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"One of the reasons for the greater demand for newer vehicles and thereby, sensors, is the number of vehicles in operation (VIO)," said Frost & Sullivan Mobility Research Analyst Benson Augustine. "The VIO in the United States and Canada is expected to grow at a CAGR of 1.4 percent, which also translates to a larger installed base of vehicles that will need to have one or more sensors replaced in the future."
While MAP and mass airflow (MAF) sensors are in high demand, position sensors are finding it difficult to gain traction due to their lower replacement rates, high prices and robustness. This is compelling sensor manufacturers to focus on more dynamic segments such as coolant temperature sensors, which account for the highest share of units at 59 percent. Pressure sensors, despite their lower revenue shipment, are topping the revenue leaderboard with 64 percent due to the difference in pricing.
"Investors are likely to be drawn to the internal semiconductors and chip design segment as sensors will become smaller and more efficient, prompting changes in vehicle dimension and output," noted Augustine. "However, entrants will find it difficult to dislodge the market majors due to the latter's successful implementation of diversification strategies."
Overall, components that facilitate process automation, such as timing cycles and fuel mix, will grow quickly, while replacement rates will remain low.
2016 North American Category Management Report—Automotive Sensors is part of Frost & Sullivan's Automotive & Transportation Growth Partnership Subscription. Other topics covered under the subscription include 48v power-net, biometrics, new mobility business models, cockpit and cabin strategies, connected cars, as well as connected truck dashboard and e-Hailing.
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2016 North American Category Management Report—Automotive Sensors
Corporate Communications – North America
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SOURCE Frost & Sullivan