Smart phone and automotive segments drive global magnetic sensors market

Wednesday December 11, 2013
Written by Manufacturing AUTOMATION
The rapid proliferation of smart phones and tablets has caused the global magnetic sensors market to boom, according to new analysis from Frost & Sullivan. The report, Analysis of the Global Magnetic Sensors Market, says that this growth curve will continue as declining price points make magnetic sensors affordable for mass-market penetration.

The market earned revenues of US$1.66 billion in 2012, and Frost & Sullivan estimates this to reach $3.51 billion in 2019. The study also outlines the prospective areas of growth globally.

With navigation emerging as a must-have feature in smart phones and cellular handsets, the need for digital compasses has spurred the global magnetic sensors market.

“Moreover, the mandatory fitment of magnetic sensors in vehicles due to regulations from the automotive sector has fuelled sale volumes,” said Frost & Sullivan measurement and instrumentation senior industry analyst V Sankaranarayanan. “Opportunities for magnetic sensor vendors in the automotive industry will continue to open up as new applications emerge.”

However, this immense potential may not translate into equivalent revenues as intense competition leads to pricing pressures. Manufacturers are reducing prices to penetrate markets such as consumer electronics, where a compelling price point is crucial for success. Profits are also affected as automotive manufacturers apply downward price pressure on sensor manufacturers.

To counter these challenges, innovative product differentiation strategies are necessary. Products must move from competing purely on price to non-price factors, especially as customers look for unique solutions with tangible benefits.

“Manufacturers are investing in technological advancements and the widening of magnetic sensor application areas,” noted Sankaranarayanan. “Magnetic sensors have already evolved greatly in terms of sensitivity, size, packaging and flexibility. Miniaturization, in particular, will be a common trend in the global magnetic sensors market.”

Demand from Asia-Pacific and Latin America is likely to push technology and product development further, the report says.

www.sensors.frost.com

Add comment


Security code
Refresh

Subscription Centre

 
New Subscription
 
Already a Subscriber
 
Customer Service
 
View Digital Magazine Renew

Events

Digital Industry USA
September 10-12, 2019
EMO Hannover 2019
September 16-21, 2019
Weidmuller Open House
September 17, 2019

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.