Regulatory Compliance, Sensor Innovation Driving Global Auto Sensor Market

May 02, 2016

Wellesley, Mass., May 2, 2016 – More affordable sensor products and growing regulatory compliance are driving solid growth in the global automotive sensor market.  BCC Research reveals in its new report that the sensor industry should experience robust growth due to mandatory emission regulations and reduced costs associated with sensor manufacturing.

Sensors are devices that transform physical quantities such as pressure or acceleration into output signals that serve as inputs for control systems. The application market for automotive sensors covers power train, body electronics, vehicle security system, safety and control.

The global market for automobile sensors should reach nearly $26.3 billion and $43.4 billion in 2016 and 2021, respectively, reflecting a five-year compound annual growth rate (CAGR) of 10.6%.  Vehicle management systems as a segment, which includes power train systems and vehicle control systems, should achieve higher volume than other applications chiefly because of stricter auto emission control regulations. Safety and support systems as a segment is expected to grow the fastest, at a five-year CAGR of 14.9%.

Increased affordability and regulatory compliance are driving the adoption of innovative sensor technology. Sensor-based designs, which eliminate or support the mechanical systems in place, are possible due to the increasing economies of scale of sensor production. Micro-electromechanical systems (MEMS) and other advanced technologies also have facilitated reliance on sensors for safety applications. MEMS sensors are solid-state, reliable and cost effective, and are used in safety applications such as those controlling air bag activation and dynamic stability. Economies of scale should be achieved by sensor manufacturers to meet growing customer demands.

“The law to control emissions reduces fuel efficiency and the government’s requirements concerning side-door guard beams, energy-absorbing steering columns and other safety features have added about 200 pounds to the weight of an automobile, thus reducing fuel efficiency and increasing more pollution,” says BCC Research analyst Srinivasa Rajaram. “Newer cars with fuel-efficient automatic or continuously variable transmissions require numerous sensors. Thus, automotive manufacturers are seeking to implement more sensors in their products to achieve better fuel economy and to comply with various government regulations.”

Global Markets for Automotive Sensor Technologies (IAS018F) analyzes the global development and deployment of sensing technologies that support and enable the introduction of advanced electronic systems in passenger cars, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs) and buses. The report also examines emerging applications, government regulations, market drivers, and data from 2015, estimates for 2015, and projections of CAGRs through 2021.

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.

Global Markets for Automotive Sensor Technologies( IAS018F )
Publish Date: Apr 2016    

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