Car Industry Puts Sensor Market on Fast Forward

Our cars are quickly evolving from being mechanical machines to electronic powerhouses offering a broad variety of capabilities. These newchanges are going to drastically change the demands on the electronics supply chain.

“Big changes are underway in the passenger care market, said Richard Dixon, senior principal analyst at IHS Markit at the recent Electronic Components Industry Association (ECIA) Executive Conference. “The way we consider cars is generally changing, from ownership versus sharing or rental, creating different ways to interact with cars, and increased awareness of environmental [impact of cars].”

These realities are putting more and more sensors into automobiles and the systems in them.  Last year, the Micro-Electro-Mechanical Systems (MEMS) and sensor industry accounted for $4.5 billion dollars, Dixon said. The market is growing by 5% per year and will go past $6 billion by 2020.

There a several current trends that contribute to these expected sales increases. “Advanced systems are driving the number of components,” Dixon added. “In addition, suppliers are meeting backfilling requirements in emerging markets.” India and China, for example, are creating legislation to make cars safer and more environmentally friendly. These goals require sensors.

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Finally, comfort and infotainment systems will add another layer of sensors. They will be used for noise cancellation features, heads up displays, wireless and battery less seat sensors, indoor air quality sensors, and indoor particulate systems. 

In the future, driverless cars will push demand even higher. By 2023, the number of automated cars will be nascent, and will rise to about three million, Dixon said. “It will take a long time to come to market and will be a natural progression from advanced driver safety systems,” he said. “It will be a small but influential market.”

Another influential market will be connected cars. By 2022, 58% of cars will be connected, Dixon said. In addition, although fully electric cars will be only a small percentage of cars (about 5% of the market, HIS estimated), hybrid cars will begin to dominate to address concerns of environmentally concerned consumers. “That’s good because you have an electric engine with sensors and a motor and transmission system with more sensors,” Dixon said.

Take a look at the infographic below from Southside Motor Factors to get the low down on some of the hottest new features to be found in cars. Let us know in the comment section below which you want on your dream vehicle.

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

1 comment on “Car Industry Puts Sensor Market on Fast Forward

  1. MrPhen375
    November 1, 2017

    Does this mean it is a good time now to invest more in companies in the sensor industry? 

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