Thursday, July 01, 2010

#MEMS #Automotive Sensors to Recover in 2010

The market for automotive uses of micro-electro-mechanical systems (MEMS) chips will rebound in 2010, marking the end of the recession according to iSuppli. Look for higher demand, and maybe even supply shortages, for the rest of the year. R.C.J.

The iSuppli forecast includes several interesting predictions about a MEMS automotive sensors rebound in 2010, going so far as to predict that high sales might lead to an "overheated market" where suppliers can't need demand, which it predicts will stay strong through 2014. By then each vehicle will have 11.5 MEMS sensors compared to 8.12 per vehicle today. Units shipped will likewise rise from 520 million in 2009 to 591.2 million units in 2010, with a reported inability to meet demand due to shortages in the supply chain that could continue until 2014, especially in North America which accounts for 40 percent of the total in 2010. Europe is next at one-third market share then China, Japan, South Korea, Russia and Latin America.

Here's what iSuppli says about their own report: Mandates continue to be the main market shaper, with electronic stability systems to become obligatory for vehicles in the United States by 2012 and in the European Union by 2014. Also to become mandatory in Europe by 2014 are tire pressure monitoring systems (TPMS). The developments are expected to boost sales overall: ESC mandates will help propel the sales of gyroscopes, accelerometers and high-pressure sensors, while TPMS mandates will spur MEMS pressure sensor shipments close to 137.9 million by 2014, up from just 42.9 million in 2009...vertically integrated suppliers like Robert Bosch GmbH and Denso Corp. continued to dominate in 2009, pulling in $355 million and $203 million, respectively. Other major revenue earners included Freescale Semiconductor Inc., the foremost independent MEMS sensors supplier, with $139 million; Sensata Technologies, with $115 million; Analog Devices Inc. (ADI), with $95 million; and Panasonic Corp., with $85 million. Both ADI and Panasonic gained market share with gyroscopes, thanks to their profitable contracts—with Continental AG and TRW Inc. in the case of ADI; and with Autoliv for the Ford Motor Co. in the case of Panasonic...
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