MEMS-Based Inertial Sensors Suppliers Seek New Application Markets
13 October 1998
Frost & Sullivan: MEMS-Based Inertial Sensors Suppliers Seek Out New Application Markets With High Profit Margins
MOUNTAIN VIEW, Calif., Oct. 13 -- Microelectromechanical
(MEMS) research has been underway for over a decade, and these sensors are
gaining favor in the U.S. partly due to their miniaturization and low price.
However, although this technology is growing rapidly, markets become saturated
quickly, and participants must seek out new applications to remain
competitive.
According to strategic new research conducted by Frost & Sullivan
(http://www.frost.com), U.S. MEMS-Based Inertial Sensor Markets, the total market
amounted to $143 million in 1997, and is expected to grow substantially
throughout the forecast period 1998 to 2004.
The primary technological advantage of MEMS inertial sensors over other
types of sensors is miniaturization, which enhances performance by increasing
sensitivity, speed of operation and the amount of material processed per unit
of time. Also, in MEMS devices, micromechanical components can be integrated
with signal processing and logic circuitry, which improves system reliability
and performance by allowing for self-testing, calibration and seamless
coupling of sensors. Finally, devices are manufactured via traditional
semiconductor techniques, which saves money by reducing the fixed
manufacturing cost per unit.
Because end-user markets in the MEMS-based inertial sensors industry
become saturated so quickly, only a small window of opportunity exists for
participants to achieve a profitable business in each new market, says
Frost & Sullivan Analyst Sanju Khatri. The automotive industry has been a
major end-user market thus far. However, this market is rapidly becoming
saturated and profit margins are decreasing due to price pressures from the
auto makers.
Suppliers are beginning to seek out other application markets that have
higher profit margins. Accelerometers have undergone rapid expansion in the
automotive industry, and interest is also growing in the industrial and
medical industries. Growth is also expected for the MEMS-based gyro sensors in
the automotive industry.
The U.S. market for MEMS-based inertial sensors is dominated by a handful
of suppliers. Micromachined accelerometer manufacturers are divided into two
categories: semiconductor companies that specialize in the production of
microelectronic devices and integrated automobile component/systems suppliers.
However, a third category of suppliers is emerging within the market, composed
of new entrants who are attempting to cater to specialized niches with
customized product designs. The production of application specific packages
for niche markets is also becoming an important method for players to retain
market share, insists Khatri.
This new study by Frost & Sullivan, U.S. MEMS-Based Inertial Sensor
Markets, has been segmented based on the following end-user applications:
automotive, industrial, defense and aerospace, medical, and other niche
markets. This study also provides revenue forecasts, market shares, technology
and market trends, competitive issues and strategies.
This sensors 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 MEMS based inertial sensors market.
The companies participating in this market include: Analog Devices, Breed
Technologies, Crossbow, Delco Electronics Corporation, EG&G IC Sensors,
Silicon Microstructures, Hitachi Automotive Products (USA) Inc., MicroSensors
Inc., Motorola Inc., Oceana Sensor Technologies Inc., Robert Bosch
Corporation, TRW Inc., TRW Automotive Electronics Group, TRW Automotive,
Related Companies: American Electronic Components Inc., Bently Nevada,
Computational Systems Inc., Delphi Automotive Systems, EG&G Inc., ITT
Automotive, LucasVarity, Medtronic, Pacesetter Inc., Intermedics Inc.,
VISTEON, Systron Donner Inertial Division, Wilcoxon.
Frost & Sullivan is an international marketing consulting company that
monitors the sensors 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),
#5762-32 U.S. MEMS-Based Medical Pressure Sensor Markets, and #5696-18 North
American Automotive Sensor Markets, and to support industry participants with
customized consulting needs.
Visit Frost & Sullivan's web site at: http://www.frost.com.
Report: 5629-32 Publication Date: Sept. 1998 Price: $2950
$4900 if sold in conjunction with #5762-32