Have you noticed that nearly every new car has a set of standard features? Infotainment system, lower emissions and fuel economy, lane assist, backup camera…
The standard for vehicles is changing. Regulations in North America and Europe focus on passenger safety and emissions reduction. Meanwhile, developing markets like China and India are entering a new age of car manufacturing to provide cars to the masses.
Vehicle manufacturers can meet these requirements and keep up with demand. This is thanks to several types of pressure sensors they put into their vehicles. These regulatory and economic factors influence the pressure sensor market and the way it will grow over the next several years.
Keep reading to learn more about the market outlook for pressure sensors for 2017 and beyond.
New Wealth: APAC
Over the past few years, the automotive market has grown tremendously in China and India. In both markets, small engine vehicles (1.6 L) have led the change. These light vehicles are more affordable for consumers and new emissions regulations.
Until November 2016, light vehicle sales increased 13.6% and 8% in China and India respectively.
As these markets continue to grow, so will the need for several types pressure sensors. China, in particular, will show increased demand for emissions and piezoresistive sensors as they pursue their plan to be a world leader in electric vehicles.
Stricter Passenger Safety: Americas
In mature markets like the U.S. and Canada, there’s an emphasis on reducing emissions and increasing passenger safety. With so many vehicles on the road, there is also a new interest in developing self-driving passenger and commercial vehicles.
These trends increase the demand for a variety of sensors that go into fuel monitoring and braking, among others.
Vehicle production is also shifting to Mexico. Vehicle manufacturers are moving plants to Mexico to take advantage of low labor and production costs. Lower costs will lead to more vehicles produced and a greater demand for sensors.
Tougher Emissions: EMEA
The European Union is notorious for its tough regulations, particularly on vehicles. To meet vehicle emissions standards set by the E.U., manufacturers are using more sensors. Many of these sensors are for exhaust after-treatments and engine exhaust management.
Manufacturers are also required to include tire pressure monitoring systems in all vehicles.
Growth for Pressure Sensors
With all the regional markets indicating an increase in pressure sensor usage, what kind of growth can we expect?
According to a study by Technavio, the pressure sensor market is expected to grow at 6% CAGR between 2017 and 2021.
This growth will largely be focused in APAC as new vehicle manufacturing efforts begin there. Mature markets like the U.S., Canada, and the E.U. will experience less growth. However, the market will still grow thanks to new pushes in environmental stewardship and passenger safety.
Want to Learn More?
At Sentech Measurements Inc., we make it our business to know what’s going on in the pressure sensor market to help you make the right decision.
If you have more questions about pressure sensors and their market growth, get in touch with us today!