Widespread use of motor vehicle sensors in control and safety applications

Widespread use of motor vehicle sensors in control and safety applications is a key factor that stimulates the overall demand for the same. Surging demand for motor vehicle sensors has a direct impact on the global market for sensors. Much of the demand from the global sensors market comes from the segment of motor vehicle sensors. Devices and instruments that are used to detect any sort of change or variation in a certain parameter monitored in motor vehicles are known as motor vehicle sensors.

Greater emphasis on Burner motor powertrain performance and fuel efficiency drive the market for motor vehicle sensors. Owing to factors such as regulatory and legal compliance, heightened environmental concern, and government mandates that focus on the use of sensors in motor vehicles, the global motor vehicle sensor market is anticipated to grow at an 11.9% CAGR during the forecast period 2012-2018.

Physical Property Sensors Segment to Witness Robust Growth

There are three main parameters based on which the global motor vehicle sensor market is segmented: application, product type, and geography. Based on application, the motor vehicle sensor market is categorized into emission control, safety and security, engine and drivetrain, and others. With a market share of 34%, the largest application segment in the overall motor vehicle sensor market is engine and drivetrain. It is, however, anticipated that the segment of safety and security will expand rapidly at a 12.9% CAGR during the forecast period.

On the basis of product type, this market is classified into chemical property sensors, proximity and positioning sensors, process variable sensors, physical property sensors, and others. Within the product segmentation, physical property sensors hold the largest share in the global motor vehicle sensor market. Ongoing industry trends indicate that this segment is expected to grow at a CAGR of 12.1% and thereby exceed US$8 billion by the end of the forecast period.

As the name suggests, physical property sensors measure physical features of the vehicles such as vibration, force, and most importantly speed. The segment of proximity and positioning sensors is anticipated to grow robustly between 2012 and 2018 owing to high focus on the protection of vehicles from accidents or thefts. This segment will grow at a CAGR of 12.6% during the forecast period.

Fragmentation: A Characteristic Feature of the Motor Vehicle Sensor Market

Europe, Asia Pacific, North America, and Rest of the World are the four main regional segments of the global motor vehicle sensor market. With a market share exceeding 40%, the Asia Pacific market held the highest share in the overall motor vehicle sensor market in 2012. A key factor that drives the Asia Pacific motor vehicle sensor market is the presence of an expanding automobiles market.

The presence of a large pool of companies holding small shares in the global market makes the motor vehicle sensor market a highly fragmented one. Valeo, Denso, and Bosch are a few of the well known companies operating in the global motor vehicle sensor market. Other major companies in this market are Hitachi Ltd., Eaton Corporation, Delphi, and Continental AG.

What Makes Asia Pacific a Lucrative Market in the Global Market for Vehicle Sensors?

Being one of the largest manufacturers of automobiles in the world, it is the economy that gives a major boost to the overall Asia Pacific motor vehicle sensor market. Furthermore, owing to low costs of production and a growing population, Asia Pacific is proving to be a lucrative market for some of the emerging players in the global motor vehicle sensor market.

High costs of implementation are a glaring restraint to the global motor vehicle sensor market. At present, the global motor vehicle sensor market is witnessing the entry of new market players owing to favorable demand conditions brought about by high demand for automobiles worldwide.