek Technology,
Inc., Optrand, Inc., Philips Automotive Electronics, Polaroid Corporation,
Pollak, Robert Bosch Corporation, Siemens Automotive Corporation, Spectrol
Electronics Corporation, SSI Technologies, Inc., Systron Donner Inertial
Division, Takata, Incorporated, TEMIC Automotive Technical Center, Texas
Instruments, Inc., TRW, Inc., VISTEON, Wabash Magnetics, Related Companies:
Airmar Technology Corporation, Allegro MicroSystems, Inc, Alpha Thermistor &
Assembly, Inc., Analog Associates, Analog Devices, Inc., Aura Systems,
Inc./Corporate, Autoliv ASP, Automotive Systems Laboratories, Betatherm
Corporation, Bourns, Inc., Continental AG, Delphi Automotive Systems, Delphi
Harrison Thermal Systems, Delphi Saginaw Steering Systems, Eaton Corporation,
Echlin, Inc., Edcliff Instruments Division, EG&G Corporate Headquarters,
ELECTRO CORPORATION, Elmwood Sensors, Inc., FASCO Automotive Controls
Division, Futek Advanced Sensor Technology, Inc., GT Products, Inc., Intel
Corporation, Irvine Sensors Corp., Kearney-National, Inc., Kill and Bolton
Associates, Lucas EPAS Co., Lucas NovaSensor, LucasVarity Corporation,
Magnetic Sensors Corporation, Magnetic Sensor Systems, Magnetoelastic Devices,
Inc., Methode Electronics, Inc., Motorola, Inc., NGK-Locke, Inc., Noise
Cancellation Technologies, Inc., Robert Bosch Corporation, Schrader
Electronics Ltd., Senix Corporation, Sensotec, Inc., SenSym, Inc., SmarTire
Systems, Inc., Texas Instruments, Inc., TRW Automotive Electronics Group, TRW
Automotive, Walbro Automotive Corporation, Walker Electronic Silencing, Inc.,
Whistler Corporation, Winner International Corp., Industry Organizations: ABS
Education Alliance, American Automobile Manufacturers Association (AAMA),
American National Standards Institute (ANSI), American Society of Mechanical
Engineers (ASME), Association of International Automobile Manufacturers, Inc.
(AIAM), Automotive Parts and Accessories Association (APAA), Center for Sensor
Materials, 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) Roger Grace Associates, Sensor and Actuator Center,
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 News,
EDN, Electronic Design, Electronic Products Magazine, Electronic Test News,
Hansen Report on Automotive Electronics, IAN-Instrumentation and Automation
News, I&CS-Instrumentation & Control Systems, Measurements and Control,
Micromachine Devices, Photonics Spectra Magazine, Research & Development,
Sensor Business Digest, Sensor Business News, 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. Environmental Protection Agency (EPA).
This automotive industry research has integrated the Market Engineering
consulting philosophy into the entire research process. Critical phases of
this research include: 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.
Frost & Sullivan is an international marketing consulting company that
monitors the automotive industry for market trends, market measurements and
strategies. This ongoing research is utilized to update a series of research
publications such as #5549-16 U.S. Microelectromechanical Systems (MEMS) and
#5562-18 North American Automotive Electronic Control Module Markets, and to
support industry participants with customized consulting.
Visit Frost & Sullivan's web site: http://www.frost.com
Report: 5696-18 Publication Date: March 1998 Price: $2950
SOURCE Frost & Sullivan