With the automotive sector showing signs of health, more new cars are expected to hit the road over the next several years. Those cars will ultimately include sophisticated sensor-based systems, which has the potential to skyrocket demand for sensors in the U.S, according to a new report from the Freedonia Group, a Cleveland-based industry market research firm.
The study says a rebound in motor vehicle production will boost demand for OEM sensors, which is forecast to increase 6.1% to $13.1 billion in 2014. Products such as tire pressure monitoring and occupant positioning sensors represent a prime opportunity as well in aftermarket opportunities.
The auto industry represents by far the largest market for sensors, according to the report. But when the global economic slump created a sharp downturn in vehicle production, the market fell behind industrial applications in 2009. Over the next four years, however, that market is anticipated to grow 14% annually to $3.9 billion in 2014.
Among the various sensor types, the Freedonia Group estimates that proximity and positioning and chemical property sensors will see the most rapid increases. Much of that growth will come as a result of applying new sensor technology in places they havent been before, such as electronic stability control systems and advanced airbags.
Chemical property sensors, for instance, are being applied at increased rates in the automotive industry due to technological advances that allow for price reduction, sensor miniaturization and greater precision, according to the study.