Light vehicle production is expected to grow at a CAAGR (compound annual adjusted growth rate) of four per cent over the period 2006 to 2012. Over the same period, Strategy Analytics expects automotive sensor revenues to grow by 6.8 per cent CAAGR, as carmakers respond to tightening environmental, fuel mileage and safety legislation as well as consumer expectations, by introducing electronically controlled innovations for enhanced performance, comfort and convenience.

"Vehicle makers are using sophisticated electronic systems to create vehicles that are more safe, fuel efficient and environmentally friendly–creating a demand for a higher number of sensors per vehicle," says Mark Fitzgerald, a senior analyst with Strategy Analytics' Automotive Practice.